Cisco Emerges as an Under-the-Radar AI Infrastructure Leader in 2026

Cisco Systems is staking a larger claim in artificial-intelligence infrastructure after logging $9.3 billion in AI-related orders for fiscal 2026 and forecasting $7.5 billion in AI revenue next year. The networking giant’s August-quarter results showed revenue up 17.6% to $17.25 billion and non-GAAP EPS of $1.22, with networking sales climbing 28% and $4 billion in hyperscaler AI orders. While non-GAAP gross margin narrowed to 66.3% on lower-margin hardware mix, operating margin expanded as management touted operating leverage from AI deployments. Cisco guided fiscal 2027 revenue to $72.2 billion to $73.4 billion and non-GAAP EPS to $5.05 to $5.11. 24/7 Wall St. set a $139.67 price target—about 25% above recent levels—citing cross-sell potential from Splunk and accelerating AI demand. Bulls expect further upside if AI order momentum persists and campus refresh cycles firm, though tariff risks and hardware mix could pressure margins. Cisco trades at roughly 22x forward earnings, a discount to higher-multiple rival Arista, while HPE lacks Cisco’s software cross-sell heft.

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