On August 13, Cisco fell 4.67% in pre-market trading, trading at $118.62 per share. The stock had initially surged nearly 8% after hours following its Q4 fiscal 2026 earnings release before reversing sharply lower.

Cisco reported Q4 revenue of $17.25 billion, up 18% year-over-year, beating the consensus estimate of $16.82 billion. Adjusted EPS came in at $1.22, up 23% year-over-year, exceeding the $1.17 estimate by 4.3%. AI infrastructure orders reached approximately $4 billion in the quarter, with hyperscale customer orders achieving triple-digit growth. The company guided Q1 FY2027 revenue of $18.0-18.2 billion and adjusted EPS of $1.32-1.34, both significantly above consensus estimates of $16.84 billion and $1.16, respectively. Full-year FY2027 guidance of $72.2-73.4 billion in revenue and $5.05-5.11 in adjusted EPS also topped expectations.

Despite the comprehensive beat, the stock reversed as investors questioned the sustainability of AI orders and viewed the AI business guidance as conservative. With shares having rallied approximately 61% year-to-date, short-term traders opted for profit-taking, interpreting the results as insufficient to justify further upside from elevated levels.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)