Key Highlights

  • CSCO reported fiscal fourth-quarter 2026 Revenue of $17.3 billion, up 18 percent year over year and beating the $16.8 billion estimate by 2.47 percent, with non-GAAP EPS of $1.22 topping the $1.17 estimate by 4.27 percent.
  • Total product orders grew 35 percent year over year in the quarter, or 25 percent excluding hyperscalers, with networking product orders up 40 percent for an eighth consecutive quarter of double-digit growth.
  • The company took $4 billion of AI infrastructure orders in the quarter, bringing the full-year total to $9.3 billion, and expects to recognize approximately $7.5 billion of related revenue in fiscal 2027.
  • Cisco guided fiscal 2027 revenue to a range of $72.2 billion to $73.4 billion and non-GAAP EPS to $5.05 to $5.11, with first-quarter revenue guided to $18 billion to $18.2 billion.

Record Orders Reflect Broad-Based Networking Demand

Cisco Systems, Inc. (NASDAQ:CSCO), a San Jose-based technology company that designs and sells networking, security, and collaboration hardware and software for enterprises and service providers, reported fourth-quarter revenue growth of 18 percent, with product revenue up 24 percent while services revenue was flat. Networking product revenue rose 28 percent year over year, and management described a networking supercycle underway across every geography and customer market, with double-digit order growth in both the Americas, up 18 percent, and EMEA, up 19 percent.

Because total product orders of 35 percent growth included a significant contribution from hyperscaler customers, the underlying order growth excluding that cohort, still a robust 25 percent, offers a clearer view of Demand strength across Cisco's broader enterprise and service provider customer base, which management said saw growth across every geography and market segment.

AI Infrastructure Orders Build Toward Fiscal 2027 Revenue

Cisco disclosed $4 billion of AI infrastructure orders in the fourth quarter, bringing the fiscal year total to $9.3 billion, while the company said it delivered approximately $4 billion of related revenue in fiscal 2026 and expects $7.5 billion in fiscal 2027. Management said it is seeing significant momentum and has raised its expectations for AI infrastructure demand from hyperscalers, positioning the company's secure networking portfolio to support customer AI deployments regardless of where those workloads are ultimately hosted.

Because AI infrastructure orders convert into revenue over an extended delivery timeline rather than immediately, the pace at which the current $9.3 billion order Backlog translates into recognized revenue will depend on customer deployment schedules that are not entirely within Cisco's control.

Margin Expansion and Capital Return Continue

Non-GAAP operating Margin reached 35.9 percent in the quarter, up from 34.3 percent a year earlier, which management attributed to the company's highest productivity metrics in 30 years measured by revenue, operating margin, and Earnings per employee. Cisco returned $3.2 billion to shareholders during the quarter through $1.5 billion of share Buybacks and $1.7 billion in dividends, and declared a new quarterly Dividend of $0.42 per share payable in October. Remaining performance obligations grew 7 percent year over year to $46.7 billion, providing visibility into revenue Cisco expects to recognize over coming periods.

Conclusion

Cisco's record fourth quarter and raised fiscal 2027 guidance reflect management's confidence that current networking order momentum, particularly from AI infrastructure deployments, can sustain double-digit growth into the new fiscal year. The pace at which the company's substantial order backlog and AI infrastructure commitments convert into recognized revenue, alongside continued strength in non-hyperscaler enterprise demand, will likely be the key variables shaping results through fiscal 2027.