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Cisco Beats Q2 Estimates and Lifts Full-Year Outlook as AI Push Intensifies

Options pricing points to an unusually sharp move as investors gauge AI order conversion.

Overview

  • Cisco reported fiscal Q2 revenue of $15.35 billion and adjusted EPS of $1.04, topping consensus estimates of about $15.12 billion and $1.02.
  • For Q3, the company guided revenue to $15.4–$15.6 billion with EPS of $1.02–$1.04, and it now expects full-year revenue of $61.2–$61.7 billion and EPS of $4.13–$4.17, above prior ranges.
  • The results arrive after Cisco unveiled a new AI networking chip positioned against Broadcom and Nvidia, highlighting its push in AI infrastructure.
  • Options traders were pricing an implied post‑earnings move of roughly 6.22%, more than double the recent four‑quarter average of 3.01%.
  • Ahead of the release, analysts projected high‑single‑digit product order growth and largely flat sequential AI orders near $1.3 billion as the stock’s 37% year‑over‑year rise focused attention on AI execution.