Overview
- Cisco executives told investors at the Bank of America technology conference on Friday that the company is shifting to sell AI-ready networking, optics and integrated security as a unified platform.
- Management reported about $5.3 billion in AI infrastructure orders so far in 2026 and reiterated a $9 billion orders target for fiscal 2026 while projecting roughly $6 billion in AI revenue for fiscal 2027.
- Cisco’s security business generated about $2 billion in the third quarter of fiscal 2026, equal to roughly 13% of company sales, and the company is packaging AI-focused monitoring and threat detection into new offerings such as Cisco Cloud Control.
- Investors have pushed the stock sharply higher this year and several analysts raised ratings and price targets after the company’s quarter and optics wins, which helped make Cisco one of the top performers on the Dow.
- The company is reallocating capital and people toward AI infrastructure and security after years of security-focused acquisitions, a move that could change where Cisco grows revenue and how enterprises protect AI workloads.