Cisco Systems reports record Q4 revenue driven by AI infrastructure demand

Cisco Systems reported record fourth-quarter and full-year fiscal 2026 results, driven by a surge in demand for artificial intelligence infrastructure. Fourth-quarter revenue rose 18% year-over-year to $17.3 billion, while non-GAAP earnings per share reached $1.22, exceeding analyst expectations. The company highlighted a “networking supercycle” fueled by AI deployment, noting that product orders increased 35% during the quarter.

A significant growth driver was the demand from hyperscale cloud providers, which contributed $4 billion in AI infrastructure orders during the fourth quarter, bringing the fiscal 2026 total to $9.3 billion. Cisco expects AI infrastructure revenue to grow to approximately $7.5 billion in fiscal 2027.

Looking ahead, Cisco issued strong guidance for fiscal 2027, projecting annual revenue between $72.2 billion and $73.4 billion and adjusted earnings per share between $5.05 and $5.11. Despite the record performance and positive outlook, the company’s stock experienced volatility and after-hours selling following the announcement, as investors reacted to high market expectations and recent price rallies.

Internally, Cisco is also undergoing a technological shift, deploying personalized AI agents to its 90,000 employees to drive operational efficiency. This follows a strategic realignment that included approximately 4,000 job cuts earlier in 2026 to focus on silicon, security, and AI.