Cisco Raises Annual Forecast as AI-Driven Networking Demand Surges

Cisco Systems has raised its annual revenue forecast after reporting a sharp increase in demand for networking equipment powered by artificial intelligence infrastructure. The company now expects revenue for fiscal year 2026 to range between $60.2 billion and $61 billion, up from its previous projection of $59 billion to $60 billion.

The tech giant revealed that AI-related infrastructure orders exceeded $2 billion in the most recent quarter, with total AI infrastructure revenue projected to reach about $3 billion for fiscal 2026. Cisco said the growth is largely driven by major cloud service providers and enterprise clients upgrading their systems to handle heavier AI workloads.

Chief Executive Officer Chuck Robbins noted that customer interest in high-performance networking products has surged as companies race to modernize their data centers and support generative AI applications. The expansion underscores a global shift toward more robust, AI-ready networks across industries.

Analysis / Impact:
Cisco’s upward revision highlights how deeply artificial intelligence is reshaping global infrastructure demand. As companies expand their computing power to accommodate AI workloads, networking gear has become as critical as chips and servers.

The growth positions Cisco at the center of this transformation, strengthening its hold on the enterprise networking market. However, sustaining the momentum will depend on the company’s ability to navigate supply chain challenges and maintain innovation amid growing competition from newer AI-focused hardware makers.

For emerging markets such as Africa, the trend signals both opportunity and urgency. With AI adoption on the rise, investments in scalable, high-capacity network infrastructure could determine which regions become competitive in the new data economy.