Cisco Systems (CSCO) shares surged approximately 7% in premarket trading after the company raised its annual profit and revenue outlook, driven by solid cloud demand. Cisco, a vital provider for cloud and telecom customers, has capitalized on increased AI infrastructure spending, resulting in nearly 25% stock growth this year. CEO Chuck Robbins announced over $2 billion in AI-related orders for fiscal 2025, primarily from hyperscalers, and forecasts $3 billion in AI infrastructure revenue for 2026. AI orders reached $1.3 billion in the most recent quarter. Analysts at J.P. Morgan suggest strong enterprise customer orders may support a campus refresh cycle, even as investor attention centers on accelerating AI order momentum. As tech giants like Alphabet and Microsoft plan to enhance spending on data centers, Cisco expects fiscal 2026 revenue between $60.2 billion and $61 billion, compared to previous estimates of $59-$60 billion.
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