Cisco Shares Plummet Despite Exceeding Earnings Estimates

Cisco Systems' shares fell by as much as 8.4% following its fourth-quarter and full-year fiscal 2026 financial results, despite exceeding Wall Street estimates.

The company reported record quarterly revenues of $17.3 billion, with earnings that topped analyst expectations by 4.3%, and year-over-year growth in both top and bottom-line numbers.

Cisco's dominant position in the expanding artificial intelligence ecosystem is seen as a compelling buying opportunity for long-term investors, particularly given its ability to capitalize on rapid AI-driven demand from hyperscalers.

The company generated $4 billion in AI infrastructure orders in the fiscal fourth quarter, bringing its total fiscal 2026 AI order pipeline to $9.3 billion.