Cisco Systems reported a strong second quarter with double-digit revenue and EPS growth, exceeding guidance and demonstrating broad-based demand across all geographies and customer markets, particularly in AI infrastructure. The company is well-positioned for its strongest revenue year yet in fiscal 2026, driven by innovation and customer trust.
Revenue of $15.3 billion, up 10% year over year, exceeding guidance.
positiveGAAP EPS of $0.80, up 31% year over year; Non-GAAP EPS of $1.04, up 11% year over year, both exceeding guidance.
positiveProduct orders up 18% year over year, with networking product orders accelerating to over 20% year over year.
positiveAI Infrastructure orders from hyperscalers totaled $2.1 billion, reflecting significant acceleration in growth.
positiveGAAP operating margin of 24.6% and Non-GAAP operating margin of 34.6%, both above the high end of guidance.
positiveQuarterly dividend increased by 2% to $0.42 per share.
positiveServices revenue decreased by 1% year over year.
attentionSecurity segment revenue was down 4% year over year.
attentionCash flow from operating activities decreased by 19% to $1.8 billion compared to $2.2 billion in the prior year quarter.
attentionInventories increased by $756 million sequentially from $3.164 billion to $3.920 billion.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Americas | N/A | — | — | — |
EMEA | N/A | — | — | — |
APJC | N/A | — | — | — |
Networking | N/A | — | — | — |
Security | N/A | — | — | — |
Collaboration | N/A | — | — | — |
Observability | N/A | — | — | — |
Product | N/A | — | — | — |
Services | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
Cisco's strong second quarter and first half of fiscal 2026 demonstrate both the power of our portfolio and the fundamental role we continue to play in connecting and protecting customers in a rapidly evolving landscape.
With over 40 years of customer trust, global scale, and a relentless focus on innovation, we believe Cisco is uniquely positioned to deliver the trusted infrastructure needed to securely and confidently power the AI-era.
In Q2, we delivered double-digit growth on both the top and bottom lines which exceeded the high end of our guidance and puts us on track to deliver our strongest revenue year yet in fiscal 2026.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.