Key Takeaways
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- Cisco reported fourth-quarter net income of $2.8 billion (71 cents per share), up from $2.2 billion (54 cents) a year earlier, beating analyst expectations.
- Adjusted earnings per share were 99 cents, slightly above the 98 cents expected by analysts.
- Revenue rose to $14.7 billion from $13.64 billion, surpassing the $14.62 billion forecast.
- AI infrastructure orders exceeded $800 million in Q4, pushing fiscal 2025 total AI-related orders to $2 billion, more than double Cisco’s original target.
- CEO Chuck Robbins highlighted the massive opportunity ahead as Cisco leads the architectural shift needed for the AI era.
- Cisco’s guidance for Q1 fiscal 2026 projects revenue between $14.65 billion and $14.85 billion and adjusted EPS between 97 and 99 cents, in line with analyst expectations.
- Full-year 2026 revenue is forecast between $59 billion and $60 billion, with adjusted EPS of $4 to $4.06, slightly above analyst estimates.
What’s Happening?
Cisco’s strong quarterly results were driven by surging demand for its AI infrastructure products, reflecting the company’s leadership in building critical technology for the AI era. The company exceeded revenue and earnings expectations, fueled by significant orders from large webscale customers. Cisco’s optimistic guidance for the upcoming quarter and fiscal year signals confidence in sustained growth amid the expanding AI market.
Why Does It Matter?
Cisco’s performance underscores the growing importance of AI infrastructure in the technology sector and highlights the company’s strategic positioning to capitalize on this trend. The robust demand for AI-related products is a key growth driver, supporting Cisco’s financial outlook and investor confidence. The results also reflect broader industry momentum as enterprises accelerate AI adoption.
What’s Next?
Investors will watch Cisco’s execution on AI infrastructure projects and its ability to maintain growth momentum. The company’s upcoming earnings reports and market developments in AI technology will be closely monitored. Cisco’s leadership in AI infrastructure could influence competitive dynamics in the tech sector and shape future investment trends.
