Cisco Systems (CSCO) is preparing to announce its second-quarter fiscal 2026 results on Feb. 11. Revenue expectations are between $15 billion and $15.2 billion, with earnings projected between $1.01 and $1.03 per share. The Zacks Consensus Estimate for revenues is $15.12 billion, showing an 8.1% increase from the previous year.

Cisco’s Q2 earnings are expected to benefit from strong demand for AI infrastructure and campus networking solutions. The company anticipates shipping its one millionth Silicon One chip in the upcoming quarter. Networking revenues are estimated to grow by 13% to $7.74 billion, while Security revenues are expected to increase by 2% to $2.15 billion.

Cisco’s stock has outperformed the Computer & Technology sector, rising 35% in the past year. However, the company faces competition from industry rivals like Arista Networks, Dell Technologies, Broadcom, and Hewlett Packard Enterprise. The current Value Score indicates a stretched valuation for Cisco.

Despite competition and valuation concerns, Cisco’s robust AI push and security dominance have been driving growth. The company expects significant revenues from AI infrastructure and strong demand for networking products. With a Zacks Rank #3 (Hold), investors may want to wait for a better entry point before accumulating Cisco stock.

Read more at Nasdaq: Cisco Q2 Earnings Loom: Buy or Hold the CSCO Stock Ahead of Results?