# Cisco projects record AI data center demand, raises FY27 AI revenue target to $6.5-7B

> Cisco used its latest earnings to make the case that it is a major winner from AI infrastructure spending. The networking company reported 4 billion dollars in AI-related orders in the fourth quarter alone and 9.3 billion dollars for the full year, well ahead of its earlier guidance, and it raised its AI revenue target for fiscal 2027 to between 6.5 and 7 billion dollars. Overall quarterly revenue came in at 17.3 billion dollars, up 18 percent, with profit beating expectations too. Not everything was rosy. Gross margins are under pressure because the sales mix is tilting toward lower-margin hardware, and the stock actually fell 4.6 percent after the report. The takeaway is that the AI buildout is lifting far more than the chipmakers. All those data centers need networking gear to move data around, and Cisco's surging order book is a concrete sign that demand for the plumbing of AI is running hotter than even the company itself had forecast.

_Section: [Daily AI Updates](https://www.wortins.com/daily-ai) · Source: Bloomberg · Published Thursday, August 13, 2026_

## Wortins' read

Cisco used its latest earnings to make the case that it is a major winner from AI infrastructure spending. The networking company reported 4 billion dollars in AI-related orders in the fourth quarter alone and 9.3 billion dollars for the full year, well ahead of its earlier guidance, and it raised its AI revenue target for fiscal 2027 to between 6.5 and 7 billion dollars. Overall quarterly revenue came in at 17.3 billion dollars, up 18 percent, with profit beating expectations too. Not everything was rosy. Gross margins are under pressure because the sales mix is tilting toward lower-margin hardware, and the stock actually fell 4.6 percent after the report. The takeaway is that the AI buildout is lifting far more than the chipmakers. All those data centers need networking gear to move data around, and Cisco's surging order book is a concrete sign that demand for the plumbing of AI is running hotter than even the company itself had forecast.

## Source

[Read the full story at Bloomberg](https://www.bloomberg.com/news/articles/2026-08-12/cisco-beats-on-sales-outlook-citing-broad-based-record-demand)

## Related coverage

- [Emerald AI Raises $150 Million Series A at $1.05 Billion Valuation](https://www.wortins.com/story/emerald-ai-raises-150-million-series-a-at-1-05-billion-valua-2071899e) — [Business Wire](https://www.businesswire.com/news/home/20260825127649/en/Emerald-AI-Raises-$150-Million-Series-A-at-$1.05-Billion-Valuation-to-Scale-Power-Flexible-AI-Data-Centers)
- [ShepHertz Launches AgentAnywhere, Sovereign Agentic AI Platform for Regulated Industries](https://www.wortins.com/story/shephertz-launches-agentanywhere-sovereign-agentic-ai-platfo-a80b8050) — [ShepHertz](https://aiagentstore.ai/ai-agent-news/this-week)
- [Apple Updates, AI Computers, and OpenAI's Jalapeño Chip](https://www.wortins.com/story/apple-updates-ai-computers-and-openai-s-jalape-o-chip-adb3115c) — [Stratechery](https://stratechery.com/2026/apple-updates-mini-and-studio-ai-computers-openai-jalapeno/)
- [Anthropic Adds Claude Mythos 5 to Claude Security for Vulnerability Scanning](https://www.wortins.com/story/anthropic-adds-claude-mythos-5-to-claude-security-for-vulner-34ff7302) — [Anthropic](https://claude.com/blog/bringing-claude-mythos-5-to-more-defenders)
- [Fundraisly](https://www.wortins.com/story/fundraisly-75fbe87d) — [Futurepedia](https://futurepedia.io/)
- [Alibaba Raises $10.2 Billion in Record Hong Kong Share Sale to Fund AI Expansion](https://www.wortins.com/story/alibaba-raises-10-2-billion-in-record-hong-kong-share-sale-t-ee1afa0a) — [Bloomberg](https://www.bloomberg.com/news/articles/2026-08-23/alibaba-to-raise-10-billion-by-selling-shares-for-ai-expansion)

---

_Curated and written by [Wortins](https://www.wortins.com) — The daily AI briefing. Every story links to its original source; the "Wortins read" on each is our own original analysis. [About Wortins & our editorial approach](https://www.wortins.com/about)._