Cisco (CSCO) Stock: Jumps Premarket As Company Smashes Earnings

TLDR

• Cisco (CSCO) stock rose 7.22% in premarket trading after the company raised its annual revenue and profit forecasts
• The networking equipment maker secured $2 billion in AI-related orders for fiscal 2025, primarily from hyperscalers
• Cisco projects $3 billion in AI infrastructure revenue for fiscal 2026
• The company increased fiscal 2026 revenue guidance to $60.2-$61 billion from $59-$60 billion
• AI infrastructure orders from hyperscalers totaled $1.3 billion in the quarter ending October 25

Cisco stock jumped 7.22% in premarket trading Thursday following the company’s decision to raise annual revenue and profit forecasts. The move comes as strong cloud infrastructure demand continues to boost the networking equipment maker’s business.

Cisco Systems, Inc., CSCO

The company announced it secured over $2 billion in AI-related orders for fiscal 2025. Nearly all these orders came from hyperscaler customers.

CEO Chuck Robbins shared the results Wednesday. He also revealed the company expects $3 billion in AI infrastructure revenue during fiscal 2026.

Hyperscaler Orders Fuel Growth

AI infrastructure orders from hyperscalers reached $1.3 billion during the quarter that ended October 25. These cloud computing giants are expanding their data center capacity at a rapid pace.

Cisco provides networking equipment to cloud providers, enterprise customers, and telecommunications companies. The firm has benefited as businesses accelerate cloud migrations and upgrade their network infrastructure.

J.P. Morgan analysts noted the strong momentum in enterprise customer orders. They believe this will support continued growth in campus network upgrades.

Analysts emphasized that investor focus remains on AI order momentum. The pace of growth has exceeded expectations.

Major technology companies are driving demand. Alphabet, Microsoft, Meta, and Amazon have all announced increased capital spending on data centers and chips.

Revenue Outlook Increases

Cisco raised its fiscal 2026 revenue forecast to $60.2 billion to $61 billion. The previous guidance ranged from $59 billion to $60 billion.

Robbins highlighted a growing sales pipeline exceeding $2 billion. This pipeline covers high-performance networking products for sovereign customers, neocloud providers, and enterprise clients.

The stock has gained nearly 25% year to date. This performance reflects investor optimism about Cisco’s role in AI infrastructure buildout.

Cisco trades at a forward price-to-earnings ratio of 17.73. Arista Networks trades at 40.90, while Dell Technologies sits at 12.83.

AI Infrastructure Momentum Continues

The bulk of fiscal 2025 AI orders came from hyperscalers. These massive cloud providers require extensive networking infrastructure for their data center operations.

The quarter ending October 25 marked strong performance for AI infrastructure orders. The $1.3 billion figure demonstrates sustained demand from hyperscaler customers.

Cisco expects this momentum to carry into fiscal 2026. The projected $3 billion in AI infrastructure revenue represents substantial growth in this business segment.

Robbins confirmed the company is seeing increased demand across multiple customer segments. The $2 billion pipeline for high-performance networking products spans sovereign, neocloud, and enterprise buyers.

Cisco secured $2 billion in AI orders for fiscal 2025 and raised fiscal 2026 revenue guidance to $60.2-$61 billion after reporting $1.3 billion in hyperscaler orders.

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