Cisco Systems Inc (NASDAQ:CSCO, XETRA:CIS) shares fell about 4% after Wednesday’s closing bell as investors weighed up the global technology firm’s better-than-expected quarterly report and guidance for the current quarter, which was slightly above consensus estimates.
For the quarter, Cisco reported record revenue of $15.3 billion, up 10% year-over-year, compared with Wall Street expectations of $15.1 billion.
The company posted adjusted earnings of $1.04 per share, topping analysts’ estimates of $1.02 per share.
Cisco highlighted accelerating demand trends, noting double-digit growth in product orders across all geographies and customer markets during the quarter. Product orders rose 18% year over year, with networking product orders accelerating to more than 20% growth.
The company also reported $2.1 billion in AI infrastructure orders from hyperscale customers, describing the figure as a significant acceleration in growth, and cited a major multi-year campus networking refresh cycle underway.
"Cisco's strong second quarter and first half of fiscal 2026 demonstrate both the power of our portfolio and the fundamental role we continue to play in connecting and protecting customers in a rapidly evolving landscape," Cisco CEO Chuck Robbins said in a statement.
"With over 40 years of customer trust, global scale, and a relentless focus on innovation, we believe Cisco is uniquely positioned to deliver the trusted infrastructure needed to securely and confidently power the AI-era."
Looking ahead, Cisco forecast fiscal third quarter revenue of $15.4 billion to $15.6 billion, above the consensus estimate of $15.18 billion, and guided for adjusted earnings of $1.02 to $1.04 per share, compared with analysts’ expectations of $1.02 per share.
Still, shares fell around 6.2% following the report, likely as investors focused on valuation, relatively modest upside to the company’s guidance and profit-taking.