Cisco Systems, Inc.

Record FY26 performance + major capital returns - FY26 revenue: $63.3B (+12% YoY); Q4 revenue: $17.3B (+18% YoY), product revenue up 24% YoY. - Profitability: FY26 non-GAAP EPS $4.33 (+14% YoY); Q4 non-GAAP EPS $1.22 (+23% YoY) (bottom line growing faster than revenue = strong operating leverage). - Shareholder returns: Q4 returned $3.2B (dividends + buybacks); FY26 total returned $12.7B, said to equal 99% of free cash flow; $8.1B remaining under buyback program. - Dividend: increased for 15th consecutive year (FY26 dividend growth confidence signal).

The core thesis: “Agentic AI” fueling a networking super-cycle - Management argues Cisco is “early” in a multi-year networking super-cycle driven by: - Hyperscalers scaling AI traffic (they cite ~14x networking traffic vs historical “data center interconnect” baseline). - Enterprises modernizing networks for AI, plus security/observability needs for agent behavior. - Additional tailwinds from telecom buildouts and public sector infrastructure demand.

AI infrastructure growth is very material (opportunity + forecast) - Hyperscaler AI orders: $4B in Q4; FY26 total $9.3B (~4.5x FY25). - Mix cited as ~60% Silicon One systems / 40% optics; Acacia optics did $1B+ orders in Q4; shipped 850k 400G and 75k 800G coherent pluggable optics. - FY27 AI infrastructure forecast: $7.5B revenue from hyperscalers (investor key point: this is a major portion of the growth narrative). - Management cites multiple hyperscaler design wins and expects more over the next ~6 months (including references to G300/G200/P200 and optics; multi-rail solutions “coming soon”).