◆ Inside the Latest Quarter (Q4 FY2026)

Cisco Systems (CSCO) — the variant view

Cisco grew 18% in its latest quarter with every product line up, while its non-GAAP gross margin fell more than two points.

📈 CSCO valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Cisco's fourth quarter of fiscal 2026 was its fastest-growing quarter of the year, and its gross margin fell two points from a year earlier. Revenue was $17,252 million, up 18%; product revenue $13,459 million, up 24%; services $3,793 million, flat1.

Q4 FY2026 revenue growth by line (%)+28%Networking+14%Security+12%Collaboration+6%ObservabilityflatServicesCisco Q4 FY2026 results release
Every product line up, services flat.

Every product line grew: networking 28% to $9,791 million, security 14%, collaboration 12% and observability 6%2. By region, the Americas grew 18%, EMEA 19% and APJC 14%3. Hyperscaler AI orders were $4 billion4.

The margin went the other way. GAAP gross margin was 64.1% and the non-GAAP gross margin 66.3%, against 68.4% a year earlier5. GAAP operating income still rose 38% to $4,264 million, a 24.7% margin6.

Net income rose 51% to $3,859 million, or $0.97 a share, but it included $869 million of gains on investments7. Non-GAAP earnings were $1.22 a share, up 23%8. The quarter also carried $511 million of restructuring charges9.

Operating cash flow was $5.4 billion, up 27%, and Cisco returned $3.2 billion to shareholders10. Guidance for the first quarter of fiscal 2027 is revenue of $18.0 billion to $18.2 billion and a non-GAAP gross margin of 65% to 66%11.

The margin decline was concentrated in the Americas. Segment gross margins in the fourth quarter were 64.5% in the Americas, 70.1% in EMEA and 67.3% in APJC12, on revenue of $10,396 million, $4,350 million and $2,506 million13. The two regions with fewer hyperscaler customers kept margins close to their full-year levels.

On an adjusted basis the quarter was stronger still. Non-GAAP operating income was $6,198 million, a 35.9% margin, and non-GAAP net income $4,868 million14. The gap to GAAP was mostly restructuring and acquisition charges, and the $869 million investment gain ran the other way15.

The quarter confirms growth and exposes its cost. What to check next is the first-quarter gross margin; below 65% would say the price increases are not keeping up with memory costs and mix.

References
  1. ReportedRevenue was $17,252 million, up 18%; product revenue $13,459 million, up 24%; services $3,793 million, flat.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  2. ReportedEvery product line grew: networking 28% to $9,791 million, security 14%, collaboration 12% and observability 6%.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  3. ReportedBy region, the Americas grew 18%, EMEA 19% and APJC 14%.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  4. ReportedHyperscaler AI orders were $4 billion.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - orders, acquisitions, dividend and fiscal 2027 guidance. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  5. ReportedGAAP gross margin was 64.1% and the non-GAAP gross margin 66.3%, against 68.4% a year earlier.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  6. ReportedGAAP operating income still rose 38% to $4,264 million, a 24.7% margin.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  7. ReportedNet income rose 51% to $3,859 million, or $0.97 a share, but it included $869 million of gains on investments.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  8. ReportedNon-GAAP earnings were $1.22 a share, up 23%.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  9. ReportedThe quarter also carried $511 million of restructuring charges.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - financial statements and notes: balance sheet, cash flow, commitments, customers and acquisitions. — FY2026 · publ. 2 September 2026 · source ↗
  10. ReportedOperating cash flow was $5.4 billion, up 27%, and Cisco returned $3.2 billion to shareholders.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  11. ReportedGuidance for the first quarter of fiscal 2027 is revenue of $18.0 billion to $18.2 billion and a non-GAAP gross margin of 65% to 66%.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - orders, acquisitions, dividend and fiscal 2027 guidance. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  12. ReportedSegment gross margins in the fourth quarter were 64.5% in the Americas, 70.1% in EMEA and 67.3% in APJC, on revenue of $10,396 million, $4,350 million and $2,506 million.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  13. ReportedSegment gross margins in the fourth quarter were 64.5% in the Americas, 70.1% in EMEA and 67.3% in APJC, on revenue of $10,396 million, $4,350 million and $2,506 million.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  14. ReportedNon-GAAP operating income was $6,198 million, a 35.9% margin, and non-GAAP net income $4,868 million.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  15. ReportedThe gap to GAAP was mostly restructuring and acquisition charges, and the $869 million investment gain ran the other way.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
Sources
Generated September 25, 2026