Cisco forecasts annual revenue above estimates on sustained AI spending
CSCO•Shares fall after high expectations
Shares of the company fell over 4% after initially rising 3% in extended trading following the results, as investors had lofty expectations heading into the report. Cisco's stock has risen more than 60% so far this year.
For the first quarter, Cisco sees adjusted gross margin in the range of 65% to 66%, slightly less than market estimates of 66.10%.
"Even as revenue and earnings increase, margins are tight as Cisco deals with a more hardware-intensive product mix and elevated component costs," said Joe Tigay, portfolio manager of the Rational Equity Armor Fund.
AI infrastructure orders and fourth-quarter results
Cisco said it received $4 billion in AI infrastructure orders from hyperscalers for the fourth quarter ended July 25, bringing the total for fiscal 2026 to $9.3 billion.
The company's fourth-quarter revenue grew 17.6% to $17.25 billion, beating estimates of $16.82 billion.
Cisco forecasts fiscal 2027 revenue above Wall Street expectations
Cisco Systems forecast fiscal 2027 revenue between , above analysts' average estimate of , signaling confidence that strong demand for its AI networking gear will continue to power growth.
