02:50 PM EDT, 08/14/2025 (MT Newswires) -- Cisco Systems' ( CSCO ) revenue from artificial intelligence orders is expected to double in fiscal 2026 to $2 billion on strong momentum, UBS said in a Wednesday research report.

Ramp in product transitions in the security segment to newer technologies is slower than expected, but the company expects faster-growing buckets within the segment, which are growing at a rate of over 20%, to accelerate the growth trajectory through the year, according to the note.

While Splunk and cloud orders were strong in Q4, public sector orders fell on headwinds related to efficiency efforts, analysts wrote.

Tariff headwinds could have a 25 basis-points impact for 2026, UBS said, adding that the fiscal 2026 guide is conservative and is beatable.

The brokerage said it adjusted its fiscal 2026 earnings per share guidance to $4.05 from $4.00, while the forecast for 2027 is unchanged at $4.37.

UBS kept its neutral rating on the stock and price target of $74 per share.

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