Cisco 8-K
PositiveEarningsNew guidanceRestructuring
Networking led product growth as hyperscaler AI infrastructure demand rose; product orders also grew strongly beyond hyperscalers.
Filed 2026-08-12 16:07 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q4 and FY2026 results with Q1 and FY2027 guidance. Cisco reported record results as product and networking demand grew broadly; it also cited rising demand for AI infrastructure from hyperscalers. Q4 revenue, non-GAAP operating income and EPS exceeded the high end of the company’s guidance ranges.
Key Figures
| Metric | Q4 FY2026 | Q4 FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $17.3B | $14.7B | 18% |
| Operating income (GAAP) | $4.26B | $3.09B | 38% |
| Operating income (non-GAAP) | $6.2B | $5.03B | 23% |
| Net income (GAAP) | $3.86B | $2.55B | 51% |
| Net income (non-GAAP) | $4.87B | $3.95B | 23% |
| Diluted EPS (GAAP) | $0.97 | $0.64 | 52% |
| EPS (non-GAAP) | $1.22 | $0.99 | 23% |
| Operating cash flow | $5.39B | $4.23B | 27% |
| Metric | FY2026 | FY2025 | Y/Y |
|---|---|---|---|
| Revenue | $63.3B | $56.7B | 12% |
| Operating income (GAAP) | $15.4B | $11.8B | 31% |
| Operating income (non-GAAP) | $22.0B | $19.5B | 13% |
| Net income (GAAP) | $13.3B | $10.2B | 30% |
| Net income (non-GAAP) | $17.2B | $15.2B | 13% |
| Diluted EPS (GAAP) | $3.33 | $2.55 | 31% |
| EPS (non-GAAP) | $4.33 | $3.81 | 14% |
| Operating cash flow | $14.2B | $14.2B | Flat |
- Product revenue rose 24% in Q4, led by Networking (+28%); services revenue was flat. Total product orders grew 35% Y/Y, or 25% excluding hyperscalers. AI infrastructure orders were $4B in Q4 and $9.3B for FY2026; AI infrastructure revenue was ≈$4B for FY2026.
- Operating margins were 24.7% GAAP and 35.9% non-GAAP in Q4, vs 21.0% and 34.3%; FY margins were 24.3% and 34.8%, vs 20.8% and 34.4%. Restructuring and other charges were $511M in Q4 and $693M for FY2026; the related plan is expected to be substantially complete by FY2027 year-end.
- Remaining performance obligations were $46.7B, up 7%. Cash and investments were $15.9B at quarter-end. Cisco returned $3.2B in Q4: $1.7B in dividends and $1.5B to repurchase 13M shares at an average $111.53 per share, vs 19M shares repurchased in Q4 FY2025. A quarterly dividend of $0.42 per share was declared, payable 10/21/2026.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue | Q1 FY2027 | $18.0B-$18.2B | — | — |
| EPS (GAAP) | Q1 FY2027 | $1.08-$1.10 | — | — |
| EPS (non-GAAP) | Q1 FY2027 | $1.32-$1.34 | — | — |
| Gross margin (non-GAAP) | Q1 FY2027 | 65%-66% | — | — |
| Operating margin (non-GAAP) | Q1 FY2027 | 35.5%-36.5% | — | — |
| Effective tax provision rate (GAAP) | Q1 FY2027 | ≈15% | — | — |
| Effective tax provision rate (non-GAAP) | Q1 FY2027 | ≈18.5% | — | — |
| Revenue | FY2027 | $72.2B-$73.4B | — | — |
| EPS (GAAP) | FY2027 | $4.00-$4.06 | — | — |
| EPS (non-GAAP) | FY2027 | $5.05-$5.11 | — | — |
| Effective tax provision rate (GAAP) | FY2027 | ≈14.5% | — | — |
| Effective tax provision rate (non-GAAP) | FY2027 | ≈18.5% | — | — |
Investor Takeaways
- Q1 revenue and EPS vs guidance, alongside continued product-order and Networking growth, will indicate whether broad demand is holding.
- FY2027 AI infrastructure revenue vs the company’s $7.5B expectation will test whether hyperscaler orders convert into deliveries.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3