Cisco makes the switches and routers that connect offices, data centers, and cloud services, and it also sells cybersecurity tools and Webex video meetings to businesses and governments. It was one of the first companies to sell routers that let different kinds of computer networks exchange data, and in 2000 it briefly became the world's most valuable company. Customers run its network gear, from Wi-Fi access points to AI data center systems, with Cisco software that sets up and secures the network, while its Splunk unit searches computer logs to catch outages and attacks. Cisco earns money from hardware sales, software subscriptions, and support contracts. It was founded in 1984 and is based in San Jose, California.
Company Size
10,001+
Company Stage
IPO
Headquarters
San Jose, California
Founded
1984
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Cisco Systems (NASDAQ:CSCO) has added AI agents to Webex that keep working on tasks after a conversation ends. Its shares traded at $114.52 on October 12, down about 3.3%. The agents use a tool called Dialog, which links customer history, company data, and backend systems so they can pursue unresolved requests. Claude integration is planned. Splunk tracks agent activity, and Cisco AI Defense provides safeguards. Shares sit 52.15% above the $75.27 GF Value estimate from GuruFocus. Cisco must turn the agents into higher recurring revenue without letting implementation costs and human supervision erode the gains.
NVIDIA and Cisco announced Ultra-Dense Small Form Factor Pluggable (USFP), a new optical module for AI data centres, on October 12, 2026. They say it will be the first to support 400Gb/s-per-lane electrical signals, for capacity up to 12.8Tb/s. USFP offers 4x the bandwidth density and about 1.3x the power efficiency of 200Gb/s-per-lane modules. Operators can connect more computing systems without adding network tiers, while cutting networking's share of power use. The first transceivers will pack 16 full-duplex lanes in an octal small form factor-sized footprint, with 32 lanes or more planned. The companies are working with TE Connectivity and Amphenol on cages, connectors and modules. They plan an open industry specification through a community-led multi-source project.
Cisco unveiled new chips, systems and optics for AI networks at the Open Compute Project Global Summit on October 12, 2026. With NVIDIA, it plans to create an open specification for Ultra-Dense Small Form Factor Pluggable (USFP), a 400Gb/s-per-lane optical module. Cisco says USFP should deliver 4x the bandwidth density and 1.3x the power efficiency of 200Gb/s-per-lane optics. Microsoft and Alibaba have put systems powered by Cisco's 51.2T Silicon One P200 into production. The first systems using the 102.4T G300 chip are shipping to customers. Cisco also introduced the 51.2T G302 chip for top-of-rack switches, which it plans to ship before the end of 2026. Its Live Protect security feature for SONiC customers starts in mid-2027.
Oracle and Cisco are both positioned to benefit from growing AI infrastructure demand, though through different approaches. Oracle focuses on cloud computing power through its Oracle Cloud Infrastructure, while Cisco concentrates on networking and security, including its Secure AI Factory partnership with Nvidia. Oracle reported annual sales of $67.36 billion and net income of $17.09 billion, outpacing Cisco's $63.33 billion in sales and $13.27 billion in profit. Oracle trades at 22 times forward earnings versus Cisco's 27 times. Both companies offer a 1.4% dividend yield. However, Oracle's payout ratio stands at 29%, compared with Cisco's 45%, providing more reinvestment flexibility. Cisco has delivered stronger stock performance with 112% returns over five years, more than double Oracle's 51%. Analysts rate Oracle a "Strong Buy" and Cisco a "Moderate Buy".
Cisco has appointed Girish Rishi to its board of directors, effective immediately. Rishi currently serves as chairman and chief executive officer of Cognite, an industrial AI company, and is a senior adviser to Blackstone. Rishi brings three decades of experience leading technology businesses across hardware, software and systems. He previously served as CEO of Blue Yonder and held executive positions at Tyco International, Zebra Technologies, Motorola Solutions and Symbol Technologies. Cisco chair and CEO Chuck Robbins said Rishi's expertise in helping organisations harness data and AI would be invaluable as Cisco provides infrastructure for the AI era. Rishi also serves on the board of Insight Enterprises and holds degrees from Johns Hopkins University, University of Hartford and University of Mumbai.