Q4 FY2026 results
| Metric | Result | Change |
|---|---|---|
| Total Revenue | $17.3 billion | up 18% year-over-year |
| Non-GAAP EPS | $1.22 | up 23% year-over-year |
| Product Revenue | $13.5 billion | up 24% year-over-year |
| Total Product Orders | N/A | up 35% year-over-year |
| Non-GAAP Operating Margin | 35.9% | Not stated |
Guidance and outlook
- Q1 FY2027 Revenue: $18 billion to $18.2 billion
- Q1 FY2027 Non-GAAP Gross Margin: 65% to 66%
- Q1 FY2027 Non-GAAP Operating Margin: 35.5% to 36.5%
- Q1 FY2027 Non-GAAP EPS: $1.32 to $1.34
- Full Year FY2027 Revenue: $72.2 billion to $73.4 billion
- Full Year FY2027 Non-GAAP EPS: $5.05 to $5.11
How management sounded
Positive (+7 on our -10 to +10 scale). Management highlighted record-breaking performance, a multi-year networking super cycle, and provided an optimistic outlook for fiscal year 2027. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Growth Drivers
Asked: Amit Daryanani from Evercore ISI asked about the durability of growth excluding AI and the networking super cycle.
Answer: Chuck Robbins explained that the super cycle is driven by hyperscaler AI needs, telco infrastructure upgrades, and a broad campus networking refresh cycle.
Gross Margins
Asked: Ben Reitzes from Melius Research asked about the approach to gross margin guidance and potential conservatism.
Answer: Mark Patterson noted that while hardware mix creates slight headwinds, operating margin remains the key profitability indicator, with fiscal year 2027 expected to reach a high watermark of 35%.
Security Growth
Asked: Meta Marshall from Morgan Stanley asked about the 14% growth in security and the evolution of on-prem versus cloud conversations.
Answer: Management stated that security growth is turning the corner, and customers are making strategic decisions on AI deployment models which benefits Cisco's broad portfolio.
Supply Chain
Asked: Aaron Rakers from Wells Fargo asked about supply chain dynamics and inventory levels.
Answer: Mark Patterson confirmed there are no significant lead time issues, noting direct relationships with TSMC and strategic memory investments.
What to watch before the next call
- The linearity of AI infrastructure revenue throughout fiscal year 2027.
- The impact of Mythos (last day of support) on enterprise network refresh cycles.
- The competitive landscape for hyperscale design wins, specifically the scale-across motion.
