Cisco Stock Rises After Record $63 Billion Revenue Year

This article first appeared on GuruFocus.

Cisco Systems (NASDAQ:CSCO) gained about 2% in early Thursday trading after the networking equipment maker reported record fiscal 2026 revenue of more than $63 billion, up 12% from a year earlier.

For the fourth quarter, Cisco Systems generated $17.3 billion in revenue, an 18% year-over-year increase. Non-GAAP net income reached $4.9 billion, while adjusted earnings per share rose 23% to $1.22. Product revenue climbed 24% to $13.5 billion, while services revenue was $3.8 billion.

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Cisco Systems said artificial intelligence infrastructure demand continued to build, with fourth-quarter orders reaching $4 billion. Full-year AI infrastructure revenue is projected to reach $7.5 billion in fiscal 2027. Remaining performance obligations totaled $46.7 billion, up 7%, while annual recurring revenue increased 3% to $32.1 billion.

Looking ahead, Cisco Systems expects fiscal first-quarter revenue between $18 billion and $18.2 billion, with adjusted EPS of $1.32 to $1.34. For fiscal 2027, revenue is projected at $72.2 billion to $73.4 billion, while adjusted EPS is expected between $5.05 and $5.11. The company also expects some margin pressure from a greater hardware mix.