Cisco stock has reached a new 20-year high, briefly touching $79.50 on November 13, 2025, after the company exceeded Wall Street’s quarterly expectations. Shares closed more than 4.6% higher as Cisco (NASDAQ:CSCO) raised its full-year revenue and earnings outlook, signaling strong investor confidence in the company’s long-term strategy.
This article talks about Cisco stock’s recent performance, the AI-driven demand fueling growth, and whether CSCO shares have room to climb further.
Strong Recurring Revenue Drives Cisco Stock
Cisco’s total remaining performance obligations (RPO) rose to $42.9 billion, a 7% increase year-over-year. Product-related RPO grew 10%, with the long-term portion climbing 13% to $11.8 billion. Annualized recurring revenue (ARR) ended the quarter at $31.4 billion, up 5%, while product ARR expanded 7%.
Subscription revenue reached $8 billion, representing more than half of total revenue, and software revenue increased 3% to $5.7 billion. These recurring revenue streams strengthen Cisco stock, providing stability even during market volatility.
AI Infrastructure Boosts Networking Demand
AI-related spending is driving growth across nearly every part of Cisco’s business. In Q1 2026, revenue rose 8% year-over-year, powered by a 10% jump in product sales. Product orders increased by 13%, showing broad strength across regions and customer segments.
Networking remains the standout category, growing 15%, with strong performance in service provider routing, data center switching, and enterprise routing. Cisco’s campus switching posted healthy high-single-digit growth. AI infrastructure investments are accelerating this demand, highlighting the company’s strategic role in next-generation networking.
AI Orders and Hyperscaler Demand
Cisco booked $1.3 billion in AI infrastructure orders during the quarter, evenly split between Silicon One systems and high-performance optics. This acceleration underlines the company’s relevance in AI-driven data centers. Cisco expects roughly $3 billion in AI-infrastructure revenue from hyperscalers in fiscal 2026.
The industrial IoT segment is also performing well, with ruggedized equipment orders up more than 25% year-over-year, driven by U.S. manufacturing onshoring and early AI adoption at the network edge. These trends reinforce Cisco stock as a beneficiary of multi-year technology upgrades.
Strategic Position Supports Growth
Cisco stock benefits from a robust networking portfolio, AI-native security offerings, and a growing ecosystem of strategic partners. The combination of rising RPO, accelerating ARR, and AI-driven orders positions NASDAQ:CSCO for continued long-term growth.
With enterprise customers upgrading networks to support AI workloads, demand spans high-performance networking products for sovereign cloud providers, neocloud platforms, and large enterprises. Cisco’s strategic positioning makes it a key player in the AI infrastructure boom, which supports higher stock valuations.
Will Cisco Stock Climb Higher?
Wall Street analysts maintain a “Moderate Buy” consensus on Cisco stock. The company’s expanding recurring revenue, AI infrastructure growth, and strong networking demand indicate a promising growth trajectory for NASDAQ:CSCO.
Investors should monitor Cisco stock closely, as AI-driven spending cycles and strategic partnerships continue to fuel its business. With a multi-year technology upgrade cycle underway, CSCO shares appear well-positioned to climb further in the coming quarters.
Conclusion
Cisco stock’s 20-year high reflects strong fundamentals, recurring revenue stability, and accelerated demand for AI-driven networking and data-center solutions. NASDAQ:CSCO remains a top pick for investors seeking exposure to AI infrastructure growth.
As Cisco continues to leverage its technology and strategic partnerships, the company’s growth story is far from over, making its stock a compelling option for long-term investors seeking exposure to both innovation and recurring revenue strength.
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