Cisco's AI Boom Boosts Networking Revenue, Yet Margins Drag on Stock
TL;DR
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.
- Cisco Networking Sales Surge on AI Demand. Why the Stock Is Down. barrons.com
- Cisco's stock drops despite earnings, revenue beat CNBC
- Cisco’s (NASDAQ:CSCO) Q2 CY2026 Sales Beat Estimates, Guides for Strong Full-Year Sales Yahoo Finance
- Cisco sees record results from an AI ‘supercycle,’ but its stock pulls back MarketWatch
- Cisco forecasts annual revenue above estimates on sustained AI spending reuters.com
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