Cisco posts better-than-expected fiscal Q4 as AI infrastructure demand lifts orders; Splunk acquisition broadens software push
Cisco Systems topped Wall Street expectations for its fiscal fourth quarter as rising demand for artificial intelligence infrastructure helped lift orders for AI-related products. The network equipment maker reported adjusted earnings of 99 cents per share for the quarter ended July 26, up 14% from a year ago, with revenue of $14.7 billion, up 8%.
Analysts polled by FactSet were looking for about 98 cents per share on roughly $14.62 billion in revenue, so Cisco beat both the consensus EPS and revenue estimates. A key driver cited by Cisco was AI network infrastructure orders, which rose to more than $800 million in the quarter, up from $600 million in the prior quarter. The company noted that new AI-centric data centers being built by cloud providers are fueling demand for Ethernet networking upgrades.
Cisco has disclosed AI-related orders but not a full revenue figure for the AI segment. The company said it finished April with total AI orders of about $1.3 billion. For its first fiscal quarter, which ends in October, Cisco projected revenue in a range centered around $14.75 billion, topping consensus estimates of about $14.62 billion. For fiscal 2026, Cisco forecast revenue of about $59.5 billion, roughly a 5% rise in line with market expectations.
Following the results, Cisco stock was down about 3% in extended trading, trading near $68.50 after having climbed about 20% in 2025 ahead of the report.
The results underscore Cisco’s ongoing strategic pivot away from a traditional emphasis on switches and routers toward software and services, a transition aided by acquisitions. Notably, Cisco closed its $25 billion cash purchase of Splunk, a company with roots in data analytics software that has expanded into cybersecurity, to broaden its software offerings.
In investment research notes, Cisco’s stock carries a Composite Rating in the mid-90s and a solid Accumulation/Distribution score, reflecting favorable price and volume action over recent weeks. The company’s push into software and security, combined with AI-centric demand, positions Cisco to leverage cloud-scale data-center upgrades for ongoing growth.
What this means for investors
– AI and data-center spending remains a key growth driver, with AI infrastructure orders already a meaningful contributor to quarterly revenue.
– Cisco’s Splunk integration could bolster software and cybersecurity revenue as it deepens the company’s portfolio beyond hardware.
– The guidance suggests continued near-term momentum, but the stock reaction implies investors are weighing the magnitude and duration of AI-related demand against broader hardware exposure and integration risk.
Summary
Cisco beat quarterly expectations as AI infrastructure demand lifted orders and revenue, while it nudged upward its full-year and next-year projections. The company’s strategic shift toward software and services, capped by the Splunk acquisition, suggests a constructive longer-term trajectory despite a cautious near-term earnings reaction.