Cisco Stock Plunges on Strong Quarter and Lower Margins

Cisco Systems stock fell 7% to $116.40 on Thursday after the company reported record revenue of $17.3 billion and earnings per share (EPS) of $1.22 in its fourth quarter, both above guidance.

The non-GAAP gross margin fell 210 basis points to 66.3%, with Q1 guided to 65-66% against a 66.4% consensus.

Hyperscaler AI orders hit $4 billion in Q4 and $9.3 billion for FY2026, with FY2027 AI revenue guided to $7.5 billion.