Cisco reported on 12 August 2026, after the market closed, on its fourth quarter and fiscal year 2026, ended 25 July.
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The Quarter
| The quarter | A year ago | Change | |
|---|---|---|---|
| Revenue | $17.3 billion | $14.7 billion | +18% |
| GAAP net income | $3.9 billion | $2.6 billion | +51% |
| GAAP EPS | $0.97 | $0.64 | +52% |
| Non-GAAP net income | $4.9 billion | $4.0 billion | +23% |
| Non-GAAP EPS | $1.22 | $0.99 | +23% |
| GAAP operating margin | 24.7% | ||
| Non-GAAP operating margin | 35.9% |
And within revenue: product revenue rose 24%, and services revenue was flat.
And for the full year: revenue of $63.3 billion, up 12%, and GAAP earnings per share of $3.33 against $2.55 - up 31%.
The Line I Consider Most Important in the Report
Product orders in the quarter rose 35%. And excluding hyperscalers - 25%.
And that is precisely the figure that makes this report meaningful.
In the current earnings season, almost every company touching AI infrastructure is showing growth. The question the headline cannot answer is whether the growth is broad, or a handful of very large customers.
Cisco broke it out itself. The difference between 35% and 25% is the hyperscaler contribution. Ten percentage points.
Meaning: even without them, orders rose a quarter.
And the company adds that growth was double-digit across every geography and every customer market - which reinforces the same conclusion. This is not the growth of a single contract.
And networking product orders alone rose 40% - the eighth consecutive quarter of double-digit growth.
AI Infrastructure, in the Company's Own Figures
| AI infrastructure orders from hyperscalers, the quarter | $4 billion |
| AI infrastructure orders, full year 2026 | $9.3 billion |
| AI infrastructure revenue in 2026 | about $4 billion |
| Revenue expected in 2027 | $7.5 billion |
The gap between orders and revenue tells the story: $9.3 billion was ordered, about $4 billion was recognised. The difference is backlog awaiting delivery.
And the company expects revenue from this line to grow to roughly $7.5 billion next year - close to a doubling.
The Guidance, and What It Says
| Q1 FY2027 | FY2027 | |
|---|---|---|
| Revenue | $18.0 to $18.2 billion | $72.2 to $73.4 billion |
| GAAP EPS | $1.08 to $1.10 | $4.00 to $4.06 |
| Non-GAAP EPS | $1.32 to $1.34 | $5.05 to $5.11 |
And now the arithmetic that explains why this is strong guidance:
Revenue in 2026 was $63.3 billion and grew 12%. Guidance for 2027 is $72.2 to $73.4 billion - meaning growth of 14% to 16%.
The company expects to accelerate, not decelerate.
And that is rare at this scale. A base of $63 billion normally slows on its own, simply because the denominator grows. Guidance that accelerates on such a base says management sees demand growing faster than the company.
Profitability
GAAP operating margin was 24.7% in the quarter and 24.3% for the full year. Non-GAAP - 35.9% in the quarter and 34.8% for the year.
And the gap between the growth rates of the lines teaches something: revenue in the quarter rose 18%, and GAAP net income rose 51%. Meaning profit grew at almost three times the pace of revenue.
That is operating leverage, and it appears in the full year too: revenue +12%, GAAP net income +30%.
And CEO Chuck Robbins and CFO Mark Patterson note that in 2026 the company reached its highest productivity metrics in thirty years, measured by revenue, non-GAAP operating margin and earnings per employee.
Alongside which a quarterly dividend of $0.42 per share was declared.
What Is Worth Noting
Services revenue was flat.
And that is interesting precisely because of the contrast: products rose 24%, services zero.
At a company that built a substantial part of its identity on recurring support and maintenance revenue, a line that does not move while products jump is a figure worth tracking. It could reflect contract renewal timing, a change in mix, or customers moving to other models - and the report does not break it down.
And note: orders are not revenue. A backlog of $9.3 billion in AI infrastructure is a customer commitment, and the gap between it and recognised revenue is execution risk - not demand risk.
The Market Reaction
The report was published after the market closed, so the market's response will emerge in Thursday's session.
