Cisco Systems reported fiscal fourth-quarter earnings and revenue that edged by estimates as new product orders rose 7%, slowing from 20% the previous quarter, despite growing artificial intelligence infrastructure demand. The company's October quarter revenue outlook for Cisco stock came in above views.
The computer network gear maker released Cisco earnings after the market close on Wednesday.
"Upside to July quarter results and the October quarter outlook were offset by in-line fiscal 2026 guidance," said Citi analyst Atif Malik in a report.
Fiscal Q4 financial results included software maker Splunk. For the period that ended July 26 Cisco earnings rose 14% to 99 cents on an adjusted basis. Revenue climbed 8% to $14.7 billion.
Cisco Stock: AI Order Growth
Analysts estimated that Cisco would earn 98 cents per share on revenue of $14.616 billion, according to FactSet.
Also, artificial intelligence network infrastructure orders exceeded $800 million, up from $600 million in the previous quarter, the company said. New AI-centric data centers being built by cloud computing companies are driving demand for Ethernet networking upgrades, Cisco said.
Cisco has disclosed AI orders but not revenue. It had $2.1 total billion AI orders at the end of fiscal Q4, up from $1.3 billion AI orders at the end of April.
For its first fiscal quarter ending in October, Cisco forecast sales of $14.75 billion at the midpoint of its outlook. Analysts predicted sales of $14.62 billion. Cisco forecast fiscal 2026 revenue of $59.5 billion, up 5%, in-line with estimates.
"We see some headwinds ahead with tougher order comparisons coming, tariff uncertainty impacting gross margin and a weak federal vertical," said Barclays analyst Tim Long in a report. "While the campus switching product cycle should improve, we do not see this as a major revenue driver."
On the stock market today, Cisco stock fell 0.9% to 69.75 in early trading. Cisco stock had advanced nearly 20% in 2025 heading into the earnings report.
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Cisco Stock: Technical Ratings
In addition, Cisco has shifted away from its core business of selling network switches and routers. With acquisitions, Cisco aims to increase revenue from software and services.
Cisco recently closed the acquisition of software company Splunk for $25 billion in cash. With roots in data analytics software, Splunk has expanded into cybersecurity.
Cisco stock holds a Composite Rating of 95 out of a best-possible 99, according to IBD Stock Check-up.
Meanwhile, Cisco stock holds an Accumulation/Distribution Rating of B-plus. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. (A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.)
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
