Cisco is the worldwide leader in networking and security that enables organizations to connect and secure all applications, and the question for the next twelve months is whether the company can convert the $17.3 billion Q4 FY2026 revenue up 18% year over year, the $63.3 billion FY2026 revenue up 12% year over year, the 24% Q4 FY2026 product revenue growth, the 28% Q4 FY2026 Networking revenue growth, the 14% Q4 FY2026 Security revenue growth, the 12% Q4 FY2026 Collaboration revenue growth, the 6% Q4 FY2026 Observability revenue growth, the 18% Q4 FY2026 Americas revenue growth, the 19% Q4 FY2026 EMEA revenue growth, the 14% Q4 FY2026 APJC revenue growth, the 24.7% Q4 FY2026 GAAP operating margin, the 35.9% Q4 FY2026 non-GAAP operating margin, the 24.3% FY2026 GAAP operating margin, the 34.8% FY2026 non-GAAP operating margin, the 52% Q4 FY2026 GAAP diluted EPS growth to $0.97, the 23% Q4 FY2026 non-GAAP diluted EPS growth to $1.22, the 31% FY2026 GAAP diluted EPS growth to $3.33, the 14% FY2026 non-GAAP diluted EPS growth to $4.33, the 30% FY2026 GAAP net income growth to $13.3 billion, the 13% FY2026 non-GAAP net income growth to $17.2 billion, the Q4 FY2026 product orders up 35% year over year up 25% excluding hyperscalers, the networking product orders grew 40% year over year in Q4 marking the eighth consecutive quarter of double-digit growth, the significant momentum and raised expectations for AI infrastructure from hyperscalers, the $4 billion of orders taken in Q4 bringing the total for FY2026 to $9.3 billion, the delivered approximately $4 billion of revenue in FY2026, the $7.5 billion expected in FY2027, the Q1 FY 2027 Revenue guidance of $18.0 billion to $18.2 billion, the FY 2027 Revenue guidance of $72.2 billion to $73.4 billion, the Q1 FY 2027 EPS guidance of $1.08 to $1.10 GAAP and $1.32 to $1.34 non-GAAP, the FY 2027 EPS guidance of $4.00 to $4.06 GAAP and $5.05 to $5.11 non-GAAP, the $0.42 quarterly dividend declared, the network supercycle, the broad-based record high demand for Cisco technology, the AI infrastructure from hyperscalers, the secure networking positioning, the accelerated pace of innovation, the highest productivity metrics in 30 years measured by revenue non-GAAP operating margin and earnings per employee, the durable growth, the consistent profitability, the continued capital returns, the strategic investments to capitalize on the significant growth opportunities into the kind of AI-Infrastructure and Networking-Supercycle operating leverage the company has been telegraphing. The Q4 FY2026 print was the cleanest test of that thesis, and the cleanest signal is that Chair and CEO Chuck Robbins said "we delivered a very strong close to fiscal 2026, marking another record year for Cisco. Our record performance is a testament to the accelerated pace of innovation and the excellent execution by our teams. With the breadth and depth of our portfolio and our competitive differentiation in secure networking, Cisco is well positioned to support our customers however or wherever they decide to deploy AI." The strategic tension is the AI infrastructure from hyperscalers, and the forward question is whether the $9.3 billion FY2026 AI infrastructure orders can compound the $7.5 billion FY2027 AI revenue expectation into the raised FY2027 guidance the company has been telegraphing.
The 35% Q4 FY2026 product orders growth and the 25% excluding hyperscalers growth are the cleanest read on the operating momentum, and the networking supercycle is the proof. The Q4 FY2026 total product orders grew 35% year over year, up 25% excluding hyperscalers, with double-digit growth across every geography and customer market. The Q4 FY2026 networking product orders grew 40% year over year, marking the eighth consecutive quarter of double-digit growth.
The Q4 FY2026 revenue of $17.3 billion grew 18% above the prior-year quarter's $14.7 billion, the FY2026 revenue of $63.3 billion grew 12% above the prior-year period's $56.7 billion, the Q4 FY2026 product revenue grew 24% above the prior-year quarter, the Q4 FY2026 services revenue was flat, the Q4 FY2026 Networking revenue grew 28% above the prior-year quarter, the Q4 FY2026 Security revenue grew 14% above the prior-year quarter, the Q4 FY2026 Collaboration revenue grew 12% above the prior-year quarter, the Q4 FY2026 Observability revenue grew 6% above the prior-year quarter, the Q4 FY2026 Americas revenue grew 18% above the prior-year quarter, the Q4 FY2026 EMEA revenue grew 19% above the prior-year quarter, the Q4 FY2026 APJC revenue grew 14% above the prior-year quarter, the Q4 FY2026 GAAP operating margin of 24.7% was 0.6 percentage points above the prior-year quarter's 24.1%, the Q4 FY2026 non-GAAP operating margin of 35.9% was 2.5 percentage points above the prior-year quarter's 33.4%, the FY2026 GAAP operating margin of 24.3% was 0.5 percentage points above the prior-year period's 23.8%, the FY2026 non-GAAP operating margin of 34.8% was 1.7 percentage points above the prior-year period's 33.1%, the Q4 FY2026 GAAP diluted EPS of $0.97 grew 52% above the prior-year quarter's $0.64, the Q4 FY2026 non-GAAP diluted EPS of $1.22 grew 23% above the prior-year quarter's $0.99, the FY2026 GAAP diluted EPS of $3.33 grew 31% above the prior-year period's $2.55, the FY2026 non-GAAP diluted EPS of $4.33 grew 14% above the prior-year period's $3.81, the FY2026 GAAP net income of $13.3 billion grew 30% above the prior-year period's $10.2 billion, the FY2026 non-GAAP net income of $17.2 billion grew 13% above the prior-year period's $15.2 billion, the Q4 FY2026 GAAP net income of $3.9 billion grew 51% above the prior-year quarter's $2.6 billion, the Q4 FY2026 non-GAAP net income of $4.9 billion grew 23% above the prior-year quarter's $4.0 billion, the Q1 FY 2027 Revenue guidance of $18.0 billion to $18.2 billion, the FY 2027 Revenue guidance of $72.2 billion to $73.4 billion, the Q1 FY 2027 GAAP EPS guidance of $1.08 to $1.10, the Q1 FY 2027 non-GAAP EPS guidance of $1.32 to $1.34, the FY 2027 GAAP EPS guidance of $4.00 to $4.06, the FY 2027 non-GAAP EPS guidance of $5.05 to $5.11, the $0.42 quarterly dividend declared to be paid on October 21, 2026, the record high demand for Cisco technology, the network supercycle underway, the $4 billion of AI infrastructure orders taken in Q4 bringing the total for FY2026 to $9.3 billion, the delivered approximately $4 billion of AI infrastructure revenue in FY2026, the $7.5 billion expected in FY2027, the highest productivity metrics in 30 years measured by revenue non-GAAP operating margin and earnings per employee, the durable growth, the consistent profitability, the continued capital returns, and the strategic investments to capitalize on the significant growth opportunities anchor the print. The forward question is whether the $9.3 billion FY2026 AI infrastructure orders can compound the $7.5 billion FY2027 AI revenue expectation.