Cisco's gross profit margin for the last quarter was below market expectations, leading to a 7% drop in its stock price during after-hours trading. This is attributed to rising global memory chip prices, driven by high demand from AI infrastructure builders like OpenAI, Alphabet, and Microsoft. Cisco plans to raise product prices and revise contract terms to mitigate the impact of increased memory costs. The company's revenue for the quarter exceeded analyst expectations, and it increased its revenue forecast for fiscal year 2026.