Investing.com -- Cisco Systems forecast fiscal 2027 revenue and profit above Wall Street estimates on Wednesday, betting that surging demand for networking equipment and artificial intelligence infrastructure will sustain growth into the new year.

Cisco Systems’ upbeat outlook underscored the strength of an AI-driven networking cycle, with robust demand from hyperscale customers adding momentum to its core networking business and supporting expectations for continued growth.

The networking equipment maker expects first-quarter adjusted earnings of $1.32 to $1.34 per share, compared with analysts' average estimate of $1.14, while revenue is forecast at $18 billion to $18.2 billion, above the $16.66 billion consensus.

For fiscal 2027, Cisco expects adjusted earnings of $5.05 to $5.11 per share and revenue of $72.2 billion to $73.4 billion, both comfortably ahead of analysts' estimates of $4.28 and $62.91 billion, respectively.

The stronger outlook followed a solid fourth quarter in which adjusted earnings came in at $1.22 per share, beating estimates of $1.17. Revenue rose 18% from a year earlier to $17.3 billion, topping the $16.82 billion consensus.

Cisco said total product orders rose 35% year over year in the quarter, while networking product orders jumped 40%, marking the eighth consecutive quarter of double-digit growth. Product revenue increased 24%, led by a 28% rise in networking revenue.

Demand for AI infrastructure from hyperscale customers also accelerated. Cisco booked $4 billion of AI infrastructure orders in the fourth quarter, taking total orders for fiscal 2026 to $9.3 billion. The company generated about $4 billion in AI infrastructure revenue in fiscal 2026 and expects that figure to reach $7.5 billion in fiscal 2027.

For the full fiscal 2026 year, revenue rose 12% to $63.3 billion, while GAAP net income increased 30% to $13.3 billion. GAAP earnings per share rose 31% to $3.33.

Cisco also returned $3.2 billion to shareholders through dividends and share repurchases during the quarter and declared a quarterly dividend of 42 cents per share.