The quarter cleared a market bar already set above Cisco’s guidance. Published expectations were approximately $16.83 billion of revenue and $1.17 of non-GAAP EPS; Cisco delivered $17.252 billion and $1.22, respectively.
| Metric | Q4 FY2026 | Comparison | Filing source |
|---|---|---|---|
| Revenue | $17.252B | ~$16.83B consensus; $16.7B–$16.9B prior guide | (Income Statement; Q3 FY2026 guidance) |
| Non-GAAP EPS | $1.22 | ~$1.17 consensus; $1.16–$1.18 prior guide | (Non-GAAP EPS reconciliation; Q3 FY2026 guidance) |
| Non-GAAP gross margin | 66.3% | 68.4% prior year; 65.5%–66.5% prior guide | (Q4 non-GAAP results) |
| Networking revenue | $9.791B | Up 28% year over year | (Product revenue by market segment) |
| Operating cash flow | $5.386B | $4.234B prior year; FY cash flow essentially flat at $14.177B | (Cash Flow statement) |
| FY2027 non-GAAP EPS guide | $5.05–$5.11 | New outlook; FY2026 actual was $4.33 | (FY2027 guidance) |
Networking is the real engine behind the beat. Product revenue rose 24%, with Networking up 28% to $9.791 billion, far outpacing Security at 14%, Collaboration at 12%, and Observability at 6%. The result supports the AI-infrastructure and campus-refresh narrative that was already emerging after Q3, but the magnitude of the networking acceleration is new. (Product revenue by market segment)
The earnings beat was not purely a margin story. Non-GAAP operating income increased 23% to $6.198 billion, but non-GAAP gross margin fell to 66.3% from 68.4% a year earlier, while product gross margin dropped to 64.8% from 67.5%. Cisco still exceeded its prior margin range, but the mix and cost pressure matter: more revenue is arriving, yet profitability per dollar is not expanding at the same pace. (Q4 non-GAAP results)
The initial FY2027 outlook extends the earnings step-up rather than merely confirming it. Cisco guided to $5.05–$5.11 of FY2027 non-GAAP EPS after producing $4.33 in FY2026, with Q1 revenue guided to $18.0–$18.2 billion and non-GAAP EPS to $1.32–$1.34. There is no established published consensus in the supplied context for the new full-year outlook, so this is best read as a substantial new earnings framework rather than a quantified beat. (Q1 FY2027 guidance; FY2027 guidance)
The net read is a genuine beat, with one important quality caveat. Revenue, adjusted EPS, FY2026 revenue, and FY2026 adjusted EPS all finished above the company’s prior ranges, and the new fiscal-year outlook points to continued growth. The offset is weaker non-GAAP gross margin and largely unchanged full-year operating cash flow, while inventories rose to $5.694 billion from $3.164 billion. The market knew demand was accelerating; this filing shows that acceleration translated into a larger-than-expected quarter, though execution now has to convert it into durable margins and cash. (Q3 FY2026 guidance; FY2026 results; Balance Sheet; Cash Flow statement)
Read the original 8-K on SEC EDGAR ↗