Cisco (CSCO) on Wednesday posted fiscal fourth-quarter results that slightly exceeded analysts’ expectations and provided guidance roughly in line with market estimates.
The company reported adjusted earnings of 99 cents per share, a penny above the 98 cents expected, and revenue of $14.67 billion, slightly higher than the $14.62 billion consensus. Revenue grew 7.6% year over year, while net income rose to $2.82 billion, or 71 cents per share, from $2.16 billion, or 54 cents per share, a year earlier.
CEO Chuck Robbins said the results underlined a “massive opportunity ahead as we lead the required architectural shift and build the critical infrastructure needed for the AI era.”
For the upcoming fiscal first quarter, Cisco expects adjusted earnings of 97 to 99 cents per share on $14.65 billion to $14.85 billion in revenue, versus analyst expectations of 97 cents on $14.62 billion. The full fiscal 2026 forecast calls for $4 to $4.06 in adjusted EPS and $59 billion to $60 billion in revenue, largely in line with consensus estimates. CFO Mark Patterson noted on the earnings call that while tariffs are better understood, the company is still navigating a complex operating environment.
Networking revenue in the quarter rose 12% to $7.63 billion, surpassing the $7.34 billion expected, while security revenue increased 9% to $1.95 billion, below the $2.11 billion StreetAccount estimate.
Cisco highlighted growing demand for AI-related infrastructure, reporting $800 million in orders from web companies during the quarter, bringing total AI infrastructure sales for fiscal 2025 to over $2 billion—more than double the company’s target. About $1 billion of these orders were for backend networks connecting GPUs. Cisco also joined the Stargate data center initiative in the Middle East alongside OpenAI and SoftBank and introduced new switches and routers capable of handling AI workloads. CEO Chuck Robbins emphasized that enterprise AI demand remains robust, calling it “not a fleeting trend.”
At Wednesday’s market close, Cisco shares are up 19% year-to-date, outpacing the S&P 500’s roughly 10% gain.
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