Cisco's Enterprise Campus Refresh May Be the Key to Its Next Leg
Cisco Systems (CSCO) stock has seen a significant return of 63.9% over the past year, driven largely by expectations around AI networking gear. However, a closer look at management's guidance suggests that there may be another factor contributing to Cisco's growth: the enterprise campus refresh.
Management has stated that switching, routing, and wireless equipment are refreshing simultaneously for the first time in the campus market. This is significant, as campus networking product orders grew 20% year over year in fiscal Q4 2026, with Wi-Fi 7 taking a majority of wireless orders.
The enterprise refresh has been driven by customers seeking to replace outdated equipment that cannot be patched or supported any longer. Management estimates that 8,000 to 9,000 customers are currently on Cisco IQ, assessing their existing infrastructure and preparing for upgrades. While this pipeline has not yet materialized in Cisco's numbers, it represents a significant opportunity for growth.
The test of whether Cisco can sustain its growth will be whether the acceleration in orders excluding hyperscalers continues. If so, the stock may be poised to regain its 52-week high and continue its upward trajectory.