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

TLDR

• Cisco reports Q2 fiscal 2026 earnings Wednesday after market close with analysts expecting $1.02 EPS on $14.88 billion revenue
• Stock has surged 37% over the past year fueled by AI infrastructure demand from cloud and hyperscale customers
• UBS analyst forecasts Product orders to grow high single digits while AI orders may hold flat at $1.3 billion sequentially
• Options market implies 6.22% post-earnings move, more than double the stock’s typical 3.01% swing
• Company launched new AI networking chip Tuesday to compete directly with Broadcom and Nvidia

Cisco releases second quarter fiscal 2026 results after the bell Wednesday, February 11. The conference call follows at 4:30 pm ET.

Cisco Systems, Inc., CSCO

Wall Street expects earnings per share of $1.02, up 8.5% year-over-year. Revenue estimates sit at $14.88 billion, representing 1.55% growth.

The consensus figures match Cisco’s guidance of $1.01 to $1.03 per share on $15.0 billion to $15.2 billion in revenue. With numbers aligned, investors will focus on forward guidance and AI order momentum.

CSCO stock has jumped 37% over the past year. Strong demand for AI networking infrastructure has powered the rally across cloud providers and enterprise customers.

The company announced a new AI networking chip Tuesday, positioning itself against Broadcom and Nvidia. The timing ahead of earnings suggests management wants to emphasize its AI credentials.

Analyst Expectations Point Higher

UBS analyst David Vogt maintains a Buy rating with a $90 price target. His industry checks indicate revenue could top his $15.05 billion estimate on strengthening enterprise markets.

Vogt projects Product orders rising high single digits, down from 13% growth last quarter. He conservatively expects AI orders flat sequentially at $1.3 billion, about 20% of his $6.2 billion full-year target.

Meta Platforms’ recent capex disclosure supports the AI thesis. Meta reported Q4 2025 capex of $22.1 billion, up 49% yearly, with 2026 guidance of $125 billion at the midpoint.

Cisco’s remaining performance obligations reached $42.9 billion in October, up 7.2% year-over-year. This backlog metric will signal whether AI deals continue converting to revenue.

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

Options Activity Signals Volatility

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

The elevated implied volatility reflects investor uncertainty about AI order sustainability. Wall Street assigns a Strong Buy consensus with 10 Buy ratings and three Holds.

The average analyst price target of $91.30 implies roughly 6% upside. TipRanks’ AI Analyst rates the stock Outperform with a $96 target, citing solid fundamentals and positive technical indicators.

Cisco offers a 2.1% dividend yield. Management’s full-year fiscal 2026 guidance calls for $60.2 billion to $61.0 billion in revenue with EPS of $4.08 to $4.14.

The key questions for Wednesday’s call center on AI infrastructure momentum, enterprise spending trends, and whether management feels confident enough to raise full-year targets. Any hints of AI order delays or margin pressure could test the stock’s 37% run.

Investors will also watch for commentary on the competitive landscape after Tuesday’s chip announcement. Cisco disclosed over $2 billion in AI infrastructure orders during fiscal 2025 and has suggested the fiscal 2026 pipeline could exceed $3 billion.

The company ended Q1 with cumulative AI orders topping $2.1 billion. Converting that backlog into recognized revenue remains critical for sustaining growth and justifying the stock’s recent valuation expansion.

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