Cisco Systems Inc‘s (NASDAQ:CSCO) position in the cybersecurity market has changed dramatically over the past decade, transforming from a networking-focused vendor that was rarely included in security discussions into a major player in one of technology’s fastest-growing markets.
Cisco executives, speaking at the Bank of America Global Technology Conference on Thursday, said the network gear-maker’s expansion into cybersecurity was driven by years of acquisitions, product development and growing customer demand for integrated networking and security platforms.
Cisco’s Security Reputation Has Changed
“Cisco was not so much in the mix in the security conversations,” said Peter Bailey, the company’s Senior Vice President and General Manager of its security business, adding that somewhere in the middle of the last 10 years that had changed.
The company’s security business generated roughly $2 billion in revenue during the third quarter of fiscal 2026, accounting for about 13% of total company sales.
Years of investment in security products and platforms helped drive the shift, as customers increasingly sought integrated networking and cybersecurity offerings from fewer vendors, the company said.
Security Is Becoming A Platform Business
Cisco executives said customers increasingly want fewer vendors and more integrated platforms that combine networking, security and observability capabilities.
The company argued that security is no longer a standalone product category, with enterprises seeking solutions that can operate across increasingly complex cloud and hybrid environments.
That shift has helped Cisco position its networking footprint as an advantage, allowing it to bundle security capabilities into broader enterprise technology deployments.
AI Is Creating New Opportunities For Security Vendors
For the company, the rapid adoption of artificial intelligence is creating new security challenges as enterprises seek to protect data, applications and infrastructure supporting AI workloads.
Cisco expects AI deployments to drive demand for additional monitoring, threat detection and policy enforcement tools, areas where it has expanded its security offerings in recent years.
As AI adoption accelerates, Cisco said the convergence of networking and security could become an increasingly important differentiator, helping it compete for a larger share of enterprise technology spending.
Price Action: Cisco’s shares have surged nearly 69% year-to-date. The stock gained 2.77% to close at $130 on Thursday and fell 0.5% in after-hours trading.
Benzinga Edge Rankings indicate that CSCO has a Momentum score in the 93rd percentile and a Quality score in the 92nd percentile.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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