Cisco stock slips after record earnings and AI orders

Cisco Systems (US17275R1023) stock came under pressure after fiscal 2026 ended with record revenue of $63.3 billion and $9.3 billion in AI infrastructure orders. The latest quote snapshot showed $110.86 as of August 19, 2026, while the most recent earnings release pointed to a sharp gap between the company's reported strength and the market's reaction.

Record quarter, softer trade

Fiscal fourth-quarter revenue reached $17.3 billion, up 18% year over year, and non-GAAP earnings were $1.22 per share. Networking revenue rose 28% to $9.8 billion, and total product orders increased 35%, with networking orders up 40%.

That mix matters because Cisco is still proving that its AI and data-center business can scale without leaning only on hyperscalers. AI infrastructure orders totaled $4 billion in the quarter and $9.3 billion for fiscal 2026, while management said AI infrastructure revenue should reach $7.5 billion in fiscal 2027.

Wall Street reset

Analysts have also been moving. A consensus snapshot showed 24 analyst ratings, a moderate buy stance, and a $129.43 average price target, which implied 16.74% upside from the $110.86 quote.

In the same update set, several firms raised targets, including a move to $150 from one major bank and a $165 high target from another, reinforcing how much of the debate now centers on Cisco's margin mix, order durability, and the pace of AI revenue conversion.

What the numbers say

The clearest comparison is still between growth and valuation. Cisco's fiscal 2026 revenue of $63.3 billion was 12% above the prior year, while the quarter delivered $17.3 billion in sales and $1.22 in adjusted EPS, but the stock traded at $110.86 in the latest market snapshot and sat below the $129.43 consensus target.

For investors, the key figure is not only the record revenue, but also the 4.5-fold jump in annual AI infrastructure orders to $9.3 billion from the prior year base implied in the earnings commentary.

Networking still leads

Cisco's networking business remains the anchor. Quarterly networking revenue of $9.8 billion and product-order growth of 35% show that demand is spreading beyond a single AI customer group, while enterprise and public-sector orders also contributed to the quarter's growth.

Product line and outlook

One representative product line is Cisco's networking gear for data centers and campus refresh cycles, which sits at the center of the company's current order momentum. Management's fiscal 2027 guide for $72.2 billion to $73.4 billion in revenue and $7.5 billion in AI infrastructure sales gives that business a larger runway than the market implied in the latest quote snapshot.

Cisco stock last traded in the cited snapshot at $110.86, versus a $129.43 consensus target, after the company reported $63.3 billion in fiscal 2026 revenue and $9.3 billion in AI infrastructure orders.

Fact box

Company: Cisco Systems, Inc.
ISIN: US17275R1023
Ticker: CSCO
Exchange: Nasdaq
Price (as of August 19, 2026): $110.86 USD
Market cap: $214.7 billion (as of August 19, 2026)
Sector / Industry: Information Technology / Communications Equipment
Index membership: S&P 500

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