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Cisco Systems (CSCO) is set to report fiscal first-quarter earnings after the market closes on Wednesday, with investors closely watching whether the networking giant continues to benefit from surging demand for artificial intelligence (AI) infrastructure.

Analysts expect the company’s results to reflect ongoing strength in enterprise and webscale spending tied to the AI boom.

The stock rose 2.16% on Wednesday ahead of the earnings release to $73.26.

Earnings outlook and analyst expectations

According to FactSet, analysts project Cisco to post adjusted earnings of 98 cents per share on revenue of $14.78 billion for the quarter.

That compares with earnings of 91 cents per share on $13.84 billion in revenue during the same period last year.

The estimates suggest moderate year-over-year growth, supported by strong demand for networking equipment and AI-related infrastructure.

Networking, Cisco’s largest business segment, is forecast to deliver $7.47 billion in revenue, up from $6.75 billion a year earlier.

The segment includes data center gear critical to AI workloads, making it a focal point for both analysts and investors.

“Cisco’s presence snakes underneath the global tech world, meaning its results can be a decent barometer of enterprise demand,” wrote Joe Mazzola, head trading and derivatives strategist at Charles Schwab.

He added that the company’s commentary on AI infrastructure orders during its previous earnings report would likely be closely scrutinized once again.

AI infrastructure orders and growth potential

Cisco’s management has been vocal about the expanding opportunity within AI-driven infrastructure.

CEO Chuck Robbins said in August that AI infrastructure orders from webscale customers in fiscal 2025 were more than double the company’s initial target.

He described the trend as a “massive opportunity ahead” for Cisco as it helps lead the architectural transformation required to support AI workloads globally.

UBS analyst David Vogt recently upgraded Cisco’s stock to Buy from Neutral, citing confidence in the company’s ability to capture AI-related growth.

Vogt also raised his price target to $88 from $74, highlighting the potential for revenue growth to outpace Cisco’s current guidance.

“We expect FY26 revenue growth to exceed the 4% to 6% guide with continued strong growth in FY27 driven by AI strength,” Vogt wrote.

He noted that Cisco has secured over $2 billion in AI orders from large webscale customers and is approaching $1 billion in enterprise and sovereign-related AI contracts.

Balancing optimism with caution

Despite optimism from some analysts, others remain cautious.

While AI momentum offers a clear growth driver, concerns persist about whether Wall Street’s expectations may have gotten ahead of reality.

“A.I. remains a tailwind, but Street expectations may have gotten ahead of reality,” Raymond James analyst Simon Leopold wrote in a recent note.

He rates the stock as Market Perform without assigning a price target, pointing to potential risks tied to spending slowdowns and increasing competition in networking hardware.

Cisco shares have climbed 23% so far in 2025, outperforming the S&P 500’s 16% gain over the same period.

As investors await the report, much of the focus will be on how AI-related orders are translating into revenue growth, and whether Cisco can sustain its momentum amid a rapidly evolving competitive landscape.

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