Cisco Stock Slips Amid Tech Sector Weakness
Cisco Systems, Inc. (NASDAQ:CSCO) shares traded lower on Friday as broad weakness across the technology sector overshadowed bullish post-earnings commentary and the networking giant's growing artificial intelligence infrastructure push.
The company's decline follows a strong 12-month run, suggesting near-term cooling as investors rotated into stronger areas of the market. Communication Services gained 1.06% after a really strong stretch for the sector.
Cisco reported fiscal fourth-quarter 2026 results that topped expectations. The company guided fiscal 2027 revenue to $72.2 billion-$73.4 billion, above the $68.69 billion estimate. Adjusted EPS guidance of $5.05-$5.11 also came in above the $4.80 estimate.
Cisco is expanding its AI infrastructure strategy, with integrated Super Micro Computer, Inc. (NASDAQ:SMCI) solutions for its Secure AI Factory expected to be offered in October 2026. The company is targeting increasingly dense GPU systems, including Nvidia's Vera Rubin NVL72 and HGX Rubin NVL8 platforms.