Zhi Tong Cai Jing·2026-02-09 08:11Core Viewpoint - Cisco is set to report its Q2 FY2026 earnings, with analysts predicting an EPS of $1.02, an 8.5% year-over-year increase, and revenue of $15.12 billion, up 8.1% from the previous year [1] Financial Performance Expectations - Revenue from networking products is expected to reach $7.74 billion, a 13% increase year-over-year [1] - Observability products are projected to generate $298.26 million, a 7.7% increase [1] - Security products revenue is anticipated to be $2.15 billion, a 2% increase [1] - Collaboration products revenue is expected to decline by 1.2% to $984.25 million [1] - Total product revenue is forecasted at $11.26 billion, a 10.1% increase, while service revenue is expected to be $3.85 billion, up 2.6% [1] - Non-GAAP gross profit is projected to be $7.56 billion, exceeding last year's $6.92 billion [1] Business Diversification and AI Impact - Cisco's recovery post-internet bubble is attributed to successful diversification into software and services through acquisitions like Webex and AppDynamics [2] - The company has benefited from the AI investment cycle, securing $1.3 billion in AI infrastructure orders [2] - Remaining performance obligations (RPO) stand at $42.9 billion, a 7.2% increase year-over-year [2] Analyst Ratings and Price Targets - UBS analyst David Vogt maintains a "Buy" rating with a target price of $90, expecting revenue to exceed previous forecasts due to improvements in the core enterprise market [4] - Evercore analyst Amit Daryanani also reiterates a "Buy" rating with a target price of $100, highlighting Cisco's AI solutions and security products [5] - The consensus rating for Cisco stock is "Strong Buy," based on 11 "Buy" ratings and 3 "Hold" ratings, with an average target price of $90.80 [5] Market Volatility Expectations - Options traders anticipate a 5.97% price fluctuation in Cisco's stock following the Q2 FY2026 earnings report [8]