Cisco Systems (NASDAQ:CSCO) reported fiscal Q2 2026 earnings of $1.04 per share on $15.35 billion in revenue, beating analyst expectations of $1.02 per share on $15.11 billion. The networking giant also raised its full-year guidance, now projecting earnings between $4.13 and $4.17 per share on revenue of $61.2 billion to $61.7 billion. Despite the beat, CSCO shares fell 5.5% in after-hours trading.

CEO Chuck Robbins highlighted the company's strong performance in AI infrastructure, with hyperscaler orders totaling $2.1 billion in the quarter. Cisco's core networking products, including switches and routers, continue to see robust demand from data centers and cloud providers as enterprises expand their AI capabilities. The company's Q3 guidance calls for earnings of $1.02 to $1.04 per share on revenue of $15.4 billion to $15.6 billion.

While the results exceeded Wall Street's projections, investors appeared to focus on broader market concerns rather than Cisco's positive outlook. The networking equipment maker remains a key player in enterprise infrastructure, with its products serving as foundational elements for AI deployment across major cloud providers. The after-hours decline suggests traders may be weighing macroeconomic factors and sector rotation more heavily than Cisco's individual performance.