Cisco Systems (NASDAQ:CSCO) reported fiscal fourth-quarter results on Wednesday that exceeded expectations, but its in-line guidance for fiscal 2026 failed to impress, sending shares down more than 2% in after-hours trading.

For the quarter ended July 26, the networking equipment maker posted adjusted earnings of $0.99 per share on revenue of $14.76 billion, topping analyst forecasts of $0.98 and $14.62 billion, respectively. Product revenue, which makes up the majority of total sales, rose 10% year-over-year, while services revenue remained unchanged.

For the first quarter of fiscal 2026, Cisco projected adjusted earnings between $0.97 and $0.99 per share on revenue of $14.65 billion to $14.85 billion, ahead of consensus estimates for $0.97 and $14.62 billion. Looking at the full fiscal year, the company guided for adjusted earnings of $4.00 to $4.06 per share and revenue of $59 billion to $60 billion, compared with analyst expectations of $4.03 and $59.55 billion.