Cisco Systems Inc. reported fourth-quarter fiscal 2026 results Wednesday, delivering record demand figures driven by surging artificial intelligence infrastructure spending.
The company described a broad-based “networking supercycle” underway, with hyperscaler AI infrastructure orders reaching $9.3 billion for the full fiscal year 2026.
That figure represents a roughly 4.5-fold increase from the prior year, underscoring the dramatic acceleration in AI-related network spending across major technology customers.
Chair and Chief Executive Chuck Robbins pointed to the company’s competitive positioning as a key driver of the record performance across its product and service portfolio.
“We delivered a very strong close to fiscal 2026, marking another record year for Cisco,” Robbins said in the earnings announcement following Wednesday’s closing bell.
Robbins added: “With the breadth and depth of our portfolio and our competitive differentiation in secure networking, Cisco is well positioned to support our customers however or wherever they decide to deploy AI.”
Cisco generated $5.4 billion in cash flow from operations during the quarter, reflecting a 27% increase compared to the same period a year earlier.
The company exited the quarter with $15.9 billion in cash, cash equivalents, and investments, signaling a strong balance sheet heading into fiscal 2027.
Management issued first-quarter revenue guidance of between $18.0 billion and $18.2 billion, with adjusted earnings per share projected in a range of $1.32 to $1.34.
For the full fiscal year 2027, Cisco projected revenue between $72.2 billion and $73.4 billion, with adjusted earnings per share forecast between $5.05 and $5.11.
Despite beating top- and bottom-line estimates, shares of CSCO fell roughly 3.75% to close at $118.35, with extended-hours trading showing an additional decline of approximately 4%.
The muted market reaction stands in contrast to May 2026, when Cisco’s third-quarter report first widely introduced the supercycle framing and shares jumped 13% in a single session.
Analysts noted that the stock’s 60% yearly surge heading into the print created a significantly higher bar for the results to clear among investors.
Concentration risk also drew attention, as AI-related orders remain heavily clustered among a relatively small number of major hyperscale buyers, with timing of deployments subject to variation.
