Cisco Stock Drops After Earnings

Cisco stock is up about 19% this year. (David Ramos/Getty Images)

Cisco Systems stock was down after the networking company reported fiscal-fourth quarter financials Wednesday night.

Cisco reported fiscal fourth-quarter adjusted earnings of 99 cents a share on revenue of $14.7 billion. Analysts surveyed by FactSet were expecting earnings of 98 cents a share on revenue of $14.6 billion.

Revenue for Cisco’s networking segment, which brings in the most revenue for the company and includes gear used in AI data centers, was $7.63 billion, a 12% increase from the prior year. Analysts expected networking revenue of $7.34 billion.

“The AI infrastructure orders we received from webscale customers in fiscal 2025 were more than double our original target, indicating a massive opportunity ahead as we lead the required architectural shift and build the critical infrastructure needed for the AI era,” CEO Chuck Robbins said in the earnings release.

Cisco also said it expects first-quarter earnings to be between 97 cents and 99 cents a share on revenue from $14.65 billion to $14.85 billion. That’s compared with analyst estimates of 97 cents a share and $14.62 billion in revenue.

For the year, Cisco said it is expecting earnings to be between $4 and $4.06 a share, compared with Wall Street estimates of $4.02 a share. Its revenue estimates for the year forecast a range of $59 billion to $60 billion compared with analyst expectations of $59.4 billion.

Shares of Cisco were down 2.8% in after-hours trading following the results.

Expectations were high for Cisco’s earnings following a strong year. The stock has risen 19% in 2025 and 55% over the past 12 months. However, investors are keeping an eye on the possibility that enterprises may cut their budgets, or increase them less than they would have otherwise, as tariffs increase their costs.

Write to Angela Palumbo at angela.palumbo@dowjones.com