Cisco's AI Boom Boosts Networking Revenue, Yet Margins Drag on Stock

Cisco posted better-than-expected fiscal Q4 results, delivering adjusted earnings of $1.22 on revenue of $17.3 billion, driven by AI demand; its networking segment revenue rose 28% year over year to $9.79 billion, with AI infrastructure orders totaling about $9.3 billion for FY2027 and raised full-year earnings guidance to about $5.05–$5.11 per share on $72.2–$73.4 billion in revenue, though shares fell after hours as gross margins slipped to 66.3% from 68.4% due to higher AI hardware costs.