Cisco Posts Record Year with $9.3 Billion in AI Orders
Cisco Systems has just wrapped up its best year ever, according to CEO Chuck Robbins. The company's Q4 revenue reached $17.25 billion, a 17.58% year-over-year increase that beat consensus estimates for the fifth straight quarter.
The networking giant's full-year revenue came in at $63.33 billion, with net income jumping 30.32%. AI infrastructure orders were a major driver of this growth, totaling $9.3 billion for fiscal year 2026.
Analysts are bullish on Cisco's prospects, with 17 buy ratings and only one sell rating. The average price target is $132.59, but some analysts see the stock reaching as high as $171.62 if AI hyperscale revenue exceeds the expected $7.5 billion.
However, there are some potential risks on the horizon. Non-GAAP gross margin fell to 66.3% from 68.4% due to a shift in product mix towards lower-margin systems. Additionally, insider selling has been a concern, with 23 transactions in recent months.