Cisco Stock Jumps on 12% Revenue Growth, But Margin Worries Loom

Cisco Systems stock has been trading near its recent highs, reaching 109.46 USD as of September 3, 2026.

The company's fiscal 2026 revenue jumped 12 percent to 63.3 billion USD, driven by strong demand for AI and security solutions.

Cisco's networking revenue grew 28 percent in the fourth quarter of fiscal 2026, with a 40 percent increase in networking product orders.

The company's non-GAAP gross margin came in at 66.3 percent in the latest quarter, but management expects it to decline by up to 130 basis points in the first quarter of fiscal 2027 due to the increasing share of revenue from hardware-heavy AI systems.