Cisco posts record fiscal Q4 2026 revenue of $17.3 billion on surging AI infrastructure orders, shares fall on margin concerns
Cisco $CSCO posted record fiscal Q4 2026 revenue of $17.3 billion, up 18% year over year, with $4 billion in hyperscaler AI infrastructure orders in the quarter, per its Q4 release. Shares still fell 4.6% after hours as investors focused on gross margin pressure from a heavier ha
Cisco $CSCO reported record fiscal fourth-quarter 2026 revenue of $17.3 billion, up 18% year over year, driven by surging demand for AI networking and infrastructure equipment, according to the company's earnings release. The quarter included $4 billion in hyperscaler AI infrastructure orders alone, bringing total fiscal 2026 AI infrastructure orders to $9.3 billion. Product revenue rose 24% to $13.5 billion, while GAAP net income reached $3.9 billion and non-GAAP earnings per share came in at $1.22. For the current quarter, Cisco guided to revenue of $18.0 billion to $18.2 billion. Despite the beat, Cisco shares fell 4.6% in after-hours trading to $118.18 as investors focused on the company's gross margin outlook, which management said would face pressure from a heavier mix of hardware sales tied to AI infrastructure buildouts. The reaction reflects a broader pattern this earnings season: investors are increasingly treating AI infrastructure hardware as a lower-margin business than the software and services that traditionally anchored networking companies' profitability, even as unit volumes and headline revenue climb.