Cisco raises its 2026 fiscal year performance outlook benefiting from the AI investment boom, stock price surges after hours.

Cisco raised its performance outlook for the 2026 fiscal year, indicating that the network equipment giant is also benefiting from the artificial intelligence hardware investment boom. Cisco's stock surged by about 8% in after-hours trading. Cisco expects its revenue for the fiscal year ending in July 2026 to reach $61 billion. This is about $1 billion higher than previously expected, and also higher than Wall Street's predictions. Cisco also raised its profit forecast, surpassing analysts' expectations. Cisco CEO Chuck Robbins stated that the demand for secure networks in the era of artificial intelligence is driving orders. Cisco is updating its chips and network equipment to better connect server racks and data centers to handle complex AI tasks. Cisco is competing with companies like Broadcom, and Juniper Networks' H3C, among others. Cisco is also collaborating with Nvidia to enhance its competitiveness. Cisco expects earnings per share for the 2026 fiscal year, excluding certain items, to be $4.14. Analysts' average estimate is $4.05. As of the close of trading on Wednesday, Cisco's stock has already risen by 25% this year.