Cisco Q4 revenue beats on networking product demand

Cisco Systems

12/08/2026 21:17

Overview
U.S. networking equipment maker's fiscal Q4 revenue rose 18%, beating analyst expectations
Adjusted EPS for fiscal Q4 beat consensus, driven by strong demand and operating efficiency
Company returned $3.2 bln to shareholders via buybacks and dividends in the quarter

Outlook
Cisco sees Q1 FY 2027 revenue between $18.0 bln and $18.2 bln
Company expects FY 2027 revenue of $72.2 bln to $73.4 bln
Cisco anticipates strong demand and significant growth opportunities in AI infrastructure

Result Drivers
NETWORKING DEMAND - Co said Q4 product orders rose 35% year over year, with networking product orders up 40%, citing broad-based demand and a networking supercycle
AI INFRASTRUCTURE MOMENTUM - Co reported significant momentum and raised expectations for AI infrastructure orders from hyperscalers

Company press release: ID:nPn9sPWxpa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$17.3 bln
$16.82 bln (17 Analysts)
Q4 Adjusted EPS
Beat
$1.22
$1.17 (19 Analysts)
Q4 EPS
 
$0.97
 
Q4 Net Income
 
$3.90 bln
 
Q4 Adjusted Operating Margin
 
35.90%
 
Q4 Operating Margin
 
24.70%
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Cisco Systems Inc is $130.00, about 7.9% above its August 11 closing price of $120.43
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads
Aug 11 - Super Micro Computer Q4 revenue nearly doubles on surging AI infrastructure demand; sees upbeat annual sales
Aug 11 - CoreWeave boosts 2026 spending plan, beats quarterly estimates on AI demand surge
Aug 12 - Nebius powers past estimates as customers race to secure AI computing power

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)