Cisco Systems reported a 10% year-over-year revenue increase to $15.35 billion in Q2 FY2026, driven by $2.1 billion in AI infrastructure orders from hyperscalers. Management projects full-year revenue between $61.2 billion and $61.7 billion, potentially the highest ever for the company. However, shares fell 4.7% amid bearish Reddit sentiment fueled by geopolitical risks in the Middle East, declining operating cash flow, and a 4% drop in security segment revenue. Despite these concerns, Cisco's core networking segment grew 21%, and strategic partnerships with NVIDIA and Atom Computing highlight its AI and quantum networking ambitions. Analysts remain optimistic with a consensus price target of $88.8, awaiting Q3 results to confirm AI order trends.
