Cisco Systems (CSCO) reported second-quarter fiscal 2026 non-GAAP earnings of $1.04 per share, beating estimates by 1.96%. Revenues of $15.35 billion also surpassed expectations. Total Annual Recurring Revenues (ARR) were $31 billion, with product ARR growing by 6%.

In the second quarter, Cisco’s revenues from Networking were $8.29 billion, up 21% year over year. Security revenues were $2.01 billion, down 4%, while Collaboration revenues grew by 6%. The Americas’ revenues increased 8% year over year to $8.84 billion.

Cisco’s second-quarter fiscal 2026 non-GAAP gross margin was 67.5%, with total non-GAAP operating expenses at $5.04 billion. The company reported a non-GAAP operating income of $5.31 billion, up 9.3% year over year.

As of Jan. 24, 2026, Cisco had cash and cash equivalents totaling $15.8 billion, with total debt at $30 billion. The remaining performance obligations (RPO) were $43.4 billion, up 5% year over year.

For the third quarter of fiscal 2026, Cisco expects non-GAAP earnings between $1.02 and $1.04 per share, with revenues in the range of $15.4 billion-$15.6 billion. For fiscal 2026, the company expects non-GAAP earnings between $4.13 and $4.17 per share, with revenues between $61.2 billion and $61.7 billion.

Read more at Nasdaq: Cisco’s Q2 Earnings Beat Estimates, Revenues Rise Y/Y, Shares Fall