Cisco Raises 2027 Outlook as AI Infrastructure Sales Surge

Key Takeaways

• Cisco posted record fiscal Q1 2027 revenue of $18.5 billion, up 24%, with adjusted EPS of $1.40; networking revenue rose 43% to $11.1 billion.
• Cisco raised its fiscal 2027 outlook to $74.8 billion–$75.8 billion in revenue and $5.47–$5.53 in adjusted EPS, and now expects $9 billion in hyperscaler AI infrastructure revenue.
• Cisco cited 18 AI design wins in five quarters and expects continued data-center investment, while gross-margin pressure and analyst valuation concerns remain.
• Snowflake says Gartner named it a Leader in its first Data Lakehouse Platforms Magic Quadrant; Indeed reported 60% faster queries and 45% lower infrastructure costs after reducing clusters from 10 to four.
• Companies are scrutinizing AI returns: Meta cites rising token costs, Jack Henry reviews Microsoft Copilot access, and PwC emphasizes client needs and employee training.
• Meta’s Muse, Instinct and other assistants are starting to make card purchases, while Stripe targets agentic commerce and JPMorgan Chase expresses skepticism.
• Anthropic set a $70–$78 share-price range for its expected debut; at the top, the offering could raise up to $64.4 billion and imply a valuation of about $1.4 trillion.
• BrainChip released Sequora for edge generative AI and LLM inference, but its cash fell to $16.4 million and customer adoption and licensing remain uncertain.
• Elsight reported $25.8 million in unaudited nine-month revenue; BluGlass is pursuing gallium nitride laser projects and arranged $8.0 million in research funding.
• Reports describe continued excess demand for AI computing capacity alongside concern about buildout costs and timing, renewed AI-stock declines amid Nvidia turmoil, and Moonshot AI restructuring ahead of a possible IPO.

Cisco expects $9 billion in AI infrastructure revenue by fiscal 2027

Cisco reported record first-quarter revenue of $18.5 billion, up 24% from a year earlier, and non-GAAP earnings per share of $1.40, up 40%. CEO Chuck Robbins said networking product orders rose 28%, with growth across every product family. Cisco expects its AI infrastructure revenue from hyperscalers to reach $9 billion in fiscal 2027, more than double its fiscal 2026 level. Robbins pointed to AI demand, sovereign infrastructure, hybrid data centers and network upgrades as reasons for continued growth.

AI demand drives Cisco networking and security growth

Cisco reported calendar third-quarter 2026 revenue of $18.52 billion, up 24.4% from a year earlier and above analyst expectations. Adjusted earnings were $1.40 per share, also beating forecasts, and the company raised its full-year revenue and adjusted earnings outlook. Management said demand for networking and security, especially from hyperscalers and businesses investing in AI infrastructure, fueled growth. Orders rose across product groups and regions, while Cisco highlighted its campus network upgrades, security business and operational efficiency as areas supporting future results.

Cisco raises revenue outlook as AI networking demand grows

Cisco reported fiscal 2027 first-quarter revenue of $18.5 billion on November 12, up 24% year over year, and adjusted earnings of $1.40 per share. It raised its full-year revenue forecast to $74.8 billion to $75.8 billion and increased its expected AI infrastructure revenue from hyperscalers to $9 billion. Networking revenue rose 43% to about $11.1 billion, while security, collaboration and observability grew between 2% and 8%. Cisco’s non-GAAP operating margin reached a record 37.8%, although its adjusted gross margin fell to 65.6% from 68.1% a year earlier. For the second quarter, the company forecast revenue of $18.0 billion to $18.2 billion and non-GAAP earnings of $1.34 to $1.36 per share.

Cisco’s AI growth outlook draws bullish and cautious forecasts

Cisco shares closed at $102.01 on November 13, 2026, up 1.24% that day and about 32% for the year. The company’s strong first-quarter results and higher fiscal 2027 guidance have supported a positive Wall Street outlook. A 28-analyst compilation from S&P Global showed a consensus Buy rating and an average 12-month price target of $133.42, with estimates ranging from $109 to $170. JPMorgan and Bank of America maintained Buy ratings and $150 targets, while Morgan Stanley cut its rating to Equal Weight and lowered its target from $135 to $120, citing valuation and possible margin pressure.

Cisco raises AI revenue outlook after sales jump 24%

Cisco reported fiscal 2027 first-quarter revenue of $18.5 billion on November 12, 2026, up 24% year over year, and raised its expected AI infrastructure revenue from hyperscalers to $9 billion. Networking revenue climbed 43% to $11.1 billion, while total product revenue rose 32% to $14.7 billion. GAAP net income increased 59% to $4.6 billion, and non-GAAP earnings per share rose 40% to $1.40. Cisco raised its full-year revenue forecast to $74.8 billion to $75.8 billion and its non-GAAP earnings outlook to $5.47 to $5.53 per share. The company also declared a quarterly dividend of $0.42, payable January 20, 2027, to stockholders of record on January 4.

Cisco lifts outlook as AI infrastructure revenue could double in fiscal 2027

Cisco reported results that beat expectations and raised its fiscal 2027 outlook, citing strong demand for AI networking infrastructure. The company expects AI infrastructure revenue to reach $9 billion in fiscal 2027, more than double its fiscal 2026 total. CEO Chuck Robbins said Cisco is in the early stages of a multiyear network supercycle. Cisco’s gross margin was 65.6%, down from 68.1% a year earlier, partly amid higher memory chip costs. For the current quarter, Cisco expects earnings of $1.34 to $1.36 per share and sales of $18 billion to $18.2 billion.

Cisco posts record $18.5 billion quarter and raises AI revenue forecast to $9 billion

Cisco’s revenue rose 24% to a record $18.5 billion in the quarter ended October 24, 2026. Networking product revenue increased 43% to $11.1 billion, while adjusted earnings per share reached $1.40. Cisco expects about $9 billion in AI infrastructure revenue from hyperscalers in fiscal 2027, up from its earlier $7.5 billion forecast and roughly $4 billion in fiscal 2026. It raised its fiscal 2027 revenue outlook to $74.8 billion to $75.8 billion and adjusted earnings per share outlook to $5.47 to $5.53. Product orders grew 21%, while GAAP gross margin fell to 63.7% from 65.5% a year earlier.

Cisco raises outlook as CEO says US AI data centers will still be built

Cisco CEO Chuck Robbins said political resistance to AI data center construction after the US midterm elections would not stop the buildout. He said Cisco has not seen demand shift away from the United States and expects the political issues to be resolved. For the quarter ended October 24, Cisco reported revenue of $18.5 billion, up 24%, and adjusted earnings per share of $1.40, up 40%. The company raised its fiscal 2027 revenue forecast to $74.8 billion to $75.8 billion and its adjusted earnings forecast to $5.47 to $5.53 per share. Cisco also raised its fiscal 2027 AI infrastructure revenue forecast from hyperscale customers to $9 billion and said it had secured 18 AI design wins over the past five quarters.

Three Australian hardware firms advance AI, connectivity and laser projects

Elsight, Nanoveu and BluGlass are pursuing different opportunities in connectivity, edge AI and photonics. Elsight reported about USD 25.8 million in unaudited revenue for the nine months ended September 2026, exceeding its full-year 2025 revenue, and held about USD 59.4 million in cash with no borrowings at September-end. Nanoveu expanded global access to its edge-AI evaluation hardware through electronics distribution. BluGlass is working on gallium nitride laser programs, including a USD 1.0 million Phase II engagement with Uviquity and a separate assessment worth about AUD 286,000, and arranged AUD 8.0 million in research funding. The article notes that customer orders, product integration and qualification will be important in turning development work into lasting sales.

BrainChip releases Sequora as cash falls to USD 16.4 million

BrainChip Holdings Limited ended the September quarter with USD 16.4 million in cash, down from USD 20.3 million, while net operating cash outflow declined to about USD 4.3 million. Customer cash receipts increased to about USD 0.27 million from USD 0.15 million in the previous quarter, mainly from chip and board sales. The company released its Sequora intellectual property for edge-based generative AI and large-language-model inference. BrainChip also received about 20,000 AKD1500 chips to support customer orders and production of M.2 and PCIe evaluation boards. The article says licensing talks, customer qualification and market adoption remain uncertain, and research and development was the largest payment category at USD 2.1 million.

Snowflake earns top marks in Gartner’s first lakehouse ranking

Gartner published its first Magic Quadrant for Data Lakehouse Platforms on Nov. 4, followed by Critical Capabilities on Nov. 5. Snowflake says it was named a Leader and scored 4.29 out of 5 for warehouse modernization without migration and 4.23 for Unified Analytics Data Platform. Its Horizon Catalog, built on Apache Polaris, supports Iceberg tables and offers controls such as masking and row access rules. Snowflake also points to customer examples, including Indeed, which cut its compute clusters from 10 to four while making queries 60% faster and lowering infrastructure costs by 45%.

AI infrastructure demand remains strong after midterm market swings

After the 2026 midterms, investors reassessed how quickly AI infrastructure can be built, and markets priced in a possible slowdown. The article says this shift reflects concerns that infrastructure projects may take longer and cost more, partly because election outcomes could affect permits and development decisions in some markets. However, it says demand for AI computing power continues to exceed supply. The author sees a long-term investment opportunity in companies tied to AI infrastructure and capacity.

AI assistants begin making purchases with credit cards

Recent advances have enabled Meta’s Muse, Instinct and other personal AI assistants to make purchases for cardholders. This could move consumer payments toward a future where people do not need to start purchases or press the buy button at checkout. The change has raised excitement and sparked a contest over who will control AI-powered payments. Stripe is positioning itself in agentic commerce, while JPMorgan Chase is skeptical.

Companies shift AI spending toward measurable business value

After years of encouraging broad AI use, companies are now weighing costs and asking for clear returns before funding or expanding projects. Meta’s Heidi Rhodes said experimentation helped the company find useful workflows, but rising token bills changed how leaders judge AI investments. Jack Henry & Associates began with governance and regularly reviews access to Microsoft Copilot, while PwC focuses on client needs and trains employees to use suitable tools and models. Executives say companies should measure how time savings are used, not just count efficiency gains. They also advise applying AI to areas where a company already has an advantage, rather than treating saved time as a reason to cut staff.

Moonshot AI restructuring sets stage for a possible IPO

Chinese AI startup Moonshot AI is completing a corporate restructuring that could prepare it for an initial public offering. The company operates mainly in China and has a holding company incorporated in the Cayman Islands. Many early investors put money into that entity in dollars. Moonshot is now deactivating the holding company and transferring investors’ stakes to its main operating entity in China, according to people familiar with the matter.

Latvia’s Saeima speaker urges MPs to use AI for faster work

Latvian Parliament Speaker Edvards Smiltēns of the United List said members of the Saeima should use artificial intelligence. He said AI could help them get analytical information faster and advance their initiatives. Smiltēns made the comments Friday in an interview with Latvian Television.

Anthropic CEO highlights AI safety and a strict hiring culture

Anthropic chief executive Dario Amodei spoke to investors about AI safety and the company’s hiring culture ahead of its expected stock market debut. He said Anthropic focuses on business customers and coding tools because that approach works with its safety goals. The company set a share price range of $70 to $78, and its stock, under the ticker ANT, was expected to start trading Thursday. At the top of the range, the offering could raise up to $64.4 billion and value Anthropic at about $1.4 trillion, including employee stock options and restricted shares. Amodei said he spends 40 to 50 percent of his time on talent and culture, and that every hire takes a culture interview.

Neocloud and AI stocks fall again amid Nvidia turmoil

Neocloud and AI stocks fell again as turmoil at Nvidia rattled the sector. The article includes an illustration dated November 12, 2026, showing a silhouette of Jensen Huang, the NVIDIA logo, and a falling stock graph. The provided article content does not include further details about the market decline.

Sources

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• Cisco beats expectations, lifts guidance and forecasts AI infrastructure revenue to double in fiscal 2027
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