Cisco Systems (CSCO) is expanding its AI agentic security portfolio to prepare for a future where autonomous AI agents act as integral members of enterprise workforces. These agents go beyond answering questions to performing actions like system management and data analysis, prompting Cisco to integrate Zero Trust Access directly into agent workflows through new capabilities in Cisco Identity Intelligence, Duo Identity and Access Management (IAM), and Secure Access Service Edge security services. Specifically, the company is launching Agent Identity Management to register agents within Duo IAM and map them to human owners for accountability, while Cisco Identity Intelligence aims to discover both agentic and non-human identities. Additionally, a new expansion in AI Defense will help organizations test, trust, and secure agent interactions with tools designed to detect threats that traditional scanning tools miss. To secure these environments, Cisco has unveiled several advancements at its Live Amsterdam event, including a new semantic inspection engine capable of evaluating the intent of Agentic interactions to block sophisticated context-dependent threats within its Secure Access Service Edge platform. The company is also positioning AgenticOps as an operating model for AI-driven IT, enabling autonomous troubleshooting and trusted validation. In another strategic move, Cisco is infusing security into the core of a Secure AI Factory developed in collaboration with NVIDIA to safeguard platforms from both external threats and rogue agent behavior. This approach is supported by the Hybrid Mesh Firewall, which delivers consistent security policies across diverse enforcement points ranging from network switches to workload agents. Despite these initiatives, Cisco's Security revenue dropped 4% year over year to $2.01 billion in the second quarter of fiscal 2026, though the expanding portfolio is expected to drive clientele and aid recovery. The company faces significant competition from rivals like Fortinet (FTNT) and Okta (OKTA). Fortinet is accelerating its AI-powered security operations with over 20 solutions across three areas—FortiAI-Protect, FortiAI-Assist, and FortiAI-SecureAI—and has more than 500 issued or pending AI patents. It also launched a Secure AI Data Center solution claiming up to 69% lower energy consumption. Okta reports strong demand for its AI-powered capabilities, including Identity Security Posture Management, with revenue estimates for fiscal 2027 between $3.17 billion and $3.19 billion, indicating projected 9% year-over-year growth. In the market, CSCO shares have gained 7.2% year to date, outperforming the broader Zacks Computer and Technology sector which declined by 5.6%. The stock trades at a trailing 12-month price/book ratio of 6.77X compared to the industry average of 6.47X, and currently holds a Value Score of F. Analyst consensus estimates for third-quarter fiscal 2026 earnings stand at $1.03 per share, unchanged over the past 30 days, suggesting 7.3% growth from the previous year's quarter. The stock carries a Zacks Rank #2 (Buy). The article also includes general commentary on the semiconductor market's projected expansion from $452 billion in 2021 to $971 billion by 2028 and notes that Cisco faces tough competition specifically in the security domain alongside peers like Fortinet and Okta.