Cisco Sees Big Opportunities In AI Infrastructure

Cisco Systems beat expectations for the fourth quarter but offered a cautious outlook for fiscal 2026, even as the networking giant sees massive opportunities in artificial intelligence infrastructure.

For the first quarter, Cisco expects earnings in the range of 97–99 cents a share and revenue of $14.65–$14.85 billion. (Photo: Terence One Wikimedia Commons)

CEO Chuck Robbins said AI infrastructure orders in 2025 were more than double their target, Liz Moyer and Angela Palumbo reported for Barron’s Daily.

Fourth-quarter revenue for Cisco’s networking segment—its largest division, which includes equipment used in AI data centers—was $7.63 billion, up 12% from a year earlier.

Overall, Cisco reported adjusted earnings of 99 cents a share on revenue of $14.7 billion. AI infrastructure orders from web-scale customers topped $800 million in the quarter, bringing the 2025 total to more than $2 billion, double its original $1 billion estimate.

Product orders overall rose 7% in the quarter and were up across all geographies.

For the first quarter, Cisco expects earnings in the range of 97–99 cents a share and revenue of $14.65–$14.85 billion, in line with analyst forecasts.

The company has also been expanding its security and monitoring software business since its $28 billion acquisition of Splunk last year.

Robbins told analysts that as companies enter the next phase of AI—with agents autonomously conducting tasks alongside humans—networks will face unprecedented traffic volumes and heightened security needs.

He added that 97% of businesses believe they need to upgrade their networks.

For 2026, Cisco is forecasting adjusted earnings of $4–$4.06 a share and revenue between $59 billion and $60 billion, also in line with Wall Street expectations.