UPDATE: Cisco Systems Inc. (CSCO) stock remains firm near $64.50 as of February 24, 2026, following a record revenue beat for Q2 FY2026. The tech giant closed at $64.48 after a 0.78% gain, fueled by surging demand for AI infrastructure and a significant dividend increase announced earlier this month.
Trading within a range of $63.92 to $64.85, Cisco’s strong performance is underscored by a total trading volume of approximately 18.4 million shares. Year-to-date, the shares have risen about 12%, reflecting robust investor confidence as the company navigates high-growth sectors like AI networking, security, and observability.
The stability follows Cisco’s impressive Q2 fiscal 2026 earnings report, released on February 12, 2026. Cisco reported revenues of $14.0 billion, surpassing analyst expectations of $13.7 billion, despite a 6% decline year-over-year. Adjusted earnings per share reached $0.96, exceeding the consensus estimate of $0.92.
Key highlights include an 11% growth in product orders, driven by strong demand for AI-related networking solutions. Remaining performance obligations (RPO) surged 18% to a record $42.3 billion. CEO Chuck Robbins stated that the acceleration of AI infrastructure deployments is a pivotal factor behind the growth, with networking orders significantly boosted by hyperscaler and enterprise investments in AI data centers.
Security revenue also rose by 8%, while observability products continued to gain traction. The company noted improvements in supply chain dynamics and a shift towards software and subscription models, leading to gross margin expansion to 68.4% on an adjusted basis.
On February 12, Cisco announced a 3% increase in its quarterly dividend to $0.41 per share, payable on April 23, 2026, to shareholders of record by April 2. This move highlights Cisco’s strong cash generation and commitment to shareholder returns, with a current yield of approximately 2.5%.
Additionally, the company repurchased $2.5 billion in stock during the quarter under its ongoing authorization. Analysts maintain a predominantly bullish outlook, with consensus ratings among 25-30 firms suggesting a Moderate Buy to Buy for CSCO. Average 12-month price targets range from $68 to $72, indicating potential upside of 5%-12%.
Looking ahead, Cisco guided for third-quarter fiscal 2026 revenue between $13.6 billion to $13.8 billion and adjusted EPS between $0.83 to $0.85, aligning with or slightly above consensus expectations. Management emphasized ongoing momentum in AI networking, resilience in security, and progress toward its $1 billion annualized run rate target for observability products.
Cisco continues to invest heavily in AI advancements through its Silicon One platform and partnerships with hyperscalers for next-generation data center fabrics. Recent announcements include expanded collaboration with NVIDIA on AI infrastructure and new observability tools catering to generative AI workloads.
Despite challenges in traditional enterprise networking, where some customers are delaying upgrades amid economic uncertainties, Cisco’s diversified portfolio—spanning networking, security, collaboration (Webex), and observability—provides resilience. The shift towards software and recurring revenue streams supports improving margins and predictability.
The next earnings report for third-quarter fiscal 2026 is anticipated in mid-May 2026. Investors will closely monitor AI order trends, security growth, margin developments, and any updates on full-year guidance or strategic initiatives. With shares trading at attractive multiples in relation to historical averages and peers, Cisco remains a core holding for investors seeking exposure to AI infrastructure and enterprise technology.
