Cisco (CSCO) Down 5.3% Since Last Earnings Report: Can It Rebound?

CSCO reported fiscal Q4 2026 earnings of $1.22 per share, up 23% year-over-year, and revenue of $17.252 billion, up 18%, both topping consensus. Networking revenue jumped 28% driven by AI infrastructure and data center demand. Yet shares have lagged the S&P 500 by 5.3% since the print.

The company issued fiscal 2027 guidance projecting revenue of $72.2 billion to $73.4 billion and hyperscaler AI infrastructure revenue of $7.5 billion. Operating leverage helped expand margins despite gross margin pressure from hardware mix shifts and rising memory costs.

The post-earnings selloff reflects typical digest behavior after a strong run, but the AI infrastructure story remains intact. CSCO's exposure to hyperscaler buildouts positions it to capture a $7.5 billion slice of fiscal 2027 revenue—a tangible AI tailwind amid broader market skepticism of hardware plays. The 28% networking revenue growth validates demand, even as hardware mix dynamics weigh on near-term profitability.