Cisco Gives Lukewarm Outlook, With Investors Craving AI Boost

(Bloomberg) – Cisco Systems Inc., the largest machine manufacturer that operates computer networks and the Internet, gave a warm prediction for the current financial year and disappointed an increase from the major AI data center projects.

The company said on Wednesday that sales will be between $ 59 billion and $ 60 billion in the financial year, which lasted until July 2026. According to the data compiled by Bloomberg, at the middle point, roughly compatible with an average Wall Street estimation of $ 59.5 billion. Nevertheless, some analysts are looking for more than $ 61 billion.

Like many peers, Cisco is working to benefit from increasing artificial intelligence expenditures. Sunday is becoming more and more competitive: Broadcom Inc. and companies like Hewlett Packard Enterprise are trying to serve the same markets.

To spread Cisco’s bets, CEO Chuck Robbins, in 2024, purchased SPLUNK Inc. for $ 28 billion and supported the company’s security and monitoring software.

After the report was published, the stocks fell in late transactions. Cisco increased by 19% at the closing this year.

In the fourth quarter, which ended on July 26, the income increased by 7.6% to $ 14.7 billion. The profit was a share of 99 cents, except for some items. This is compared with estimates of $ 14.6 billion for sales and 98 cents for earnings.

The company said that the AI infrastructure orders of large cloud providers are over $ 800 million in a quarter. This is an increase of $ 600 million in the previous quarter.

Cisco signed partnerships with Saudi Arabia’s AI company Humain and said it would play a role in the Stargate project in the United Arab Emirates.

Robbins show that these orders are önemli a great opportunity when we lead the necessary architectural change and create the critical infrastructure for the AI period ”.

There are more stories like this Bloomberg.com