Cisco Reports Strong Second Quarter Earnings with Record Revenue Growth
Cisco Systems, Inc. has officially announced its second quarter earnings for the fiscal year 2026, reporting impressive financial metrics that surpass analyst expectations. This landmark quarter marks a significant milestone with total revenues reaching a record $15.3 billion, a remarkable increase of 10% compared to the previous year. The earnings per share (EPS) showcased a compelling year-over-year growth, with GAAP EPS rising by 31% to $0.80, whereas Non-GAAP EPS grew by 11% to $1.04.
The company's chair and CEO, Chuck Robbins, remarked on the results, stating, ‘Cisco’s robust performance in the second quarter highlights the strength of our diverse portfolio and the critical role we play in helping our customers adapt to an increasingly dynamic digital landscape.’ Robbins emphasized that with over 40 years of trust from their clients, Cisco is uniquely positioned to provide innovative AI-powered networking solutions that ensure secure and efficient connectivity.
In terms of gross profit margins, Cisco reported a GAAP gross margin of 65.0% and a Non-GAAP gross margin of 67.5%. Both margins exceeded the higher end of the company's guidance. Furthermore, the operating margin also surpassed projections, achieving 24.6% on a GAAP basis and 34.6% on a Non-GAAP basis. These figures underline Cisco's consistent focus on improving operational efficiency and financial discipline amidst a competitive technology sector.
The second quarter saw double-digit growth in product orders across all geographical markets, with an impressive 18% rise year-over-year in overall product orders. Notably, networking products experienced a remarkable acceleration, with orders up by over 20%. Furthermore, AI infrastructure orders from hyperscale operators amounted to $2.1 billion, indicating substantial traction in the high-demand AI domain.
Additionally, the company is at the forefront of a major multi-year campus networking refresh cycle, which is expected to bolster growth further as businesses increasingly look to upgrade their technological infrastructure. To complement their strong financial performance, Cisco has increased its quarterly dividend by 2%, setting it at $0.42 per share, reflecting their commitment to returning value to shareholders.
Looking ahead, Cisco has provided guidance for the third quarter of fiscal 2026, projecting revenues between $15.4 billion and $15.6 billion, and GAAP EPS in the range of $0.73 to $0.77. The company anticipates that for the entire fiscal year 2026, revenue will total between $61.2 billion and $61.7 billion, with GAAP EPS expected to be between $3.00 and $3.08.
Cisco’s financial resilience and strategic innovation propel the company to capture significant opportunities in the ever-evolving technology landscape, particularly as demand for scalable AI solutions continues to rise. As the company awaits the outcomes of ongoing global economic conditions and trade policies, it is well-positioned for continued growth, underpinned by a solid foundation of trust and longstanding customer relationships. Investors and stakeholders remain optimistic as Cisco navigates the challenges and opportunities ahead in the technology sector.
The company's chair and CEO, Chuck Robbins, remarked on the results, stating, ‘Cisco’s robust performance in the second quarter highlights the strength of our diverse portfolio and the critical role we play in helping our customers adapt to an increasingly dynamic digital landscape.’ Robbins emphasized that with over 40 years of trust from their clients, Cisco is uniquely positioned to provide innovative AI-powered networking solutions that ensure secure and efficient connectivity.
In terms of gross profit margins, Cisco reported a GAAP gross margin of 65.0% and a Non-GAAP gross margin of 67.5%. Both margins exceeded the higher end of the company's guidance. Furthermore, the operating margin also surpassed projections, achieving 24.6% on a GAAP basis and 34.6% on a Non-GAAP basis. These figures underline Cisco's consistent focus on improving operational efficiency and financial discipline amidst a competitive technology sector.
The second quarter saw double-digit growth in product orders across all geographical markets, with an impressive 18% rise year-over-year in overall product orders. Notably, networking products experienced a remarkable acceleration, with orders up by over 20%. Furthermore, AI infrastructure orders from hyperscale operators amounted to $2.1 billion, indicating substantial traction in the high-demand AI domain.
Additionally, the company is at the forefront of a major multi-year campus networking refresh cycle, which is expected to bolster growth further as businesses increasingly look to upgrade their technological infrastructure. To complement their strong financial performance, Cisco has increased its quarterly dividend by 2%, setting it at $0.42 per share, reflecting their commitment to returning value to shareholders.
Looking ahead, Cisco has provided guidance for the third quarter of fiscal 2026, projecting revenues between $15.4 billion and $15.6 billion, and GAAP EPS in the range of $0.73 to $0.77. The company anticipates that for the entire fiscal year 2026, revenue will total between $61.2 billion and $61.7 billion, with GAAP EPS expected to be between $3.00 and $3.08.
Cisco’s financial resilience and strategic innovation propel the company to capture significant opportunities in the ever-evolving technology landscape, particularly as demand for scalable AI solutions continues to rise. As the company awaits the outcomes of ongoing global economic conditions and trade policies, it is well-positioned for continued growth, underpinned by a solid foundation of trust and longstanding customer relationships. Investors and stakeholders remain optimistic as Cisco navigates the challenges and opportunities ahead in the technology sector.
Topics Business Technology）
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