US Stock Market Move | The full-year AI revenue forecast disappointed the market, and Cisco Systems, Inc. (CSCO.US) opened down more than 7%.

On Thursday, Cisco Systems, Inc. (CSCO.US) opened down over 7%, currently at $114.94. In terms of news, Cisco Systems, Inc. reported strong fourth-quarter earnings, but its first-ever annual AI revenue forecast is far below market expectations based on order data, disappointing investors. After the market closed on Wednesday, Cisco Systems, Inc. announced that its revenue for the fourth quarter ending July 25, 2026, increased 18% year-over-year to $17.3 billion, setting a single-quarter record, with adjusted earnings per share (EPS) of $1.22, both surpassing analysts expectations. Under the non-GAAP metric, the adjusted EPS rose 23% year-over-year to $1.22, exceeding market expectations by over 4%; adjusted operating income also increased 23% year-over-year to $6.2 billion, nearly 6% above market expectations, with an adjusted operating margin of 35.9%. However, Cisco Systems, Inc. provided its first-ever annual AI revenue forecast approximately $7.5 billion for fiscal year 2027, representing only about 10% of the total expected revenue for the year, while the company had accumulated AI-related orders of $9.3 billion over the past year. This gap has raised doubts in the market about order conversion efficiency.