Cisco Surpasses Expectations with Record Fiscal 2026 Performance

Cisco Systems (CSCO) reported a record fiscal 2026 performance, exceeding expectations across all key metrics. Revenue surged to $63 billion, up 12% year-over-year (YoY), while non-GAAP earnings per share (EPS) reached $4.33, a 14% YoY increase. In the fourth quarter (Q4), revenue hit $17.3 billion, up 18% YoY, and non-GAAP EPS rose to $1.22, a 23% YoY gain.

The company's product revenue grew by 24% YoY in Q4, led by networking (+28%), security (+14%), and collaboration (+12%). Management attributed the strength to an accelerating 'networking super cycle' driven by AI adoption, with total product orders increasing by 35% YoY. Hyperscaler investments in Silicon One-based systems and Acacia optics also contributed to the growth.

Cisco's Q4 results highlighted strong momentum across various regions, with all geographies experiencing double-digit growth in product orders. The Americas saw a 44% increase, while EMEA grew by 25%, and APJC by 19%. Service provider and cloud customer orders jumped 95%, public sector orders accelerated to 30%, and telco orders rose to 30%.

For fiscal Q1 2027, Cisco guides revenue of $18.0, $18.2 billion, non-GAAP EPS of $1.32, $1.34, gross margin of 65%, 66%, and operating margin of 35.5%, 36.5%. The company expects to maintain its record performance in fiscal Q1 2027, driven by continued growth in AI infrastructure orders.