Accelerated investments in enterprise digitalization, AI-led network upgrades, higher demand for cloud computing, big data, network security and next-generation connectivity solutions are reshaping the outlook for participants in the  Zacks Computer - Networking industry.
The proliferation of AI workloads and hyperscale data centers is accelerating investments in high-speed interconnects, optical networking and Ethernet switches. With the explosive growth in data traffic, demand for advanced routing, switching and network optimization solutions is expected to remain strong. Further, growing deployments of fiber networks, Wi-Fi 7 and secure networking solutions are expanding the addressable market. AI workloads require a major upgrade to observability infrastructure. There is a greater need for continuous monitoring of hybrid environments and tighter security amid rising attacks. This is likely to favor prospects for prominent industry players.
Nonetheless, cautious IT spending amid heightened uncertainty over global macroeconomic conditions and volatile supply-chain dynamics due to tariff troubles continues to be concerning for the participants.
The Computer Networking industry is housed within the broader Zacks Computer and Technology sector. For the second quarter of 2026, the tech sector’s earnings are expected to be up 93.6% as per the latest Earnings Preview report
A few major networking companies are scheduled to report their quarterly results in the coming days. Let's see how things might have shaped up for these players, including Cisco SystemsCSCO, RADCOM LtdRDCM and Intrusion IncINTZ, before their announcements.
Networking Stocks to Watch
Cisco Systems is slated to report fourth-quarter fiscal 2026 results on Aug. 12, after the closing bell. In the last reported quarter, the company beat the Zacks Consensus Estimate by 2 cents.
The Zacks Consensus Estimate for fiscal fourth-quarter revenues sits at $16.85 billion, up 14.9%. It generated revenues of $14.67 billion in the prior-year quarter. The consensus mark for earnings is currently pinned at $1.17 per share, indicating an increase of 18.2% from the year-ago quarter.
The company is benefiting from the demand for AI Infrastructure solutions, with hyperscaler demand acting as a key catalyst. In the third quarter of fiscal 2026, AI infrastructure orders from hyperscalers came in at $1.9 billion, taking year-to-date total to $5.3 billion. The company raised expected hyperscaler AI orders to $9 billion and expected AI infrastructure revenues from hyperscalers to about $4 billion for fiscal 2026.
Cisco’s networking portfolio, led by Silicon One, AI native security solutions and operating systems, is likely to have cushioned the fiscal fourth-quarter performance.
Within its core Networking segment, Cisco has been witnessing robust traction across the enterprise data center switching business, as customers prepare their infrastructure for agentic applications and AI inferencing. Acacia business has also been witnessing strong growth as hyperscalers deploy both 400G and 800G coherent optics, with 800G pluggables gaining significant traction. Â
However, our proven model does not conclusively predict an earnings beat for Cisco this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Intrusion is scheduled to report second-quarter 2026 results on Aug. 11, after the market close. In the last reported quarter, the company reported a loss of 18 cents per share, wider than the Zacks Consensus Estimate of a loss of 9 cents.
The Zacks Consensus Estimate for second-quarter revenues sits at $1.5 million, down 19.8%. It generated revenues of $1.87 million in the prior-year quarter. The consensus mark for the bottom line is currently pinned at a loss of 10 cents, the same as the year-ago quarter.
The key development in the quarter was the closing of the acquisition of VigilAigent on June 29. VigilAigent is a cybersecurity managed security service provider from Tego Cyber. The transaction adds nearly $3.5 million in annual recurring revenues, more than 80 reseller partners and an installed base of 1,000 clients. Investors would be looking for updates on the recent acquisition as well as management’s outlook for consolidated revenues, costs and cash generation during the second half of 2026.
On the last earnings call, management had highlighted increasing sales momentum supported by expanding Shield installed base and growing adoption of the P.O.S.S.E. program (via partnership with PortNexus).
Intrusion has an Earnings ESP of 0.00% and a Zacks Rank #3.
RADCOM is scheduled to report second-quarter 2026 results on Aug. 12, before the market opening. In the last reported quarter, the company beat the Zacks Consensus Estimate by a cent per share.
The Zacks Consensus Estimate for second-quarter revenues sits at $12 million, down 32.1%. It generated revenues of $17.7 million in the prior-year quarter. The consensus mark for earnings is currently pinned at 20 cents per share, indicating a decline of 20% from the year-ago quarter.
The company recently reported preliminary results for the second quarter and expects revenues to be roughly $12 million. Its quarterly revenue estimates are affected by delays in customer deployment that deferred purchasing decisions. Component cost inflation and supply issues are affecting buyers’ purchasing decisions. However, RDCM added that it did not face cancellations or competitive losses and considers these dynamics as timing considerations rather than demand changes.
The company expects the delays to affect the timing of revenues for the remainder of 2026 and reduced its 2026 revenue outlook to $57-$63 million. Notably, RADCOM expects to remain profitable (on a non-GAAP basis), including these revenue headwinds, in 2026.
RDCM has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).Â
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