Cisco Quietly Becomes Key Player in AI Infrastructure Buildout

Cisco Systems has quietly become one of the most important names in AI infrastructure buildout, yet its valuation still reflects a legacy networking vendor. The company's $9.3 billion in FY2026 hyperscale AI orders and management guidance to $7.5 billion in AI infrastructure revenue for FY2027 create a compelling setup for the next 12 months.

Cisco's Q4 FY2026 revenue reached $17.252 billion, up 17.58%, beating estimates by 2.52%. The company's non-GAAP EPS of $1.22 topped consensus by 4.38%, extending its beat streak to five consecutive quarters. Networking revenue grew 28%, and Q4 networking product orders climbed 40%, an eighth consecutive quarter of double-digit growth.

According to the article, the bull thesis is straightforward: CEO Chuck Robbins says 'we believe the accelerating adoption of agentic AI is fueling a networking super cycle', and the order book supports it. If Cisco holds a forward multiple of 27x on FY2028 EPS estimates near $5.60, the bull scenario reaches $139.87.

The company's non-GAAP gross margin fell to 66.3% from 68.4% year over year due to a mix shift toward high-volume AI hardware. Restructuring charges announced in May 2026 could weigh on GAAP results.