"Last quarter, Cisco posted revenue of $15.349 billion, up 9.71% year over year, and non-GAAP EPS of $1.04, beating consensus by 1.75%. Networking jumped 21% to $8.294 billion, fueled by hyperscaler AI infrastructure orders of $2.1 billion, up from $1.3 billion in the prior quarter."
"Chuck Robbins raised the FY26 hyperscaler AI order target to "in excess of $5 billion", with over $3 billion in recognized revenue. Full-year guidance moved up to $61.2 billion to $61.7 billion. Since the February earnings report, shares have climbed 16.69%, including a 20.76% gain over the past month."
"I'll be watching three things tonight. First, hyperscaler AI orders. The trajectory has gone from $600M in Q3'25 to $800M+ in Q4'25 to $1.3B in Q1'26 to $2.1B in Q2'26. Anything that sustains the curve validates the $5 billion target, which notably excludes the newly launched G300 chip and recent optics."
"Second, margins. Cisco guided non-GAAP gross margin down to 65.5% to 66.5% from 67.5% in Q2 on memory cost pressure. CFO Mark Patterson said price increases and revised partner terms "just take a little bit of time to run through." Investors will look at whether mitigation is landing faster than feared."
Cisco is set to report fiscal third-quarter results on May 13, 2026. Shares are up 30.28% year to date, with AI order momentum viewed as the key driver. In the prior quarter, revenue reached $15.349 billion, up 9.71% year over year, and non-GAAP EPS was $1.04, beating consensus. Networking rose 21% to $8.294 billion, supported by hyperscaler AI infrastructure orders of $2.1 billion, up from $1.3 billion. Cisco raised its FY26 hyperscaler AI order target to more than $5 billion and increased full-year guidance to $61.2 billion to $61.7 billion. Investors will monitor whether AI orders sustain the rising trajectory, whether margins stabilize amid memory cost pressure, and whether security and services weakness improves.
Read at 24/7 Wall St.
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