Cerebras lifts sales outlook and signs Microsoft cloud deal
The chip and cloud company's shares rose more than 17% in extended trading, while quarterly adjusted sales exceeded analysts' expectations.
Cisco lifts revenue outlook as AI networking demand supports sales
First-quarter revenue and adjusted profit topped analyst estimates, while Cisco raised its hyperscaler AI infrastructure revenue forecast to $9 billion.
Cisco on November 12 raised its revenue expectations for fiscal 2027, forecasting between $74.8 billion and $75.8 billion as it anticipates continued demand for equipment supporting AI infrastructure. Its earlier outlook ranged from $72.2 billion to $73.4 billion.
For AI infrastructure sold to hyperscalers, Cisco now projects fiscal 2027 revenue of $9 billion, replacing its $7.5 billion forecast. That business brought in $4 billion a year earlier.
Sales for the first quarter totaled $18.5 billion, beating the $18.14 billion analyst consensus compiled by LSEG. For the period ending October 24, adjusted profit came to $1.40 a share; analysts had expected $1.33.
Cisco has stepped up AI investments as large technology companies expand spending beyond processors into routers and switches that link data-center systems. It is also developing software for businesses to create AI agents that help protect their IT infrastructure from cyber threats.
Adjusted gross margin for the quarter stood at 65.6%, matching expectations but falling from 68.1% a year earlier. Memory-chip shortages have increased hardware component costs. TECHnalysis Research president and chief analyst Bob O'Donnell said a modest margin decline was not a major concern given those higher costs.
Cisco shares were little changed amid volatile after-hours trading. Through the November 12 close, the stock had gained about 32% for the year.