Cisco (CSCO) Stock: What to Expect from Q2 Earnings Today

TLDR

• Cisco reports Q2 fiscal 2026 earnings after market close Wednesday with Wall Street expecting EPS of $1.02 and revenue of $14.88 billion
• The networking giant’s stock has climbed 37% over the past year driven by strong AI infrastructure demand
• UBS analyst projects Product orders to rise in high single digits while AI orders may remain flat sequentially at $1.3 billion
• Options traders anticipate a 6.22% move in either direction, higher than the 3.01% average post-earnings move over the past four quarters
• Cisco unveiled a new AI networking chip Tuesday to compete with Broadcom and Nvidia in the AI infrastructure space

Cisco will announce its second quarter fiscal 2026 results after the market closes Wednesday, February 11. The networking and cybersecurity company will hold its conference call at 4:30 pm ET.

Cisco Systems, Inc., CSCO

Wall Street analysts expect earnings per share of $1.02, representing 8.5% year-over-year growth. Revenue projections stand at $14.88 billion, a 1.55% increase from the prior year.

The expectations align closely with Cisco’s own guidance range of $1.01 to $1.03 per share on revenue between $15.0 billion and $15.2 billion. This tight alignment means investors will focus heavily on forward guidance and order trends rather than the headline numbers alone.

CSCO stock has gained more than 37% over the past year. The rally stems from robust demand for AI infrastructure solutions across cloud and hyperscale customers.

Tuesday’s announcement of a new AI networking chip puts Cisco in direct competition with Broadcom and Nvidia. The timing suggests management wants to reinforce its position in the AI infrastructure market ahead of the earnings call.

AI Infrastructure Takes Center Stage

UBS analyst David Vogt maintains a Buy rating with a $90 price target. His industry checks suggest revenue could exceed his $15.05 billion estimate thanks to improving enterprise markets.

Vogt projects Product orders to rise in the high single digits. That would mark a slowdown from the 13% growth reported in the previous quarter.

AI orders remain harder to predict. Vogt conservatively expects flat sequential AI orders of $1.3 billion, or roughly 20% of his full-year AI order target of $6.2 billion.

The analyst points to Meta Platforms’ recent capex announcement as a positive signal. Meta reported Q4 2025 capex of $22.1 billion, up 49% year-over-year, with 2026 capex guidance of $125 billion at the midpoint.

Cisco ended the October quarter with remaining performance obligations of $42.9 billion, reflecting 7.2% year-over-year growth. This backlog metric will be closely watched for signs of continued AI deal momentum.

Analyst Sentiment and Options Activity

Evercore analyst Amit Daryanani holds a Buy rating with a $100 price target. Following Cisco’s AI Summit, he highlighted the company’s Silicon One products including G200 and P200-based systems.

Daryanani views the shift toward pluggable solutions and the transition from copper to optics as favorable for Cisco’s growth prospects. The company’s Security business offerings also drew positive commentary.

TipRanks’ AI Analyst rates the stock Outperform with a $96 price target, implying 11.3% upside potential. The rating factors in solid financial performance and positive technical indicators, though high valuation may cap near-term gains.

Options traders expect a 6.22% move in either direction following the earnings release. That’s more than double the stock’s average post-earnings move of 3.01% over the past four quarters.

The heightened implied volatility suggests the market sees this quarter as particularly important for Cisco’s AI narrative. Wall Street holds a Strong Buy consensus rating based on 10 Buy ratings and three Hold ratings.

The average price target of $91.30 points to roughly 6% upside from current levels. Cisco offers a dividend yield of 2.1%.

Management’s full-year fiscal 2026 guidance calls for revenue of approximately $60.2 billion to $61.0 billion with EPS of $4.08 to $4.14. Investors will watch for any adjustments to these ranges during Wednesday’s call.

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