Quick overview

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Cisco Systems’ stock increased after the network equipment behemoth raised its 2026 projection, demonstrating progress in its endeavor to increase spending on AI. In the fiscal year that ends in July, the company, the leading manufacturer of devices that power computer networks and the internet, now anticipates sales of up to $61 billion.

That is roughly $1 billion more than Wall Street estimates and what was previously anticipated. Additionally, Cisco raised its earnings forecast, surpassing analysts’ estimates in the process.

The prediction created fresh optimism that Cisco would benefit from the increase in AI spending. The San Jose, California-based company is improving networking hardware and chips to better connect server racks and data centers in order to manage complex AI tasks.

Cisco Systems (NASDAQ: CSCO) shares surged over 7 percent in after-hours trading after a stellar Q1 fiscal 2026 earnings report that exceeded analyst expectations and included an optimistic full-year forecast, indicating that the company is riding high on the AI wave. The demonstration highlights Cisco’s shift to AI infrastructure and positions it as a major gain from the expansion of hyperscaler data centers. The stock was trading close to $77 as of late, with a push to $80 clearly in sight—possibly a new 52-week high.

According to the company, revenue for the fiscal second quarter, which ends in January, will be between $15 billion and $15.2 billion. That exceeded the $14.7 billion average Wall Street estimate. In contrast to the forecast of 99 cents per share, adjusted earnings will be about $1.02.

The first quarter of the fiscal year ended in October. 25, Cisco’s sales increased by 8% to $14.9 billion. With certain items excluded, the profit was $1 per share. Analysts projected earnings of 98 cents per share and revenue of $14.8 billion. According to the company, orders for AI infrastructure from major cloud providers totaled $1.3 billion during that time. In the previous quarter, Cisco reported sales of $800 million. Robbins has added monitoring software by acquiring Splunk Inc. and concentrated on security products in an effort to diversify. in 2024 for $28 billion.