Cisco Networking Revenue Climbs 21% to $8.29 B Driven by AI Demand
Cisco’s networking revenue reached $8.29 billion in fiscal Q2, rising 21% year-over-year and 6.8% sequentially on strong AI infrastructure and campus networking demand. Networking product orders accelerated over 20% for a sixth straight quarter across routing, switching, wireless, servers and industrial IoT.
1. Q2 Networking Revenue Surge
Cisco’s Q2 fiscal 2026 networking revenue reached $8.29 billion, up 21% year-over-year and 6.8% sequentially. Growth spanned service provider routing, data-center switching, campus networking and wireless products.
2. Growth Drivers: AI Infrastructure and Campus Solutions
Robust demand for AI infrastructure, powered by Silicon One, and next-generation campus networking solutions including smart switches, secure routers and Wi-Fi 7 drove networking product orders over 20% in the quarter, marking the sixth consecutive quarter of double-digit orders growth.
3. Competitive Landscape
Cisco faces competition from Arista Networks in high-speed Ethernet switches and from Hewlett Packard Enterprise, whose acquisition of Juniper Networks has bolstered its AI, cloud and hybrid networking offerings across enterprise and industrial segments.
4. Outlook and Valuation
Despite a 21% share gain over the past year, Cisco has underperformed its sector’s 26.9% return and trades at a trailing 12-month price/book of 6.43X versus the industry’s 6.25X, while consensus Q2 EPS of $1.03 implies 7.3% annual earnings growth.