Cisco Shares Fall as First AI Revenue Forecast Disappoints

Cisco Systems, long a dominant supplier of networking equipment, is positioning its switches, optics and custom silicon as critical infrastructure for artificial-intelligence data centers. Its first standalone AI revenue forecast gives investors a clearer measure of how rapidly orders from hyperscale cloud customers are converting into sales. The target has become an important test of whether Cisco can sustain faster growth as global spending on AI computing expands.

Cisco said on Aug. 12, 2026, that revenue for its fiscal fourth quarter ended July 25 rose to $17.25 billion, while adjusted earnings reached $1.22 a share, both above Wall Street estimates. AI infrastructure orders totaled $4 billion in the quarter and $9.3 billion for fiscal 2026. The company projected $7.5 billion in AI infrastructure revenue for fiscal 2027, but the outlook fell short of elevated investor expectations, sending Cisco shares down about 4% in after-hours trading.