Cisco Posts Record Q4 with 28% Networking Revenue Growth

Cisco Systems reported record Q4 results, driven by a 28% year-over-year increase in networking revenue. The strong demand for AI infrastructure from hyperscalers and enterprise clients fueled this growth.

Despite solid execution, Cisco's stock trades at a premium valuation of 28 times earnings. This reflects expectations of multi-year growth but leaves limited margin of safety compared to historical averages and peers.

Analysts expect AI-driven growth to normalize after 2028, which is a key factor in their Hold rating on Cisco shares. The current outlook balances strong near-term growth with valuation risks.