Cisco said it expects artificial intelligence revenue of $7.5 billion in fiscal 2027, an 87.5 percent increase from $4 billion in the prior year, according to the company's August 12 earnings announcement.
The projection doubles Cisco's AI revenue target within two years. The company reported $4 billion in AI revenue for fiscal 2026, ending September 2026. The fiscal 2027 target of $7.5 billion assumes the growth rate holds through the company's next fiscal year, ending September 2027.
Cisco has positioned itself as a networking and infrastructure vendor for AI workloads, competing with Dell Technologies, HPE and pure-play GPU makers for enterprise spending on data center buildout. The company operates across three segments: infrastructure platforms, applications, and security. AI-related infrastructure revenue, servers, switches, and interconnect gear, has accelerated as enterprises deploy large language models and generative AI applications at scale.
The $4 billion fiscal 2026 figure is Cisco's first full-year tally of AI-tagged revenue across its portfolio. The company began tracking AI revenue separately in fiscal 2025. Investors have demanded artificial intelligence line-item visibility from large enterprise software and hardware vendors.
The 87.5 percent growth rate compounds on an already high base, meaning Cisco expects year-over-year AI revenue growth to accelerate even as the absolute dollar figure grows. If the company achieves the $7.5 billion target, AI revenue will represent approximately 15 percent of Cisco's total projected fiscal 2027 revenue, based on analyst consensus estimates for the period.
The announcement arrived during Cisco's fiscal fourth-quarter earnings call, when the company typically updates multi-year guidance. Cisco competes with HPE and Dell on the infrastructure side and with Broadcom on the networking chipset side, both of which have released their own AI revenue forecasts in 2026. HPE reported $4.9 billion in AI-attributed revenue for fiscal 2026. Dell has not yet disclosed a separate AI revenue figure but said AI infrastructure is its fastest-growing business segment.
Cisco's $7.5 billion AI revenue target is 87.5 percent higher than the prior year on a $4 billion base, meaning the company is betting on near-doubling growth even as the addressable market matures. The question for investors is whether the growth rate sustains beyond fiscal 2027, when larger bases make compound growth harder to maintain. Cisco must report fiscal 2027 results in September 2027 to confirm whether the $7.5 billion forecast proved achievable.
