Cisco increases its AI revenue goal from cloud companies to $9 billion

Cisco, which makes networking gear, gave first-quarter results on Thursday: revenue of $18.5 billion, 24% more than one year before, and net income of $4.6 billion, up from $2.9 billion. Hyperscalers are the very large cloud companies. Cisco wants a position in the AI buildout after it missed the first years of the generative AI boom.

What is new

Cisco raised its AI infrastructure revenue goal from hyperscalers to $9 billion. Chuck Robbins, the CEO, tells that customers turn to Cisco for agentic AI. Agentic means that the AI software does tasks by itself.

The numbers

• Adjusted earnings for each share: $1.40, against $1.33 estimated.
• Net income: $4.6 billion, up from $2.9 billion.
• Estimate for next quarter revenue: $18 billion to $18.2 billion.
• Cisco shares: up about 35% this year.

What is not known

The source does not tell how much of the $9 billion is ordered. It does not divide AI revenue by product.

Insight: Cisco sells to cloud firms and also pitches local control

Cisco has a goal of $9 billion from hyperscalers. On 12 November, Cisco also told European analysts that public sector customers want sovereignty, which is local control of data and systems. It works with Supermicro on ready-built racks with NVIDIA parts. This reads as a plan to get the large buyers and the buyers who want local control. Monitor for more full-stack offers from network vendors.