Cisco’s Security Revenue Growth Set to Pick Up: What’s Ahead?

Cisco Systems CSCO is increasingly positioning Security as a strategic growth pillar tied directly to the AI infrastructure cycle, enterprise resiliency spending and the growing need for observability-driven cyber defense. While Security revenues were flat year over year in the third quarter of fiscal 2026 at $2 billion, the broader indicators suggest security is becoming more embedded in Cisco’s AI-era networking architecture. This is expected to accelerate Security revenues over the medium term.

Cisco’s security opportunity has increased with the integration of Splunk into its broader AI and networking ecosystem. Cisco highlighted that AI workloads will create “a new level of inferencing demand on secure networking,” where security is embedded deeply into network infrastructure. Cisco believes agentic AI traffic will dramatically increase enterprise network complexity, requiring integrated switching, security, silicon and observability solutions.

Cisco’s recent Splunk…