Cisco Earnings: Expanding AI Pipeline and Broad-Based Networking Strength

Key Morningstar Metrics for Cisco Systems

What We Thought of Cisco Systems’ Earnings

Cisco Systems’ CSCO October-quarter results reached the top ends of guidance, with sales rising 8% year over year to $14.9 billion. January guidance calls for sequential growth, which is above FactSet consensus expectations. Cisco raised its fiscal 2026 sales guidance by $1 billion, or about 2%.

Why it matters: We’re impressed with Cisco’s broad-based growth. Artificial intelligence is a rising growth driver, but we also see strong results across campus and enterprise customers. We expect a significant growth year for networking, spurred by a campus refresh cycle and a rising AI pipeline.

• Campus and enterprise networking is Cisco’s bread and butter. Many customers are up for networking equipment refreshes five years after covid, which should spur higher growth in the mid- or high-single digits for this business over the next two years.
• We like Cisco’s rising…