Cisco Earnings: AI Momentum Accelerates, and Campus Demand Stays Strong

Key Morningstar Metrics for Cisco Systems

• : $115.00
• : ★★★

• Morningstar Economic Moat Rating

  : Wide

• Morningstar Uncertainty Rating

  : High

What We Thought of Cisco Systems’ Earnings

Cisco Systems’ CSCO fourth-quarter results topped guidance, as revenue rose 18% year over year to $17.3 billion. Fiscal 2027 guidance implies another year of double-digit revenue and earnings growth, with hyperscaler artificial intelligence revenue expected to be $7.5 billion, up from $4.0 billion this year.

Why it matters: Cisco is converting AI demand into revenue faster than anticipated, while its momentum across campus and enterprise remains healthy. We believe Cisco has a durable, sticky position in AI networking and optics, structurally raising its growth profile.

• The company booked more AI infrastructure business than what it recognized as revenue, leaving a healthy backlog that should start flowing in the coming year. Specifically, AI orders reached $9.3 billion…