CLAIM #17882 · Cisco Systems Inc (CSCO) · 2026Q2 earnings call · Feb 11, 2026

“First, we have already announced price increases, and we'll continue to monitor market trends and make additional adjustments as necessary.”

Charles Robbins · CEO

How to check this claim

Look at: Gross margin (product and/or total gross margin), as reported quarterly

It came true if: Gross margin does not decline more than 1.0 percentage point sequentially or year-over-year due to memory component costs

Where: Quarterly income statement / earnings release (10-Q, Q3 and Q4 FY26 calls)

Knowable after: 2026-08-15

In context

“nomic, societal and business impacts of AI. While it was clear that expectations for adoption and execution are high, one major challenge still exists. Legacy infrastructure was not designed for the performance, speed and security needs of AI. Our strong first half of FY '26 demonstrates both the power of our portfolio and the fundamental role we play in this once-in-a-generation transition. With our industry-leading networking portfolio powered by Silicon One, AI native security solutions and operating systems, Cisco is well positioned to provide the critical infrastructure needed for the AI era. I'd also like to address the recent significant increases in memory prices across the market. Leveraging our industry-leading supply chain team, we are proactively implementing 3 key strategies: First, we have already announced price increases, and we'll continue to monitor market trends and make additional adjustments as necessary. Second, we are revising contractual terms with channel partners and customers to address evolving component prices. Third, Cisco's operating scale and industry-leading position help us negotiate favorable terms and secure supply to fulfill current and future demand. Overall, we feel confident in our ability to manage this industry-wide dynamic better than our peers. Now let me comment on the strong demand we saw in Q2. Overall, total product orders grew 18% year-over-year, even on top of double-digit growth in Q2 fiscal year '25. Excluding hyperscalers, product orders were up 10% year-over-year, demonstrating the broad-based demand we see for our technology globally. Enterprise product orders were up 8% year-over-year in Q2 with strength across our entire networking portfolio. Public sect”

Verify independently

SEC filings for CSCO ↗ · Quote is verbatim from the 2026Q2 earnings call.