AI Orders Put Cisco On Track To Beat Fiscal 2026 - What Sales Teams Should Do Now
UBS just upgraded Cisco to buy, calling for revenue to grow 6% to about $60 billion in fiscal 2026, ahead of the company's 5% midpoint guide. The driver: a surge in artificial intelligence infrastructure orders from hyperscalers like Meta and a coming enterprise campus refresh after years of customers "sweating" hardware.
If you sell into networking, security, or AI infrastructure, this is your moment. The budget is shifting to AI-ready networks, Ethernet upgrades, and consolidated security stacks.
What UBS Sees - In Plain Terms
- AI demand is real: Cisco booked over $800 million in AI network infrastructure orders in the July quarter, up from $600 million the prior quarter. Total AI orders reached $2.1 billion by the end of July, up from $1.3 billion at the end of April.
- Campus refresh is coming: Enterprises delayed upgrades. That pent-up need should lift campus networking orders through FY26.
- Security acceleration: Cisco's revamped Security portfolio is expected to grow over 20% in next-gen products, boosted by the Splunk acquisition.
Why This Matters For Sales
Budgets are opening around AI data center builds and Ethernet modernization. That means larger deal sizes, bundled motions across network and security, and stronger pipeline conversion as customers standardize.
Cisco's shift from pure hardware to software and services (including Splunk) also tilts deals toward subscriptions and multi-year agreements. That's durable ARR and better expansion paths.
Priority Plays To Work Now
- Hyperscaler and large cloud projects: Lead with AI-optimized Ethernet fabrics, throughput, and predictable scaling. Emphasize delivery timelines and interoperability.
- Enterprise campus refresh: Target customers with aging switching and access layers. Position lifecycle risk, performance gains for AI-era workloads, and simplified operations.
- Network + Security bundles: Use Splunk's analytics and Cisco's security stack to pitch fewer vendors, faster detection, and lower total cost of ownership.
- Multi-year licensing: Push software subscriptions and enterprise agreements tied to AI capacity growth. Anchor on roadmap clarity and support SLAs.
Talk Tracks That Convert
- AI capacity planning: "Here's how Ethernet upgrades keep pace with your model training and inference timelines."
- Operational simplicity: "One fabric, one pane of glass, fewer integration points. Faster rollout, less risk."
- Security consolidation: "Analytics + network telemetry = shorter dwell time and fewer tools to manage."
- Commercial certainty: "Lock pricing and supply with a multi-year plan matched to your AI build schedule."
What To Watch Next
- Earnings mid-November: Clarity on order-to-revenue conversion for AI infrastructure and campus deals.
- Deal mix and margins: Signs that software and security are expanding as a percentage of total.
- Stock signals: Shares recently traded around 73.93 and are up roughly 25% year-to-date in 2025. Relative Strength is 93/99 with an Accumulation/Distribution of B- - a constructive backdrop for big-ticket cycles.
Quick Background
Cisco is leaning harder into software and services while still upgrading core networking for AI data centers. The $25 billion cash acquisition of Splunk deepens its cybersecurity and analytics reach, strengthening cross-sell and platform stories.
For context on the Splunk deal, see Cisco's announcement here.
Sales Next Steps
- Map accounts by AI buildout stage: plan, pilot, scale. Align offers and lead times accordingly.
- Bundle: network upgrades + security + analytics. Sell outcomes, not parts.
- Propose multi-year agreements tied to AI capacity ramps; include milestone-based deployments.
- Use executive briefings to secure cross-functional buy-in (CIO, CISO, Data/AI leaders, Finance).
If you need a fast way to sharpen AI-specific talk tracks and value props for enterprise buyers, explore role-focused resources here.
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