Cisco Says Hardware Price Hikes Are ‘Last Resort’ as Memory Costs Rise: CSCO Stock Falls Over 6% (UPDATED)

Key takeaways

• Cisco’s hardware price hikes, driven by soaring memory costs, are a last‑resort move that has already boosted revenue but may weigh on future demand and investor sentiment.
• Q4 revenue $17.25 billion (vs $16.82 billion estimate)
• Q4 adjusted EPS $1.22 (vs $1.17 estimate)
• FY2027 revenue guidance $72.2–$73.4 billion

What happened

Cisco Systems Inc (CSCO) announced that it has raised prices on select hardware products to offset rising memory costs, describing the hikes as a "last resort." The company reported fourth‑quarter revenue of $17.25 billion, beating estimates of $16.82 billion, and adjusted earnings of $1.22 per share versus the consensus of $1.17. For fiscal 2027 Cisco forecasts revenue of $72.2 billion to $73.4 billion and adjusted EPS of $5.05 to $5.11, both above Wall Street expectations. The stock fell…

Why it matters

The price increases are a direct response to abnormally high memory prices, which have pushed up the cost of Cisco’s high‑memory hardware. By raising prices, Cisco aims to preserve margin and generate additional revenue growth—reported to add roughly 4–5 percentage points to ex‑webscale orders. The move signals that…

Short-term and longer-term

Short-term. Short‑term traders should watch CSCO’s price action around the earnings release and any subsequent guidance updates.

Longer-term. Over the next few months, investors should assess whether Cisco’s price hikes translate into sustainable margin expansion or merely shift costs to customers.