Cisco (CSCO) Q2 earnings report 2026

Cisco It reported better-than-expected quarterly results on Wednesday, but its stock fell nearly 7% in extended trading as its earnings forecast for the current period only missed estimates.

Here is the company’s performance compared to the LSEG consensus:

• Earnings per share: Adjusted $1.04, expected $1.02
• Revenues: 15.35 billion dollars, while the expectation was 15.12 billion dollars

Cisco’s revenue increased nearly 10% from $14 billion a year ago. expression. Net income rose to $3.18 billion, or 80 cents per share, from $2.43 billion, or 61 cents per share, in the same quarter a year ago. The adjusted figure does not include stock-based compensation costs.

For the current period, Cisco expects $1.02 to $1.04 in adjusted earnings per share and $15.4 to $15.6 billion in revenue. Analysts surveyed by LSEG expected revenue of $1.03 per share and revenue of $15.18 billion.

Investors expect Cisco to play a more central role in the artificial intelligence boom that is driving chipmakers and other data center technology providers. Cisco is seeing some growth momentum, reporting $2.1 billion in AI infrastructure orders from hyperscalers in the quarter.

Cisco’s core network revenue rose 21% year over year to $8.3 billion. Analysts polled by StreetAccount were looking for $7.9 billion.

During the quarter, Cisco said it would provide products For an artificial intelligence infrastructure project in Saudi Arabia Advanced Micro Devices. Cisco also announced Initializing a network switch containing Nvidia chip

“On the sovereign side, there is no real need or expectation for meaningful impact in FY26,” Cisco CEO Chuck Robbins said on a conference call with analysts. he said. “And so we don’t need that to accelerate the guidance we’re providing. This is entirely a positive development.”

Increasing revenue from neoclouds, cloud providers that are younger than mature organizations such as Amazon And MicrosoftThis will begin in the second half of the current fiscal year and become more evident in fiscal 2027, Robbins said.

The rising price of memory due to high demand for Nvidia graphics processing units is affecting various equipment companies. Robbins said Cisco announced price increases and made adjustments to contracts with channel partners.

“Do I think customers will try to pre-purchase in some cases? Maybe,” he said. “But I don’t think this will be a big trend on the networking side of our business.”

Cisco is targeting $4.13 to $4.17 in adjusted earnings per share and $61.2 to $61.7 billion in revenue for fiscal 2026; This means 8.5% growth. LSEG consensus showed earnings of $4.12 per share and revenue of $60.74 billion.

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