MW Cisco's stock falls as investors pan a seemingly upbeat earnings report

By Emily Bary

The networking company sported AI momentum and delivered a rosy revenue outlook, but that wasn't enough for Wall Street

Cisco's profit forecast bracketed the consensus view, while its revenue forecast exceeded expectations.

Cisco Systems' stock has bucked the technology sector's broader selloff so far this year, but it's now poised to give up a good chunk of its gains despite an upbeat earnings report.

The networking giant on Wednesday reported $2.1 billion in artificial-intelligence orders from hyperscale customers during the January quarter, up from $1.3 billion in such orders three months back.

But that "significant acceleration" wasn't enough to please Wall Street, as shares of Cisco $(CSCO)$ were falling more than 7% in extended trading Wednesday - indicating the high bar that tech companies now must clear as Wall Street takes a more discerning look at the AI trade.

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Cisco's revenue forecast came in better than anticipated. The networking giant expects April-quarter revenue of $15.4 billion to $15.6 billion, whereas analysts tracked by FactSet were looking for about $15.2 billion. The company's guidance on adjusted earnings per share, which calls for $1.02 to $1.04, bracketed the consensus view.

The company's January-quarter results brought upside, with Cisco posting $1.04 in adjusted earnings per share on $15.3 billion in revenue. Analysts had been modeling $1.02 and $15.1 billion, respectively.

"We see strong, broad-based demand for our technology solutions and remain focused on capturing the significant opportunities we see ahead," Cisco CFO Mark Patterson said in a release.

The company also announced that it was boosting its quarterly dividend by 2%, to 42 cents a share.

Cisco's stock had risen 11% on the year through Wednesday's close, while the S&P 500's information-technology sector XX:SP500.45 had lost about 2%.

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-Emily Bary

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February 11, 2026 17:24 ET (22:24 GMT)

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