Cisco Sees Strong Growth Driven by Hyperscale AI Orders

Cisco Systems, Inc. (NASDAQ:CSCO) has seen significant growth in its fiscal 2026 results, driven by AI infrastructure orders from hyperscale cloud operators.

The company reported a 28% year-on-year increase in networking revenue to $9.79 billion in the fourth quarter of fiscal 2026, with networking product orders growing 40% and total product orders rising 35%.

Cisco's GAAP earnings per share (EPS) were $0.97, up 52%, while non-GAAP EPS were $1.22, up 23%. The company also repurchased 13 million shares for $1.5 billion in the fourth quarter.

Looking ahead to fiscal 2027, Cisco has guided to revenue of $72.2 billion to $73.4 billion, with non-GAAP EPS expected to be between $5.05 and $5.11. The company's reliance on AI orders from hyperscale customers poses some risks, as these orders are concentrated among a small group of customers and may not always convert to revenue on schedule.