Cisco's FY27 AI Guidance 'Appropriately Conservative,' with Room for Upside, UBS Says
Dow Jones08-14
1352 ET - Cisco's F2027 guidance for AI revenue is "appropriately conservative" given that the company reported $9.3 billion in AI infrastructure orders in F2026 and just $4 billion in AI infrastructure recognized revenue, according to UBS in a note. The guidance for $7.5 billion in FY27 AI revenue, up from $6 billion, also leaves room for upside, the analysts say. "Our analysis of orders and backlog suggests the implied 2H FY27 growth rate could be understated by at least 5 percentage points," they say. "We therefore see any share-price weakness as an attractive buying opportunity, as we expect the mkt to ultimately underwrite growth 500 basis points above initial guidance." Cisco falls 9%.
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