TLDR
- Cisco announces Q2 fiscal 2026 earnings Wednesday after close with Street consensus at $1.02 EPS and $14.88 billion revenue
- The networking company’s shares have climbed 37% in the past year driven by AI infrastructure buildout
- Analyst forecasts suggest high single-digit Product order growth while AI orders may stay flat at $1.3 billion
- Wall Street holds Strong Buy consensus with average price target of $91.30 implying 6% upside potential
- Tuesday’s AI chip announcement positions Cisco to compete with Broadcom and Nvidia in networking silicon
Cisco delivers second quarter fiscal 2026 results Wednesday after the market closes. Management will host the earnings call at 4:30 pm ET covering the quarter ended January 24.
Analysts project earnings per share of $1.02, marking 8.5% year-over-year growth. Revenue forecasts stand at $14.88 billion, up 1.55% from the prior year period.
These estimates align with Cisco’s own guidance range of $1.01 to $1.03 per share on revenue between $15.0 billion and $15.2 billion. The tight consensus means guidance commentary and order trends will matter more than the headline print.
CSCO shares have gained 37% over the trailing twelve months. The rally reflects growing demand for AI-ready networking equipment across cloud providers and enterprise data centers.
Management unveiled a new AI networking chip Tuesday, directly challenging Broadcom and Nvidia. The strategic timing ahead of earnings underscores the company’s focus on capturing AI infrastructure spending.
Wall Street Sees Steady Growth
UBS analyst David Vogt maintains a Buy rating with a $90 target. His channel checks suggest revenue could exceed his $15.05 billion estimate thanks to improving core enterprise demand.
Vogt expects Product orders to increase high single digits, moderating from the 13% growth delivered last quarter. For AI-specific orders, he takes a conservative stance at $1.3 billion, flat sequentially but representing 20% of his $6.2 billion fiscal 2026 target.
The analyst points to Meta Platforms’ capex trajectory as validation. Meta posted Q4 2025 capex of $22.1 billion, up 49% year-over-year, with 2026 guidance reaching $125 billion at the midpoint.
Cisco finished the October quarter with remaining performance obligations of $42.9 billion, growing 7.2% year-over-year. This metric tracks contracted revenue not yet recognized and serves as a leading indicator for future quarters.
Evercore analyst Amit Daryanani rates the stock Buy with a $100 price target. He highlighted Cisco’s Silicon One portfolio including G200 and P200-based systems that enable the shift from copper to optical networking.
Market Dynamics and Valuation
Options activity suggests heightened expectations around Wednesday’s report. Traders are pricing in a 6.22% move in either direction, more than double the stock’s 3.01% average post-earnings swing over the past four quarters.
Wall Street analysts assign a Strong Buy consensus rating based on 10 Buy recommendations and three Hold ratings. The average price target of $91.30 indicates approximately 6% upside from current levels.
TipRanks’ AI Analyst maintains an Outperform rating with a $96 target, citing strong fundamentals and favorable technical signals. The analysis notes valuation as a potential headwind but views strategic positioning in AI infrastructure as a key advantage.
The stock carries a 2.1% dividend yield. Full-year fiscal 2026 guidance calls for revenue of $60.2 billion to $61.0 billion with earnings per share of $4.08 to $4.14.
Management’s commentary on AI order conversion will be critical. Cisco reported over $2 billion in AI infrastructure orders during fiscal 2025 and has indicated the fiscal 2026 pipeline could surpass $3 billion.
The company accumulated more than $2.1 billion in cumulative AI orders by mid-2025. Translating that backlog into recognized revenue at scale remains the key driver for maintaining growth momentum and supporting the stock’s valuation multiple.
Wednesday’s report will reveal whether enterprise networking demand is stabilizing and if hyperscale customers continue placing large AI fabric orders. Any weakness in forward guidance could pressure shares despite a solid quarter.
