Cisco raised its fiscal 2027 AI infrastructure revenue outlook from hyperscalers to $9 billion from its previous $7.5 billion forecast.
- Citi cut its price target on Cisco to $120 from $139, maintaining a ‘Buy’ rating.
- Barclays said gross margins are holding up better than feared despite a higher hyperscaler AI revenue mix.
- Wells Fargo flagged Cisco’s product order growth deceleration as a key investor focus.
Cisco Systems (CSCO) raised its 2027 artificial intelligence (AI) revenue outlook, but the networking giant’s latest guidance suggests growth peaked in the October quarter, Citi said in its note to investors, according to TheFly.
Citi described Cisco’s fiscal first-quarter results as solid, supported by continued strength in networking. However, the firm lowered its price target to $120 from $139, citing lower market valuation multiples, while maintaining a ‘Buy’ rating, according to the note cited by TheFly.
At the time of this writing, CSCO stock was down over 3% in the premarket session.
Barclays, Wells Fargo Slash Price Targets
Cisco reported a non-GAAP gross margin of 65.6% in the first quarter (Q1), compared with 68.1% a year earlier.
Barclays said Cisco’s gross margins are holding up better than feared even with a higher mix of hyperscaler AI revenue, per TheFly. The firm lowered its price target to $109 from $123 while maintaining an ‘Equal Weight’ rating.
Meanwhile, Wells Fargo said Cisco’s quarterly results and guidance were well above expectations, although slowing product order growth remains a key focus for investors. It cut its price target to $130 from $150 due to broader market valuation compression, retaining an ‘Overweight’ rating.
Cisco Raises AI Revenue Forecast To $9B
Cisco reported record Q1 revenue of $18.5 billion, up 24% year-over-year from $14.9 billion. The revenue topped Fiscal.ai’s consensus estimate of $18.1 billion. Networking product revenue climbed 43% during the quarter.
Non-GAAP earnings per share (EPS) rose to $1.40 from $1 a year earlier, exceeding Cisco’s previous guidance, and beating the analyst estimate of $1.3.
Cisco raised its fiscal 2027 AI infrastructure revenue outlook from hyperscalers to $9 billion from $7.5 billion, more than double the approximately $4 billion generated in fiscal 2026. The company also raised its fiscal 2027 revenue forecast to between $74.8 billion and $75.8 billion.
The software firm now expects full-year non-GAAP EPS of $5.47 to $5.53. For the second quarter, Cisco guided revenue of $18 billion to $18.2 billion and non-GAAP EPS of $1.34 to $1.36.
What Retail Thinks About CSCO Stock
On Stocktwits, retail investors’ sentiment around CSCO stock remained in the ‘extremely bullish’ territory. The stock was among the top-trending tickers on the platform.
Cisco shares have risen over 34% so far in 2026. In comparison, the Invesco NASDAQ 100 ETF (QQQM) and the Vanguard Morningstar Value ETF (VTV), which hold the stock, have risen over 12% and 18%, respectively, during this period.
See Also: Goldman Sachs Reportedly Sees AI Hyperscalers As ‘Relatively Defensive’ After Tech Selloff — Forecasts 14% S&P 500 Upside
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