Key Points
- Cisco reports record Q4 revenue of $17.3 billion, up 18 per cent year over year
- AI infrastructure orders reached $9.3 billion in fiscal 2026 with $7.5 billion expected in FY2027
- Networking product orders grew 40 per cent in Q4, eighth consecutive quarter of double-digit growth
Cisco reported record fourth quarter revenue of $17.3 billion on Thursday (13 August), marking an 18 per cent year-over-year increase as demand for AI infrastructure and networking equipment drove the company’s strongest fiscal year performance in three decades.
The San Jose-headquartered networking company’s fiscal 2026 results exceeded guidance across all metrics, with total annual revenue reaching $63.3 billion, a 12 per cent increase from the previous year. The company reported net income of $3.9 billion for the quarter and $13.3 billion for the full fiscal year.
The results come amid what Cisco described as a networking supercycle, a period of accelerated investment in network infrastructure driven by artificial intelligence workloads and enterprise digital transformation. Total product orders rose 35 per cent year over year in Q4, with networking product orders specifically growing 40 per cent.
Cisco AI infrastructure
Cisco’s AI infrastructure business emerged as a significant growth driver, with the company securing $4 billion in AI-related orders during Q4 alone. This brought total AI infrastructure orders for fiscal 2026 to $9.3 billion, with the company expecting to deliver $7.5 billion in AI-related revenue during fiscal 2027.
“We delivered a very strong close to fiscal 2026, marking another record year for Cisco,” said Cisco CEO Chuck Robbins. “Our record performance is a testament to the accelerated pace of innovation and the excellent execution by our teams.”
Chuck highlighted the company’s positioning in secure networking, the integration of cybersecurity capabilities with network infrastructure, as a competitive advantage. “With the breadth and depth of our portfolio and our competitive differentiation in secure networking, Cisco is well positioned to support our customers however or wherever they decide to deploy AI,” he said.
By the numbers
- $17.3B
- Q4 fiscal 2026 revenue
- $9.3B
- Total AI infrastructure orders in FY2026
- 40%
- Networking product order growth in Q4
Product revenue, which includes networking hardware, security appliances and collaboration tools, rose 24 per cent to $13.5 billion in Q4. Services revenue remained flat at $3.8 billion. By product category, networking revenue grew 28 per cent, security rose 14 per cent, collaboration increased 12 per cent and observability, which refers to tools that monitor and analyse system performance, grew 6 per cent.
Profitability metrics
Mark Patterson, chief financial officer of Cisco, said the company achieved its highest productivity metrics in 30 years when measured by revenue, operating margin and earnings per employee. Non-GAAP operating margin, which excludes one-time charges and stock-based compensation, reached 35.9 per cent in Q4.
“In Q4, we delivered record revenue, non-GAAP operating income and EPS, all exceeding the high end of our guidance ranges and demonstrating strong financial discipline and operating leverage,” Patterson said.
GAAP earnings per share rose 52 per cent to $0.97 for the quarter and 31 per cent to $3.33 for the full year. Non-GAAP earnings per share reached $1.22 for Q4 and $4.33 for the fiscal year, representing increases of 23 per cent and 14 per cent respectively.
Regional performance showed consistent growth, with Americas revenue up 18 per cent, Europe, Middle East and Africa up 19 per cent, and Asia Pacific, Japan and China up 14 per cent. The broad-based demand extended across customer segments, with double-digit order growth recorded in enterprise, commercial, service provider and public sector markets.
Cisco outlook
For the first quarter of fiscal 2027, Cisco expects revenue between $18 billion and $18.2 billion, with non-GAAP earnings per share of $1.32 to $1.34. Full-year fiscal 2027 guidance projects revenue of $72.2 billion to $73.4 billion with non-GAAP earnings per share of $5.05 to $5.11.
The company announced a quarterly dividend of $0.42 per share, payable on 21 October 2026 to shareholders of record as of 2 October 2026. During Q4, Cisco returned $3.2 billion to shareholders through dividends and share repurchases, buying back approximately 13 million shares at an average price of $111.53 per share.
Cisco also completed two acquisitions during the quarter: Galileo Technologies, an observability company, and Astrix Securities, a security firm specialising in non-human identity management, which involves securing credentials used by automated systems and applications rather than human users.
The company’s remaining performance obligations, a measure of contracted future revenue, stood at $46.7 billion, up 7 per cent from the previous year.
Your Questions, Answered
What was Cisco's Q4 fiscal 2026 revenue?
Cisco reported Q4 fiscal 2026 revenue of $17.3 billion, an 18 per cent increase compared to the same quarter in the previous fiscal year.
How much did Cisco's AI infrastructure orders total in fiscal 2026?
Cisco secured $9.3 billion in AI infrastructure orders during fiscal 2026, including $4 billion in Q4 alone. The company expects to deliver $7.5 billion in AI-related revenue during fiscal 2027.
What is Cisco's revenue guidance for fiscal 2027?
Cisco expects fiscal 2027 revenue between $72.2 billion and $73.4 billion, with non-GAAP earnings per share projected at $5.05 to $5.11.
What dividend did Cisco declare for Q4 fiscal 2026?
Cisco declared a quarterly dividend of $0.42 per common share, payable on 21 October 2026 to shareholders of record as of 2 October 2026.
