The hardware giant exceeded first-quarter expectations by posting $18.5 billion in revenue and adjusted earnings of $1.40 per share. To capture broader enterprise demand, the company is developing software tools designed to deploy AI agents that protect infrastructure against digital threats. Even with upgraded annual targets, rising component expenses stemming from a memory chip shortage pushed gross margins down from the previous year's levels.
Key points
Big Tech infrastructure spending is broadening from artificial intelligence processors in…: Big Tech infrastructure spending is broadening from artificial intelligence processors into vital data center networking equipment.
Memory chip shortages and elevated component costs continue to weigh on hardware profit m…: Memory chip shortages and elevated component costs continue to weigh on hardware profit margins despite strong customer demand.
Cisco is expanding beyond traditional physical hardware by engineering software tools tha…: Cisco is expanding beyond traditional physical hardware by engineering software tools that deploy AI agents for cybersecurity protection.
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Nov 12 : Cisco beat Wall Street estimates for first-quarter results and raised its annual revenue forecast on Thursday, as the network-gear maker benefits from strong demand from companies building out their AI infrastructure.
The company has doubled down on its AI efforts by making strategic investments as Big Tech's massive spending moves beyond AI processors to the switches and routers required to connect large data-center systems.
Cisco expects fiscal 2027 revenue in the range of $74.8 billion to $75.8 billion, compared with its previous forecast of $72.2 billion to $73.4 billion.
"We are in the very early stages of a multi-year networking supercycle," CEO Chuck Robbins said in a statement.
The company raised its fiscal 2027 forecast for AI infrastructure revenue from hyperscalers to $9 billion from $7.5 billion.
Meanwhile, Cisco is also building software tools that businesses can use to build their own armies of bots, known as AI agents, to protect their IT infrastructure against cybersecurity threats.
Cisco reported first-quarter revenue of $18.5 billion, compared with analysts' average estimate of $18.14 billion, according to data compiled by…
Personal misconduct revelations involving senior corporate and foreign contacts triggered the immediate exit of Nvidia's decades-long leader, wiping out $550 billion in market value within five days. The abrupt transition has catalyzed bipartisan national security inquiries in Washington over foreign intelligence vulnerabilities. Interim leadership has stepped in while the board investigates potential corporate exposure and works to steady the artificial intelligence semiconductor pioneer.
The Nvidia-backed cloud infrastructure firm is navigating massive expansion alongside deepening financial losses as demand for artificial intelligence workloads escalates. Its updated regulatory paperwork provides investors with their first look at third-quarter results ahead of a planned New York listing. The steep trajectory demonstrates both the immense capital requirements and rapid sales acceleration typical of emerging AI data center operators.
Nvidia's board is seeking a new chief executive officer to succeed Jensen Huang. Industry circles are currently discussing four potential candidates to take over the role. Experts emphasize that the next leader will need a rare combination of technical vision and business acumen to guide the company forward.