Stock Market Today, Aug. 13: Cisco Falls on Margin Concerns Despite Record Revenue and AI Demand
Today, Aug. 13, 2026, the networking giant's stock tumbled 8.4% after earnings, as investors weighed hyperscaler AI orders against gross margin headwinds.
Overview
Cisco Systems (NASDAQ:CSCO), a global networking hardware and security provider, closed at $113.47, down 8.40%. The stock fell after better-than-expected fiscal fourth-quarter results and guidance, but investors are focusing on margin pressure, even as the stock is still up nearly 50% this year.
Trading volume reached 61.1 million shares, coming in about 137% above its three-month average of 25.7 million shares.
The S&P 500 (SNPINDEX:^GSPC) rose 0.65% to 7,799, and the Nasdaq Composite (NASDAQINDEX:^IXIC) gained 0.81% to 26,803. In networking equipment and enterprise communications technology, Arista Networks (NYSE:ANET) fell 3.27% to $203.62, while Hewlett Packard Enterprise (NYSE:HPE) rose 1.75% to $59.82 as investors weighed Cisco Systems' earnings reaction and broader spending trends.
Details
Investors approached Cisco’s fiscal fourth-quarter earnings with high expectations for the company. Cisco stock was up 60% year-to-date entering today’s trading. While the company delivered record top and bottom-line results, total (non-GAAP) gross margin for the quarter dropped to 66.3% from last year's 68.4%. This decline was partly attributed to the increased cost of components used in AI hardware, such as memory.
Source
Originally published at www.fool.com.