Cisco is embracing the AI trend amid networking and security challenges. Strong Q4 earnings saw revenue up 8% to $14.7 billion, exceeding estimates. For FY 2026, revenue is expected between $59-$60 billion. However, stock faces headwinds with slowing momentum in core networking and lower security growth.

Despite concerns, Cisco’s core networking business grew 12% in the last quarter. The $28 billion Splunk acquisition in 2024 has kept security demand steady, with revenue up 9%. AI is driving revenue growth, with orders doubling targets and anticipated future growth in enterprise AI adoption.

Cisco’s CFO sees the need for networking and security upgrades for AI demands. Tariffs posed a slight headwind in Q4 and FY 25, but global supply chain offsets much of the impact. Cisco is focusing on AI infrastructure and preparing for future enterprise AI opportunities.

Read more at Yahoo Finance: Cisco CFO sees big AI opportunities despite concerns about slowing core growth