**Cisco Systems Raises Annual Revenue Forecast Amid Shift to AI and Cybersecurity**

Cisco Systems Inc. announced an increase in its annual revenue outlook, highlighting a rising demand as the company pivots towards cybersecurity, cloud systems, and AI-driven products. The enhanced forecast reflects a growing trend where businesses are significantly investing in AI technologies that demand substantial computing power. This has led to a surge in the need for data centers, utilizing Cisco's essential networking equipment such as ethernet switches and routers.

"As our customers prepare for AI by investing in critical infrastructure, the wide range of our portfolio is proving beneficial," stated Cisco CEO Chuck Robbins. The company's extensive array of networking devices, including its notable ethernet switches, facilitates the connection of various devices to local area networks, demonstrating its crucial role in current technological advancements.

Despite facing challenges, including two rounds of layoffs this year aimed at reducing costs and refocusing investment areas like cybersecurity, Cisco continues to evolve. The strategic $28 billion acquisition of Splunk in March aims to amplify its software business amidst an AI boom and enhance its cybersecurity capabilities, compensating for a post-pandemic dip in demand.

Cisco now projects its annual revenue to range between $55.3 billion and $56.3 billion, up from its earlier forecast of between $55.0 billion to $56.2 billion. For the first quarter ending October 26, the company reported a 6% decline in revenue to $13.84 billion, slightly surpassing the estimates of $13.77 billion. Additionally, Cisco achieved an adjusted profit per share of 91 cents, exceeding the projected 87 cents.

In comparison, Arista Networks, a competitor, has also indicated a positive outlook by projecting fourth-quarter revenue above Wall Street estimates earlier this month. Cisco's strategic shifts and strong market presence underscore its commitment to adapting to the evolving technological landscape.