Cisco’s Stock Dips Despite Stellar $17.25B Quarter and Surging AI Orders
Cisco Systems, on August 12, 2026, delivered a record-breaking fiscal fourth-quarter earnings report. Despite this, the company’s stock experienced a dip in after-hours trading, leaving Wall Street analysts perplexed. The networking titan reported a revenue of $17.25 billion, a 13% increase year-over-year, and significantly above the $16.82 billion consensus estimate. The adjusted earnings per share also exceeded expectations, coming in at a robust $1.22, surpassing the $1.17 forecast, as per LSEG data.
The real game-changer, however, was the explosive growth in Cisco’s AI orders. Hyperscalers, the internet behemoths powering the majority of AI infrastructure, placed a staggering $4 billion worth of infrastructure orders in the quarter alone. This propelled the total AI orders for the full fiscal year to a landmark $9.3 billion. In response to this surge, management has revised its AI revenue target upwards, now aiming for over $4 billion, a significant increase from previous guidance levels.
Looking forward, Cisco has projected a first-quarter revenue of $18 billion to $18.2 billion. This is a considerable leap from the $16.8 billion average analyst estimate, indicating that the demand driven by AI continues to gain momentum.
Despite the impressive figures, the stock experienced a sell-off in extended trading. Analysts believe this disconnect is due to heightened investor expectations following a 60% surge in the shares over the past quarter. On August 12, the stock closed at $123.88. Evercore ISI analysts maintain a Buy rating with a $150 price target, while UBS warns that a conservative fiscal 2027 outlook could dampen sentiment.
Source: CNBC – Cisco’s stock drops despite earnings, revenue beat