Cisco Systems Q2 Beats Expectations, EPS/Revenue Miss, Shares Drop 7%

Cisco Systems (CSCO-US) reported fiscal Q2 results on February 11, 2026, topping analyst estimates but guided flat for 2026, leading to a 7% decline in after-hours trading. Revenue rose 10% year-over-year to $153.5B; adjusted EPS reached $1.04/share, up from $0.61/share in the same period. The company forecast adjusted EPS of $1.02–$1.04 and revenue of $154B–$156B for fiscal Q3, in line with Street estimates. Q2 hyperscaler AI infrastructure orders totaled $21B, core networking revenue grew 21% to $83B, and the firm inked a partnership with AMD to supply AI infrastructure in Saudi Arabia, co-located with an NVIDIA GPU-integrated switch. CEO Chuck Robbins noted no material impact from主权 clients in 2026, pricing adjustments were made amid strong NVIDIA GPU demand, and growth from neoclouds is expected to materialize in fiscal 2027. For full-year 2026, the company expects adjusted EPS of $4.13–$4.17 and revenue of $612B–$617B, reflecting roughly 8.5% growth versus consensus of $4.12 EPS and $607.4B revenue.