Networking technology giant Cisco (NASDAQ: CSCO) reported Q2 CY2026 results exceeding the market’s revenue expectations, with sales up 17.6% year on year to $17.25 billion. On top of that, next quarter’s revenue guidance ($18.1 billion at the midpoint) was surprisingly good and 8.1% above what analysts were expecting. Its non-GAAP profit of $1.22 per share was 4.4% above analysts’ consensus estimates.

Is now the time to buy Cisco? Find out by accessing our full research report, it’s free.

"We delivered a very strong close to fiscal 2026, marking another record year for Cisco. Our record performance is a testament to the accelerated pace of innovation and the excellent execution by our teams," said Chuck Robbins, Chair and CEO of Cisco.

Company Overview

Founded in 1984 by a husband and wife team who wanted computers at Stanford to talk to computers at UC Berkeley, Cisco (NASDAQ: CSCO) designs and sells networking equipment, security solutions, and collaboration tools that help businesses connect their systems and secure their digital operations.

Revenue Growth

A company’s long-term sales performance can indicate its overall quality. Any business can put up a good quarter or two, but many enduring ones grow for years.

With $63.33 billion in revenue over the past 12 months, Cisco is a behemoth in the business services sector and benefits from economies of scale, giving it an edge in distribution. This also enables it to gain more leverage on its fixed costs than smaller competitors and the flexibility to offer lower prices. However, its scale is a double-edged sword because it’s challenging to maintain high growth rates when you’ve already captured a large portion of the addressable market. For Cisco to boost its sales, it likely needs to adjust its prices, launch new offerings, or lean into foreign markets.

As you can see below, Cisco grew its sales at a mediocre 4.9% compounded annual growth rate over the last five years. This shows it couldn’t generate demand in any major way and is a tough starting point for our analysis.

Long-term growth is the most important, but within business services, a half-decade historical view may miss new innovations or demand cycles. Cisco’s annualized revenue growth of 8.5% over the last two years is above its five-year trend, suggesting its demand recently accelerated.

This quarter, Cisco reported year-on-year revenue growth of 17.6%, and its $17.25 billion of revenue exceeded Wall Street’s estimates by 2.5%. Company management is currently guiding for a 21.6% year-on-year increase in sales next quarter.

Looking further ahead, sell-side analysts expect revenue to grow 8.6% over the next 12 months, similar to its two-year rate. This projection is particularly noteworthy for a company of its scale and indicates the market is forecasting success for its products and services.

WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.

This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Cisco’s unimpressive 6.1% annual EPS growth over the last five years aligns with its revenue performance. This tells us it maintained its per-share profitability as it expanded.

Like with revenue, we analyze EPS over a shorter period to see if we are missing a change in the business.

For Cisco, its two-year annual EPS growth of 7.6% was higher than its five-year trend. Accelerating earnings growth is almost always an encouraging data point.

In Q2, Cisco reported adjusted EPS of $1.22, up from $0.99 in the same quarter last year. This print beat analysts’ estimates by 4.4%. Over the next 12 months, Wall Street expects Cisco’s full-year EPS to grow 10.9% from $4.32 to $4.79.

Key Takeaways from Cisco’s Q2 Results

We were impressed by how significantly Cisco's guidance blew past analysts’ EPS estimates for next quarter. We were also glad its revenue guidance for next quarter trumped Wall Street’s estimates. Zooming out, we think this was a good print with some key areas of upside. The stock remained flat at $123.83 immediately after reporting.

Should you buy the stock or not? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).