Cisco CEO Chuck Robbins stated that the company achieved a record year and a record quarter, according to remarks made to CNBC's Jim Cramer. [source_ref:claim:16]
Robbins also noted that the company is starting a new fiscal year while operating in what he described as incredible markets, though he added an intention to be prudent at the start of the year, according to remarks made to CNBC's Jim Cramer. [source_ref:claim:17, claim:18]
CFO Mark Patterson announced on Wednesday that Cisco's revenue and profit for the most recent quarter reached record values, according to verified reporting. [source_ref:claim:1]
Patterson also stated that productivity has reached its highest level in 30 years, as confirmed by Cisco. [source_ref:claim:2]
In the fiscal fourth quarter, Cisco's revenue increased by 18% to $17.3 billion, exceeding the $16.8 billion expected by analysts.
Cisco's fiscal fourth quarter revenue growth compared to previous periods.
The company is benefiting from a construction boom in data centers. Cisco reported that hyperscalers placed $4 billion in infrastructure orders during the quarter, bringing the total for the fiscal year to $9.3 billion.
For the 2025/2026 fiscal year, Cisco increased revenue by 12% to $63.3 billion and increased adjusted profit by 14% to $4.33 per share.
Revenue from the three largest cloud providers—Amazon Web Services (AWS), Google, and Microsoft—is expected to contribute approximately 10% to Cisco's revenue in the coming months. Cisco's previous estimate for revenue from these providers was six billion dollars.
Hyperscalers accounted for approximately $4 billion of revenue in the past fiscal year. Cisco expects this figure to nearly double to $7.5 billion in fiscal 2027.
Analyst Outlook and Market Reaction
Cisco projects revenue for the current quarter to fall between $18 billion and $18.2 billion, which is above the LSEG average estimate of $16.8 billion. The company also projects revenue growth of approximately 15% for the current year, although analysts expect sales growth to enter single digits in the next fiscal year.
Piper Sandler analysts described the company's guidance as conservative given the current demand environment, though they suggested some investors might question if the company is seeing peak growth. Other analysts noted that a focus on the artificial intelligence 'supercycle' could pressure gross margins.
Market reactions to the report have been mixed across different reports. While one source indicates shares dropped 9% on Thursday—with another reporting a 5% drop after-hours—other reports state the stock rose by 3% in after-hours trading on Wall Street. As of mid-day Thursday, Cisco's stock was trading at approximately $113, below its record closing high of $130 in June.
Prior to the earnings report, Cisco shares had risen by more than 60% for the year. Meanwhile, KeyBanc Capital Markets analysts maintain a bullish outlook on the company with the equivalent of a buy rating.
