Cisco’s stock traded lower following the release of its fiscal fourth-quarter results, despite the company delivering financial performance ahead of Wall Street forecasts. The networking equipment manufacturer reported revenue of $14.7 billion in the latest quarter, representing an 18% increase compared to the same period a year prior. Net income climbed 51% to $3.9 billion, or 97 cents per share, up from $2.6 billion, or 64 cents per share, in the prior-year quarter.
Looking ahead, Cisco provided a revenue outlook of $18 billion to $18.2 billion for the current quarter, topping the $16.8 billion average estimate from analysts tracked by LSEG. The company also issued earnings guidance for the current period that exceeded expectations and offered robust full-year guidance.
Much of the investor enthusiasm entering the report stemmed from expectations that Cisco would benefit increasingly from artificial intelligence infrastructure spending. The stock had advanced more than 60% earlier in the year and approximately 8% during the previous month on such optimism. Cisco’s results supported that narrative, with the company reporting that major internet companies driving AI expenditure placed $4 billion in infrastructure orders during the quarter, bringing the fiscal year total to $9.3 billion. Cisco projected that hyperscalers would account for roughly $7.5 billion in revenue during fiscal 2027, nearly doubling the approximately $4 billion generated in the recently completed fiscal year.
Despite the strong operational performance and positive outlook, shares declined in extended trading following the announcement, suggesting investors may have factored in much of the positive news ahead of the report’s release.
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