Cisco Raises AI Revenue Goal to $9 Billion After Quarterly Earnings Beat

Cisco lifted its fiscal-year target for revenue from AI infrastructure sold to hyperscalers to $9 billion after its first-quarter sales and adjusted earnings exceeded analyst expectations. Shares moved higher in extended trading on Nov. 12, and the company also gave a second-quarter outlook above analyst averages.

Cisco posted adjusted earnings of $1.40 per share, compared with the $1.33 estimate. Revenue was $18.5 billion, $400 million above the $18.1 billion forecast.

Revenue grew 24% from $14.88 billion in the year-earlier period. Net income rose to $4.6 billion from $2.9 billion, while net income per share increased to $1.14 from 72 cents. Adjusted earnings and net income per share are separate measures in the reported results.

The $9 billion AI infrastructure target is more than double Cisco's fiscal 2026 figure. The company is seeking a larger role in AI infrastructure after missing the early years of generative AI growth. CEO Chuck Robbins said organizations are turning to Cisco to help them “scale, secure and optimize their environments.”

For its fiscal second quarter, Cisco projected revenue of $18 billion to $18.2 billion. Both ends of that range are above the $17.88 billion average analyst estimate. The company forecast adjusted earnings of $1.34 to $1.36 per share, compared with the $1.23 estimate.

Cisco shares had gained about 35% through the Nov. 12 close, while the Nasdaq was up about 9%. The results followed TokenPost's earlier earnings preview.