Cisco Sold More Than Expected Last Quarter — Here's What's Going On

Cisco reported revenue of $17.3 billion for the fourth quarter of its 2026 fiscal year on August 12. That beat the company's own forecast of $16.7–$16.9 billion, which it had issued on May 13. The company also said product orders rose 35% compared to the same period a year ago and described a "networking supercycle" as underway.

Orders are a measure of what customers have agreed to buy but haven't necessarily received yet. So a 35% jump in orders means more sales are lined up for the coming months. Cisco's "supercycle" language suggests the company expects this surge in demand to continue for several quarters, not just a one-time spike.

Back in May, Cisco also raised its full-year revenue forecast to $62.8–$63.0 billion, up from $61.2–$61.7 billion, as reported by Reuters on May 13. The increase followed strong third-quarter results, described by Investing.com as blockbuster, and came with a $1 billion restructuring plan focused on artificial intelligence that involves cutting about 4,000 jobs, per Reuters on May 14.

Cisco had also predicted a quarterly profit margin of 34–35% and earnings per share (a common way to measure profit) of $1.16–$1.18 on an adjusted basis. On a standard accounting basis, which includes all costs, the company estimated earnings of $0.80–$0.85 per share. The roughly $0.33 gap between those two numbers is wider than usual because the restructuring costs — the money spent on layoffs and reorganization — show up in the standard accounting figure but not the adjusted one.

The big question going forward is what is driving that 35% order growth. If it is largely companies buying equipment for AI projects, the surge could last. If it is mostly customers replacing old gear on a normal cycle, the momentum may slow down. Cisco's conference call was scheduled for August 5, with results released after market close via PR Newswire.

The full-year revenue forecast of $62.8–$63.0 billion, set against the $17.3 billion earned this quarter, suggests Cisco expects to finish the year at the high end of its updated range. With the AI restructuring still getting started, the open question is whether this order momentum turns into lasting growth or settles back down once the initial wave of demand is met.