Cisco Shares Slide 8% as Margin Pressure Erodes Most of Revenue Upside

CoinStats - Cisco’s AI Orders Boom While Gross Margins Mo...

Cisco’s AI order book is expanding rapidly, but the company’s gross margins are moving in the opposite direction. Management now expects fiscal 2026 hyperscaler AI orders of $9 billion and hyperscaler AI revenue of $4 billion, up from prior targets of $5 billion and $3 billion, respectively, following a strong intake through May 13, 2026. At the same time, total non-GAAP gross margin declined to 66.0% in Q3 FY26 from 68.6% a year earlier, and no…

Cisco Shares Slide 8% as Margin Pressure Erodes Most of Revenue Upside

SAN JOSE, California, August 14, 2026, 05:13 EDT — U.S. stocks are trading before market open; the main session has ended. Cisco stock dropped 8.4% following record quarterly revenue and an earnings beat. Non-GAAP gross margin fell by 2.1 points amid increased AI hardware sales. Revenue guidance for fiscal 2027 surpassed Wall Street's previous forecast…