Slides
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Q2 Fiscal Year 2026 February 11, 2026 Conference Call
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Forward-Looking Statements This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of Cisco, including future operating results. These projections and statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements. Please see Cisco’s filings with the SEC, including its most recent filings on Forms 10-K and 10-Q, for a discussion of important risk factors that could cause actual events or results to differ materially from those in the projections or other forward- looking statements. GAAP Reconciliation During this presentation references to financial measures of Cisco will include references to non-GAAP financial measures. Cisco provides a reconciliation between GAAP and non-GAAP financial information on the Cisco Investor Relations website https://investor.cisco.com/financial-information/financial-results/default.aspx
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Business Momentum & Key Trends
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Strong Financial Performance Q2 revenue, operating margin, and EPS exceeded the high end of our guidance ranges Raising FY26 guidance on robust outlook Q2 FY 2026 Key Takeaways Accelerating AI Momentum $2.1B AI orders taken in Q2 from hyperscalers; revenue of over $3B expected in FY26 $350M of AI orders taken in Q2 from neocloud, sovereign, and enterprise customers Accelerating Campus Refresh and DC Switching Growth All next-gen campus networking solutions ramping faster than prior product launches, driving accelerated growth Accelerating mid-teens growth in data center switching orders in Q2
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Q2 FY 2026 Summary • Double-digit top and bottom-line growth with strong profitability and EPS growing faster than revenue • $15.3B in revenue, up 10% y/y, Non-GAAP EPS of $1.04, up 11% y/y, above high end of guide • Non-GAAP operating margin of 34.6%, above high end of guide • Strong demand for Cisco’s technologies as we provide the critical infrastructure for the AI era • Product orders up 18% y/y with growth across all geographies and customer markets; up 10% excluding hyperscale orders • $2.1B of AI infrastructure orders taken from hyperscale customers in Q2 • Accelerating networking product orders, up more than 20% y/y, marking the sixth consecutive quarter of double-digit growth • $350M of AI orders taken from neocloud, sovereign, and enterprise customers and growing pipeline of more than $2.5B • Major multi-year, multi-billion-dollar campus networking refresh cycle underway • Campus networking portfolio again saw accelerated growth in Q2 • All next-generation solutions, including smart switches, secure routers and WiFi 7 products, ramping faster than prior product launches • Pre-Cat9K install base in the tens of billions of dollars, nearing end of support and requiring upgrades • Powerful innovation for AI, unlocking new multi-year, multi-billion-dollar opportunities • New 102.4 Tbps Silicon One G300 chip optimized for scale AI deployments and four new air and liquid cooled systems • New 1.6T OSFP optic and 800G LPO, both built with Cisco Silicon Photonics technology, to deliver greater efficiency and reliability • Sovereign Critical Infrastructure Portfolio: capable of autonomous operation, providing control over sensitive data & critical infrastructure • Commitment to returning capital to shareholders • Returned $3.0B in Q2, representing 193% of free cash flow, including $1.4B of shares repurchased
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Campus, Wireless, and Edge Devices Ramping C9350 & C9610 Smart Switches Wi-Fi 7 Access Points Catalyst 9000 Family Industrial IoT portfolio Campus, Wireless, and Edge Device Highlights All next-gen campus networking solutions ramping faster than prior product launches, driving accelerated order growth for campus networking Orders for recently launched Smart Switch grew triple-digits q/q, with a significant ramp already observed in 1H FY26, with many customers testing in preparation for expected larger, future orders Wi-Fi 7 order growth continues to be very strong, up more than 80% q/q, driven by education and professional services, and growing demand to bundle Wi-Fi 7 with multi-gig switches In our Industrial IoT portfolio, booked our highest quarterly bookings in absolute $s for Industrial IoT portfolio in Q2, marking 7th consecutive quarter of double-digit growth in orders, driven by manufacturing and utilities
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Silicon One - Unifying, Securing, and Scaling Networks Enterprise Switch Campus & Data Center Services Router Provider Edge & Enterprise Core Integrated Access Campus & Provider Access Scale within DC AI Cluster & Cloud Scale across DC WAN & AI Inter-Data Center Silicon One Highlights Shipped 1-millionth Silicon One chip in Q2 FY26 Announced G300 for AI back-end networking shipping in CY26 Announced four new Cisco 102.4T air and liquid cooled systems AI momentum ramping: systems, whitebox and silicon-direct Comprehensive Cisco-wide adoption of Silicon One architecture for high performance networking systems by FY29 Bandwidth Silicon One G300 102.4T chip 102.4T Air Cooled System 102.4T Liquid Cooled System
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Accelerating AI Adoption Hyperscaler AI Infrastructure Accelerated momentum with results demonstrating continued execution and innovation as hyperscalers ramp back-end and front-end networking infrastructure for AI. Orders: • $2.1B of AI orders taken in Q2 FY26, reflecting a significant acceleration in growth and marking the sixth consecutive quarter of robust order growth with hyperscalers (now lapping triple-digit compares versus Q2 FY25). • Seeing balanced growth across hyperscalers with three of the top four growing triple-digits y/y; the fourth growing high double-digits. • Product mix of these orders was 60% Silicon One based networking systems and 40% optics. • In our optics business, Acacia results were very strong in Q2, reflecting the transition to coherent pluggables which offer significant cost and power savings; seeing significant traction in 800G-ZR with one hyperscaler. Platforms: Series 8K, Silicon One, and Optics & Optical Outlook: Continued momentum with hyperscalers forecasted; expecting to take $5B in orders and recognize over $3B in revenue in FY26. Hyperscale demand for optics accelerating at a faster rate than in Q1 FY26. AI Connectivity Software Platforms: Fusing AI Into Our Products Agentic AI capabilities are being rolled out across the product portfolio, including new innovations like AI Canvas and AgenticOps Services: Leveraging AI to Maximize Customer Value and Boost Productivity Multiple AI Agents being deployed across Adoption, Renewals and Customer Support, enabling our teams and creating more value for customers Accelerated momentum company-wide for AI networking solutions, with neocloud, sovereign, and enterprise customers starting their ramp and results and pipeline highlighting significant opportunities ahead. Orders: • Company-wide networking product order growth accelerated to >20% in Q2 FY26, marking the sixth consecutive quarter of double-digit order growth, indicating customers are bolstering their networks ahead of incoming AI workloads. • Campus networking solutions order growth accelerated in Q2, with all next- gen solutions ramping faster than in prior product launches (Cat-9K orders also grew in Q2 while campus Smart Switch orders ramped sharply). • DC Switching order growth accelerated to mid-teens growth, lapping mid- teens growth compares versus Q2 FY25. • In Q2, Cisco took AI orders of $350M from neocloud, sovereign and enterprise customers (separate from the $2.1B taken from hyperscalers). Platforms: Switching, Routing, Wireless, and Security (including Splunk) Outlook: Growing pipeline of $2.5B with neocloud, sovereign, and enterprise customers.
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential A New Level of Inferencing Demand on Secure Networking As Agentic AI workloads rapidly expand, with AI agents being trained in data centers, deployed across application environments, and engaging continuously with end-users, network traffic will not only exceed today’s chatbot levels, but agents will keep it consistently high through their ongoing interactions. This fundamental shift will require networks to be upgraded, with security embedded deeply into the fabric of the network to safeguard every interaction. Cisco is uniquely positioned, with technology solutions spanning smart switches, advanced security, silicon, and software, to provide the critical infrastructure needed for the AI era. This graphic is for illustrative purposes only. It is not based on customer network data but depicts how Cisco believes netwo rk traffic levels will increase as inference demand further increases and proliferates within enterprise and end-user networking environments. High Low Inference Demand (Network Traffic) Chatbot Interaction Model Agentic AI Interaction Model
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Financial Overview
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Q2 FY 2026 Revenue and Total Gross Margin Revenue Total Gross Margin % Q2 FY’25 Q1 FY’26 Q2 FY’26 Q2 FY’25 Q1 FY’26 Q2 FY’26 Americas $8,202 $8,989 $8,845 67.6% 66.8% 65.8% EMEA 3,855 3,784 4,425 71.3% 71.9% 71.7% APJC 1,934 2,111 2,080 68.3% 66.9% 65.8% Geographic Total $13,991 $14,883 $15,349 68.7% 68.1% 67.5% Amounts may not sum and percentages may not recalculate due to rounding. $M (except percentages)
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Q2 FY 2026 Revenue Highlights Category $M Y/Y Networking $8,294 21% Security 2,018 (4%) Collaboration 1,054 6% Observability 277 0% Services 3,707 (1%) Total Cisco $15,349 10% Amounts may not sum and percentages may not recalculate due to rounding.
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Q2 FY 2026 RPO and ARR Q2 FY 2025 Q1 FY 2026 Q2 FY 2026 Remaining Performance Obligations (RPO): $41.3 $42.9 $43.4 Year/Year Change 16% 7% 5% Product RPO (1) $20.3 $21.9 $22.0 Year/Year Change 25% 10% 8% Services RPO $20.9 $21.0 $21.4 Year/Year Change 8% 4% 2% Annualized Recurring Revenue (ARR) (2): $30.1 $31.4 $31.0 Year/Year Change 22% 5% 3% Product ARR $16.3 $17.3 $17.4 Year/Year Change 41% 7% 6% Services ARR $13.7 $14.1 $13.6 Year/Year Change 4% 2% (1%) $B (except percentages) Amounts may not sum and percentages may not recalculate due to rounding. (1) As of the end of Q2 FY 2026, Long Term Product RPO was $11.8B, up 11% year over year. (2) Annualized Recurring Revenue (“ARR”) represents the annualized revenue run-rate of active subscriptions, term licenses, operating leases and maintenance contracts at the end of a reporting period, net of rebates to customers and partners as well as certain other revenue adjustments. Includes both revenue recognized ratably as well as upfront on an annualized basis. ARR should be viewed independently of revenue, deferred revenue and remaining performance obligation as ARR is a management operational performance metric and is not intended as a substitute for any of these items.
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Q2 FY 2026 Product Orders Customer Market Y/Y Enterprise 8% Public Sector 11% Service Provider & Cloud 65% Total Product Orders: 18% Y/Y Geographic Segment Y/Y Americas 23% EMEA 11% APJC 15%
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Q2 FY 2026 GAAP Income Statement Highlights Q2 FY 2025 Q1 FY 2026 Q2 FY 2026 Revenue $13,991 $14,883 $15,349 Year/Year Change Product Services 9% $10,234 $3,757 8% $11,077 $3,806 10% $11,642 $3,707 Gross Margin 65.1% 65.5% 65.0% Product Gross Margin Services Gross Margin 63.7% 68.9% 64.5% 68.4% 63.9% 68.4% Operating Expenses $5,998 $6,382 $6,191 OPEX (% of Revenue) Operating Income (% of Revenue) 42.9% 22.3% 42.9% 22.6% 40.3% 24.6% Net Income $2,428 $2,860 $3,175 Year/Year Change (8%) 5% 31% Earnings per Share (diluted) $0.61 $0.72 $0.80 Year/Year Change (6%) 6% 31% $M (except per-share amounts and percentages)
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Q2 FY 2026 Non-GAAP Income Statement Highlights Q2 FY 2025 Q1 FY 2026 Q2 FY 2026 Revenue $13,991 $14,883 $15,349 Year/Year Change Product Services 9% $10,234 $3,757 8% $11,077 $3,806 10% $11,642 $3,707 Gross Margin 68.7% 68.1% 67.5% Product Gross Margin Services Gross Margin 67.7% 71.6% 67.2% 70.7% 66.4% 70.9% Operating Expenses $4,753 $5,017 $5,046 OPEX (% of Revenue) Operating Income (% of Revenue) 34.0% 34.7% 33.7% 34.4% 32.9% 34.6% Net Income $3,760 $4,011 $4,143 Year/Year Change 6% 9% 10% Earnings per Share (diluted) $0.94 $1.00 $1.04 Year/Year Change 8% 10% 11% $M (except per-share amounts and percentages)
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Q2 FY 2026 Key Financial Measures Q2 FY 2025 Q1 FY 2026 Q2 FY 2026 Cash, Cash Equivalents and Investments $16,853 $15,736 $15,777 Operating Cash Flow $2,241 $3,212 $1,822 Inventory $2,927 $3,395 $3,920 Inventory Purchase Commitments $5,824 $8,321 $10,055 Deferred Revenue: $27,795 $27,969 $28,403 Product Deferred Revenue $13,033 $13,252 $13,371 Services Deferred Revenue $14,762 $14,717 $15,032 Software Revenue $5,543 $5,670 $5,664 Subscription Revenue: $7,862 $8,000 $7,836 Product Subscription Revenue $4,432 $4,500 $4,474 Services Subscription Revenue $3,430 $3,500 $3,362 $M
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Q2 FY 2026 Capital Allocation Total Capital Allocation Q2 FY 2026 Share Repurchases ($M) $1,351 Dividends Paid ($M) 1,617 Total ($M) $2,968 Dividend per Share $0.41 Share Repurchases Q2 FY 2026 Amount Purchased ($M) $1,351 Number of Shares (M) 18 Avg. Price per Share $76.29 • Today we announced we are increasing our quarterly dividend to $0.42 per share, up 2%
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Guidance
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Key Q3 & FY 2026 Guidance Assumptions Current tariffs and exemptions remain in place through FY26. These include: • China at 20% (10% fentanyl; 10% reciprocal) partially offset by an exemption for semiconductors and certain electronic components • Mexico at 25% and Canada at 35% for the components and products that are not eligible for the current USMCA exemptions • Other countries reverted to country specific reciprocal rates, but largely offset by an exemption for semiconductors and certain electronic components • Tariffs on copper, steel and aluminum, and retaliatory tariffs (small impact) • January 14, 2026 Presidential Proclamation on semiconductor imports under Section 232 of the Trade Expansion Act of 1962 (no material impact)
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Guidance for Q3 FY 2026 Cisco expects to achieve the following results: • Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy. • Cisco estimates that GAAP EPS will be $0.73 to $0.77 for the third quarter of fiscal 2026. • Q3 FY 2026 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 19% for non-GAAP results. • A reconciliation between the Guidance for Q3 FY 2026 on a GAAP and non-GAAP basis is provided in the slide entitled "GAAP to Non-GAAP Guidance for Q3 FY 2026" under the Supplemental Materials. Q3 FY 2026 Guidance Revenue $15.4B – $15.6B Non-GAAP Gross Margin 65.5% – 66.5% Non-GAAP Operating Margin 33.5% – 34.5% Non-GAAP EPS $1.02 – $1.04
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Guidance for FY 2026 Cisco expects to achieve the following results: • EPS guidance includes the estimated impact of tariffs based on current trade policy. • Cisco estimates that GAAP EPS will be $3.00 to $3.08 for fiscal 2026. • FY 2026 guidance assumes an effective tax provision rate of approximately 16% for GAAP and approximately 19% for non-GAAP results. • A reconciliation between the Guidance for FY 2026 on a GAAP and non-GAAP basis is provided in the slide entitled "GAAP to Non-GAAP Guidance for FY 2026" under the Supplemental Materials. FY 2026 Guidance Revenue $61.2B – $61.7B Non-GAAP EPS $4.13 – $4.17
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Q&A
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Forward-Looking Statements These presentation slides and the related conference call contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as our belief in our unique position to deliver the trusted infrastructure needed to securely and confidently power the AI-era, continuing to drive profitability by exercising financial discipline, and the strong, broad-based demand for our technology solutions as we remain focused on capturing the significant opportunities ahead) and the future financial performance of Cisco (including the guidance for Q3 FY 2026 and full year FY 2026) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q3 FY 2026 and full year FY 2026. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market and other customer markets; the return on our investments in certain key priority areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and service markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber-attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco’s most recent reports on Forms 10-Q and 10-K filed on November 18, 2025 and September 3, 2025, respectively. The financial information contained in these presentation slides and the related conference call should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco’s results of operations for the three and six months ended January 24, 2026 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in these presentation slides and the related conference call are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of these presentation slides and the related conference call.
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Supplemental Materials
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential GAAP to Non-GAAP Guidance for Q3 FY 2026 Q3 FY 2026 Gross margin Operating margin Earnings per share (1) GAAP 63% - 64% 24% - 25% $0.73 - $0.77 Estimated adjustments for: Share-based compensation expense 1.0% 6.0% $0.17 - $0.18 Amortization of acquisition-related intangible assets and other acquisition/divestiture-related costs 1.5% 3.5% $0.10 - $0.11 Non-GAAP 65.5% - 66.5% 33.5% - 34.5% $1.02 - $1.04 (1) Estimated adjustments to GAAP earnings per share are shown after income tax effects. Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy. Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, significant tax matters, or other items, which may or may not be significant.
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© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential GAAP to Non-GAAP Guidance for FY 2026 FY 2026 Earnings per share (1) GAAP $3.00 - $3.08 Estimated adjustments for: Share-based compensation expense $0.70 - $0.72 Amortization of acquisition-related intangible assets and other acquisition/divestiture- related costs $0.43 - $0.45 Restructuring and other charges $0.04 (Gains) and losses on investments ($0.05) Significant tax matters ($0.03) Non-GAAP $4.13 - $4.17 (1) Estimated adjustments to GAAP earnings per share are shown after income tax effects. EPS guidance includes the estimated impact of tariffs based on current trade policy. Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, significant tax matters, or other items, which may or may not be significant.