Cisco Shares Plummet 8.4% After Strong Earnings Report

Cisco Systems (CSCO) shares plummeted by 8.4% on August 13 after the company reported stronger-than-expected fourth-quarter results for fiscal 2026.

The decline was largely due to a decline in gross profitability and cautious guidance for the new fiscal year, according to Freedom analyst Natalia Milchakova.

Cisco's revenue increased by 17.6% year over year to $17.25 billion, exceeding the consensus estimate of $16.82 billion, while adjusted earnings were $1.22 per share versus the expected $1.17.

However, the company's adjusted gross margin fell from 68.4% a year earlier to 66.3%, and Cisco forecasts the metric in the 65-66% range for the first quarter of the new fiscal year.