Cisco Leads Networking in Q3 Morgan Stanley Survey

The latest Morgan Stanley CIO survey shows Cisco remains the top networking choice despite a decline in overall spending intentions.

Updated on Oct. 16, 2026 in Data Centers

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Cisco maintains its status as the leading networking vendor in the Morgan Stanley third-quarter 2026 survey. However, the report indicates that data-center and networking spending intentions have softened compared to previous periods.

Why it matters

The survey reflects shifting corporate investment priorities as chief information officers re-evaluate budgets. Rising costs and project delays are influencing these spending decisions, signaling a more cautious approach to future technology infrastructure upgrades.

The net measure for vendor outlays dropped to +28% from +57%, while planned data-center purchases fell to +37% from +55%. Additionally, 40% of survey respondents indicated that further price increases would cause them to delay purchases.

The players

Cisco

Cisco is a global leader in networking hardware, software, and telecommunications equipment designed for enterprise data centers and campus environments.

Morgan Stanley

Morgan Stanley is a major multinational investment bank and financial services company that conducts regular market analysis and industry surveys.

The details

While Cisco holds a 63% retention measure, it faces a market environment where 83% of respondents reported price increases. Nearly 13% of CIOs noted current project delays, highlighting an cautious stance on capital expenditures.

The Morgan Stanley CIO survey was conducted during the third quarter of 2026.

The Tech Race

This survey reflects a cooling in enterprise networking investment that mirrors trends seen during the 2024 IT budget tightening cycle. As companies prioritize cost management over rapid expansion, Cisco must maintain its lead amid broader pressure to optimize data-center spending.

Enterprise software and hardware customers may face longer negotiation periods or project delays as companies react to rising price points. These spending shifts could also influence future service contract renewals and hardware upgrade cycles for businesses across the country.

The takeaway

Maintaining market leadership during periods of restricted capital expenditure requires a focus on high retention and competitive pricing. CIOs are increasingly weighing the necessity of upgrades against the financial impact of rising vendor costs.