Overview
Networking equipment maker's Q2 revenue rose 10%, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations, growing 11% yr/yr
Company increased quarterly dividend by 2% to $0.42 per share
Outlook
Cisco expects Q3 FY 2026 revenue between $15.4 bln and $15.6 bln
Company projects FY 2026 revenue of $61.2 bln to $61.7 bln
Cisco sees Q3 FY 2026 non-GAAP EPS at $1.02 to $1.04
Result Drivers
PRODUCT ORDERS - Double-digit growth in product orders across all geographies, with networking orders up over 20% yr/yr
AI INFRASTRUCTURE - AI infrastructure orders from hyperscalers totaled $2.1 bln, reflecting significant growth
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $15.35 bln | $15.12 bln (15 Analysts) |
Q2 Adjusted EPS | Beat | $1.04 | $1.02 (16 Analysts) |
Q2 EPS | $0.80 | ||
Q2 Net Income | $3.2 bln | ||
Q2 Adjusted Operating Margin | 34.60% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the communications & networking peer group is "buy"
Wall Street's median 12-month price target for Cisco Systems Inc is $86.00, about 0.3% below its February 10 closing price of $86.29
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago
Press Release: ID:nPn7VvCtda
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)