Cisco Stock Drops 8% Despite Record Q4 Earnings

Cisco Systems Inc., the networking company, reported record fiscal fourth-quarter revenue of $17.3 billion in August 2026, beating Wall Street expectations and posting non-GAAP earnings per share of $1.22 that also topped consensus.

The stock price dropped 8.4% following the earnings release as investors reacted to a combination of strong top-line growth, rising AI infrastructure demand, and concerns over margins.

Cisco's accelerating AI pipeline is now under scrutiny as investors weigh its impact on valuation.