Cisco Systems (NASDAQ: CSCO) shares are trading at approximately $77.30 as of February 23, 2026, reflecting a modest intraday dip of about 2.4% from the prior close. The stock has fluctuated between $77.19 and $79.46 today, with a trading volume of roughly 12.1 million shares.citeturn0finance0
Strong Q2 Fiscal 2026 Earnings Propel Cisco Forward
Cisco reported record Q2 revenue of $15.3 billion, marking a 10% year-over-year increase. Net income rose sharply, with GAAP EPS at $0.80 (up 31%) and non-GAAP EPS at $1.04 (up 11%).
Product orders surged 18% year-over-year, with networking product orders exceeding 20% growth. AI infrastructure orders from hyperscalers reached $2.1 billion, underscoring accelerating demand.
Cisco raised its dividend by 2% to $0.42 per share, signaling confidence in its financial strength.
Guidance and Outlook
For Q3 FY2026, Cisco projects revenue between $15.4 billion and $15.6 billion, with GAAP EPS of $0.73–$0.77 and non-GAAP EPS of $1.02–$1.04.
For the full fiscal year, Cisco expects revenue of $61.2 billion to $61.7 billion, and non-GAAP EPS of $4.13 to $4.17.
AI and Campus Refresh Drive Momentum
CEO Chuck Robbins described the current campus networking refresh as “the top of the first inning,” calling it a multi-year, multibillion-dollar opportunity.
Networking segment revenue climbed 21% year-over-year to $8.29 billion, fueled by AI infrastructure demand and refresh cycles.
Hyperscaler AI infrastructure orders totaled $2.1 billion in Q2, with expectations to exceed $5 billion in orders and recognize over $3 billion in AI revenue from hyperscalers in FY2026.
Additionally, Cisco secured $350 million in AI orders from neocloud and enterprise customers, with a growing pipeline exceeding $2.5 billion.
AI Infrastructure Gains Traction Across Quarters
In Q1 FY2026, Cisco booked $1.3 billion in AI infrastructure orders from hyperscalers and over $200 million from neocloud, sovereign, and enterprise clients.
Networking product orders rose 15% year-over-year, marking the fifth consecutive quarter of double-digit growth.
Cisco expects to recognize $3 billion in AI infrastructure revenue from hyperscalers in FY2026.
Stock Performance and Valuation Trends
Cisco stock recently reached multi-year highs near $78.50, driven by its AI infrastructure pivot and growing software subscription revenues.
The company’s trailing P/E ratio has expanded to approximately 28.4×, reflecting investor confidence in its transformation.
Recurring software revenue now accounts for over 50% of total sales, bolstered by the integration of Splunk.
Security Patch: Critical Vulnerability Addressed
Cisco patched a critical remote code execution vulnerability (CVE‑2025‑20393) in its AsyncOS software, affecting Secure Email Gateway and Secure Email and Web Manager appliances. The flaw, rated 10/10 severity, had been exploited by Chinese state-sponsored groups since late November 2025.
Cisco released a full patch in January 2026, removing persistence mechanisms and urging affected users to update immediately.
Developer Certification Realignment Reflects AI Focus
As of February 3, 2026, Cisco rebranded its DevNet certifications into the traditional Cisco ladder: CCNA Automation, CCNP Automation, and CCIE Automation. Existing DevNet holders were automatically migrated without needing to retake exams.
This shift underscores Cisco’s emphasis on network automation, infrastructure-as-code, APIs, and AI-driven networking as core competencies.
What’s Next for Cisco and Investors
Cisco is entering its strongest fiscal year yet, driven by AI infrastructure demand and a sweeping campus refresh cycle.
Key indicators to watch include:
– Q3 FY2026 earnings versus guidance
– AI infrastructure order momentum from hyperscalers and enterprise clients
– Progress on software and subscription revenue growth
– Market response to valuation shifts and investor sentiment
Cisco’s strategic alignment with AI and automation positions it well—but execution and sustained demand will determine if the stock can maintain its elevated valuation.
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