Cisco Rallies 8% Over Three Months on AI, Security and Bullish 2026 Guidance
Over the past three months, Cisco outperformed sector peers with a 7.7% share gain, driven by accelerated AI deployments and rising enterprise security demand. Cisco’s bullish fiscal 2026 guidance bolstered investor confidence, supporting the stock’s 8% rally.
1. Cisco Outperforms Peers on AI and Security Momentum
Over the past three months, Cisco’s stock has climbed 7.7%, surpassing the broader technology sector by more than 200 basis points. Investors have rewarded the company’s expanding footprint in AI networking and rising demand for next-generation security solutions. In Cisco’s most recent quarter, bookings for its Secure Access Service Edge (SASE) portfolio grew 35% year-over-year, while sales of AI-optimized Catalyst switches and routers rose by 28% sequentially.
2. Bullish Fiscal 2026 Guidance Reflects Steady Growth
During its fiscal Q2 earnings call, Cisco reaffirmed management’s outlook for full-year revenue growth of 2% to 4%, with non-GAAP operating margins forecast to expand by 100–150 basis points. The company expects free cash flow to exceed $10 billion in FY2026, driven by disciplined cost controls and continued tailwinds from recurring software subscriptions, which now represent more than 30% of total revenue.
3. Cisco’s Second Annual AI Summit to Showcase Industry Leaders
Cisco will host its second annual AI Summit on February 3, 2026, in San Francisco and via global livestream. Chair & CEO Chuck Robbins and President & Chief Product Officer Jeetu Patel will lead sessions featuring more than a dozen visionaries, including NVIDIA’s Jensen Huang, OpenAI’s Sam Altman and AWS’s Matt Garman. The event will cover AI governance, infrastructure scaling and real-world use cases, aiming to solidify Cisco’s position as a key enabler of the trillion-dollar AI economy.