Cisco forecast fiscal 2027 revenue of $72.2 billion to $73.4 billion after reporting a stronger fourth quarter, according to its results coverage and Reuters. The range was above the $68.69 billion average estimate compiled by LSEG and cited by Reuters. The networking company linked its outlook to demand for infrastructure used by hyperscale cloud providers and enterprises building systems for artificial intelligence workloads.
Fourth-quarter revenue reached $17.25 billion
Cisco’s fourth-quarter revenue increased 17.6% from a year earlier to $17.25 billion. Reuters said analysts had expected $16.82 billion. The reported quarter ended July 25, 2026. The company’s quarterly-results channel and scheduled earnings call provide the primary corporate record, while Reuters independently reported the figures and market comparison after the announcement.
The results exceeded the range Cisco had given in May. In its third-quarter release, the company had forecast fourth-quarter revenue between $16.7 billion and $16.9 billion and non-GAAP earnings per share of $1.16 to $1.18. The new $17.25 billion result was above the upper end of that earlier revenue range, showing that the quarter finished ahead of Cisco’s previous public guidance.
AI infrastructure orders from hyperscalers
Reuters reported that Cisco received $4 billion in AI infrastructure orders from hyperscale customers during the fourth quarter. That brought the fiscal 2026 total to $9.3 billion. Cisco also projected $7.5 billion in fiscal 2027 revenue from AI infrastructure orders associated with hyperscalers. Orders and recognised revenue are different accounting measures, so the two figures should not be compared as if they describe the same period or category.
The company supplies networking equipment used to connect servers and move data inside large computing facilities. Growth in generative AI systems has increased demand for high-capacity switching and related infrastructure. Cisco’s outlook signals that management expects that demand to remain an important contributor, but the forecast is not a guarantee and may change with customer spending, supply conditions and component costs.
Margins remain a point to watch
For the first quarter of fiscal 2027, Cisco forecast an adjusted gross margin of 65% to 66%. Reuters said the market estimate was 66.10%, slightly above the top of Cisco’s range. The report attributed margin pressure to a more hardware-intensive product mix and elevated component costs. That means revenue growth does not automatically translate into the same pace of margin expansion.
Cisco’s previous May guidance had placed fourth-quarter non-GAAP gross margin at 65.5% to 66.5%. The latest first-quarter range concerns a different period, so it is best treated as forward guidance rather than a direct restatement of the completed quarter. Investors will be watching whether the mix of AI networking products changes costs as revenue expands.
Market reaction and the new fiscal year
Reuters reported that Cisco shares fell more than 4% in extended trading after initially rising following the release. The same report noted that the stock had gained more than 60% in 2026 before the announcement, leaving expectations high. Short-term share movements can reflect positioning and expectations as well as the underlying results, and they do not change the figures in the company’s financial report.
The confirmed development is Cisco’s $72.2 billion to $73.4 billion fiscal 2027 revenue forecast, the $17.25 billion fourth-quarter result and the disclosed AI infrastructure order totals. The company’s outlook remains forward-looking. Subsequent quarterly reports will show whether demand, revenue recognition and margins develop within the ranges Cisco has provided.
