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Cisco Systems, Inc.
Dow 30 S&P 500 Nasdaq 100
🏹 Trader: 🎯 Near 52W High | BRS 60 Forming View all →
$441.5B
Market Cap
26.9
P/E
3.27
PEG
18.4%
ROCE
22.1%
ROE
0.60
D/E
20.8%
OPM
-13.2%
% from 52W High
79
α RS
🔍 CSCO is showing a high-conviction setup because it matches 9 of 37 tracked screener presets, RS Rating is 79, and an ECS of 57.4 last quarter. Net: Broad signal stack, not a recommendation. ? Conviction RS Rating ECS
Sources
Conviction 9/37 · RS Rating 79 · ECS 57.4
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About

Cisco Systems, Inc. designs, develops, and sells technologies that help to power, secure, and draw insights from the internet in the Americas, Europe, the Middle East, Africa, the Asia Pacific, Japan, and China.

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Good quarter Investor Presentation One-Pager? Q4 2026
Revenue
$17.3B
+18% YoY
Operating Income (Non-GAAP)
$6.2B
+23% YoY
Operating Margin (Non-GAAP)
35.9%
+1.6pp YoY
Net Income (Non-GAAP)
$4.9B
+23% YoY
What Went Right
  • Record Q4 product orders up 35% YoY, with hyperscaler orders up triple digits and enterprise orders up 21%.
  • AI infrastructure orders reached $9.3B in FY26, ~4.5x FY25, including $4B in Q4; $7.5B revenue projected for FY27.
  • Networking product orders grew 40% in Q4, the 8th consecutive quarter of double-digit growth, led by routing, optics and switching.
  • Security revenue grew 14% YoY with firewall orders up 30% and 1,600 new customers for AI/security products in Q4.
What to Watch
  • Non-GAAP gross margin fell 210 bps YoY to 66.3% due to higher hardware mix and memory costs.
  • Price increases (about 5 points to Q4 growth) are being lapped in FY27; company plans for 4-5 points impact this year.
  • Hyperscaler AI orders are non-linear and large; revenue guidance of $7.5B for FY27 could be conservative if deliveries accelerate.
  • Services revenue was flat in Q4, and security growth is expected to moderate from 14% to high single digits in FY27.
Management Guidance
  • Q1 FY27 revenue: $18.0B to $18.2B.
  • Q1 FY27 non-GAAP EPS: $1.32 to $1.34; non-GAAP gross margin 65%-66%; non-GAAP operating margin 35.5%-36.5%.
  • FY27 revenue: $72.2B to $73.4B; non-GAAP EPS: $5.05 to $5.11; AI infrastructure revenue projected at $7.5B.
Investor Lens
Thesis is stronger after this call. Cisco is converting its AI infrastructure backlog into record revenue ($7.5B expected FY27) and the networking supercycle is broadening beyond hyperscalers to enterprise, telco and campus. Management raised the growth algorithm — core ex-AI growth is tracking ~10%, well above the old 4-6% model. Execution risks remain around gross margin compression and memory costs, but operating leverage (35.9% op margin) and accelerating orders (up 35% in Q4) support durable, above-model growth.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record quarter: revenue +18% to $17.3B, EPS +23%, orders +35%.
Revenue
Q4 revenue was $17.3B, up 18% YoY, with product revenue up 24% and services flat. Growth was led by Networking (+28%), Security (+14%) and Collaboration (+12%), with Americas +18%, EMEA +19% and APJC +14%.
Profitability
Non-GAAP net income rose 23% YoY to $4.9B, and non-GAAP EPS increased 23% to $1.22, exceeding the high end of guidance. GAAP net income was $3.9B, up 51% YoY.
Margins
Non-GAAP operating margin expanded to 35.9%, up 1.6pp YoY, despite gross margin declining 210 bps to 66.3% on higher hardware mix and memory costs. Operating expenses fell 3.7pp as a percentage of revenue, driving the margin expansion.
Balance Sheet
Cisco ended Q4 with $15.9B in cash and investments. Operating cash flow was $5.4B, up 27% YoY. The company returned $3.2B to shareholders in Q4 ($12.7B in FY26) and has $8.1B remaining under its buyback program.
Key Risks
Management flagged memory cost inflation and price increases that are being lapped in FY27. Hyperscaler AI orders are lumpy and timing of revenue conversion is uncertain — orders came in at $9.3B vs $4B of revenue in FY26. Gross margin is expected to remain under pressure from high hardware mix and memory costs.
Outlook
Q1 FY27 revenue guided to $18.0-$18.2B (up ~20% YoY) with non-GAAP EPS of $1.32-$1.34. FY27 revenue is expected at $72.2-$73.4B with non-GAAP EPS of $5.05-$5.11, implying ~15% top-line growth and ~17% EPS growth.
Generated by AI · Q4 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q4 2026 Q4 2026 2026-08-12
Record annual and Q4 results driven by strong AI and networking demand, with double-digit growth across key segments and robust capital returns. FY 2027 guidance projects continued revenue and earnings growth, supported by a multi-year networking super cycle and expanding AI infrastructure opportunities.
Q3 2026 Q3 2026 2026-05-13
Q3 delivered record revenue and EPS growth, driven by surging AI infrastructure and networking demand, with broad-based order strength across all segments. Guidance for Q4 and FY 2026 points to continued double-digit growth, supported by robust AI orders and proactive supply chain management.
Q2 2026 Q2 2026 2026-02-11
Q2 saw record revenue and double-digit EPS growth, driven by strong AI and networking demand. AI infrastructure orders from hyperscalers surged, and guidance was raised for both revenue and EPS for FY26. Dividend increased, with robust capital returns and continued innovation momentum.
Q1 2026 Q1 2026 2025-11-12
Q1 FY26 revenue and EPS exceeded guidance, driven by strong AI infrastructure and networking demand, with product orders up 13% year-over-year. Security revenue declined due to legacy product shifts, but ARR and RPO grew. FY26 guidance projects continued growth and robust capital returns.
Q4 2025 Q4 2025 2025-08-13
Q4 and FY 2025 delivered strong revenue, margin, and EPS growth, with record AI infrastructure orders and robust capital returns. Networking and security segments saw double-digit growth, and guidance for FY 2026 projects continued top-line and EPS expansion.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

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Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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