Cisco CEO Robbins Says AI Demand Behind Strong Forecast
November 13, 2025
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7:08Now PlayingCisco CEO Robbins Says AI Demand Behind Strong Forecast
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as posted by the channelCisco Systems Inc. shares gained on Thursday after the network-equipment giant boosted its 2026 forecast, showing progress in its effort to capture more artificial intelligence spending.
The company, the top maker of machines that run computer networks and the internet, now expects sales of as much as $61 billion in the fiscal year ending in July, it said in a statement on Wednesday. That’s about $1 billion more than it previously expected and higher than Wall Street estimates. Cisco also increased its earnings forecast, which similarly topped analysts’ predictions.
The shares rose as much as 7.5% after markets opened in New York on Thursday. Cisco had been up 25% this year through Wednesday’s close.
The outlook sparked fresh optimism that Cisco can benefit from booming AI spending. The San Jose, California-based company is updating chips and networking gear to better connect server racks and data centers in order to handle complicated AI tasks.
It’s vying with companies like Broadcom Inc. and Juniper Networks owner Hewlett Packard Enterprise Co. in that market. But Cisco has teamed up with top chipmaker Nvidia Corp. to help give it an edge.
Demand for Cisco’s technology highlights the need for secure networking “as customers move quickly to unlock the potential of AI,” Chief Executive Officer Chuck Robbins said in the statement.
Cisco expects earnings of $4.14 a share in fiscal 2026, excluding some items. That compares with an average estimate of $4.05 a share, according to data compiled by Bloomberg.
During a conference call with analysts, Robbins said that the AI opportunity would ramp up during the second half of the fiscal year.
Revenue will be $15 billion to $15.2 billion in the fiscal second quarter, which runs through January, the company said. That topped the average Wall Street estimate of $14.7 billion. Adjusted earnings will be roughly $1.02 a share, compared with a projection of 99 cents.
In the fiscal first quarter, which ended Oct. 25, Cisco sales rose 8% to $14.9 billion. Profit amounted to $1 a share, excluding some items. Analysts had predicted revenue of $14.8 billion and earnings of 98 cents a share.
AI infrastructure orders from large cloud providers totaled $1.3 billion in the period, the company said. Cisco posted $800 million in such sales in the prior quarter.
In a bid to diversify, Robbins has focused on security products and added monitoring software by acquiring Splunk Inc. for $28 billion in 2024.
“Cisco’s AI momentum hasn’t abated,” Bloomberg Intelligence analyst Woo Jin Ho said in a note. Even with the forecast increase, the outlook may still be conservative, he said, “with room for modest upside.”
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