Cisco saw a surge in AI orders, totaling $1.3 billion in the first quarter, with expectations of $3 billion in revenue from hyperscalers this year. The company’s AI business is finally taking off, boosting its full-year outlook. This growth is attributed to increased demand from neocloud, sovereign, and enterprise customers.

The AI boom has reshaped Cisco’s dominance in networking as it caters to hyperscalers’ needs for AI data centers. The company secured significant AI infrastructure orders in the first quarter, totaling $1.3 billion. Cisco also received orders from neocloud, sovereign, and enterprise customers, highlighting its evolving portfolio to align with AI demands.

AI-related revenue is now contributing meaningfully to Cisco’s results, with first-quarter revenue reaching $14.9 billion, up 8% year over year. Product orders grew by 13%, driven by high networking product orders. The company’s acquisition of Acacia is proving beneficial, particularly in the optics products segment.

Cisco anticipates over $3 billion in AI infrastructure revenue from hyperscalers in 2026, signaling a strong demand for optics products. Even outside of hyperscalers, the company has a $2 billion AI connectivity pipeline with other customers. The company’s networking product order growth demonstrates customers’ readiness for increased AI workloads.

With a positive revenue outlook for the second quarter and fiscal 2026, Cisco expects revenue between $15 billion and $15.2 billion next quarter, up 8% year over year. The company raised its full-year revenue forecast to $60.2 billion to $61 billion, showcasing confidence in its AI-centric growth strategy. However, tariffs are expected to impact earnings.

Read more at Nasdaq: Cisco’s AI Infrastructure Is Finally Winning Over Hyperscalers