By Katherine Hamilton
Cisco Systems logged higher revenue in its fiscal second quarter driven by increasing demand from artificial intelligence hyperscalers.
The networking company on Wednesday posted a profit of $3.18 billion, or 80 cents a share, in the quarter that ended Jan. 24, compared with $2.43 billion, or 61 cents a share, a year earlier.
Stripping out certain one-time items, adjusted per-share earnings were $1.04, ahead of the $1.02 anticipated by analysts, according to FactSet.
Revenue rose 10% to $15.35 billion. Analysts surveyed by FactSet forecast revenue of $15.11 billion.
Product revenue increased 14% and services revenue declined 1%, Cisco said.
AI infrastructure orders taken from hyperscalers totaled $2.1 billion in the quarter, reflecting an acceleration in growth, Cisco said.
The company on Tuesday started to offer its own Silicon One G300 AI chip. Cisco said it closed acquisitions of the AI software companies NeuralFabric and EzDubs in the second quarter.
"We see strong, broad-based demand for our technology solutions and remain focused on capturing the significant opportunities we see ahead," Chief Financial Officer Mark Patterson said.
In the current quarter, Cisco expects revenue of $15.4 billion to $15.6 billion with adjusted earnings per share of $1.02 to $1.04.
Analysts were projecting $15.2 billion in sales and $1.03 a share in earnings.
For the full year, it anticipates sales will be $61.2 billion to $61.7 billion, with adjusted earnings per share of $4.13 to $4.17.
Analysts were expecting $60.8 billion in sales and $4.13 a share in earnings.
Cisco also raised its quarterly dividend by 2% to 42 cents a share.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
February 11, 2026 16:23 ET (21:23 GMT)
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