Cisco Stock Earnings Reports

Cisco reported a very strong Q2 FY2026: record revenue of $15.3B (up 10% YoY), product revenue +14%, and non-GAAP EPS of $1.04 (+11% YoY). Product orders grew 18% YoY (broad-based: Americas +23%, EMEA +11%, APJC +15%) with networking the standout (+21%), driven by AI infrastructure, campus refresh, data center and service provider routing/switching, wireless, servers and industrial IoT. Cisco reported $2.1B of AI infrastructure orders from hyperscalers in Q2 and now expects AI orders in excess of $5B and to recognize over $3B of AI infrastructure revenue from hyperscalers in FY'26. The company shipped its 1 millionth Silicon One chip and launched new high-performance G300 silicon and 102.4Tbps systems plus new pluggable optics. Splunk transition to cloud continues to pressure near-term security revenue, but new/refreshed security products are gaining traction (roughly 4,000 net new customers for new products since launch, 1,000 new customers in the quarter). Gross margins were pressured (non-GAAP gross margin 67.5%, down 120 bps) due to mix and higher memory costs; management is taking price increases, contractual term adjustments, and leveraging supply-chain scale to manage component inflation. Cash and capital returns remain strong: $3B returned in the quarter (including $1.4B buybacks), $15.8B cash & investments, and the company raised its quarterly dividend by $0.01 to $0.42 (committing to returning at least 50% of free cash flow). Q3 guidance: revenue $15.4B–$15.6B, non-GAAP EPS $1.02–$1.04. FY2026 guidance: revenue $61.2B–$61.7B, non‑GAAP EPS $4.13–$4.17. Management emphasized multipart thesis: hyperscaler AI infra, enterprise/neocloud/sovereign AI demand, and a multiyear campus refresh opportunity.