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Cisco's stock drops despite earnings, revenue beat - CNBC
Business and EconomyBy Ari Levy8/12/20261 min read
Even though Cisco's quarterly results topped estimates, they weren't good enough to satisfy Wall Street.
✨ Key Highlights
- Cisco shares fell in extended trading Wednesday, Aug. 12, 2026, even though the networking company beat Wall Street's earnings and revenue estimates in its fiscal fourth quarter.
- The company reported adjusted earnings of $1.22 per share versus the $1.17 expected, and revenue of $17.25 billion against a forecast of $16.82 billion, with revenue up 18% from $14.7 billion a year earlier.
- Net income jumped 51% to $3.9 billion, or 97 cents a share, compared with $2.6 billion, or 64 cents a share, in the prior-year period.
- Cisco guided for current-quarter revenue of $18 billion to $18.2 billion, well above the $16.8 billion analysts anticipated, and also issued earnings guidance and full-year projections that topped expectations.
- Hyperscalers—the internet giants fueling AI spending—placed $4 billion in infrastructure orders during the quarter, lifting the fiscal-year total to $9.3 billion; Cisco expects revenue from that group to nearly double to $7.5 billion in fiscal 2027.
- The stock's decline came despite bullish sentiment heading into the report, with shares up more than 60% this year and roughly 8% for the month on optimism about Cisco's growing role in the AI buildout.
Cisco shares dropped in extended trading on Wednesday despite a better-than-expected earnings report and a revenue forecast that sailed past estimates.
Here's how the company did compared with analy