Overview
- Cisco reported results after the market close on Wednesday, August 12, delivering record fiscal Q4 revenue of $17.3 billion and adjusted EPS of $1.22.
- The company said hyperscaler customers placed $4 billion of AI infrastructure orders in the quarter, bringing fiscal 2026 AI orders to $9.3 billion and forecasting about $7.5 billion of AI revenue for FY27.
- Management disclosed that non-GAAP total gross margin narrowed to roughly 66.3% from 68.4% a year earlier and guided first-quarter FY27 gross margins to about 65%–66%, which investors saw as a warning on near-term profitability.
- Shares fell several percent in after-hours and the following session as traders focused on margin guidance and the lumpy nature of hyperscaler deals, even though many analysts kept buy ratings and lifted price targets.
- The quarter illustrates a structural shift at Cisco toward AI data-center gear and silicon through acquisitions and reallocation of resources, but it also highlights revenue timing risk from large orders and the growing investor emphasis on margin sustainability and execution.