Cisco Systems shares tumbled 5.79% in after-hours trading on Wednesday, reversing early gains that followed the release of its fiscal fourth-quarter earnings. The decline came despite the company reporting better-than-expected results and issuing an upbeat outlook for fiscal 2027.

The networking giant posted adjusted earnings of $1.22 per share on revenue of $17.3 billion, topping analyst estimates of $1.17 per share and $16.8 billion, respectively. Cisco also forecast fiscal 2027 revenue between $72.2 billion and $73.4 billion, well above the consensus of $69.1 billion. However, the stock initially rose more than 2% before sharply reversing course.

Analysts attributed the sell-off to elevated investor expectations heading into the report. Cisco shares had already surged over 60% year-to-date, driven by enthusiasm around its AI infrastructure orders. The strong results and guidance, while solid, were not enough to sustain the rally, leading to a classic “sell the news” reaction as traders locked in profits.