Direct Cloud Provider Purchase Increased 94 Percent 

REDWOOD CITY, Calif. 
According to a recently published report by Dell’Oro Group, the trusted source for market information about the telecommunications, security, networks, and data center industries, High End Routing and Aggregation equipment revenue grew 25 percent year-over-year in the second quarter of 2026, fueled by stronger demand across all regions and customer segments. Notably, vendor direct sales revenue to cloud providers surged 94 percent year-over-year during the same quarter, driven by hyperscalers’ AI infrastructure push.

“Demand for High End Routers is growing at a very fast pace,” said Jimmy Yu, Vice President at Dell’Oro Group. “One reason for this accelerated growth is that hyperscalers are building more data centers and adding capacity to existing ones. This not only drives direct sales to cloud providers for data center interconnect and cloud access, but also indirect sales to communication service providers that build the wide area network and connections to enterprises,” added Yu.

 

Vendor Rank for Trailing Four-Quarter Period

 

Additional highlights:
from the 2Q 2026 High End Routing and Aggregation Report

• For a fifth consecutive quarter, Core Router revenue grew at a high double-digit rate, reaching a new record revenue level in 2Q 2026. Edge Router and Enterprise High End Router also posted strong results this quarter, with revenue growing 20 percent and 31 percent, respectively.
• All three customer verticals - communication service provider, cloud provider, and enterprise/public - grew at a double-digit rate in the quarter. Communication service providers accounted for the majority of router revenue, followed by cloud providers.
• All of the major regions - North America, EMEA, Asia Pacific, and Latin America - grew at a double-digit rate in the quarter. The highest growth rates occurred in North America and Latin America.