Cisco Drops 8.4% After Earnings as Cramer Says Guidance Lowballed $17.3 Billion Quarter
Updated
Updated · Yahoo Finance UK · Aug 23
Cisco Drops 8.4% After Earnings as Cramer Says Guidance Lowballed $17.3 Billion Quarter
1 articles · Updated · Yahoo Finance UK · Aug 23
Summary
Cisco fell 8.4% on Aug. 13 after reporting fiscal Q4 revenue of $17.3 billion, up 18%, a selloff Jim Cramer called overdone.
Cramer argued CEO Chuck Robbins lowballed projections, masking strength in Cisco’s AI-linked networking and cybersecurity businesses as data-center demand expands.
Cisco’s underlying demand indicators were strong: corporate orders rose more than 30% to $13 billion, performance obligations reached $46.7 billion, and recurring revenue totaled $32 billion.
Margin pressure still clouded the report, with gross margin slipping to 66.3% from 68.4%, services growth flat, and HSBC downgrading the stock to Hold.
The broader question is whether Cisco’s AI boom is durable and profitable, since its $4 billion in fiscal 2026 AI revenue was still less than 10% of total sales.