By David Moadel
Publication Date: 2026-08-13 14:31:00
Quick Read
CSCO tumbled 7% on gross margin compression to 66.3%, overshadowing a strong Q4 EPS beat and 18% revenue growth.
Rosenblatt raised its target to $165 and Wells Fargo to $150, while ANET slipped just 0.7%, flagging a Cisco-specific margin repricing.
Cisco’s $9.3 billion in FY2026 AI infrastructure orders and $7.5 billion projected for FY2027 anchor the bull case despite near-term margin compression.
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Shares of Cisco Systems (NASDAQ:CSCO) are down 7% to $115 Thursday morning after the company’s fiscal Q4 2026 results delivered a beat and raise. The reaction has flipped almost entirely to gross margin compression tied to AI hardware mix, and the move partly unwinds a 63% year to date (YTD) run heading into the print.