New York, February 23, 2026, 17:54 ET — After-hours
- Cisco stock (CSCO) closed down $1.46, or 1.8%, and was little changed after the bell
- A tariff jolt and fresh AI-disruption fears pushed investors out of risk across U.S. stocks
- Cisco highlighted a new Australia “Secure AI Factory” buildout with Sharon AI and Nvidia
Cisco Systems shares edged lower in after-hours trading on Monday after the networking gear maker closed down $1.46, or 1.8%, at $77.74. The stock last traded at $77.73 after the bell, MarketWatch data showed. (MarketWatch)
The drop tracked a wider retreat from risk on Wall Street as investors weighed fresh uncertainty around U.S. trade policy and a growing debate over which companies could be hurt by fast-moving AI tools. “Sell first, assess later,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. (Reuters)
Cisco also pointed to new AI infrastructure work in Australia. The company and SharonAI Holdings said they launched Australia’s first “Cisco Secure AI Factory” with Nvidia, designed to keep data and AI processing inside the country — a pitch aimed at customers that worry about where sensitive data sits. (Cisco)
The buildout uses Cisco UCS servers and Nexus Hyperfabric alongside 1,024 Nvidia Blackwell Ultra GPUs, the companies said. Cisco’s Stefan Leitl called the push “critical infrastructure” to help organizations adopt AI “safely and securely.”
On Monday, Cisco’s decline snapped a three-day winning streak, but it held up better than some large-cap tech names on a day when the major U.S. indexes fell more than 1%. Trading volume rose to about 24.5 million shares, above its 50-day average, and the stock is about 12% below its Feb. 10 52-week high of $88.19, according to MarketWatch. (MarketWatch)
Investors have stayed sensitive to Cisco’s profitability signals since its most recent results earlier this month. Cisco lifted its annual revenue forecast then, but gross margin — a measure of how much money a company keeps after direct costs — came in below estimates, Reuters reported. (Reuters)
That matters because Cisco sells a lot of hardware. If input costs rise or pricing power slips, the margin line can move fast, and the stock tends to feel it.
But the near-term risk is not just company-specific. A broader escalation in tariff talk can jolt hardware supply chains and corporate spending plans, and it can swamp deal headlines that might otherwise support the stock.
Rates and macro data are also back in the driver’s seat. Federal Reserve Governor Christopher Waller said February jobs data, due March 6, will be key ahead of the Fed’s March 17–18 policy meeting. (Reuters)
The next hard catalyst for the AI infrastructure trade arrives sooner. Nvidia has scheduled its fourth-quarter results webcast for Wednesday, February 25 — a report that often sets the tone for spending expectations that ripple into data-center networking demand, where Cisco is trying to stay in the conversation. (Nvidia)
