Cisco Stock Sinks 8.4% Amid AI Margin Strength

Cisco Systems stock plummeted by 8.4% in a single day, despite reporting record revenue and earnings for Q4 FY 2026.

The company's non-GAAP operating margin reached 35.9%, the highest level on record, while cash flow remained robust.

This has left investors wondering whether the stock is trading at a reasonable multiple after the sell-off, or if the market has already priced in the AI and margin story.

Cisco's revenue for Q4 FY 2026 reached US$17.3 billion, with non-GAAP earnings per share coming in at US$1.22.