Cisco shares fall about 4% after hours as AI outlook misses investor expectations

Cisco Systems gave investors its first full-year revenue view for artificial intelligence, but the forecast did not satisfy the market. According to the company’s earnings release, AI-related sales are expected to account for about 10% of Cisco’s total revenue in fiscal 2027, while full-year revenue is projected at $72.2 billion to $73.4 billion. Some analysts viewed that target as too conservative, especially because Cisco had already booked roughly $4 billion in AI-related orders in the quarter through July 25. After the results were released, Cisco shares fell about 4% in after-hours trading. Chief Executive Officer Chuck Robbins said AI-related revenue for fiscal 2026 was about $4 billion, while orders topped $9 billion. He said large AI orders are often placed well ahead of revenue recognition, creating a time lag between bookings and reported sales. For the same period, Cisco reported fourth-quarter revenue of $17.3 billion, up 18% from a year earlier and above the $16.8 billion expected by the market. Adjusted earnings per share came in at $1.22, also ahead of the $1.17 consensus estimate, according to Bloomberg.