Cisco Stock Drops Despite Strong AI Orders Amid Margin Concerns
Cisco Systems (NASDAQ: CSCO) shares dropped by 8.4% after releasing its fiscal fourth quarter and full-year 2026 financial results, despite strong AI orders.
The company delivered record top-line revenue of $17.3 billion, surpassing earnings per share estimates, and booked an unprecedented $9.3 billion in AI infrastructure orders from hyperscalers throughout fiscal 2026.
Cisco's Chairman and Chief Executive Officer Chuck Robbins emphasized during the investor call that accelerating adoption of agentic AI is fueling a sustained networking supercycle across global data centers.
However, institutional allocators executed sell-the-news rebalancing once forward targets were formalized, meeting or slightly exceeding published consensus often insufficient to support additional multiple expansion.