Cisco Q4 2026: $9.3B in AI Orders and a Fifth Straight EPS Beat
As seen on the 24/7 Wall St. homepage on August 12, 2026.
Cisco is now an AI infrastructure story: $9.3 billion in FY2026 AI orders, with management guiding that line to $7.5 billion in FY2027. The fifth straight EPS beat backs it up.
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Cisco's Q4 2026 earnings report cleared Wall Street on every major line, with non-GAAP EPS of $1.22 beating expectations. The AI infrastructure buildout is already flowing through to the bottom line.
Investors are focusing on $9.3 billion in AI-related orders booked across all of FY2026, including $4.0 billion in Q4 alone. Networking revenue, the segment most directly exposed to AI data center demand, rose 28% in the quarter, and management described the environment as a networking supercycle.
Cisco guided FY2027 full-year revenue to $72.2 billion to $73.4 billion, and AI infrastructure revenue alone is expected to reach $7.5 billion in FY2027, roughly doubling from approximately $4 billion in FY2026. Management views the current demand cycle as durable.
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Non-GAAP gross margin in Q4 narrowed to 66.3% from 68.4% a year earlier on a product mix shift toward thinner-margin AI infrastructure sales. Cisco also flagged tariff exposure in its FY2027 guidance and a restructuring plan announced May 13, 2026 that runs through the end of FY2027.
CEO Chuck Robbins called it "another record year for Cisco" and pointed to secure networking as a key differentiator for customers deploying AI. Q1 FY2027 guidance calls for revenue of $18.0 billion to $18.2 billion, a sequential step up that, if delivered, would extend the EPS beat streak to six quarters.
Mentioned: CSCO