Cisco Beats Q4 Estimates on AI Demand but Stock Falls After Results

Cisco Systems reported fiscal fourth-quarter 2026 adjusted earnings per share of $1.22, topping the $1.17 estimate, on revenue of $17.3 billion, well above the $16.85 billion consensus and up 18 percent year over year. Net profit surged 51 percent from the year-ago quarter. Product revenue came in at $13.46 billion versus the $13.03 billion expected, and adjusted operating income reached $6.2 billion against a $5.85 billion estimate, with an adjusted operating margin of 35.9 percent and adjusted gross margin of 66.3 percent.

Remaining performance obligations stood at $46.73 billion. The results were driven by continued billions of dollars in orders from AI hyperscalers, building on the $5.3 billion in AI infrastructure orders Cisco had booked through the first three quarters of the fiscal year. Cisco issued guidance well above Wall Street expectations: first-quarter adjusted EPS of $1.32 to $1.34 versus the $1.17 estimate, and first-quarter revenue of $18.0 billion to $18.2 billion against a $16.84 billion consensus.

For full-year fiscal 2027, Cisco guided for adjusted EPS of $5.05 to $5.11, compared with the $4.84 estimate, and revenue of $72.2 billion to $73.4 billion, far above the $69.13 billion consensus. Despite the broad beat across earnings, revenue, and outlook, Cisco shares fell after the report.