Archive · 13 Nov 2025
Cisco Shares Jump on AI-Driven Sales and Earnings Outlook
Imagine Cisco makes the roads and traffic lights for the internet.
Now, with super-smart computers called AI, lots more data needs to travel really fast.
Cisco is making better roads and lights so these AI computers can talk to each other easily.
Because of this, Cisco told everyone they expect to make a lot more money next year than they thought before.
This made investors happy, and the price of Cisco's stock went up a lot.
They are working with other companies like Nvidia to make their AI roads even better.
They also bought a company called Splunk to help manage all this information.
Cisco's boss said the really big AI business will start speeding up later next year.
Cisco shares rose significantly in after-hours trading following an optimistic financial outlook.
The company increased its 2026 sales forecast to up to $61 billion and raised its earnings per share projection.
Cisco is benefiting from increased spending on artificial intelligence infrastructure, with AI orders reaching $1.3 billion in the latest quarter.
The company is upgrading its networking gear and collaborating with Nvidia to support complex AI tasks.
Cisco recently acquired Splunk for $28 billion to diversify and strengthen its security and monitoring software offerings.
- Who
- Cisco Systems Inc.
- What
- Shares surged and the company raised its 2026 sales and earnings forecasts, exceeding analyst expectations, driven by AI spending.
- When
- After releasing its latest financial report, with the forecast for the fiscal year ending July. Fiscal second quarter ends in January.
- Where
- San Jose, California (company headquarters)
- Why
- Increased demand for AI-related networking technology and infrastructure, as well as strategic acquisitions like Splunk.
Analyst Optimism
Conservative Outlook
AI Opportunity Impact
Analyst Optimism
Bloomberg Intelligence analyst Woo Jin Ho suggests that Cisco's AI momentum is strong and the forecast may be conservative, implying potential for further upside.
Conservative Outlook
CEO Chuck Robbins indicated that the AI opportunity would primarily ramp up during the second half of the fiscal year, suggesting a phased impact rather than immediate full realization.
- Company
- Cisco Systems Inc.
- Stock Movement
- Shares surged 7-8% in after-hours trading
- Fiscal Year 2026 Sales Forecast
- Up to $61 billion
- Fiscal Year 2026 Earnings Per Share Forecast
- $4.14 (excluding some items)
- Fiscal Second Quarter Revenue Forecast
- $15 billion to $15.2 billion
- Fiscal Second Quarter Earnings Per Share Forecast
- $1.02 (adjusted)
- AI Infrastructure Orders (Recent Quarter)
- $1.3 billion
- Acquisition
- Splunk Inc. for $28 billion in 2024