Cisco forecasts $7.5B in AI sales as stock falls 4%
Cisco just shared its first full-year AI sales forecast: $7.5 billion in sales tied to the AI data center boom this fiscal year, aiming for 10% of total revenue by fiscal 2027.
But investors were hoping for more, so the stock dropped 4% after-hours.
Over the past year, Cisco landed $9.3 billion in AI-related orders, including a strong $4 billion in the last quarter.
Cisco Q4 revenue $17.3B EPS $1.22
Even with the lukewarm AI outlook, Cisco's fourth-quarter results actually beat expectations: revenue jumped 18% to $17.3 billion and profits per share came in higher than predicted at $1.22.
CEO Chuck Robbins explained its cautious approach to forecasting as "These are non-linear orders that are massive in scale and are usually placed well ahead of time."
Meanwhile, Cisco's security business grew by 14%, and the company is reorganizing to get ahead in the booming AI data center market.