Cisco Systems (CSCO) Q4 2026 Earnings Report

The call communicates strong, broad-based demand and execution — record revenue, robust product and hyperscaler momentum, meaningful design wins, operating leverage, and strong cash returns. Key challenges include gross margin headwinds driven by a higher hardware mix and memory costs, flat services growth, modest recurring revenue expansion, and timing/linearity risks between large hyperscaler orders and revenue recognition. Management positions FY27 guidance conservatively while emphasizing durable secular drivers (Agentic AI, networking super cycle) and supply-chain actions to support continued growth.

Cisco's guidance for FY27: Q1 revenue of $18.0–$18.2B, non‑GAAP gross margin 65%–66%, non‑GAAP operating margin 35.5%–36.5%, non‑GAAP EPS $1.32–$1.34 and an assumed non‑GAAP tax rate of ~18.5% (Q1 is expected to be roughly 25% of annual revenue); full‑year FY27 revenue guided to $72.2–$73.4B with non‑GAAP EPS of $5.05–$5.11, management indicating an implied full‑year non‑GAAP operating margin of about 35% and projecting AI infrastructure revenue of $7.5B in FY27.