Cisco Beats Revenue Forecasts as AI Demand Boosts Networking Equipment Sales

Cisco Systems Inc. projected first-quarter revenue above analyst estimates, fueled by surging demand for its networking equipment from cloud customers preparing for AI adoption. The company anticipates revenue between $14.65 billion and $14.85 billion, surpassing the $14.62 billion consensus.

"AI infrastructure orders from webscale customers more than doubled our original targets," CEO Chuck Robbins stated, signaling what he called a "massive architectural shift" toward AI-ready infrastructure. Fourth-quarter revenue of $14.67 billion similarly exceeded expectations.

The networking giant benefits as enterprises modernize IT footprints, with cloud migration and campus network upgrades driving equipment sales. Cisco's performance serves as a bellwether for enterprise technology spending amid the AI infrastructure buildout.