Cisco Beats Earnings on AI Orders but Shares Dip on Outlook

Cisco Systems reported stronger-than-expected fourth-quarter earnings on August 12, 2026, driven by a surge in artificial intelligence infrastructure orders, but its shares fell in extended trading as investors focused on the company's outlook for the coming year. The networking equipment maker posted revenue of $17.3 billion, an 18% increase from the same period last year, and earnings per share of $1.22, both comfortably above Wall Street estimates. The results capped a fiscal year in which the company's stock has rallied more than 50%.

The primary engine behind the performance was a massive influx of AI-related orders. Cisco captured $4 billion in AI orders during the fourth quarter alone, pushing its full-year total to $9.3 billion. This figure significantly exceeded the company's own raised target of $9 billion for the fiscal year. Management attributed the strength to enterprise clients transitioning from exploratory AI pilots to large-scale data center deployments, a shift that favors vendors with comprehensive switching and security solutions. Total product orders surged 35% in the quarter, with the core networking business growing 28%.