Cisco Sees Strong AI Infrastructure Demand, Shares Dip on Guidance

The networking giant's Q2 earnings beat expectations, but near-term guidance tempered enthusiasm.

Published on Feb. 13, 2026

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Cisco Systems, the San Jose-based networking leader, reported strong Q2 results with revenue up nearly 10% year-over-year and earnings per share topping forecasts. The company highlighted $2.1 billion in AI infrastructure orders for the quarter, signaling robust demand from hyperscalers. However, Cisco's guidance for Q3 FY2026 fell short of some aggressive expectations, causing the stock to dip around 11% in early trading.

Why it matters

Cisco's evolution from a hardware-centric giant to a software and services powerhouse has been a key story in the tech industry. The company's ability to capitalize on the AI infrastructure boom, with its Silicon One chips and Nexus platforms, has been a major driver of its recent performance. This quarter's results demonstrate Cisco's resilience and adaptability, even as it navigates challenges like elevated memory costs and enterprise spending uncertainty.

The details

Cisco reported revenue of $15.35 billion for Q2, up nearly 10% year-over-year and exceeding consensus estimates of $15.12 billion. Earnings per share reached $1.04, up 11% and topping forecasts by $0.02. The company highlighted $2.1 billion in AI infrastructure orders for the quarter, raising full-year expectations to over $5 billion. However, Cisco's guidance for Q3 FY2026 projected revenue of $15.4-$15.6 billion (up 5-7% YoY) and adjusted earnings of $1.02-$1.04, which may have fallen short of some aggressive market expectations. Mentions of elevated memory costs and inventory adjustments also weighed on the stock's performance.

  • Cisco reported its fiscal Q2 2026 results on February 13, 2026.
  • For Q3 FY2026, Cisco projected revenue of $15.4-$15.6 billion and adjusted earnings of $1.02-$1.04.

The players

Cisco Systems

A San Jose-based networking leader that has evolved from a hardware-centric giant to a software and services powerhouse.

Chuck Robbins

Cisco's CEO, who emphasized the "slow and steady climb" in enterprise adoption of AI and noted its early diffusion phase.

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What’s next

Consensus estimates for FY2026 align with Cisco's guidance, but Q4 and beyond could see upward adjustments if AI orders convert efficiently.

The takeaway

Cisco's ability to adapt from a hardware-centric giant to a software and services powerhouse, while capitalizing on the AI infrastructure boom, demonstrates the company's resilience and innovation. Despite near-term guidance concerns, the post-earnings dip could represent an opportunity for investors to engage with a tech stalwart at reasonable terms.