Shares of Cisco Systems (CSCO) fell 7% in after-hours trading despite beating analyst expectations in Q2 of fiscal 2026. Revenue guidance for fiscal 2026 fell short, causing the dip. Investors see potential in AI technology and networking solutions. However, competition from Nvidia (NVDA) and market challenges pose risks.

Cisco reported strong growth in earnings and revenues, with product orders increasing by double digits. The company saw significant demand for AI infrastructure and acquired Splunk to boost cloud subscriptions. Cisco also announced a dividend increase and expects revenue growth in the fiscal third quarter and beyond.

For investors interested in CSCO but wary of individual stock risks, ETFs like iShares U.S. Telecommunications ETF (IYZ) and First Trust NASDAQ Cybersecurity ETF (CIBR) offer exposure to CSCO and other industry leaders. Amplify Cybersecurity ETF (HACK) and First Trust Dow Jones Internet ETF (FDN) are also worth considering for diversification.

Pacer Data and Digital Revolution ETF (TRFK) provides exposure to companies driving data transmission and storage, including Cisco. These ETFs offer a basket approach to investing, capturing potential upside while mitigating specific risks.ETFs like iShares U.S. Telecommunications ETF (IYZ) and First Trust NASDAQ Cybersecurity ETF (CIBR) are top choices for CSCO exposure.

Read more at Nasdaq: ETFs in Focus as Cisco Slides Post Q2 Earnings Beat Amid Poor Outlook