Overview
- Cisco reported adjusted EPS of $1.04 and revenue of $15.35 billion for fiscal Q2, beating Wall Street estimates.
- Management lifted full-year fiscal 2026 guidance to $61.2–$61.7 billion in revenue and $4.13–$4.17 in adjusted EPS, and guided Q3 revenue to $15.4–$15.6 billion with EPS of $1.02–$1.04.
- AI infrastructure orders from hyperscalers reached $2.1 billion in the quarter, and CEO Chuck Robbins said Cisco now expects AI orders above $5 billion and over $3 billion in hyperscaler AI revenue in FY26.
- Adjusted gross margin was 67.5% in Q2, below forecasts, with Q3 margin guidance of 65.5%–66.5% as higher memory costs drive Cisco to raise prices and revise partner and customer contracts.
- Shares fell about 7% in extended trading, even as Cisco highlighted new AI networking hardware including a homegrown chip and a switch incorporating an Nvidia component.