Cisco (CSCO) Provides Bullish Guidance on AI Infrastructure Momentum

Cisco Systems, Inc. (NASDAQ:CSCO) is one of the top tech stocks to buy now according to Goldman Sachs. On August 22, the company demonstrated that it is redefining its growth trajectory. Cisco is leveraging over $2 billion in AI infrastructure orders, expanding its software and services revenue, and initiating a major enterprise networking upgrade cycle – all of which position it as a stable yet growth-oriented tech leader.

In its Q4 2025 earnings report, the company projected the FY2026 revenue to be between $59 billion and $60 billion, and non-GAAP EPS of $4.00 to $4.06. Three distinct growth engines underpin this bullish guidance.

First, the AI infrastructure momentum. For context, the company secured over $2 billion in AI-related orders in fiscal year 2025, surpassing its initial target by a factor of two. Its 800G Ethernet and Nexus switches are critical to AI data center buildouts, and the company’s customer base is expanding.

Second, software and services transformation. This is evident in the fact that Cisco now has $31.1 billion in Annual Recurring Revenue (ARR) following the acquisition of Splunk; subscription revenue accounts for approximately 54% of total revenue; and the company now leads in cybersecurity and observability.

Lastly, the enterprise networking refresh cycle. For instance, the launch of Catalyst 9000 smart switches triggers a multi-year upgrade cycle; AI workloads require faster, more secure on-prem networks; and legacy systems are ripe for replacement, creating a reliable revenue stream.

Cisco Systems, Inc. (NASDAQ:CSCO) designs and sells networking hardware, software, and telecommunications equipment that power enterprise, service provider, and government IT infrastructures. Its core offerings include routers, switches, cybersecurity solutions, and collaboration platforms like Webex.

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Disclosure: None. This article is originally published at Insider Monkey.