Cisco posts record fiscal second quarter revenue as AI demand strengthens growth

The technology major reports 10 percent year-on-year revenue growth and beats earnings expectations, driven by strong networking demand and rising AI infrastructure orders, while shares decline in extended trading despite guidance above market projections.

Cisco Systems delivered record financial results in its fiscal second quarter, reporting revenue that surpassed Wall Street expectations. The company posted quarterly revenue of 15.3 billion dollars, reflecting a 10 percent increase from a year earlier and exceeding analyst estimates. Adjusted earnings stood at 1.04 dollars per share, ahead of projected figures.

The performance was supported by broad-based demand across markets and geographies. Cisco reported an 18 percent rise in overall product orders compared with the previous year, with networking product orders growing at a rate exceeding 20 percent. Executives pointed to sustained enterprise investments in digital infrastructure and network upgrades.

AI infrastructure momentum builds

Artificial intelligence-related demand emerged as a key growth driver. Cisco recorded 2.1 billion dollars in AI infrastructure orders from hyperscale customers during the quarter, describing it as a significant acceleration. The company has expanded its portfolio to support AI-focused data centres, combining hardware, advanced networking solutions, and intelligent software platforms.

A multi-year campus networking refresh cycle also contributed to order growth, as enterprises modernize systems to handle higher data traffic and security requirements. Chief Executive Officer Chuck Robbins said the results reflect the company’s continued role in enabling secure and scalable connectivity in a rapidly evolving technology environment.

Outlook signals continued stability

Looking ahead, Cisco forecast fiscal third-quarter revenue in the range of 15.4 billion to 15.6 billion dollars, slightly above consensus expectations. Adjusted earnings are projected between 1.02 and 1.04 dollars per share.

Despite the strong performance and optimistic outlook, the company’s shares declined in after-hours trading, as investors evaluated valuation levels and the modest upside in forward guidance. Market watchers noted that recent gains in the stock may have prompted some profit-taking following the earnings release.