Cisco announced an expansion of its Secure AI Factory in partnership with NVIDIA, creating a unified framework that lets customers run AI workloads at scale from central data centers to edge sites while preserving performance and security.
The new architecture enables enterprises, neoclouds, sovereign clouds, and service providers to move AI from pilot to full‑scale production in weeks rather than months, embedding security from silicon to software across the entire network fabric.
This move signals Cisco’s continued shift from legacy networking hardware to a leadership position in AI infrastructure. By deepening its partnership with NVIDIA, Cisco aims to capture a growing market for secure, edge‑to‑cloud AI solutions and reinforce its strategy to deliver end‑to‑end AI platforms that meet enterprise security demands.
Cisco’s Q2 2026 earnings, released on February 11, 2026, showed revenue of $15.3 billion, up 10% year‑over‑year, and adjusted EPS of $1.04, beating the consensus estimate of $1.02. The beat was driven by a 21% surge in networking revenue and $2.1 billion in AI infrastructure orders, which are projected to exceed $5 billion for the fiscal year. Strong demand in core segments and disciplined cost management helped Cisco maintain profitability despite higher memory costs.
Investors reacted to margin concerns and conservative guidance following the earnings release, highlighting the importance of cost pressures and the need for clearer signals of sustained growth.
Management emphasized the strategic significance of the expansion. Chuck Robbins said, "Most organizations understand the potential for AI to transform their businesses, but they're navigating how to deploy the technology safely and at scale. In partnership with NVIDIA, we're solving that challenge with an architecture that sets a new standard for performance – making it simpler to deploy, operate, and secure AI infrastructure." Jensen Huang added, "AI factories are transforming every industry, and security must be built into every layer—from silicon to software to protect data, applications, and infrastructure. Together, NVIDIA and Cisco are building the secure foundation for AI infrastructure—core to edge—so companies can scale intelligence with confidence." Kevin Wollenweber noted, "The network has gone from just plumbing and infrastructure to really a critical component to what enables these models to learn and think. Whether it's connecting GPUs in a massive network efficiently to allow training workloads to run across tens of thousands of GPUs, or as we pivot more into inference, it's about how we actually get low latency and high bandwidth access to storage."
revised_sentiment_rating":3} }
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.