Cisco's earnings outlook is lackluster, and investors' expectations for AI-driven growth have not been met.

On August 14, Jin10 reported that Cisco (CSCO.O), the world’s largest network equipment manufacturer, made a modest forecast for the current fiscal year, disappointing investors who were expecting significant rise from artificial intelligence data center projects. The company stated on Wednesday that sales for the fiscal year ending July 2026 are expected to be between $59 billion and $60 billion. The median estimate is basically in line with Wall Street’s general expectation of $59.5 billion, but some analysts had previously expected it to exceed $61 billion. Like many of its peers, Cisco is trying to benefit from the surge in artificial intelligence spending. The company stated that artificial intelligence network infrastructure orders exceeded $800 million, up from $600 million in the previous quarter. Cisco noted that cloud computing companies are building new AI-centered data centers, which is driving demand for Ether network upgrades.