Cisco's 60% AI rally runs into a profit-margin wall

Cisco shares surged over 60% in 2026 as AI demand lifted networking orders past 50% growth. The pullback came after Q4 earnings: GAAP gross margin slipped to 66.3% from 68.4%, and Q1 guidance of 65%–66% missed the Street's 66.10% estimate. The AI supercycle is real; the profit math is the catch.