Cisco Stock Sees 18 Percent Revenue Growth as AI Orders Surge

Cisco Systems stock has reported an impressive 18% revenue growth year over year. The company's fiscal fourth-quarter revenue reached $17.252 billion, a significant increase from the previous year.

The AI orders have been a major driver of Cisco's growth, with hyperscaler AI infrastructure orders reaching $9.3 billion, more than four times the level in the previous year. This has contributed to the company's annualized recurring revenue growing 3% year over year to $32.1 billion.

The non-GAAP gross margin fell by 210 basis points year over year to 66.30%, but the non-GAAP operating margin expanded from 34.30% to 35.90%. This shows that while revenue growth has not translated into uniform margin expansion across product lines, there are still areas of improvement.

Cisco has also provided guidance for fiscal 2027, predicting revenue between $72.2 billion and $73.4 billion, with non-GAAP earnings per share ranging from $5.05 to $5.11. The company's first-quarter fiscal 2027 revenue guidance stands at $18.0 billion to $18.2 billion.