Cisco Systems reported a 24% revenue increase for the first quarter of fiscal 2027, fueled by significant demand for artificial intelligence infrastructure and networking solutions, based on information published by CRN.
Chief Executive Officer Chuck Robbins highlighted a multi-billion-dollar networking super cycle as a primary driver for the company's growth. During the first quarter, networking revenue surged 43% to $11.13 billion, marking the ninth consecutive quarter of double-digit growth for the firm. Cisco now projects that AI infrastructure revenue from hyperscalers will reach $9 billion in fiscal 2027, representing 12% of total revenue.
The company reported total quarterly revenue of $18.5 billion, with non-GAAP earnings per share rising 40% to $1.40. Security segment sales also saw a 7% increase, reaching $2.12 billion, supported by the integration of Splunk and the recent acquisition of WideField Security. While product revenue grew by 42.6%, service revenue experienced a 7.1% decline.
Cisco leadership emphasized that customers are increasingly prioritizing integrated networking and security architectures to manage the complexities of the agentic AI era. These financial results represent the strongest growth rates for the company in over 15 years, reflecting a broad-based expansion across all major product families.
Source: CRN
