Cisco's AI-Driven Supercycle: Hyperscalers Fuel Billions in Revenue Growth
Cisco Systems (CSCO) delivered strong fiscal fourth-quarter earnings and full-year revenue growth, driven by the accelerating adoption of agentic AI. CEO Chuck Robbins called it a 'Networking Supercycle', fueled by hyperscalers' growing demand for AI infrastructure.
Cisco took $9.3 billion in AI infrastructure orders from hyperscalers in fiscal 2026, including $4 billion in the fourth quarter alone. Management expects this revenue to reach $7.5 billion in fiscal 2027, roughly a tenth of guided revenue.
The company's gross margin fell 210 basis points year over year due to a higher hardware mix and memory costs, but non-GAAP earnings per share rose 23% in the fourth quarter to $1.22. Management guided fiscal 2027 earnings per share of $5.05 to $5.11.