Cisco Stock Plunges After Record Earnings Fails to Impress
Cisco Systems stock dropped significantly after releasing record-breaking fourth-quarter earnings for fiscal year 2026. The company reported revenue of $17.3 billion, an 18 percent increase from the previous year, and non-GAAP earnings per share of $1.22, exceeding estimates by 5 cents.
Despite these strong results, the stock fell from $123.88 to $115 in the first trading session after the release, a decline of about 7 percent. This reaction highlights how elevated expectations and margin concerns can outweigh headline numbers.
Cisco emphasized its AI-driven demand and a broader networking refresh as central pillars of its multi-year growth story. The company booked $4 billion of hyperscaler AI infrastructure orders in fiscal Q4 2026, bringing total AI infrastructure orders to $9.3 billion for the year. However, this fell short of some investors' hopes for an even larger near-term payoff.
Fresh analyst moves and valuation debates have been triggered by the earnings surprise and subsequent share-price decline. Multiple firms adjusted their views after the print, with concerns over margin pressure and elevated expectations for AI-driven growth remaining central to current commentary.