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A month has gone by since the last earnings report for Cisco Systems (CSCO). Shares have added about 5.5% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Cisco due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.

CSCO Q3 Earnings Beat Estimates, Strong Networking Aids Top Line

Cisco Systems reported third-quarter fiscal 2026 non-GAAP earnings of $1.06 per share, beating the Zacks Consensus Estimate by 1.92%. The figure increased 10% year over year.

Revenues of $15.841 billion topped the consensus mark by 1.71% and grew 12% year over year. Annualized recurring revenues were $31.2 billion at the end of the reported quarter, up 2%, underscoring the continued buildout of subscription and maintenance streams.

Total subscription revenues were $7.83 billion and represented 51% of Cisco’s total revenues. Total software revenue increased 36.9% year over year to $5.6 billion.

CSCO Rides Networking Strength Across Key Platforms

Networking revenues were $8.82 million, up 25% year over year, highlighting accelerating demand for the company’s switching and routing portfolio.

That strength aligned with management’s view that customers are modernizing networks to handle AI-driven traffic growth and campus refresh cycles. Cisco pointed to record campus networking orders growing more than 25% year over year and data center switching orders up more than 40%, supported by strong uptake in wireless and campus switching.

Cisco Scales AI Infrastructure With Systems and Optics

Cisco’s hyperscaler AI infrastructure business remained a major engine of demand. AI infrastructure orders taken from hyperscalers were $1.9 billion in the quarter, helping lift the year-to-date total to $5.3 billion.

Reflecting that momentum, Cisco raised expected hyperscaler AI orders to approximately $9 billion for fiscal 2026 and lifted expected AI infrastructure revenue from hyperscalers to about $4 billion. Cisco also highlighted a balanced mix between Silicon One-based networking systems and optics, alongside multiple hyperscaler design wins during the quarter.

CSCO Sees Mixed Trends Outside Core Networking

Security revenues were $2 billion, essentially flat year over year, as gains in newer offerings continued to be weighed down by declines in prior-generation products.

Management noted progress in refreshed security products and highlighted that over 1,000 new customers purchased products such as Secure Access, XDR, Hypershield and AI Defense in the quarter, bringing net new customers since launch to roughly 5,000. At the same time, Cisco reiterated that Splunk’s transition toward cloud subscriptions from on-premise deals is creating a near-term revenue drag, even as the company targets more than 1,000 new Splunk customer logos in fiscal 2026.

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Observability revenues were $269 million, up 3% year over year.

Cisco Holds Operating Discipline Amid Cost Pressures

In the third quarter of fiscal 2026, non-GAAP gross margin was 66%, down 260 basis points (bps) year over year. Non-GAAP product gross margin was 64.3%, down 330 bps, partially offset by non-GAAP services gross margin of 71.6%, up 30 bps.

In the third quarter of fiscal 2026, Cisco reported total non-GAAP operating expenses of $5.05 billion, up 4.6% year over year. As a percentage of revenues, operating expenses declined 220 bps year over year.

Cisco still delivered operating leverage, posting a non-GAAP operating margin of 34.2% on non-GAAP operating expenses of $5 billion.

CSCO’s Balance Sheet Details

As of April 25, 2026, cash and cash equivalents and investments totaled $16.64 billion, which increased from $15.8 billion as of Jan. 24, 2026. Total debt was $31.30 billion as of April 25, 2026.

The remaining performance obligations (RPO) at the end of the third quarter of fiscal 2026 were $43.5 billion, up 4% year over year. Product RPO increased 6% year over year, of which long-term RPO was $11.7 billion, up 6% year over year. Services RPO was up 2% year over year.

The company returned $2.912 billion to shareholders, including dividends of 42 cents per share and $1.252 billion in share repurchases, with $9.6 billion remaining under the repurchase authorization.

CSCO Lifts Outlook and Details Restructuring Plans

Cisco’s guidance pointed to a strong finish to fiscal 2026. For the fourth quarter of fiscal 2026, the company expects revenues of $16.7 billion to $16.9 billion and non-GAAP earnings of $1.16 to $1.18 per share.

For fiscal 2026, management raised its outlook to revenue of $62.8 billion to $63.0 billion and non-GAAP earnings of $4.27 to $4.29 per share.

Cisco also announced a restructuring plan to reallocate resources toward silicon, optics, security and AI, and expects up to $1 billion of pretax charges, including roughly $450 million in the fourth quarter of fiscal 2026, with the remainder in fiscal 2027.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 7.44% due to these changes.

VGM Scores

Currently, Cisco has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Cisco has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

After reaching an important support level, Cisco Systems (CSCO) could be a good stock pick from a technical perspective. CSCO surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a well-liked trading tool because it provides a look back at a stock's price over a 20-day period. Additionally, short-term traders find this SMA very beneficial, as it smooths out short-term price trends and shows more trend reversal signals than longer-term moving averages.

Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.Moving Average Chart for CSCO

CSCO could be on the verge of another rally after moving 5.5% higher over the last four weeks. Plus, the company is currently a Zacks Rank #2 (Buy) stock.

The bullish case only gets stronger once investors take into account CSCO's positive earnings estimate revisions. There have been 9 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on CSCO for more gains in the near future.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Ciena Corporation CIEN is strengthening its position in high-speed connectivity with the introduction of RLS Hyper-Rail, its next-generation intelligent line system designed to address the increasing capacity and efficiency requirements of hyperscalers and service providers. Built as a multi-rail solution and co-created with multiple hyperscalers, the platform leverages an innovative photonic design to support multiple fiber pairs in parallel over hundreds of kilometers using advanced amplification. This architecture delivers significantly higher density while improving space and power efficiency, particularly at intermediary amplifier sites where these resources are limited.

The company recently secured the industry's first multi-rail order from a leading hyperscaler, validating early demand for the RLS Hyper-Rail platform and reinforcing its position in the intelligent line systems market. Ciena is also engaged in discussions with multiple additional hyperscalers, neoscalers and service providers across domestic and international markets, with management noting that customer interest has exceeded expectations. Management highlighted that the platform enables high-intensity AI training across greater distances with enhanced amplification and density, making it a strategic technology for customers seeking to standardize on Hyper-Rail.

Management expects deployments to begin in 2027, with contracts representing hundreds of millions of dollars over multiple years. The company anticipates linear growth as adoption expands among multiple hyperscalers and service providers, particularly those involved in managed optical fiber networks (MOFN), where the technology is considered highly transformative.

Beyond AI training, Hyper-Rail is designed to support long-distance, high-density and low-latency connectivity for data center interconnections, while also addressing growing inference and agentic AI workloads. Ciena expects the platform to generate higher revenues beginning in 2027 and believes its larger revenue contribution, combined with higher margin potential than its single-rail RLS product, will support continued margin expansion as adoption accelerates.

Taking a Look at CIEN's Competitors

Arista Networks ANET is benefiting from rising AI and cloud networking investments as enterprises and hyperscalers expand high-speed Ethernet infrastructure. The company is gaining traction in 800-gig deployments and expects broader adoption of scale-up and scale-out AI fabrics over time. The Arista 2.0 strategy continues to resonate with customers as modern networking platforms become increasingly important for AI-driven data center architectures. In March 2026, Arista announced XPO, a high-density, liquid-cooled pluggable optics solution for data centers. It delivers ultra-fast connectivity, improves energy efficiency and reduces cooling requirements, supporting modern AI, cloud and high-performance workloads. Expanding software automation, campus networking and routing capabilities are also supporting customer diversification and operational efficiency.

Story Continues

Cisco Systems' CSCO partner base supports expansion in AI infrastructure and security. The company is working with NVIDIA on Cisco Secure AI Factory with NVIDIA, founded on the NVIDIA Spectrum-X Ethernet networking platform, and is including Cisco AI Defense and Cisco Hypershield in validated designs for enterprise AI factories. Cisco also offers NVIDIA RTX PRO 6000 Blackwell Server Edition GPUs with Cisco UCS C845A M8 servers, broadening its compute attach opportunities. Beyond NVIDIA, Cisco has been selected as a technology partner to HUMAIN, a new AI company in Saudi Arabia, alongside partners such as BlackRock Global Infrastructure Partners, MGX, Microsoft, NVIDIA and xAI.

CIEN Price Performance, Valuation and Estimates

Shares of CIEN have plunged 23% in the past month against the Communications - Components industry's growth of 15.3%.Zacks Investment Research

Image Source: Zacks Investment Research

CIEN trades at a forward 12-month price-to-earnings (P/E) ratio of 64.53, above the industry's 48.34.Zacks Investment Research

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CIEN's earnings for fiscal 2026 has been revised upward over the past 60 days.Zacks Investment Research

Image Source: Zacks Investment Research

CIEN currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Cisco Systems (CSCO) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this seller of routers, switches, software and services have returned +5.5%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Computer - Networking industry, which Cisco falls in, has gained 23.2%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Revisions to Earnings Estimates

Here at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Cisco is expected to post earnings of $1.17 per share for the current quarter, representing a year-over-year change of +18.2%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.4%.

For the current fiscal year, the consensus earnings estimate of $4.28 points to a change of +12.3% from the prior year. Over the last 30 days, this estimate has changed +3.6%.

For the next fiscal year, the consensus earnings estimate of $4.72 indicates a change of +10.3% from what Cisco is expected to report a year ago. Over the past month, the estimate has changed +5.1%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Cisco.

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The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS12-month consensus EPS estimate for CSCO

Projected Revenue Growth

Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Cisco, the consensus sales estimate of $16.85 billion for the current quarter points to a year-over-year change of +14.9%. The $62.53 billion and $67.75 billion estimates for the current and next fiscal years indicate changes of +10.4% and +8.3%, respectively.

Last Reported Results and Surprise History

Cisco reported revenues of $15.84 billion in the last reported quarter, representing a year-over-year change of +12%. EPS of $1.06 for the same period compares with $0.96 a year ago.

Compared to the Zacks Consensus Estimate of $15.58 billion, the reported revenues represent a surprise of +1.71%. The EPS surprise was +1.92%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

Valuation

Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Cisco is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom Line

The facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Cisco. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Is CIEN a good stock to buy? We came across a bullish thesis on Ciena Corporation on X.com by @MoneyShow. In this article, we will summarize the bulls' thesis on CIEN. Ciena Corporation's share was trading at $439.34 as of June 9th. CIEN's trailing and forward P/E were 146.45 and 67.11 respectively according to Yahoo Finance.Amphenol (APH): 12 Best Growth Stocks to Invest In for the Next 2 Years

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Ciena Corporation (CIEN) is demonstrating strong relative strength in a challenging broader market environment, with its shares outperforming as artificial intelligence-driven network demand and improving telecom capital spending continue to re-rate its growth outlook. Ciena specializes in high-capacity optical networking systems, including modems and routers that enable long-haul data transmission for cloud providers, telecom operators, 5G networks, data centers, and IoT infrastructure.

Read More: 15 AI Stocks That Are Quietly Making Investors Rich

Read More: Undervalued AI Stock Poised For Massive Gains: 10000% Upside Potential

In its latest quarter, the company delivered powerful earnings beat, with revenue rising 33% year-over-year to $1.43 billion while earnings per share more than doubled to $1.35, reflecting stronger telecom demand and renewed infrastructure investment cycles accelerated by AI workloads. The stock has exhibited powerful technical strength, breaking out in recent months and repeatedly finding support at its 50-day moving average despite multiple volatility-driven pullbacks, ultimately pushing to new highs before broader market pullbacks temporarily pressured momentum.

Despite near-term volatility, the underlying thesis remains strongly bullish as AI-driven data traffic growth and recovering telecom capital expenditures provide durable tailwinds, positioning CIEN as a high-beta beneficiary of long-term network infrastructure expansion, with continued upside potential if spending trends persist.

Ciena's relative strength versus the broader semiconductor and telecom equipment peer group further underscores investor conviction, as institutional flows continue to favor AI infrastructure beneficiaries, while volatility is expected to remain elevated, offering tactical entry opportunities for long-term investors who are willing to tolerate short-term price swings in pursuit of structurally expanding demand and sustained AI-related network investment cycles reinforcing favorable medium-term growth and valuation outlook for CIEN investors.

Previously, we covered a bullish thesis on Cisco Systems, Inc. (CSCO) by Kroker Equity Research in May 2025, which highlighted its pivot to AI-driven software, ARR and RPO growth, and Splunk acquisition-led expansion. CSCO's stock price has appreciated by approximately 88.29% since our coverage. @MoneyShow shares a similar view but emphasizes Ciena Corporation (CIEN)'s AI-driven optical networking demand and momentum.

Story Continues

Ciena Corporation is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 73 hedge fund portfolios held CIEN at the end of the first quarter which was 71 in the previous quarter. While we acknowledge the risk and potential of CIEN as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CIEN and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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Cisco Systems CSCO is focusing on AI security as companies increasingly use agentic AI systems that can work on their own, make decisions and complete tasks.

In its third-quarter fiscal 2026, Cisco announced Zero Trust Access for AI agents and revealed plans to acquire Galileo and Astrix to strengthen its AI security and observability capabilities. This extends Cisco's security framework to AI-driven digital workers and helps ensure secure access and control. These additions are expected to expand the company's security and observability platform with agent identity, access management and behavior-monitoring capabilities.

Cisco is also building new tools to protect the entire AI lifecycle. The company officially introduced DefenseClaw in its AI security announcement tied to RSA 2026-related security updates on March 23, 2026. DefenseClaw is an open-source solution designed to help customers safely deploy AI agents by enforcing guardrails and protecting against malicious behavior and attacks. In addition, Cisco launched new capabilities for its agentic Security Operations Center and AI observability platform, allowing organizations to identify and respond to threats faster and at greater scale.

Partnerships remain an important part of Cisco's AI security strategy. The company expanded its Secure AI Factory collaboration with NVIDIA, giving customers a framework to deploy AI securely across infrastructure environments ranging from data centers to local sites. Cisco is also working with Project Glasswing, participating in the testing of Anthropic's Claude Mythos Preview model and taking part in OpenAI's Trusted Access for Cyber program.

Cisco's security business is showing encouraging momentum. Cisco's Security revenues were flat year over year at $2.01 billion in the third quarter of fiscal 2026. The company reported double-digit order growth in its core security portfolio and added more than 1,000 new customers for Secure Access, XDR, Hypershield and AI Defense during the quarter. As AI adoption grows, Cisco believes demand for advanced AI security solutions will continue to increase.

CSCO Faces Tough Competition in the Security Domain

Cisco is facing stiff competition from Fortinet FTNT and Okta OKTA in the security domain.

Fortinet is benefiting from the increasing adoption of AI. As organizations deploy more AI applications, cybersecurity needs are becoming more complex due to higher network traffic, larger attack surfaces and greater data security requirements. In the first quarter of 2026, AI-driven security operations billings of Fortinet rose 23% year over year, supported by a broad portfolio of AI-enabled solutions. Demand for secure networking, Unified SASE and security operations remained strong, while FortiGate products gained traction in securing AI infrastructure and data centers. Fortinet expects its FortiOS platform, custom ASIC technology and long-term AI investments to help capture future AI-driven security opportunities.

Okta reported strong momentum driven by rising demand for its expanding identity security portfolio. In the first quarter, new products contributed about 25% of bookings, with Identity Governance leading adoption, followed by growing traction in Privileged Access and other security offerings. The company emphasized that the rapid rise of AI agents is increasing the importance of identity management and boosting customer engagement and deal sizes. Although AI agent products are still in the early stages of adoption and are not yet a major revenue driver, Okta highlighted record pipeline levels and strong customer interest. The company expects AI-driven identity security to become a key long-term growth opportunity. Okta expects revenues between $3.185 billion and $3.205 billion for fiscal 2027, indicating year-over-year growth of 9-10%.

Story Continues

CSCO's Share Price Performance, Valuation & Estimates

Cisco shares have gained 54.3% year to date, outperforming the broader Zacks Computer and Technology sector's 15.9% increase.

CSCO Stock's Price Performance Zacks Investment Research

Image Source: Zacks Investment Research

The CSCO stock is trading at a premium, with a trailing 12-month price/book of 9.58X compared with the Zacks Computer Networking industry's 9.37X. Cisco has a Value Score of F.

CSCO Stock Is Overvalued Zacks Investment Research

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fourth-quarter fiscal 2026 earnings is currently pegged at $1.17 per share, up 9 cents over the past 30 days. This suggests 18.1% growth from the figure reported in the year-ago quarter.

Cisco Systems, Inc. Price and ConsensusCisco Systems, Inc. Price and Consensus

Cisco Systems, Inc. price-consensus-chart | Cisco Systems, Inc. Quote

Cisco currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Datadog DDOG stock may trade at a premium valuation that gives some investors pause, but the cloud observability and security platform has built a formidable competitive moat. Its unified architecture consolidates infrastructure monitoring, application performance management, log management, security and AI observability within a single agent-based platform, eliminating the fragmented tooling stacks that continue to burden enterprise engineering teams. That differentiation is translating into performance. In the first quarter of 2026, DDOG generated revenues of $1.01 billion, up 32% year over year, with non-GAAP operating margins holding at 22%, while total ARR surpassed $4 billion for the first time.

DDOG raised its full-year 2026 revenue guidance to $4.30-$4.34 billion, representing 25–27% year-over-year growth, signaling management's confidence in sustained growth momentum.

The Zacks Consensus Estimate for DDOG's 2026 revenues is pegged at $4.31 billion, indicating 25.71% year-over-year growth. The consensus mark for earnings is pegged at $2.39 per share, indicating a 16.59% increase from the previous year.

Datadog, Inc. Price and ConsensusDatadog, Inc. Price and Consensus

Datadog, Inc. price-consensus-chart | Datadog, Inc. Quote

DDOG has delivered impressive returns for shareholders year to date, with shares surging 67.4%, outpacing the broader Zacks Computer and Technology sector's return of 15.9% as well as the Zacks Internet Software industry, which has declined 12.5%.

Among peers, Cisco Systems CSCO has advanced 54.3% over the same period, while Dynatrace DT has declined 6.3% and International Business Machines IBM has declined 8%, indicating DDOG's clear outperformance against both direct observability competitors and broader enterprise technology players.

DDOG Outperforms Sector, Industry and PeersZacks Investment Research

Image Source: Zacks Investment Research

DDOG's Consolidation Motion Points to Untapped Growth

DDOG's consolidation motion is converting into high-value enterprise wins, and the trajectory points to an opportunity still in its early stages. Customers are consistently arriving with fragmented stacks spanning legacy vendors, open-source tools and cloud-native point solutions, and consolidating onto DDOG as a single strategic platform. This motion is broadening, with 56% of customers using four or more products and 20% using eight or more, both improving meaningfully year over year. Yet of DDOG's 26 products, only five have crossed $100 million in ARR, leaving 18 in earlier lifecycle stages and representing a substantial runway for in-base expansion not yet fully realized.

Bits Assistant and the bring-your-own-cloud offering, both not yet generally available, are positioned to expand DDOG's reach into large-scale enterprise workloads that would not previously have considered a SaaS-based observability platform, effectively broadening the addressable market rather than simply competing within it. FedRAMP High certification is unlocking a federal agency pipeline where go-to-market investment and channel partnerships are already in place, and the planned UK data center adds a geographic dimension to a public sector expansion story that remains in early innings domestically and internationally.

Story Continues

AI Observability Adoption Still in Early Monetization

DDOG's AI observability positioning is evolving from inference-focused to encompassing the full AI development lifecycle, and the commercial implications of that shift are still being priced in. Over 6,500 customers are sending data through one or more AI integrations, representing 20% of total customers but 80% of ARR, with LLM observability spans nearly tripling quarter over quarter, and MCP server tool calls quadrupling in the same period. This acceleration suggests monetization remains in its early stages relative to the underlying adoption curve.

Hyperscale training workloads are converting into seven-figure and eight-figure annualized deals with AI research divisions of the world's largest technology companies. As training workloads become production-grade infrastructure for a growing number of enterprises, DDOG's GPU monitoring product is positioned to become a category-defining offering for a market still in the early stages of forming. Bits AI SRE Agent and Bits Assistant remain early in their adoption curves, meaning the monetization opportunity from DDOG's agentic product suite is largely ahead rather than behind.

A Premium Worth Paying as Competitive Distance Widens

DDOG trades at a premium, as suggested by its Zacks Value Score of F. On a forward 12-month price-to-sales basis, it trades at 17.3X, a significant premium to the sector median of 6.55X and the industry median of 3.71X.

Peers International Business Machines, Cisco Systems and Dynatrace trade at 3.51X, 6.99X and 4.95X, respectively. DDOG's premium is justified by a superior growth trajectory and a usage-based model that scales naturally with customer AI adoption. Its product pipeline remains largely ahead in its monetization curve. International Business Machines, Cisco Systems and Dynatrace do not offer a comparable combination of growth visibility and platform depth.

DDOG's Premium ValuationZacks Investment Research

Image Source: Zacks Investment Research

Investment Outlook

DDOG is benefiting from a platform consolidation motion that is still broadening, an AI observability adoption curve that remains ahead in its monetization cycle and a product pipeline with significant scaling potential yet to be realized. Its usage-based model scales naturally with customer AI adoption, making the premium valuation a reflection of genuine growth visibility rather than speculative excess.

DDOG currently carries a Zacks Rank #2 (Buy) and a Growth Score of A, a favorable combination that offers a strong investment opportunity per the Zacks proprietary methodology. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

Arista Networks, Inc. ANET has introduced the 7060XE7 Series, a next-generation suite of 1.6-terabit Ethernet platforms designed to support the rapidly growing demands of artificial intelligence (AI) infrastructure. The launch underscores the company's efforts to expand its presence in the fast-growing AI networking market.

Arista's latest product lineup delivers up to 100 Tbps of switching capacity and 1.6 Tbps per port for AI training and inference workloads. The series includes the air-cooled 7060XE7-64PS and 7060XE7-64PRS rack switches, the liquid-cooled 7060XE7-64PRS-RV3-L for high-density deployments, and the 7060XE7-128PE, which offers 128 ports of 800G connectivity in a compact 4RU design, providing customers with flexible and scalable networking solutions.

The platform supports Linear Pluggable Optics, which can reduce interconnect power consumption by around 60%, lowering operating costs and improving efficiency. Powered by Broadcom's Tomahawk 6 switching silicon, it supports both Arista's Extensible Operating System and open network operating systems, while offering features such as load balancing, congestion management, resiliency and enhanced telemetry to ensure reliable performance in large-scale AI environments.

Backed by support from major cloud providers, including Meta, Microsoft and Oracle, the new portfolio strengthens Arista's position at the forefront of next-generation AI connectivity.

How Are Competitors Advancing in the AI Networking Market?

Arista faces competition from Cisco Systems, Inc. CSCO and NVIDIA Corporation NVDA. Cisco has expanded its networking portfolio to address the growing demand for AI and cloud infrastructure. The company has introduced advanced switches, routers and data center solutions designed to improve network performance and scalability. Cisco is investing in AI-driven technologies and strategic partnerships to strengthen its position in the evolving networking market.

NVIDIA is strengthening its networking offerings to support the increasing demand for AI infrastructure. The company provides high-speed InfiniBand and Ethernet networking solutions to improve AI training and data transfer performance. NVIDIA's networking technologies play a key role in connecting GPUs and enabling rapid data movement across large-scale AI data centers.

ANET's Price Performance, Valuation & Estimates

Shares of Arista have gained 58.4% over the past year against the industry's decline of 18.5%.Zacks Investment Research

Image Source: Zacks Investment Research

From a valuation standpoint, Arista trades at a forward price-to-sales ratio of 15.08, above the industry average of 3.65.

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Zacks Investment Research

Image Source: Zacks Investment Research

Earnings estimates for 2026 have increased 2.8% to $3.63 over the past 60 days, while the same for 2027 has also increased 4.8% to $4.39.Zacks Investment Research

Image Source: Zacks Investment Research

Arista currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

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Cisco Systems, Inc. (CSCO) : Free Stock Analysis Report

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Arista Networks, Inc. (ANET) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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Cisco Systems (NasdaqGS:CSCO) has launched Cloud Control, an AI focused platform that unifies management and security across its networking and security products. The company also introduced Live Protect, a real time runtime security offering aimed at protecting applications and workloads as they operate. Cisco expanded its quantum safe security initiatives, outlining a roadmap to bring quantum resistant protections across its core portfolio. New collaborations with NetApp focus on secure AI infrastructure, while work with AT&T centers on next generation connected car entertainment and connectivity.

For investors watching NasdaqGS:CSCO, these moves highlight how Cisco is leaning further into AI driven networking and cybersecurity, along with advanced encryption. The company already has a large footprint in routers, switches, collaboration tools, and security products, so a unified platform approach around Cloud Control and Live Protect directly relates to how enterprises are trying to manage increasingly complex hybrid and multi cloud environments.

These product launches and partnerships also connect to longer term trends, such as the push for AI ready infrastructure, the need for stronger runtime security, and preparation for a potential quantum computing era. For investors and other stakeholders, a central question is how effectively Cisco can translate these initiatives into broader adoption across data center, cloud, and edge use cases over time.

Stay updated on the most important news stories for Cisco Systems by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Cisco Systems.NasdaqGS:CSCO Earnings & Revenue Growth as at Jun 2026

📰 Beyond the headline: 0 risks and 3 things going right for Cisco Systems that every investor should see.

Investor Checklist

Quick Assessment

⚖️ Price vs Analyst Target: At US$118.80 versus a consensus target of about US$126.50, the stock is roughly 6% below where analysts on average see it. ❌ Simply Wall St Valuation: Shares are flagged as trading 26.9% above estimated fair value, which suggests a rich valuation on this model. ✅ Recent Momentum: The stock is up 20.3% over the last 30 days, indicating strong short term momentum around the AI and security news.

There's only one way to know the right time to buy, sell or hold Cisco Systems. Head to Simply Wall St's company report for the latest analysis of Cisco Systems's Fair Value.

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Key Considerations

📊 Cloud Control, Live Protect and quantum safe offerings tighten the link between Cisco's networking footprint and AI focused security, which may be central to its long term story. 📊 Watch uptake of the new platforms, progress in the NetApp and AT&T collaborations, and how these developments feed into revenue and earnings over coming reporting periods. ⚠️ With a P/E of about 39.2 versus a Communications industry average of about 32.4 and a DCF flagging it as overvalued, execution risk on these initiatives matters more at this price.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Cisco Systems analysis. Alternatively, you can check out the community page for Cisco Systems to see how other investors believe this latest news will impact the company's narrative.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include CSCO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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NetBox Labs, the central nervous system of networks and infrastructure, launches AI Data Center Acceleration Program

Celebrating 10 years of NetBox, the company announces flagship NetBox conference to lead the next evolution of infrastructure innovation for the AI Era

NEW YORK, June 11, 2026 (GLOBE NEWSWIRE) -- NetBox Labs today launched its infrastructure intelligence platform, a unified system that lets technology infrastructure teams model their intent, see what's procured and how it's deployed, act through AI-accelerated automation, and govern every change with guardrails for humans and AI agents.

With hundreds of thousands of deployments, NetBox is the industry standard system of record that sits at the core of the NetBox Labs Platform. Already critical to the operations of neoclouds, hyperscale AI datacenters, enterprises, and OT operators worldwide, companies like ARM, Cisco, CoreWeave and J.P. Morgan Chase rely upon the NetBox Labs Platform to manage complex, fast-evolving infrastructure at enormous scale. The platform's breadth is reflected in how customers use it: more than a third rely on multiple NetBox Labs products to run their infrastructure operations.

Today, NetBox Labs is rapidly expanding its platform to address full-spectrum infrastructure intelligence needs for its massive install base. As networks and infrastructure have become more complex, teams need more than just a network source of truth to help them make sense of their increasingly complicated footprint. With today’s array of new capabilities, the NetBox Labs Platform extends infrastructure intelligence to organizations at any stage in their modernization journey to model, see, act upon, and govern their infrastructure with confidence.

MODEL: The World’s Infrastructure data

NetBox Data Exchange (NDX) is the world's largest curated catalog of infrastructure component metadata, covering tens of thousands of device types across hundreds of manufacturers. Instead of digging through vendor PDFs, teams pull lifecycle, environmental, operational, and observability metadata directly into the NetBox Labs Platform, ready for planning, automation, compliance, and AI-driven workflows. More here.

NetBox Asset Lifecycle is a native procurement pipeline connecting network design to physical deployment. It generates and manages bills of materials (BOMs), purchase orders, shipments, and spares against planned DCIM objects – creating one auditable thread from approval through installation in the system of record teams already trust. More here.

SEE: Continuous Visibility from Intent to Reality

NetBox Assurance shows teams what’s deployed, how it's changing, and where operational reality differs from intended design. The product’s discovery capabilities eliminate manual data entry and detect drift, while NetBox Assurance continuously validates that your system of record matches what’s running, so teams can understand and fix drift, ensuring automation always runs on current, accurate data. More here.

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ACT: The Infrastructure Data Layer for AI Agents

The NetBox Labs Platform MCP Server and a new array of official agent skills for the NetBox Labs ecosystem make infrastructure readable and writable by AI agents. With comprehensive tools for every platform capability, per-user authentication, and data management guardrails with branching and change approval gates, any MCP-compatible agent can operate the NetBox Labs Platform, and the open library with dozens of agent skills teaches it to do so correctly. Now, any agent can work with NetBox Labs, complementing the platform’s embedded agent, NetBox Copilot. More here.

GOVERN: Compliance and Resilience, Validated before every Change

NetBox Validation brings continuous compliance auditing, pre-change safety verification, and infrastructure resilience analysis into the NetBox Labs Platform. It combines three engines — intent validation, configuration analysis, and infrastructure resilience — to answer two questions: "Is this change safe to deploy?" and "What breaks if this fails?" With NetBox Validation, teams gain compliance and audit readiness. Meanwhile, AI agents gain critical guardrails and self-correction capabilities enabling agentic operations with confidence. More here.

The NetBox Labs Platform news comes as the company and the NetBox community celebrate a decade since the open source network source of truth was first released. Since its start in 2016, NetBox has earned 20,000+ GitHub stars, with more than 350 releases and 15,000+ commits from nearly 400 contributors, making it the world's most widely adopted system of record for complex networks and infrastructure.

In 2023, NetBox Labs was founded as the commercial steward of NetBox with the mission to make it easier to build and manage complex networks and infrastructure. Over the last three years, the company has announced innovations spanning operations, observability, drift management, AI, and much more, rapidly extending the impact of the NetBox Labs Platform and driving accelerating growth and adoption. The company has raised more than $55 million from world class investors, and developed strategic partnerships across the global system integrator ecosystem including WWT, AHEAD, Presidio, and more.

“Ten years ago, NetBox solved a critical problem by giving infrastructure teams an authoritative source of truth,” said Kris Beevers, CEO and cofounder of NetBox Labs. “But today, enterprises of all maturity levels need more than just a source of truth. They need a system of record that delivers a trusted, continuously updated understanding of infrastructure that both humans and AI can operate against safely and confidently. Whether just starting out with agents or well on your way to an automated infrastructure management stack, NetBox Labs is the foundational platform for running infrastructure at any scale. We are proud of how far NetBox has come and thankful for our community. NetBox Labs will always invest in open source, while continuing to quickly expand our commercial platform to help organizations manage growing complexity with greater speed, confidence, and control.”

To mark the 10th birthday of open source NetBox, NetBox Labs will be hosting NetBox Evolve, its inaugural conference for the community, customers and partners, on October 13, 2026 at the Kennedy Space Center in Orlando, Florida. Those interested in learning more can visit netboxevolve.com.

About NetBox Labs NetBox Labs simplifies the full infrastructure lifecycle for the world’s most demanding technical environments. As the commercial steward of NetBox, the open-source infrastructure system of record trusted by 10,000+ organizations for more than a decade, NetBox Labs streamlines infrastructure procurement, modeling, deployment and management for both humans and agents. The company’s infrastructure intelligence platform powers business-critical systems at companies like ARM, CoreWeave, J.P. Morgan, Kaiser Permanente, and Riot Games trust NetBox Labs to manage the networks and infrastructure critical to their business. Headquartered in New York City, NetBox Labs is backed by NGP, Notable Capital, Flybridge, IBM, Salesforce, and Two Sigma. Visit netboxlabs.com.

CONTACT: Media Contact: Rhiannon Pacheco - press@netboxlabs.com

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