NEW YORK, February 17, 2026, 11:02 AM EST — Regular session
- Cisco shares up 0.2% in late morning trade, hovering near $77
- Investors still focused on margin pressure tied to higher memory costs
- Company’s AI-networking story stays in view after a new data-center chip pitch
Cisco Systems shares were up 0.2% at $76.98 by 10:50 a.m. EST on Tuesday, after touching $77.54 earlier in the session.
The stock has been trying to find a floor after last week’s selloff, when Cisco’s drop made it one of the biggest drags on the Dow. (MarketWatch)
That matters because Cisco is a widely held gauge of corporate network spending, and traders have been using its updates to test whether the AI buildout is spilling into real hardware orders — or just raising costs.
The near-term fight is over gross margin, a measure of profit left after the cost of goods. Reuters reported Cisco flagged higher memory-chip prices as a key driver of the pressure. (Reuters)
Cisco said last week that quarterly revenue rose to $15.3 billion and non-GAAP gross margin fell to 67.5%, and it forecast non-GAAP gross margin of 65.5% to 66.5% for the current quarter. It also disclosed $2.1 billion in AI infrastructure orders from hyperscalers — the biggest cloud operators — and lifted its quarterly dividend to $0.42 a share. (Cisco Investor Relations)
A separate press release carried on Feb. 16 outlined Cisco’s latest Silicon One G300 chip for AI data centers and related systems. Jeetu Patel, Cisco’s president and chief product officer, said: “We are spearheading performance, manageability, and security in AI networking.” (TradingView)
On the Street, Barclays analysts warned they were caught off guard by the cost swing, writing: “We did not think memory would have had this level of weakness.” (Investing)
Some investors have been looking to peers for comparison, with network-rival Arista Networks drawing a steadier read on demand and profitability in recent updates. (Barron’s)
But the downside case is straightforward. If memory costs stay high longer than Cisco expects — or customers resist price increases — margin pressure could stick, even if order growth holds up.
Dividend-focused holders are also watching the next payout cycle, with Cisco’s upcoming quarterly dividend set at $0.42 per share and an ex-dividend date in early April. (StockAnalysis)
Next up, traders will listen for any fresh colour on AI networking demand and component costs at industry events, including NVIDIA GTC (March 16–19) and the RSA Conference (March 23–26). (Cisco)
