Cisco Systems (CSCO 2.77%) stock is climbing higher in Thursday's trading. The company's share price was up 2% as of 2 p.m. ET. Meanwhile, the S&P 500 index was up 0.5%, and the Nasdaq Composite index was up 0.9%. Shares had been up as much as 6.3% earlier in trading.

After the market closed yesterday, Cisco published results for the second quarter of its current fiscal year, which ended Dec. 31. The network technologies specialist posted sales and earnings performance for the period that beat Wall Street's target. The company's valuation is also moving higher today following new bullish coverage from analysts.

Cisco stock posts gains on fiscal Q2 beats

In fiscal Q2, Cisco reported non-GAAP (adjusted) earnings per share of $0.94 on sales of $13.99 billion. The performance topped the average analyst estimate's call for adjusted earnings per share of $0.91 on sales of $13.87 billion. Revenue in the period was up 9.4% year over year, and the company reported artificial intelligence (AI) infrastructure orders of $350 million. Management said product orders in the period were up 29% annually -- or 11% after factoring out the contribution from Splunk.

In conjunction with the earnings release, Cisco announced that it is raising its quarterly dividend to $0.41 per share, a 3% increase above its previous level. The company also said that it had received board authorization for an additional $15 billion in share repurchases.

For fiscal Q3, Cisco is guiding for sales between $13.9 billion and $14.1 billion. Adjusted earnings per share are projected to be between $0.90 and $0.92. Full-year sales are expected to be between $56 billion and $56.5 billion, and adjusted earnings per share are projected to be between $3.68 and $3.74.

Analysts are getting more bullish on Cisco stock

Following the company's fiscal Q2 release, Cisco stock has received price target increases from multiple analysts. In a note published before the market opened today, Rosenblatt upgraded Cisco stock from neutral to buy and raised its one-year price target on the stock from $66 per share to $80 per share. The firm's analysts cited AI-related catalysts as reasons for the ratings and price target hikes.

J.P. Morgan also published new coverage on Cisco this morning, with the lead analyst on the stock, Samik Chatterjee, maintaining an overweight rating and increasing his one-year price target from $69 per share to $73 per share. The analyst said that the company's recent quarterly report showed strong demand indicators and expects sales growth momentum and potential earnings beats to offset potential adverse tariff impacts.

Adding to the bullish commentary, Bank of America maintained a buy rating on Cisco and increased its one-year price target on the stock from $72 per share to $76 per share. The company sees AI infrastructure expansion powering strong results for the company this year and expects continued growth in the second half of the fiscal year.