Aug. 13 at 10:26 PM
Cisco shares fell 8.4% despite better-than-expected earnings and strong guidance, as investors focused on concerns that the company’s growth may be approaching a peak. Fiscal Q4 revenue rose 18% to
$17.3B, beating the
$16.8B consensus, while current-quarter revenue guidance of
$18B-
$18.2B also exceeded expectations.
Cisco had gained more than 60% this year as it increasingly benefited from the AI infrastructure boom. The company expects roughly 15% revenue growth this fiscal year, although analysts see growth slowing back to single digits next year. CEO Chuck Robbins called the latest results a record quarter and year, while emphasizing a more cautious approach to the new fiscal year.
AI demand remains a key driver, with hyperscalers placing
$4B in infrastructure orders during the quarter and
$9.3B for the full fiscal year. Cisco expects hyperscaler revenue to nearly double to
$7.5B in fiscal 2027 as major cloud providers and neoclouds accelerate AI spending.
$CSCO