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Cisco (CSCO) Stock Q2 Earnings: What to Expect from Today’s Report

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CSCO Stock Card

TLDR

  • Cisco reports Q2 fiscal 2026 earnings Wednesday after market close with analysts expecting $1.02 EPS on $14.88 billion revenue
  • Stock has surged 37% over the past year fueled by AI infrastructure demand from cloud and hyperscale customers
  • UBS analyst forecasts Product orders to grow high single digits while AI orders may hold flat at $1.3 billion sequentially
  • Options market implies 6.22% post-earnings move, more than double the stock’s typical 3.01% swing
  • Company launched new AI networking chip Tuesday to compete directly with Broadcom and Nvidia

Cisco releases second quarter fiscal 2026 results after the bell Wednesday, February 11. The conference call follows at 4:30 pm ET.


CSCO Stock Card
Cisco Systems, Inc., CSCO

Wall Street expects earnings per share of $1.02, up 8.5% year-over-year. Revenue estimates sit at $14.88 billion, representing 1.55% growth.

The consensus figures match Cisco’s guidance of $1.01 to $1.03 per share on $15.0 billion to $15.2 billion in revenue. With numbers aligned, investors will focus on forward guidance and AI order momentum.

CSCO stock has jumped 37% over the past year. Strong demand for AI networking infrastructure has powered the rally across cloud providers and enterprise customers.

The company announced a new AI networking chip Tuesday, positioning itself against Broadcom and Nvidia. The timing ahead of earnings suggests management wants to emphasize its AI credentials.

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Analyst Expectations Point Higher

UBS analyst David Vogt maintains a Buy rating with a $90 price target. His industry checks indicate revenue could top his $15.05 billion estimate on strengthening enterprise markets.

Vogt projects Product orders rising high single digits, down from 13% growth last quarter. He conservatively expects AI orders flat sequentially at $1.3 billion, about 20% of his $6.2 billion full-year target.

Meta Platforms’ recent capex disclosure supports the AI thesis. Meta reported Q4 2025 capex of $22.1 billion, up 49% yearly, with 2026 guidance of $125 billion at the midpoint.

Cisco’s remaining performance obligations reached $42.9 billion in October, up 7.2% year-over-year. This backlog metric will signal whether AI deals continue converting to revenue.

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Evercore analyst Amit Daryanani holds a Buy rating with a $100 price target. He highlighted Cisco’s Silicon One products including G200 and P200-based systems following the company’s AI Summit.

Options Activity Signals Volatility

Options traders expect a 6.22% move in either direction after earnings. That’s more than double the 3.01% average post-earnings move over the past four quarters.

The elevated implied volatility reflects investor uncertainty about AI order sustainability. Wall Street assigns a Strong Buy consensus with 10 Buy ratings and three Holds.

The average analyst price target of $91.30 implies roughly 6% upside. TipRanks’ AI Analyst rates the stock Outperform with a $96 target, citing solid fundamentals and positive technical indicators.

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Cisco offers a 2.1% dividend yield. Management’s full-year fiscal 2026 guidance calls for $60.2 billion to $61.0 billion in revenue with EPS of $4.08 to $4.14.

The key questions for Wednesday’s call center on AI infrastructure momentum, enterprise spending trends, and whether management feels confident enough to raise full-year targets. Any hints of AI order delays or margin pressure could test the stock’s 37% run.

Investors will also watch for commentary on the competitive landscape after Tuesday’s chip announcement. Cisco disclosed over $2 billion in AI infrastructure orders during fiscal 2025 and has suggested the fiscal 2026 pipeline could exceed $3 billion.

The company ended Q1 with cumulative AI orders topping $2.1 billion. Converting that backlog into recognized revenue remains critical for sustaining growth and justifying the stock’s recent valuation expansion.

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Senator Tillis eyes “crypto-palooza” to break stalemate over stablecoin yield regulations

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CLARITY Act Stablecoin Yield Compromise Language

A bipartisan effort to bridge the divide between Wall Street and the digital asset industry could see a breakthrough as early as this week.

Summary

  • Senator Thom Tillis plans to release a draft agreement this week aimed at resolving the dispute between banks and crypto firms over stablecoin interest payments.
  • The proposed language for the Clarity Act seeks to settle whether digital asset companies can offer rewards on idle balances after banks voiced concerns regarding deposit drains.

Politico reports that Senator Thom Tillis (R-N.C.) is preparing to unveil a draft agreement aimed at settling the fierce debate over stablecoin yields. 

Working alongside Senator Angela Alsobrooks (D-Md.), Tillis has been refining language for the Clarity Act, a piece of legislation intended to set a regulatory framework for the crypto sector. 

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The primary sticking point remains whether digital asset firms should be permitted to pay interest on idle stablecoin balances, a practice banks claim threatens their deposit base.

“I think the language has come together well,” Tillis stated on Monday, noting that a public release depends on the continued success of ongoing discussions.

Banking representatives have already expressed concerns regarding the latest proposal from the two senators. Traditional lenders argue that high-yield stablecoin products could pull liquidity out of the banking system, creating instability. 

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Conversely, crypto platforms like Coinbase argue that a ban on rewards would hinder growth and ignore the potential for banks to participate in these new markets. 

While the GENIUS Act, passed last year, prohibited stablecoin issuers from paying interest directly, it left a loophole for third-party exchanges to offer yields, which the Clarity Act now seeks to address.

The White House has attempted to mediate the standoff through several private meetings since January, yet both sides have remained firm in their views. 

Senator Tillis has suggested hosting a “crypto-palooza” on Capitol Hill, bringing both factions together in a public forum to force a resolution. 

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Even if a compromise is reached, the bill faces a steep climb through the Senate Banking and Agriculture Committees before it can reach the floor for a final vote.

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StarkWare Cuts Jobs, Restructures Around Revenue Push

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StarkWare Cuts Jobs, Restructures Around Revenue Push

Zero-knowledge scaling company StarkWare is cutting jobs and restructuring its operations as it shifts from infrastructure development toward revenue-generating products. 

CEO Eli Ben-Sasson said in internal remarks that the firm will split into two business units and cut headcount to move faster and operate more efficiently, with one unit focused on applications and the other on Starknet development.

Ben-Sasson said the company would adopt a “startup mode” mindset, prioritizing fewer initiatives with higher revenue potential, while warning that downsizing would affect employees across the organization. StarkWare did not disclose how many employees would be affected by the cuts.

The move reflects a wider retrenchment across crypto firms, which have been trimming headcount and narrowing priorities as they chase clearer product-market fit, stronger monetization and leaner operations. Messari, Algorand Foundation and Crypto.com all announced cuts in March.

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Source: Eli Ben-Sasson

StarkWare says technical edge must translate into revenue

Ben-Sasson said StarkWare’s next phase would center on turning its technology into “meaningful revenue” and “meaningful usage,” arguing that the company could no longer rely mainly on external blockchains or third-party teams to prove the value of its stack.

Ben-Sasson said the company would focus on “fewer things excellently” and prioritize products with revenue potential that can be built only on its technological stack. 

Related: Decentralized email platform Dmail to cease services on May 15

“We’re going to achieve this by innovating across not just infrastructure, as we’ve done so far, but across the whole stack of infrastructure and product,” he said. 

Crypto layoffs continue as firms tighten strategy

StarkWare’s cuts follow other recent layoffs across the crypto sector as firms narrow priorities and reshape operations. On March 17, Messari announced layoffs alongside a leadership change as the company moved deeper into artificial intelligence-powered research and data tools for institutions. 

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On March 19, the Algorand Foundation said it would cut 25% of its employees, citing macro uncertainty and the broader crypto downturn. The organization said the move was aimed at better aligning resources with its long-term business, technology and ecosystem priorities.

On the same day, Crypto.com also announced a 12% reduction of its workforce as part of a broader push into AI. The exchange said the layoffs were tied to company-wide AI integration and a decision to prioritize resources around key growth areas.

Magazine: Asia Express: Phantom Bitcoin checks, China tracks tax on blockchain

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