"The networking giant discussed the price hikes on its Q2 2026 earnings call, during which CEO Chuck Robbins said Cisco has already announced price increases and will "continue to monitor market trends and make additional adjustments as necessary." The CEO said Cisco is also "revising contractual terms with channel partners and customers to address evolving component prices," and is using its scale to "help us negotiate favorable terms and secure supply to fulfill current and future demand.""
"Cisco won $15.3 billion revenue for the quarter, a company record and a ten percent year-over-year jump. Robbins said Cisco is surfing the AI wave in two ways. One is selling upgrades to existing networks. "Legacy infrastructure was not designed for the performance, speed and security needs of AI," he said. The other is selling to hyperscalers, and that's more complicated because Robbins said they are "lumpy" buyers."
Cisco raised hardware prices to cover rising memory costs. Price increases have been announced and may be adjusted further. The company is revising contractual terms with channel partners and customers and leveraging its scale to negotiate favorable terms and secure supply. Networking appliances use less memory than servers, making increases more nominal, and customers reportedly understand the market-driven increases. Buyers have not delayed or accelerated purchases due to memory price impacts. Cisco reported a record $15.3 billion in quarterly revenue, up ten percent year‑over‑year. Cisco is selling upgrades for AI workloads and pursuing hyperscaler business despite lumpy demand.
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