Cisco Systems Sees Multi-Year Networking Growth Driven by AI Agents
Cisco Systems (CSCO) is forecasting a multi-year networking growth cycle driven by the increasing use of artificial intelligence agents, which consume significantly more bandwidth than human users and operate continuously. The company reported $9.3 billion in hyperscaler AI orders for its last fiscal year, with $4 billion recorded in Q4 alone. Beyond hyperscalers, Cisco is experiencing robust demand across campus and branch networking segments, growing about 20% over several quarters. Cisco executives highlighted the convergence of security and networking as cyberattack risks rise due to AI adoption. The company expects high-single-digit growth in its security revenue for fiscal 2027 while integrating a comprehensive technology stack that spans silicon, software, and observability solutions. Additionally, Cisco identified more than $100 billion in potential upgrade and refresh opportunities across its installed base over the next several years. The firm is also capitalizing on infrastructure modernization trends as enterprises seek lower-latency networks and enhanced security for aging systems.
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