Cisco Stock Surges on AI-Driven Earnings Beat and Raised Guidance

Cisco Systems Inc.'s (ISIN US17275R1023) stock price has been supported by strong fiscal Q4 2026 earnings and raised guidance, which highlights how AI networking is driving growth. The company's revenue of $17.25 billion in the quarter represents a 17.6% increase compared to the same period last year.

Cisco's non-GAAP earnings per share reached $1.22 in Q4 FY2026, up from the prior-year level. This indicates that operating leverage is beginning to materialize as higher-margin AI infrastructure sales scale. The company booked around $4 billion in AI infrastructure orders during the quarter, underscoring demand for GPU-centric data-center networking and high-bandwidth architectures.

Cisco's shares have risen 47.7% year-to-date as of Q4 FY2026, outperforming its historical mid-single-digit revenue expansion. The company's guidance for fiscal 2027 points to continued momentum, with raised full-year revenue guidance to a range of $72.2 billion to $73.4 billion and adjusted earnings per share guidance now standing at $5.05 to $5.11.

Despite the double beat on revenue and earnings, Cisco's stock fell 1.81% in the immediate aftermath of the Q4 FY2026 release due to broader weakness in the technology sector. However, analysts remain bullish on the company, with Deutsche Bank initiating coverage with a Buy recommendation and a price target of $135 per share.