AI infrastructure demand keeps skyrocketing, bringing solid revenues to data centre tech providers such as Cisco.
Cisco Systems reported a better-than-expected start to its fiscal year, driven by strong demand for artificial-intelligence (AI) infrastructure and next-generation networking products.
The tech company’s first-quarter revenue reached approximately $14.88 billion, an increase from a year earlier, supported by growth in AI-related orders. Cisco’s AI offering includes high-performance networking hardware for AI data centers, such as Silicon One switches, routers, and optical interconnects used to link large GPU clusters. It also provides AI-ready data-center platforms for enterprises, upgraded campus and edge networks to support AI applications, and AI-enabled security and IT-management tools that automate threat detection and network operations.
Cisco announced it has secured more than $2 billion of AI infrastructure orders from hyperscale customers in fiscal 2025, with a growing pipeline exceeding $2 billion for high-performance networking products across enterprise and sovereign customers. Furthemore, the company expects $3 billion in AI-infrastructure revenue from hyperscalers in fiscal 2026.
As enterprises and cloud service providers accelerate AI roll-outs, the need for high-performance, secure networking and data-centre infrastructure is rapidly growing. Cisco appears well-positioned to capture this shift. Fuelled by impressive performance, Cisco’s stock has gained about 22% so far this year, outperforming the S&P 500.
The firm’s full-year revenue guidance has been raised to between $60.2 billion and $61 billion, and adjusted earnings per share are now forecast at $4.08 to $4.14. The upgraded outlook signals the company’s confidence in sustained investment across its AI-infrastructure ecosystem.
Despite the strong momentum, some analysts urge caution. Competition in networking hardware is intense, and there’s risk of slower enterprise spending if budget headwinds intensify.
