Cisco Beats Earnings with Record Q4 Revenue Driven by AI Demand

Cisco Systems reported a record fiscal year with Q4 revenue and earnings surpassing expectations. The company's strong performance was driven by a surge in AI infrastructure orders, which led to an 18% increase in revenue year-over-year.

The company's CEO Chuck Robbins highlighted the importance of AI-driven networking growth, describing it as a multi-year tailwind for the company.

Cisco projects 15% revenue growth for FY2027 and maintains a bullish outlook on its future performance. Despite an 8.4% stock drop after earnings, Morgan Stanley has set a price target of $135 for Cisco, suggesting an 8.98% upside from its current price of $123.88.