Companies /Technology

Cisco Systems Inc

NASDAQ: CSCO Communication Equipment
$112.13
▲ $4.69 (+4.37%) today
Markets closed · 7:31am ET

Q2 2026 Earnings

Reported Feb 11, 2026, 4:07pm ET · SEC source
$1.04
Beat +1.75%
EPS · est. $1.02
$15.3B
Beat +1.49%
Revenue · est. $15.1B
−4.5%
Trailing market
CSCO vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−10%−5%0+5%Feb 11Feb 12report 4:07pm ETearnings−1.7%−9.8%
−10%−5%0+5%Feb 11Feb 12earnings−1.7%−9.8%
CSCO −9.8%S&P 500 −1.7%
−10%−5%0+5%Feb 11Feb 12report 4:07pm ETearnings−2.1%−9.8%
−10%−5%0+5%Feb 11Feb 12earnings−2.1%−9.8%
CSCO −9.8%NASDAQ −2.1%
−5%0+5%Feb 10Feb 19report 4:07pm ETearnings−1.2%−1.5%
−5%0+5%Feb 10Feb 19earnings−1.2%−1.5%
CSCO −1.5%S&P 500 −1.2%
−5%0+5%Feb 10Feb 19report 4:07pm ETearnings−1.7%−1.5%
−5%0+5%Feb 10Feb 19earnings−1.7%−1.5%
CSCO −1.5%NASDAQ −1.7%
−0.87%
Day of report
−12.32%
Next session
−8.16%
One week
−7.76%
30 days

S&P 500 over the same 30 days: −3.31%.

Did CSCO Beat Earnings? Q2 2026 Results

Cisco Systems delivered a record quarter in Q2 FY2026, posting revenue of $15.35 billion, up 9.7% year over year and ahead of the $15.12 billion consensus estimate by 1.49%, while non-GAAP EPS of $1.04 edged past the $1.02 Wall Street forecast by 1.75%. The driving force behind the beat was a powerful campus networking refresh cycle that pushed networking segment revenue up 21% to $8.29 billion, complemented by $2.10 billion in AI infrastructure orders from hyperscalers, a figure that underscores how deeply Cisco is embedding itself in the buildout of large-scale AI systems. Product revenue surged 14% overall, and total product orders grew 18% year over year, reflecting broad demand momentum that <a href="https://247wallst.com/investing/2026/02/11/live-will-cisco-shares-rise-after-q2-earnings-tonight/">investors had been watching closely</a>. Looking ahead, management guided Q3 revenue of $15.40 billion to $15.60 billion and raised full-year FY2026 revenue guidance to $61.20 billion to $61.70 billion, positioning fiscal 2026 as the company's strongest revenue year on record.

Key Takeaways
  • Product orders up 18% year over year with networking product orders accelerating to more than 20% year over year
  • AI Infrastructure orders from hyperscalers totaled $2.1 billion, reflecting significant acceleration
  • Major multi-year, multi-billion-dollar campus networking refresh cycle underway
  • Double-digit growth across all geographies and robust growth across all customer markets
  • Networking revenue up 21% year over year driving product revenue growth of 14%
  • EMEA revenue growth of 15% led geographic performance

“Cisco's strong second quarter and first half of fiscal 2026 demonstrate both the power of our portfolio and the fundamental role we continue to play in connecting and protecting customers in a rapidly evolving landscape.”

Cisco Systems CEO, on the earnings call

Forward Guidance & Outlook

For Q3 FY2026, Cisco guided revenue of $15.4 billion to $15.6 billion, non-GAAP gross margin of 65.5% to 66.5%, non-GAAP operating margin of 33.5% to 34.5%, and non-GAAP EPS of $1.02 to $1.04 (GAAP EPS of $0.73 to $0.77). For full-year FY2026, Cisco guided revenue of $61.2 billion to $61.7 billion and non-GAAP EPS of $4.13 to $4.17 (GAAP EPS of $3.00 to $3.08). Guidance includes the estimated impact of tariffs based on current trade policy. Management highlighted strong broad-based demand, a major multi-year campus networking refresh cycle, and accelerating AI infrastructure orders from hyperscalers as drivers for continued growth, positioning FY2026 as Cisco's strongest revenue year ever.

CSCO YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$5.0B$10.0B$15.0B$14.0B$15.3BRevenue$9.1B$10.0BGross Profit$3.1B$3.8BOperating Income$2.4B$3.2BNet Income
$0$5.0B$10.0B$15.0BRevenueGross ProfitOperating IncomeNet Income

CSCO Revenue by Segment

Networking$8.3B+21.0%
Services$3.7B−1.0%
Security$2.0B−4.0%
Collaboration$1.1B+6.0%
Observability$277.0M+0.0%

CSCO Revenue by Geography

Americas$8.8B+8.0%
EMEA$4.4B+15.0%
Asia Pacific$2.1B+8.0%

Figures from SEC filings and company reports. Not investment advice.