This Stock Is Quietly Becoming an AI Powerhouse in 2026

Cisco Systems (CSCO) shares fell 12% after reporting lower-than-expected gross margins of 67.5% in Q2. Revenue was $15.35B, beating estimates. UBS and Citi raised price targets to $95 and $90, respectively, citing AI momentum and networking growth. Cisco attributed margin squeeze to memory chip costs but expects to offset them with price hikes and customer term revisions. The company forecasted 2026 revenue of $61.2B-$61.7B.

Cisco Systems reported Q4 2026 revenue of $17.25B and net income of $3.86B, affirmed a $0.42 dividend, and updated fiscal 2027 guidance to $72.2B-$73.4B revenue and $4.00-$4.06 EPS. The company is expanding in AI-enabled video streaming infrastructure, with growth tied to AI and cloud customer demand.

Cisco Systems (CSCO) shares fell 8% post-earnings despite beating Q2 revenue ($15.35B) and EPS ($1.04) estimates. Gross margins (67.5%) missed expectations, raising concerns about rising memory chip costs. The company raised its annual revenue forecast to $61.2B-$61.7B and expects $5B in AI orders by fiscal 2026. Retail sentiment is 'extremely bullish,' with strong demand for AI-focused products.

Cisco Systems (CSCO) trades near $111.61 after a 72.1% run over the past year. Options imply a 1-year price range of $80 to $156.87, reflecting business volatility, not market sentiment. The company reported record revenue of $63.3 billion for fiscal 2026, with AI infrastructure contributing 6% of revenue. Fiscal 2027 guidance is $72.2 billion to $73.4 billion. Implied volatility is 37.3%, slightly above realized volatility of 33.9%.

Cisco (CSCO) reported Q4 2026 revenue of $17.3B, up 18%, driven by AI and networking demand. Non-GAAP EPS rose 23% to $1.22. AI infrastructure orders hit $4B, with FY2027 guidance at $7.5B. Full-year revenue grew 12% to $63.3B. Management expects FY2027 revenue of $72.2B-$73.4B and EPS of $5.05-$5.11, citing AI-driven growth. Risks include gross margin headwinds and quantum computing threats.

Israeli defense company Elbit reports a $32 billion order backlog, equivalent to 4.4% of Israel's GDP. The backlog is driven by demand for defense technologies amid global conflicts. Elbit plans to expand production and hire 2,000 more employees. Additionally, Israeli tech startups have seen significant foreign investments, including acquisitions by Tencent, Cisco, and Instacart. Israel's economy is projected to grow 4.4% to 5.6% in 2027, with stable inflation and a narrowing fiscal deficit.