Cisco Stock Drops 8% Amid Record Earnings and AI-Driven Growth

Cisco Systems (CSCO) stock is down by 8.0% after announcing record FY26 results and an AI-driven outlook for fiscal 2027.

The company reported a revenue of $17.25 billion for the quarter and $63.33 billion for the year, alongside higher earnings and confirmed guidance for fiscal 2027 calling for up to $73.40 billion in revenue and GAAP EPS of $4.06.

Cisco highlighted strong AI infrastructure demand and continued shareholder returns through dividends and buybacks, while acknowledging pressure on gross margins from a heavier AI hardware mix and elevated memory costs.