CSCO · Q4 2026 Earnings

Bullish

Cisco

Reported August 12, 2026

30-second summary

Q4 revenue grew 18% YoY to $17.3B and non-GAAP EPS hit $1.22, both blowing past the prior guide ($16.7–16.9B / $1.16–1.18), with hyperscale AI infrastructure orders landing at $4.0B — above the ~$3.7B implied by the $9B FY26 anchor, and closing FY26 AI orders at $9.3B against ~$4B of AI revenue. Management guided FY27 revenue to $72.2–73.4B (+14–16% YoY) with $7.5B of AI revenue baked in, and the Q1 FY27 guide of $18.0–18.2B implies +21–22% YoY off Q1 FY26's $14.90B — a genuine acceleration, not a comp effect. Non-GAAP gross margin of 66.3% landed at the high end of the 65.5–66.5% guide, with non-GAAP operating margin of 35.9% beating the 34–35% guide by 90bps — but the Q1 FY27 non-GAAP GM guide of 65–66% signals a step-down from the Q4 print rather than continued expansion.

Headline numbers

EPS

Q4 FY2026

$1.22

+4.3% vs est.

Revenue

Q4 FY2026

$17.30B

+18.0% YoY

+2.8% vs est.

Gross margin

Q4 FY2026

64.1%

Free cash flow

Q4 FY2026

$5.00B

Operating margin

Q4 FY2026

24.7%

Key financials

Q4 FY2026

Metric	Q4 FY2026	Q4 FY2025	YoY	Q3 FY2026	QoQ
Revenue	$17.30B	$14.67B	+17.9%	$15.80B	+9.5%
EPS	$1.22	$0.99	+23.2%	$1.06	+15.1%
Gross margin	64.1%	65.7%	-160bps	63.6%	+50bps
Operating margin	24.7%	23.5%	+120bps	25.0%	-30bps
Free cash flow	$5.00B	—	—	$3.34B	+49.4%

Guidance

Guidance is issued for both next quarter and the full year. Both may appear below.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Revenue	Q4 FY2026	$16.7B - $16.9B	$17.3B	+$0.4B above guide	Beat
Non-GAAP EPS	Q4 FY2026	$1.16 - $1.18	$1.22	+$0.04 above guide	Beat
GAAP EPS	Q4 FY2026	$0.80 - $0.85	$0.97	+$0.12 above guide	Beat
Non-GAAP Gross Margin	Q4 FY2026	65.5% - 66.5%	64.1%	-1.4 pts below guide	Missed
Non-GAAP Operating Margin	Q4 FY2026	34% - 35%	35.9%	+0.9 pts above guide	Beat
Revenue	FY 2026	$62.8B - $63.0B	$63.3B	+$0.3B above guide	Beat
Non-GAAP EPS	FY 2026	$4.27 - $4.29	$4.33	+$0.04 above guide	Beat

New guidance

Metric	Period	Guide	YoY
Revenue	FY 2027	$72.2B - $73.4B	+14-16% YoY
Non-GAAP EPS	FY 2027	$5.05 - $5.11	+17-18% YoY
GAAP EPS	FY 2027	$4.00 - $4.06	—
Revenue	Q1 FY2027	$18.0B - $18.2B	+21-22% YoY
Non-GAAP EPS	Q1 FY2027	$1.32 - $1.34	—

Product revenue

Q4 FY2026

Segment	Q4 FY2026	Q4 FY2025	YoY
Networking	$9.791B	$7.633B	+28.3%
Security	$2.226B	$1.952B	+14.0%
Collaboration	$1.167B	$1.042B	+12.0%
Observability	$0.275B	$0.259B	+6.2%
Services	$3.793B	$3.787B	+0.2%

Geographic mix

Q4 FY2026

Segment	Q4 FY2026	Q4 FY2025	YoY
Americas	$10.396B	$8.822B	+17.8%
EMEA	$4.35B	$3.645B	+19.3%
APJC	$2.506B	$2.206B	+13.6%

Management tone

Tone analysis skipped — no transcript available. The following observations are derived from the press release language and multi-quarter arc.

Customer optimization hangover → AI experiments → AI-driven re-acceleration → AI as quantified revenue engine → AI supercycle framing with FY27 anchors

The AI framing has stepped up again — from "reasonable to expect at least $6B of FY27 revenue" at Q3 to a concrete $7.5B anchor at Q4. The Q3 press release stopped at "at least $6 billion"; the Q4 release commits to "$7.5 billion expected in FY 2027," a 25% raise on the forward anchor in a single quarter. Paired with the Q4 FY26 order print of $4.0B (exceeding the $3.7B implied by the $9B anchor) and FY26 orders closing at $9.3B, the pattern is that every quarter's disclosure has cleared the bar management set the quarter before.

Networking is now being called a "supercycle" — a step up from Q3's "still at the start of a multi-year, multi-billion dollar campus refresh." The Q4 press release contains the anchor: "Broad-based, record high demand for Cisco technology with a networking supercycle underway." Networking revenue +28% YoY (vs. +25% Q3, +21% Q2, +15% Q1) and networking orders +40% (vs. >50% Q3, >20% Q2) show the trajectory. The "supercycle" label is unusually assertive language from Cisco — the kind of framing that anchors a multi-year narrative rather than a quarterly result.

Security has flipped from "purely timing drag" to a delivered +14% print. Two quarters ago (Q2 FY26) security was -4%; last quarter (Q3) 0%; this quarter +14% — the sequential re-acceleration is sharp, and it exceeded management's own "approaching double-digit exit-rate" commitment. This is the cleanest resolution of the multi-quarter security concern that has been the counterweight to the AI story.

Gross margin has stabilized inside the guide, but the forward signal is a step-down. Non-GAAP GM printed 66.3% in Q4, at the high end of the 65.5–66.5% guide, but the Q1 FY27 guide of 65–66% signals management doesn't expect to hold the 66%+ zone. Combined with the operating-margin beat (35.9% vs. 34–35% guide), the picture is one of durable operating leverage with a modest mix-driven GM headwind ahead.

Answers to last quarter's watch list

Whether Q4 AI infrastructure orders hit the ~$3.7B implied by the $9B FY26 anchor — Q4 AI orders printed $4.0B, above the $3.7B math, and FY26 total AI orders closed at $9.3B (vs. the $9B anchor). The FY27 revenue guide of $7.5B AI (vs. Q3's "at least $6B") is a 25% forward-anchor raise. Status: Resolved positively

Q4 non-GAAP gross margin print vs. the 65.5–66.5% guide — Printed 66.3%, at the high end of the guide. The Q1 FY27 guide of 65–66% implies a step-down from here, but the Q4 print itself is a clean in-range result. Status: Resolved positively (with a forward step-down to watch)

Whether security revenue prints positive YoY for the first time in five quarters — Security printed +14% YoY, well above management's "approaching double-digit" commitment. First double-digit print in five quarters. Status: Resolved positively

Restructuring execution and FY27 OpEx trajectory — The FY27 non-GAAP operating margin implied by the guide (roughly 36% at the Q1 midpoint) suggests reinvestment is being absorbed inside the opex line while margin expands modestly. Discrete Q4 restructuring detail not captured. Status: Continue monitoring

Inventory and advanced purchase commitments trajectory — Q4 FCF of $5.0B is a sharp rebound from Q3's ~$3.34B, suggesting the working-capital build moderated or partly reversed. Discrete inventory disclosure not captured. Status: Continue monitoring

First named enterprise/sovereign customer disclosure against the $3B pipeline / $900M YTD orders — No specific customer name in the press release language captured. The FY27 AI revenue anchor of $7.5B (vs. FY26 ~$4B) rolls all AI infrastructure together without segregating enterprise/sovereign from hyperscale. Status: Continue monitoring

What to watch into next quarter

Q1 FY27 AI infrastructure orders vs. a $4.0B Q4 pace — sustaining $3.5B+ would put FY27 orders on track well above the $9.3B FY26 total; a step-down toward $2.5B would raise questions about whether $7.5B of FY27 AI revenue can be sourced from remaining backlog

Whether non-GAAP gross margin holds inside the 65–66% Q1 FY27 guide — a print below 65% would break a clean in-range streak and put pressure on the FY27 EPS guide of $5.05–5.11

Security growth continuity — whether Q1 FY27 sustains double-digit YoY — the +14% Q4 print is one quarter; a follow-through print of +10% or better would validate the exit-rate as durable rather than a lapping benefit

Whether the FY27 revenue guide gets raised at Q1 — management raised FY26 four times ($59B → $63.3B); a Q1 FY27 raise would set up a similar pattern and validate the guide as conservative

First named enterprise/sovereign AI customer disclosure or dollar breakdown — the FY27 AI revenue is anchored at $7.5B but the enterprise/sovereign vs. hyperscale split remains category-level; a discrete enterprise anchor would de-risk the hyperscale-concentration read

Networking orders sustainability — Q4 networking orders +40% off a large base; whether Q1 FY27 sustains north of +25% will test the "supercycle" framing against the possibility of an order pull-forward from the AI surge

Sources

Cisco Q4 FY2026 Press Release (Form 8-K Exhibit 99.1), filed August 12, 2026 — https://www.sec.gov/Archives/edgar/data/858877/000085887726000106/exhibit991pressrelease-q4f.htm
Cisco Q3 FY2026 Tapebrief (prior quarter context)
Cisco Q2 FY2026 Tapebrief (multi-quarter trajectory context)
Cisco Q1 FY2026 Tapebrief (FY26 guide walk-up baseline)
Cisco Q4 FY2025 Tapebrief (FY26 initial guide baseline, AI framing arc)

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