Cisco Systems, Inc.
Cisco Systems, Inc. Q2 FY26 Results — Earnings Call Analysis
Q2 FY26 earnings call: what management said on revenue, margins and capex.
Cisco Systems, Inc. Q2 FY26 key numbers
- Revenue
- AI hyperscale business anticipated to generate at least $6B in FY ’27 revenue.
As stated in Cisco Systems, Inc.'s Q2 FY26 earnings call transcript · published 29 May 2026. Reported figures, not investment advice.
The short version
- Cisco expects durable growth with revenue guidance for fiscal Q4 at $16.7B–$16.9B and FY ’26 at $62.8B–$63B. - Q4 FY26 guidance anticipates revenue between $16.7B and $16.9B.
From Cisco Systems, Inc.'s Q2 FY26 earnings-call transcript · updated 29 May 2026.
Revenue & Sales Performance
- Cisco expects durable growth with revenue guidance for fiscal Q4 at $16.7B–$16.9B and FY ’26 at $62.8B–$63B.
- AI hyperscale business anticipated to generate at least $6B in FY ’27 revenue.
- Non-AI portfolio projected to grow in line with the long-term model (4%-6% total growth).
- Networking growth accelerating to 25% YoY, driven by AI infrastructure and campus refresh.
- Strong order growth across all geographies; product orders up 35% YoY.
- Security revenue expected to improve with double-digit order growth in firewalls, targeting near double-digit revenue growth for organic Cisco security portfolio by fiscal year-end.
- Hardware growth accelerating (~30%), benefiting gross margins.
2 more points from Cisco Systems, Inc.'s call on revenue
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Profitability & Margins
See what Cisco Systems, Inc. said on profitability & margins — free account, 30 seconds.
Capital Expenditure Plans
- Cisco is investing in new capacity, including a strategic 3-year supply agreement to secure components.
- The company is actively managing its supply chain with long-term agreements across silicon, substrates, memory, photonics, PCBs, and power.
- Advanced purchase commitments have increased by $6.7 billion in the last 90 days, up 48%, totaling a year-over-year increase of $11.6 billion.
- Cisco is reallocating resources through a restructuring plan to focus on growth areas: silicon, optics, security, and AI.
- The company announced a major expansion of its Secure AI factory with NVIDIA, enhancing AI deployment and security across infrastructure.
2 more points from Cisco Systems, Inc.'s call on capex
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Fundraising & Capital Structure
See what Cisco Systems, Inc. said on fundraising & capital structure — free account, 30 seconds.
Order Book & Pipeline
- In Q3, non-web scale order growth was 19%, up from 10% in the prior quarter, partly driven by price increases.
- Q4 pipeline showed strong year-over-year growth, with no significant pull-forwards into Q3 detected.
- AI orders expected to accelerate significantly in Q4, nearly doubling from $1.9 billion to about $3.7 billion.
- Five new Silicon One P200 design wins for scale across applications expected to generate early orders in Q4, with broader scale anticipated in FY '27.
- Overall orderbook remains healthy with no decommits seen in the quarter.
- Advanced purchase commitments and inventory increased by $6.7 billion in the last 90 days, up 48%, supporting strong supply.
2 more points from Cisco Systems, Inc.'s call on order book
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What the Q2 FY26 call signalled
2 of 4 strong
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What Cisco Systems, Inc.'s management said in earlier quarters
Others in Communications Equipment this season
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Applied Optoelectronics, Inc. Q2 FY26 quarterly results analysis. Expect over $1.1 billion revenue in 2026, limited by production capacity, not demand. Market C
- F5, Inc. (Q2 FY26)
F5, Inc. Q2 FY26 quarterly results analysis. Strong growth visibility two quarters out into next year, driven by refresh cycles and expansion at refresh time. M
- Motorola Solutions, Inc. (Q2 FY26)
Motorola Solutions, Inc. Q2 FY26 quarterly results analysis. Raised full-year revenue guidance to approximately $12.8 billion, up from $12.7 billion previously.
Potential multibaggers · Q2 FY27
This quarter's potential multibaggers
on management's own guidance
- Strong growth2
- Strong growth1
- Strong growth3
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Ranks describe management commentary on revenue and margin from the latest earnings call. Not investment advice.
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Frequently Asked Questions
What were Cisco Systems, Inc. Q2 FY26 results?
- Cisco expects durable growth with revenue guidance for fiscal Q4 at $16.7B–$16.9B and FY ’26 at $62.8B–$63B. - Q4 FY26 guidance anticipates revenue between $16.7B and $16.9B.
What is Cisco Systems, Inc. share price analysis?
Cisco Systems, Inc. currently shows a below-average growth signal. The stock trades at a P/E of 39.3 with a market cap of $467,612. Investors should review the full earnings analysis for detailed insights.
Is Cisco Systems, Inc. planning capital expenditure?
- Cisco is investing in new capacity, including a strategic 3-year supply agreement to secure components.
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This analysis is AI-generated based on publicly available earnings data and the company's earnings call transcript. This is not investment advice. Please consult a SEBI-registered advisor before making investment decisions.