Cisco shares fall 9% despite strong earnings and optimistic guidance

Aug 13, 2026

AI Summary

Cisco's stock dropped 9% following a quarterly earnings report that exceeded expectations. Although the company projected revenue growth of 15% for the upcoming year, analysts expressed concerns about potential peak growth and conservative guidance.

Cisco's shares fell 9% after reporting better-than-expected earnings and guidance that did not satisfy investors.
The company anticipates revenue between $18 billion and $18.2 billion for the current quarter, surpassing the $16.8 billion average estimate.
Revenue for the fiscal fourth quarter rose 18% to $17.3 billion, exceeding analyst expectations of $16.8 billion.
Analysts noted that while Cisco's quarterly performance was strong, the guidance seemed conservative given current demand.
Cisco's CEO Chuck Robbins highlighted the company's record performance but acknowledged the need for prudence as they start a new fiscal year.
Analysts from KeyBanc Capital Markets maintain a buy rating, citing potential market share gains from increased spending by hyperscalers.
Hyperscalers ordered $4 billion in infrastructure during the quarter, contributing to a total of $9.3 billion for the fiscal year.
Cisco expects revenue from hyperscalers to nearly double by fiscal 2027.
As of mid-day Thursday, Cisco's stock was trading around $113, down from a record closing high of $130 in June.

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Cisco shares fall 9% despite strong earnings and optimistic guidance

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