By Fatima Gulzar
Publication Date: 2026-08-24 18:52:00
On August 12, 2026, Cisco Systems, Inc. (NASDAQ:CSCO) reported fiscal fourth-quarter earnings and revenue that beat Wall Street estimates and issued guidance well above expectations. Shares still fell as much as 8.4% the following trading day.
Why This Matters
Cisco’s actual numbers were strong by almost any measure, but investors sold the stock anyway, while Arista Networks, Inc. (NYSE:ANET) posted an even bigger beat the same month and saw no comparable selloff.
That raises the real question: is this a sign AI-driven networking demand has already peaked for Cisco specifically, or is the whole networking trade simply getting pickier about which company’s growth story it trusts?
The Bull and Bear Case: Cisco
Revenue grew 18% year over year to $17.25 billion, beating the $16.82 billion analysts…