By Jeff Marks
Publication Date: 2026-02-12 00:54:00
Cisco Systems shares fell Wednesday evening despite the networking company delivering a beat and raise. The results were solid but not enough with the stock trading at record highs and at a premium to its historical valuation — something we warned created a tricky backdrop for the report. Revenue in the company’s fiscal 2026 second quarter increased 10% year over year to $15.35 billion, exceeding the LSEG-complied analyst consensus estimate of $15.12 billion. Adjusted earnings per share (EPS) increased 11% on an annual basis to $1.04, beating expectations of $1.02, LSEG data showed. Shares dropped about 7% in extended trading Wednesday, giving back most of its year-to-date gains. Heading into the quarter, Cisco had bucked the broader pullback in technology stocks and traded at all-time highs this week. Still, we had some reservations about the stock heading into the print, which motivated our profit-taking on Tuesday. We never like to see a stock down this much in after-hours…