Cisco

Cisco (CSCO) shares jumped after reporting strong Q1 2026 results, exceeding revenue and EPS expectations. Revenue grew 8% year-over-year to $14.88 billion, driven by double-digit order growth fueled by AI-related demand. Cisco highlighted a “deepening” relationship with clients and a campus networking refresh cycle. While security revenue declined, the company projects strong Q2 2026 revenue of $15-$15.2 billion. Cisco is benefiting from the AI infrastructure boom with significant orders from hyperscalers, positioning itself as an AI play with improving subscription revenue.

Cisco reported strong Q1 2025 results, exceeding expectations for both revenue ($14.88B) and EPS ($1 adjusted). Overall revenue grew 8% YoY, driven by a 15% surge in the networking segment. AI infrastructure orders reached $1.3 billion, highlighting Cisco’s strategic positioning. While security and collaboration segments saw declines, Cisco anticipates robust Q2 revenue ($15-$15.2B) and raised its full-year outlook, driven by AI and networking demand. Cisco shares are up 25% year-to-date.

Cisco’s new global study reveals IT leaders are modernizing their networks to support AI. 97% recognize network modernization as crucial for AI, IoT, and cloud technologies. The study highlights the need for robust, resilient networks to mitigate outages, which cost businesses $160 billion annually. Upgrading infrastructure is expected to drive revenue, reduce costs, and improve customer experiences, backed by C-suite support.