Cisco Systems, Inc. announced its second-quarter results for the fiscal year 2026, showcasing notable financial growth and steady demand across its services and product lines. The financial report, which covers the period ending January 24, 2026, reveals record-breaking revenue figures and significant increases in earnings per share.
"Cisco's strong second quarter and first half of fiscal 2026 demonstrate both the power of our portfolio and the fundamental role we continue to play in connecting and protecting customers in a rapidly evolving landscape," said Chuck Robbins, chair and CEO of Cisco. This assertion echoes the firm's commitment to remain at the forefront of technology, especially as demands for networking, security, and collaboration solutions increase.
The reported revenue for Q2 FY 2026 stands at $15.3 billion, marking a 10% rise from the same quarter the previous year. This figure not only surpasses expectations but also highlights Cisco's ability to adapt and thrive amidst the competitive technology environment. According to the company’s financial report, GAAP earnings per share were $0.80, rising 31% year-over-year, while non-GAAP EPS increased by 11% to $1.04.
Mark Patterson, Cisco's CFO, noted, "In Q2, we delivered double-digit growth on both the top and bottom lines which exceeded the high end of our guidance and puts us on track to deliver our strongest revenue year yet in fiscal 2026." This confidence in growth underscores Cisco's financial discipline and proactive approach in navigating its operational expenses.
Breaking the numbers down further, Cisco recorded a GAAP gross margin of 65.0% and a non-GAAP gross margin of 67.5%. Operating margins also reflected strength, standing at 24.6% on a GAAP basis and an impressive 34.6% on a non-GAAP basis, both figures exceeding the upper limits of management’s previous guidance.
Revenue growth was especially strong among product orders, surging 18% year-over-year, with networking product orders accelerating to an impressive 20%. This robust performance across all customer markets highlights Cisco's successful engagement with its diverse clientele worldwide.
"We see strong, broad-based demand for our technology solutions and remain focused on capturing the significant opportunities we see ahead," Patterson added, reflecting the company’s optimistic outlook and market strategy. Cisco's geographical revenue breakdown revealed that the Americas increased by 8%, EMEA by 15%, and APJC by 8%, showcasing the global reach of Cisco's offerings.
In addition to robust earnings, Cisco announced an increase in its quarterly dividend, raising it to $0.42 per common share, a 2% hike from the previous quarter. As stated by the company, this change will take effect for all stockholders of record as of April 2, 2026, with payment to occur on April 22, 2026. This move illustrates Cisco's commitment to returning value to shareholders amid a period of growth and expansion.
As for guidance, Cisco expects third-quarter earnings to range between $0.73 to $0.77 per share on a GAAP basis and $1.02 to $1.04 for non-GAAP EPS, with total revenue projected between $15.4 billion to $15.6 billion. Looking ahead to the full fiscal year 2026, the company expects GAAP earnings to fall between $3.00 to $3.08 per share and non-GAAP earnings between $4.13 to $4.17 per share, indicating confidence in sustained growth throughout the year.
Overall, Cisco's second-quarter results reflect the company’s strategic focus on innovation and customer-centric solutions. With a strong financial position and solid demand for its products, Cisco seems well-prepared to navigate the evolving technological landscape, especially in the burgeoning AI sector, as highlighted by Robbins. The emphasis on delivering a trusted infrastructure in this new era of technology reinforces Cisco’s role as a key player in the marketplace and assures stakeholders of its resilience and forward-thinking strategy.