Subscription revenue

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.

ServiceNow’s Q3 results exceeded expectations, driven by AI platform adoption. Revenue reached $3.41 billion, with subscription revenue at $3.3 billion, up 22% year-over-year. EPS was $4.82 adjusted. The company raised full-year guidance and announced a 5-for-1 stock split. ServiceNow’s AI business is projected to generate over $500 million in annual contract value this year, aiming for $1 billion by 2026. Q4 subscription revenue is projected between $3.42 billion and $3.43 billion.