CSCO's Strong Q Results Should Reflect Favorably On Cybersecurity Universe

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CSCO's Strong Q Results Should Reflect Favorably On Cybersecurity Universe

TD SECURITIES (USA) LLC QUICK TAKE: INDUSTRY UPDATE

May 14, 2026

■Software: Cybersecurity & Information CSCO's Strong Q Results Should Reflect

Security Favorably On Cybersecurity Universe

Shaul Eyal THE TD COWEN INSIGHT

646 562 1414

CSCO's strong F3Q26 results and secure networking commentary should reflect favorably on

shaul.eyal@tdsecurities.com

our cybersecurity universe. CSCO continues to benefit from overall healthy DC demand build-

Hugh Cunningham, CFA, CAIA outs as AI takes center stage. Growing firewall, SIEM, SASE, XDR, and IAM adoption should

646 562 1370 reflect positively on leaders such as PANW, FTNT, CRWD, S, SAIL, NET, others. But for CHKP,

hugh.cunningham@tdsecurities.com

covered cos have exceeded Q1 ests.

Michael Junghans

646 562 1427 CSCO's Strong F3Q26 To Reflect Positively On Security Group: Cisco (NR- $101.87) delivered

michael.junghans@tdsecurities.com a strong overall quarter with revenue, EPS and guidance all coming ahead of expectations

driven primarily by accelerating AI infrastructure demand and robust networking orders.

The security segment was flat y/y although marking an improvement from the -4% y/y

performance last quarter.

Next Gen Security Progresses: Cisco continued to show improving traction in its next-gen

security portfolio, with double-digit order growth in new/refreshed products excluding Splunk,

led by firewalls. Cisco added 1,000+ new customers in FQ3 across Secure Access, XDR,

Hypershield, and AI Defense, bringing total net-new customers for these offerings to ~5,000

since launch — reinforcing growing momentum in the company’s AI and platform-security

strategy.

Changing Mix: Legacy security products remain a drag, though the pressure eased versus

1H26.