Updated
Updated · Morningstar · Aug 13
Cisco Q4 Revenue Jumps 18% to $17.3 Billion as AI Orders Hit $9.3 Billion
Updated
Updated · Morningstar · Aug 13

Cisco Q4 Revenue Jumps 18% to $17.3 Billion as AI Orders Hit $9.3 Billion

3 articles · Updated · Morningstar · Aug 13

Summary

  • $17.3 billion in fourth-quarter revenue topped Cisco’s guidance, with fiscal 2027 pointing to another year of double-digit sales and earnings growth.
  • $9.3 billion in fiscal 2026 AI orders underpinned that outlook, but Cisco recognized only about $4.0 billion as revenue, leaving backlog to flow into the coming year.
  • Campus demand also stayed strong, with orders up 20% as customers refreshed aging infrastructure alongside rising AI-related networking and optics spending.
  • 66.3% gross margin and 35.9% operating margin showed profitability remained solid, even as AI hardware costs pressured margins and investors later pushed the stock lower.

Insights

As AI data centers hit physical limits, will Cisco's radical shift to optical interconnects be enough to sustain its explosive growth?
With billions pouring into AI networking, can Cisco's massive Ethernet pivot truly dethrone specialized architectures before the supercycle peaks?
Behind the massive revenue forecast and recent layoffs, is this tech giant risking its traditional dominance to chase an AI infrastructure bubble?