Cisco reported a dramatic increase in AI hardware sales during the 2025 fiscal year, doubling initial forecasts. The networking behemoth’s AI orders from major webscale clients surpassed expectations, reaching over $2 billion. Cisco’s technology continues to prove indispensable to some of the industry’s most advanced players.

Despite Cisco’s impressive figures, the scale of broader industry investments remains staggering. Microsoft, AWS, and Google plan nearly $300 billion in data center expenditure over the coming year. While Cisco captured only a fraction of this spending, its performance indicates a strong foothold in AI infrastructure, with substantial orders from hyperscalers and robust demand for its Catalyst 9000 switches.

The company enjoyed a robust Q4, reporting $14.7 billion in revenue, marking an eight percent increase year-on-year, with net income rising 31 percent to $2.8 billion. Cisco anticipates further growth as enterprises adopt AI at a slower rate than hyperscalers, foreseeing continued demand for enhanced network capabilities to support AI applications.

CEO Chuck Robbins highlighted the enthusiasm for Cisco’s networking solutions, expecting ongoing modernization efforts to boost its core on-prem networking sales. As global tech budgets tighten, particularly due to new tariffs, Cisco remains optimistic, with plans to expand its market presence and leverage its unique technological offerings.