Cisco posted a Q2 double beat on both earnings and revenue, leading management to raise its fiscal 2026 outlook despite a more than 11% share price decline as investors adjusted valuations.

The company booked $2.1B in AI infrastructure orders during Q2 and expects hyperscaler AI orders to surpass $5B. Recurring revenue remains strong, with remaining performance obligations climbing 5% to $43.4B and annual recurring revenue up 3% to $31B, underscoring steady subscription expansion.