European Investor
14 May 2026, 09:31
Cisco Surges 19% in Premarket on Record Revenue and Explosive AI Infrastructure Demand
May 13, 2026 | NASDAQ: CSCO
Cisco is set for one of its best single-day performances in years, jumping 19% in premarket after delivering a quarter that reframes the company's identity — from legacy networking giant to essential AI infrastructure backbone — and raises its AI-related revenue expectations by 80%.
The headline numbers are exceptional. Record quarterly revenue of $15.8 billion grew 12% year-on-year, beating the high end of guidance. GAAP EPS of $0.85 surged 37%, and non-GAAP EPS of $1.06 grew 10%. GAAP operating income rose 24% to $4.0 billion. Net income jumped 35% to $3.4 billion. Every major geographic segment posted growth — Americas up 14%, EMEA up 9%, APJC up 9%.
The numbers driving the 19% premarket move, however, are the order metrics. Total product orders grew 35% year-on-year — and even excluding hyperscalers, orders were up 19%, demonstrating that demand is broad-based rather than concentrated in a handful of mega-customers. Networking product orders accelerated to more than 50% growth year-on-year. Data center switching orders grew more than 40%. Campus networking orders grew more than 25%, with the next-generation portfolio ramping faster than prior product cycles.
The AI infrastructure story is where the real revision happened. Cisco raised its expected fiscal 2026 AI infrastructure orders to $9 billion — nearly double the prior $5 billion expectation. And it raised expected FY26 AI-related revenue to $4 billion, up from $3 billion previously. Year to date, the company has already taken $5.3 billion in AI infrastructure orders. The message is unambiguous: hyperscalers and enterprises are buying Cisco's networking infrastructure to connect and secure AI workloads at a pace that is accelerating, not stabilizing.
The campus networking refresh cycle adds another layer to the growth story. This is the traditional enterprise replacement cycle — companies upgrading aging campus networks — and Cisco is seeing it ramp faster than historical product launches. Combined with the AI-driven data center and hyperscaler demand, Cisco is simultaneously riding two distinct capex waves.
Q4 guidance calls for revenue of $16.7 to $16.9 billion with non-GAAP EPS of $1.16 to $1.18, and full-year revenue guidance was set at $62.8 to $63.0 billion. At $16.7 to $16.9 billion, Q4 would represent another sequential record.
With $16.6 billion in cash, $9.6 billion remaining in buyback authorization, and $2.9 billion returned to shareholders in the quarter alone, the balance sheet is in excellent shape. In a market that has been hungry for concrete proof that AI infrastructure spending is translating into real revenue for networking names, Cisco just delivered the most convincing evidence yet.
May 13, 2026 | NASDAQ: CSCO
Cisco is set for one of its best single-day performances in years, jumping 19% in premarket after delivering a quarter that reframes the company's identity — from legacy networking giant to essential AI infrastructure backbone — and raises its AI-related revenue expectations by 80%.
The headline numbers are exceptional. Record quarterly revenue of $15.8 billion grew 12% year-on-year, beating the high end of guidance. GAAP EPS of $0.85 surged 37%, and non-GAAP EPS of $1.06 grew 10%. GAAP operating income rose 24% to $4.0 billion. Net income jumped 35% to $3.4 billion. Every major geographic segment posted growth — Americas up 14%, EMEA up 9%, APJC up 9%.
The numbers driving the 19% premarket move, however, are the order metrics. Total product orders grew 35% year-on-year — and even excluding hyperscalers, orders were up 19%, demonstrating that demand is broad-based rather than concentrated in a handful of mega-customers. Networking product orders accelerated to more than 50% growth year-on-year. Data center switching orders grew more than 40%. Campus networking orders grew more than 25%, with the next-generation portfolio ramping faster than prior product cycles.
The AI infrastructure story is where the real revision happened. Cisco raised its expected fiscal 2026 AI infrastructure orders to $9 billion — nearly double the prior $5 billion expectation. And it raised expected FY26 AI-related revenue to $4 billion, up from $3 billion previously. Year to date, the company has already taken $5.3 billion in AI infrastructure orders. The message is unambiguous: hyperscalers and enterprises are buying Cisco's networking infrastructure to connect and secure AI workloads at a pace that is accelerating, not stabilizing.
The campus networking refresh cycle adds another layer to the growth story. This is the traditional enterprise replacement cycle — companies upgrading aging campus networks — and Cisco is seeing it ramp faster than historical product launches. Combined with the AI-driven data center and hyperscaler demand, Cisco is simultaneously riding two distinct capex waves.
Q4 guidance calls for revenue of $16.7 to $16.9 billion with non-GAAP EPS of $1.16 to $1.18, and full-year revenue guidance was set at $62.8 to $63.0 billion. At $16.7 to $16.9 billion, Q4 would represent another sequential record.
With $16.6 billion in cash, $9.6 billion remaining in buyback authorization, and $2.9 billion returned to shareholders in the quarter alone, the balance sheet is in excellent shape. In a market that has been hungry for concrete proof that AI infrastructure spending is translating into real revenue for networking names, Cisco just delivered the most convincing evidence yet.