Cisco Soars 8% as AI Networking Boom Fuels $60B+ Revenue Surge

Cisco's stock just got a turbocharged upgrade—thanks to AI-driven networking demand that's pushing revenue projections into the stratosphere. Wall Street's favorite legacy tech giant is suddenly looking relevant again.

• AI Gold Rush: Networking hardware orders spike as enterprises scramble to build AI infrastructure.
• Guidance Shock: Company raises full-year revenue forecast to $60.2B-$61B—blowing past analyst estimates.
• Legacy Tech Wins: In a twist nobody saw coming, Cisco becomes an AI play (or at least tries to convince investors it is).

The real question? Whether this is sustainable growth or just another 'pump-and-hold' maneuver by a company that missed the cloud revolution. Either way, traders are buying the hype—literally.

AI orders increase as Cisco builds partnerships and updates hardware

Cisco CEO Chuck Robbins, speaking to analysts during a conference call, said the company expects the AI pipeline to accelerate in the second half of fiscal 2026.

Chuck said customers are moving fast to unlock AI systems, and that networks must stay secure as workloads expand. The company also said late Wednesday that AI infrastructure orders reached $1.3 billion in the most recent period, compared with $800 million in the quarter before that.

Executives said Cisco is redesigning chips and routing systems to handle heavier AI traffic, with upgrades meant to connect large racks of servers used for advanced training models and other compute‑heavy tasks.

Cisco is competing against Broadcom and Hewlett Packard Enterprise, which owns Juniper Networks, but the business is also working with Nvidia through a partnership that the company says gives it an advantage in building AI‑optimized network equipment.

During the fiscal first quarter, which ended October 25, Cisco reported $14.9 billion in revenue, showing an 8% rise from the previous year. Profit landed at $1 per share, excluding certain items.

Analysts tracking the numbers estimated revenue WOULD hit $14.8 billion and earnings would reach 98 cents, results the company managed to beat.

For the fiscal second quarter that runs through January, Cisco expects revenue of $15 billion to $15.2 billion, above the $14.7 billion prediction from analysts, with earnings of $1.02 per share, compared with an expected 99 cents.

Bloomberg Intelligence analyst WOO Jin Ho wrote that the company’s AI momentum has not slowed and said the higher forecast still looks cautious, adding that there could be room for limited upside if demand keeps rising.

Cisco CFO Mark Patterson said demand for updated networking gear continues to build, noting that a multi‑year campus refresh cycle is starting to gain pace across large customers.

Cisco expands through security, training, and AI‑powered development

Cisco is broadening its product line through security and observability tools, and the largest step came in 2024 when it bought Splunk for $28 billion.

Chuck has pointed to the deal as part of a plan to reduce exposure to hardware cycles while deepening the company’s software business.

Inside the company, employees are being pushed to use AI tools rather than face layoffs. Chuck told CNBC earlier that he does not want to cut engineers and instead wants the current team to innovate faster and be more productive.

The approach contrasts with companies like Amazon, Microsoft, and Accenture, which cut staff during the broader shift toward automation.

Chief information officer Fletcher Previn, speaking about internal development, said 70% of the company’s 20,000 developers log into AI coding tools such as Cursor, Windsurf, and GitHub Copilot at least once a month.

Fletcher said AI‑generated code now accounts for nearly a quarter of all the code produced inside the company, up from 4% the year before.

Global head of talent acquisition Scott McGuckin told Fortune that managers who use AI encourage teams to adopt the tools faster. Scott said:

“While I haven’t placed any mandatory AI training on my immediate team, I highly expect them to be taking advantage of the AI tools and courses available in the company. Those who do, show me their creativity, productivity, and strategic thinking.”

As of Wednesday’s close, Cisco shares were up 25% for the year, ahead of the Nasdaq’s 21% gain.

Want your project in front of crypto’s top minds? Feature it in our next industry report, where data meets impact.