Cisco Smashes Q4 Earnings with Record Revenue and Projected AI Growth

Cisco Systems Inc (CSCO) has reported record revenue of $17.3 billion in Q4, up 18% year-over-year, and a full-year record revenue of $63.3 billion, up 12%. The company's AI infrastructure revenue is projected to grow to $7.5 billion in fiscal 2027, up from approximately $3.8 billion in fiscal 2026.

The strong demand momentum is driven by hyperscaler AI buildouts and telcos preparing for scale-across traffic. The company's networking super cycle is enabled by its unique ability to integrate Systems, Silicon, Optics, Security, and Observability into a stack for customers.

Cisco returned $12.7 billion to shareholders in fiscal 2026, representing 99% of free cash flow, and increased dividend for the 15th consecutive year. The company faces ongoing supply chain challenges, including memory costs and component availability, despite proactive management.