Cisco Systems(US:CSCO) ZACKS·2026-02-12 17:11Core Insights - Cisco Systems (CSCO) reported second-quarter fiscal 2026 non-GAAP earnings of $1.04 per share, exceeding the Zacks Consensus Estimate by 1.96% and reflecting a year-over-year increase of 10.6% [1][10] - Revenues reached $15.35 billion, surpassing the Zacks Consensus Estimate by 1.49% and showing a year-over-year growth of 9.7% [2][10] Revenue Breakdown - Total Annual Recurring Revenues (ARR) were $31 billion, up 3%, with product ARR growth of 6% [2] - Total subscription revenues amounted to $7.83 billion, representing 51% of Cisco's total revenues [2] - Software revenue increased significantly by 36.9% year over year to $5.6 billion [2] Segment Performance - Networking revenues were $8.29 billion, up 21% year over year [3] - Security revenues decreased by 4% year over year to $2.01 billion [3] - Collaboration revenues increased by 6% year over year to $1.05 billion [3] - Observability revenues remained stable at $277 million year over year [3] Product and Service Revenue - Total product revenues were $11.64 billion, accounting for 75.8% of total revenues, with a year-over-year increase of 13.8% [4] - Service revenues were $3.70 billion, making up 24.2% of total revenues, down 1.3% year over year [4] Geographic Performance - Revenues from the Americas increased by 8% year over year to $8.84 billion [5] - EMEA revenues climbed 15% year over year to $4.42 billion [5] - APJC revenues rose by 8% year over year to $2.08 billion [5] Operating Metrics - Non-GAAP gross margin for the second quarter was 67.5%, a contraction of 120 basis points year over year [6] - Non-GAAP operating income was $5.31 billion, reflecting a year-over-year increase of 9.3% [7] - Operating margin contracted by 10 basis points year over year to 34.6% [7] Financial Position - As of January 24, 2026, cash and cash equivalents totaled $15.8 billion, up from $15.7 billion as of October 25, 2025 [8] - Total debt increased to $30 billion from $28.1 billion over the same period [8] Remaining Performance Obligations - Remaining performance obligations (RPO) were $43.4 billion, up 5% year over year [9] - Product RPO increased by 8% year over year, with long-term RPO at $11.8 billion, up 11% year over year [9] Future Guidance - For Q3 fiscal 2026, Cisco expects non-GAAP earnings between $1.02 and $1.04 per share, with revenues projected in the range of $15.4 billion to $15.6 billion [12] - For fiscal 2026, the company anticipates non-GAAP earnings between $4.13 and $4.17 per share and revenues between $61.2 billion and $61.7 billion [12] Shareholder Returns - In Q2 fiscal 2026, Cisco returned $3 billion to shareholders through share buybacks and dividends [11]