Cisco Stock Soars 46% on AI Infrastructure Growth

Cisco Systems, Inc., the networking technology giant, has seen its stock surge by nearly 46% in value as of July 2026, outperforming both the Nasdaq index and the overall Computer and Technology Sector. This unexpected growth raises questions about what drives Cisco's success.

The answer lies in enterprise and hyperscale customers upgrading their network gear ahead of schedule to build out AI data centers. The technology company has seen a significant portion of its gains come from a single earnings report in May, where it reported total revenue of $15.84 billion, up 12% year-over-year, and adjusted EPS of $1.06, topping the forecasted $1.04.

Cisco's networking product segment saw a 25% revenue increase to $8.82 billion, with orders increasing by 35% year-over-year. The company's forecasted revenue for the next quarter was higher than analysts' estimates, and its stock jumped 15% after the report. This performance marks Cisco's best since 2002.

Cisco has seen significant growth in AI infrastructure orders, reaching $5.3 billion for the year to date, already exceeding management's initial forecast of $5 billion for FY26. The company has increased its forecasts for orders for AI infrastructure in FY26 to around $9 billion, almost four and a half times the order intake during fiscal 2025.

Despite this growth, Cisco announced a reduction of fewer than 4,000 positions, or less than 5% of its workforce, beginning in mid-May. This move is seen as part of the company's efforts to redirect investments towards demand-driven portions of its business.