Cisco released its fiscal fourth-quarter earnings report on Wednesday, delivering results that surpassed analyst expectations. The company projected revenue between $18 billion and $18.2 billion for the current period, exceeding the $16.8 billion average estimate from analysts. Additionally, Cisco provided earnings guidance for the current period and strong full-year projections that beat consensus forecasts.
Despite the favorable results, Cisco shares traded lower in extended trading following the announcement. The decline came after the stock had experienced significant momentum heading into the earnings release, gaining more than 60% during the quarter as investors positioned themselves for potential artificial intelligence-related gains in the networking sector.
The company’s financial performance reflected strength in its AI infrastructure business. Cisco reported revenue growth of 18% in the latest quarter, reaching $14.7 billion from $14.7 billion a year prior. Net income climbed 51% to $3.9 billion, or 97 cents per share, compared with $2.6 billion, or 64 cents per share, in the same period last year.
A significant portion of growth came from hyperscale operators, the large internet companies driving much of the industry’s artificial intelligence spending. These customers placed $4 billion in infrastructure orders during the quarter, bringing the fiscal year total to $9.3 billion. Cisco expects revenue from this customer segment to nearly double in fiscal 2027, reaching $7.5 billion compared with approximately $4 billion generated in the prior fiscal year.
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