CSCO Stock On Track For Best Single-Day Gains In Over 6 Years — CEO Says AI Is Powering Tech Toward A ‘Networking Supercycle’

• Robbins said that the company’s performance during the quarter demonstrated its relevance in terms of connecting and securing AI technology.
• He added that Cisco has already achieved its $5 billion hyperscaler revenue target for the year, with one more fiscal quarter still to go.
• The company has raised its hyperscaler revenue forecast to $9 billion, and Robbins added that it must bring in an additional $3.7 billion in revenue during the fourth quarter.

Cisco Systems Inc. (CSCO) shares soared to an all-time high on Thursday after the company’s third-quarter results and fiscal year 2026 forecast blew past Wall Street expectations.

Cisco stated that its record third-quarter (Q3) performance was driven by a strong, broad-based demand for its products. CEO Chuck Robbins stated that the company’s performance during the quarter demonstrated its relevance in terms of connecting and securing AI technology.

Cisco shares were up more than 12% in Thursday’s midday trade, on track for the best single-day gains in over six years.

CSCO CEO Says AI Is Powering Tech Toward A ‘Networking Supercycle’

During an interview with CNBC on Thursday, Robbins said that Cisco’s silicon strategy has allowed it to control more of its destiny and supply chain.

He added that Cisco has already achieved its $5 billion hyperscaler revenue target for the year, with one more fiscal quarter still to go. The company has raised its hyperscaler revenue forecast to $9 billion, and Robbins added that it must bring in an additional $3.7 billion in revenue in the fourth quarter (Q4).

“It feels like there is a bit of a networking supercycle we’re entering right now. I remember sitting in a board room… seven or eight years ago, when someone said, ‘Are we sure companies are going to continue to buy Ethernet switchboards?’ I think we’ve proven that that’s definitely the case,” Robbins said.

He credited the company’s presence in the hyperscaler segment today to its 2016 acquisition of Leaba Semiconductor.

Cisco acquired Israeli fabless chip startup Leaba for $320 million, even though the latter had not even taped out its first chip.

“We design our own silicon. And what hyperscalers want is… they want silicon diversity. They want multiple sources, and this has always been true in the telecom space forever,” he added.

CSCO CEO Defends Layoffs

Robbins defended the company’s decision to lay off about 5% of its workforce, impacting around 4,000 employees. He said Cisco needs more funding for its silicon, optics, AI, and security segments.

“Given the speed at which the market is moving, we need to make a rapid reallocation of resources. By the way, a lot of the people that are potentially impacted will actually go take those jobs,” he said in the interview.

CSCO Results At A Glance

Cisco reported earnings per share (EPS) of $1.06 on revenue of $15.8 billion, compared to Wall Street estimates of an EPS of $1.06 on revenue of $15.6 billion, according to Fiscal.ai data.

The company raised its EPS forecast for fiscal year 2026 to $4.27 to $4.29 from $4.13 to $4.17, while the consensus estimate stood at $4.16. It raised its revenue guidance to $62.8 billion to $63 billion from $61.2 billion to $61.7 billion, while the consensus stood at $61.6 billion.

CSCO’s FY26 Guidance Turns Wall Street Bullish

According to TheFly, Rosenblatt raised its price target on Cisco to $150 from $100 while maintaining a ‘Buy’ rating after strong networking growth and stabilizing security trends in the third quarter.

The firm said Cisco still has multiple levers to protect operating margins above 34%, despite potential pressure from hyperscale demand and higher input costs.

KeyBanc raised its price target on Cisco to $125 from $87 and maintained an ‘Overweight’ rating. The firm cited an acceleration in order growth to 35% and raised FY26 guidance above estimates, supporting its bullish outlook.

KeyBanc stated that Cisco’s growth could exceed its long-term targets by 2027 and believes the stock’s premium valuation is justified if double-digit order momentum continues.

How Did Retail Traders React To CSCO?

Retail sentiment on Stocktwits around Cisco trended in the ‘bullish’ territory with message volumes at ‘high’ levels at the time of writing.

One user believes that CSCO stock soaring to $175 over the next 12 months is not out of the question.

CSCO stock is up 49% year-to-date and 87% over the past 12 months. The S&P 500 ETF (SPY) is up 27% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 39%.

The Vanguard Information Technology Index Fund ETF (VGT) is up 50% during this period, while the State Street Technology Select Sector SPDR ETF (XLK) is up 54%.

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