Cisco Surpasses Expectations with Record Fiscal 2026 Results

Cisco Systems, Inc., has delivered record fiscal 2026 results with double-digit growth. The company's revenue reached $63.33 billion, a new high for annual sales, while its non-GAAP earnings per share totaled $4.30, representing a 13.6% increase compared to the previous year.

The strong performance was driven by demand from large-scale AI infrastructure projects, where Cisco's product orders have expanded significantly. In fact, AI-related bookings stood at $9.3 billion for the latest reported period, exceeding the company's internal target of $9.0 billion.

However, the company's gross margin declined by 2 percentage points due to higher costs associated with AI-related hardware and memory expenses. Nevertheless, operating expense ratios improved, leading to a 35.9% operating margin for the quarter.

The stock price has been affected by the strong earnings release, with shares declining 7.4% in the session following the report. Despite this, analysts remain broadly supportive of the company's prospects, with an average price target of $129.43 per share representing forecast upside of 16.56% from the current share price.

Cisco Systems stock has been a notable performer in 2026, with a year-to-date return of 46.03%. The company's dividend program remains an important part of its appeal to investors, contributing meaningfully to total shareholder returns.