Key Takeaways Cisco shares rose 17.2% in six months, outperforming the sector and key peers on AI momentum. CSCO logged $2.1B in Q2 AI orders, sees over $3B in fiscal 2026 AI infrastructure revenues. CSCO guided Q3 revenue to $15.4B-$15.6B and expects fiscal 2026 sales up to $61.7B. Cisco Systems (CSCO) shares have returned 17.2% in the trailing six-month period, outperforming the broader Zacks Computer & Technology sector, as well as close peers, Hewlett Packard Enterprise (HPE) and Arista Networks (ANET) ...

For years, networking giant Cisco Systems (NASDAQ: CSCO) largely missed out on demand from hyperscale cloud companies. The company's proprietary approach, which bundled its hardware and software, didn't align well with hyperscalers' needs. Starting in 2018, the company began offering its hardware and software separately, enabling hyperscalers to use any software with its switches or run its software on third-party hardware. Image source: Getty Images. Will AI create the world's first trillionaire? Our te ...

Cisco also highlighted its recurring revenue profile. Patterson said total subscription revenue was $7.8 billion , representing 51% of total revenue, while total software revenue was $5.7 billion , up 2% . Total RPO was $43.4 billion , up 5% , and total ARR ended the quarter at $31 billion , up 3% (product ARR up 6% ).By segment, Patterson said Networking grew 21% on AI infrastructure and a campus refresh, with double-digit growth in campus switching, data center switching, wireless, service provider routin ...

Core Thesis - Cisco Systems, Inc. is experiencing significant growth driven by AI demand, leading to record quarterly performance and increased full-year guidance [2][3][5] Financial Performance - Cisco's shares surged approximately 7% on November 13, reaching near dot-com era highs, following a record first-quarter performance [2] - The company reported historic quarterly revenue and raised fiscal 2026 guidance, projecting adjusted EPS of $4.08 to $4.14 and revenue of $60.2 billion to $61 billion, exceeding previous expectations [3] - Second-quarter revenue guidance of $15 billion to $15.2 billion also surpassed analyst projections of $14.72 billion, indicating sustained growth momentum [3] Analyst Upgrades - The strong results prompted broad analyst upgrades, with Bank of America raising its target to $95 from $85, Rosenblatt and Melius to $100, UBS to $90 from $88, Morgan Stanley to $82 from $77, and KeyBanc to $87 from $77 [4] - Goldman Sachs maintained its rating, citing robust AI-driven demand, while William Blair reaffirmed its positive stance [5] Market Position - Cisco is well-positioned to capture market share gains due to its leadership in networking hardware, software, and AI-focused solutions [5] - The convergence of strong earnings, strategic guidance, and analyst optimism makes Cisco a compelling investment opportunity as the AI-driven infrastructure cycle accelerates [5]

Core Insights - Cisco Systems Inc. is experiencing significant growth driven by AI demand, with $1.3 billion in AI infrastructure orders in Q1 2026, leading to an optimistic revenue forecast of $3 billion in AI revenue for FY26 [2][6] - The company is set to ship its one-millionth Silicon One chip next quarter, highlighting its strong position in the AI market [1] Financial Performance - Cisco reported Q1 2026 revenue of $14.88 billion, surpassing estimates of $14.77 billion, and adjusted EPS of $1.00, exceeding expectations of 98 cents [7] - The stock price rose 3.14% to $73.96, with a year-to-date increase of 25.14% and a 24.97% rise over the year [6] Market Demand and Opportunities - There is a growing pipeline exceeding $2 billion for high-performance networking products from various customer segments beyond hyperscalers [3] - Cisco's CEO noted that only one-third of organizations believe their IT infrastructure can support planned AI projects, indicating substantial growth potential as companies upgrade their networks [5] Strategic Outlook - The company anticipates a "multiyear, multibillion-dollar refresh opportunity" in its core campus networking portfolio due to AI-driven demand [4] - Cisco's strong first-quarter performance has led to an increased full-year forecast, with the CEO expressing confidence in achieving the "strongest year yet" [2][4]