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CSCO shares have been red-hot in 2026, up nearly 60%.
The company is a beneficiary of the AI infrastructure buildout.
Sales of $15.8 billion in its latest period reflected a company record.
With an industry-leading networking portfolio, AI-native security solutions, and operating systems, Cisco (CSCO - Free Report) is well-positioned to provide the critical infrastructure for the AI era.
The stock sports the highly coveted Zacks Rank #1 (Strong Buy), with EPS revisions remaining robust across all timeframes.
Image Source: Zacks Investment Research
Cisco Sees Record Demand
Cisco shares have been red-hot in 2026 on the back of favorable quarterly results, up nearly 60% and seeing a nice pop following its latest quarterly release. The company posted a double-beat relative to our consensus expectations, with both EPS and sales seeing rock-solid growth on the back of a favorable demand environment.
Sales of $15.8 billion reflected a record, also exceeding the high end of its prior guidance. Cisco noted broad-based, record-high demand for its technology, with overall product orders growing by a sizable 35% YoY. Importantly, data center switching orders grew 40% from the year-ago period, underpinning its important role amid the AI infrastructure buildout.
Sales revisions have followed a similarly bullish path, with the above-mentioned quarterly results in mid-May reflecting an inflection point for expectations.
Image Source: Zacks Investment Research
Keep in mind that the company also pays a solid, growing dividend, currently sporting a 2.6% five-year annualized dividend growth rate. Shares currently yield 1.4% annually, with the stock overall reflecting a nice blend of tech growth and income-generating abilities.
Dividend payouts have remained on a steady uptrend over the past decade, as shown below. Please note that the final value is currently calculated on a trailing twelve-month basis, as its FY26 has not yet ended.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Cisco Systems (CSCO - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).
View the Zacks #1 Rank List
Bull of the Day: Cisco Systems (CSCO)
Key Takeaways
With an industry-leading networking portfolio, AI-native security solutions, and operating systems, Cisco (CSCO - Free Report) is well-positioned to provide the critical infrastructure for the AI era.
The stock sports the highly coveted Zacks Rank #1 (Strong Buy), with EPS revisions remaining robust across all timeframes.
Image Source: Zacks Investment Research
Cisco Sees Record Demand
Cisco shares have been red-hot in 2026 on the back of favorable quarterly results, up nearly 60% and seeing a nice pop following its latest quarterly release. The company posted a double-beat relative to our consensus expectations, with both EPS and sales seeing rock-solid growth on the back of a favorable demand environment.
Sales of $15.8 billion reflected a record, also exceeding the high end of its prior guidance. Cisco noted broad-based, record-high demand for its technology, with overall product orders growing by a sizable 35% YoY. Importantly, data center switching orders grew 40% from the year-ago period, underpinning its important role amid the AI infrastructure buildout.
Sales revisions have followed a similarly bullish path, with the above-mentioned quarterly results in mid-May reflecting an inflection point for expectations.
Image Source: Zacks Investment Research
Keep in mind that the company also pays a solid, growing dividend, currently sporting a 2.6% five-year annualized dividend growth rate. Shares currently yield 1.4% annually, with the stock overall reflecting a nice blend of tech growth and income-generating abilities.
Dividend payouts have remained on a steady uptrend over the past decade, as shown below. Please note that the final value is currently calculated on a trailing twelve-month basis, as its FY26 has not yet ended.
Image Source: Zacks Investment Research
Bottom Line
Investors can implement a stellar strategy to find expected winners by taking advantage of the Zacks Rank – one of the most powerful market tools that provides a massive edge.
The top 5% of all stocks receive the highly coveted Zacks Rank #1 (Strong Buy). These stocks should outperform the market more than any other rank.
Cisco Systems (CSCO - Free Report) would be an excellent stock for investors to consider, as displayed by its Zack Rank #1 (Strong Buy).