On August 13, Cisco declined 4.08% overnight, trading at $118.78/share, with Turnover of $1,069.14. The stock initially surged nearly 8% after hours following its Q4 FY2026 earnings release before reversing sharply.

Cisco reported Q4 revenue of $17.25 billion, up 18% year-over-year, beating the $16.82 billion estimate. Adjusted EPS came in at $1.22, up 23% year-over-year, exceeding the $1.17 consensus. Q1 FY2027 guidance of $18.0-$18.2 billion in revenue and $1.32-$1.34 adjusted EPS significantly topped expectations of $16.84 billion and $1.16, respectively. Full-year FY2027 guidance also exceeded forecasts by roughly 6%.

Despite the strong results, the market turned its attention to AI order sustainability concerns. Q4 AI infrastructure orders reached approximately $4 billion from hyperscale customers, with the company projecting $7.5 billion in AI revenue for FY2027. Analysts noted the AI business guidance appeared conservative relative to elevated expectations. With Cisco having rallied 61% year-to-date, crowded AI positioning and stretched valuations prompted profit-taking and repricing.

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