Cisco Raises 2026 Revenue Guidance After 10% Q2 Growth Fueled by $2.1B AI Orders
Cisco reported Q2 2026 revenue of $15.3 billion, up 10% year-over-year, driven by $2.1 billion in AI infrastructure orders from cloud providers. The company raised full-year revenue guidance to $61.2–$61.7 billion, expects AI infrastructure revenue above $3 billion, but warned of margin pressure from rising component costs.
1. Q2 2026 Financial Results
Cisco posted Q2 2026 revenue of $15.3 billion, marking a 10% increase year-over-year as organisations invested in network upgrades and data centre expansion.
2. Surge in AI Infrastructure Orders
The company secured $2.1 billion in AI infrastructure orders from major cloud providers, reflecting a strong shift toward AI-driven computing and networking solutions.
3. Raised Full-Year Outlook with Margin Challenges
Management lifted full-year revenue guidance to $61.2–$61.7 billion and projected AI infrastructure revenue above $3 billion, while cautioning that rising component costs and competitive pricing will pressure gross margins.
4. Analyst Price Target Uplifts and Partnership Prospects
Analysts raised price targets to $95 from $90, citing robust AI order momentum and the potential of Cisco's partnership with Nvidia to accelerate enterprise AI adoption.