Cisco beats Q2 revenue, profit expectations, raises dividend

Overview

• Networking equipment maker's Q2 revenue rose 10%, beating analyst expectations

• Adjusted EPS for Q2 beat analyst expectations, growing 11% yr/yr

• Company increased quarterly dividend by 2% to $0.42 per share

Outlook

• Cisco expects Q3 FY 2026 revenue between $15.4 bln and $15.6 bln

• Company projects FY 2026 revenue of $61.2 bln to $61.7 bln

• Cisco sees Q3 FY 2026 non-GAAP EPS at $1.02 to $1.04

Result Drivers

• PRODUCT ORDERS - Double-digit growth in product orders across all geographies, with networking orders up over 20% yr/yr

• AI INFRASTRUCTURE - AI infrastructure orders from hyperscalers totaled $2.1 bln, reflecting significant growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 17 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the communications & networking peer group is "buy"

• Wall Street's median 12-month price target for Cisco Systems Inc is $86.00, about 0.3% below its February 10 closing price of $86.29

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nPn7VvCtda

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.