Cisco reported Q2 FY 2026 revenue of USD 15.35B (+10%) and GAAP net income of USD 3.18B (+31%), with GAAP diluted EPS of USD 0.80 (+31%). On a non-GAAP basis, Cisco posted net income of USD 4.14B (+10%) and diluted EPS of USD 1.04 (+11%), while non-GAAP operating margin was 34.6% and non-GAAP gross margin was 67.5%. Networking revenue was USD 8.29B (+21%), Security revenue was USD 2.02B (-4%), Collaboration revenue was USD 1.05B (+6%), Observability revenue was USD 277M (0%), and Services revenue was USD 3.71B (-1%). Total product orders rose 18%, including 65% growth in Service Provider & Cloud; remaining performance obligations were USD 43.4B (+5%) and annualized recurring revenue was USD 31.0B (+3%). Cisco returned USD 2.97B to shareholders in Q2, including USD 1.35B of share repurchases and USD 1.62B in dividends, and said it will raise its quarterly dividend to USD 0.42 per share (+2%). Cisco highlighted “accelerating AI momentum,” including USD 2.1B of AI infrastructure orders in Q2 from hyperscalers (60% Silicon One-based systems and 40% optics) and USD 350M of AI orders from neocloud, sovereign and enterprise customers, with an AI pipeline of more than USD 2.5B; it expects to take USD 5B in AI orders and recognize over USD 3B in AI revenue in FY26. Product updates included the Silicon One G300 102.4 Tbps chip (shipping in CY26), four new 102.4T air- and liquid-cooled systems, and new 1.6T OSFP optics and 800G LPO built with Cisco silicon photonics; Cisco also said it shipped its 1-millionth Silicon One chip in Q2 and that next-generation campus products (including smart switches and Wi-Fi 7) are ramping faster than prior launches. For outlook, Cisco guided Q3 FY 2026 revenue of USD 15.4B–USD 15.6B and non-GAAP EPS of USD 1.02–USD 1.04, and raised FY 2026 guidance to revenue of USD 61.2B–USD 61.7B and non-GAAP EPS of USD 4.13–USD 4.17.

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