Cisco Poised to Deliver Strong Q2 Results on AI Infrastructure Strength

Cisco Systems is set to report its quarterly results after the market close on August 12. Analysts at UBS are expecting the networking equipment maker to deliver revenue and earnings above consensus estimates, driven by accelerating demand for AI infrastructure.

The firm's analysts believe that industry checks and commentary from hyperscale cloud providers indicate a strengthening of demand for AI infrastructure over the past three months, supporting upside in both networking revenue and product orders. They forecast networking revenue to exceed its estimated $9.6 billion, representing 26% year-over-year growth.

UBS also expects Cisco's guidance for the October quarter to come in above its current forecasts. The firm estimates October-quarter revenue of $16.24 billion but believes the company could guide to a range of $16.6 billion to $16.8 billion, reflecting roughly 12% year-over-year growth.