“AI infrastructure orders taken from hyperscalers totaled $2.1 billion in Q2 in comparison with $1.3 billion simply final quarter and equal to the whole orders taken in all of fiscal yr ’25, marking one other vital acceleration in progress throughout our silicon, methods and optics,” Robbins stated. “Given the sturdy demand for our Silicon One methods and optics, we now count on to take AI orders in extra of $5 billion and to acknowledge over $3 billion in AI infrastructure income from hyperscalers in FY ’26.”
Relating to enterprise uptake, Robbins stated Cisco took in $350 million in AI orders from enterprise prospects in Q2 and has a pipeline in extra of $2.5 billion for its high-performance AI infrastructure portfolio.
Cisco is seeing early enterprise use instances for AI round fraud detection and video analytics in sectors equivalent to monetary, manufacturing and prescription drugs, for instance. “I additionally see examples in retail, the place prospects are leveraging brokers on cellular units in retail to assist their workers do a greater job partaking with their prospects. We’re seeing a mix of each funding in cloud-based architectures in addition to on prem,” Robbins stated.
Networking guidelines
Cisco is experiencing a faster-than-historical ramp-up of next-generation platforms, together with its Catalyst 9K, Wi-Fi 7, and good switches, acknowledged Sebastien Naji, a analysis analyst with William Blair, in a report after the decision. He attributed it to a few elements: an accelerated refresh cycle within the knowledge heart; early AI-readiness efforts within the enterprise; and end-of-support for legacy Catalyst and Nexus switches.
“We’re seeing sturdy demand for our next-generation switching, routing and wi-fi merchandise, which proceed to ramp quicker than prior product launches. We’re delivering AI-native capabilities throughout these merchandise, together with weaving safety into the material of the community and modernizing the operational stack of campus networks,” Robbins stated.
Co-packaged optics?
When requested about Cisco’s plans round optics and particularly co-packed optics, Robbins stated Cisco “completely believes” CPO goes to occur. “We don’t consider it’s truly imminent proper now. For those who recall, we truly demonstrated this expertise two years in the past or extra. And so we’ve the expertise to construct it, and we’ll, as prospects need it. However at this time, they need alternative, and I believe in lots of instances, prospects need the differentiation between optics and silicon, so that they have alternative and so they don’t get locked in,” Robbins stated.
