Companies /Technology

Cisco Systems Inc

NASDAQ: CSCO Communication Equipment
$112.13
▲ $4.69 (+4.37%) today
Markets closed · 6:07pm ET

Q3 2026 Earnings

Reported May 13, 2026, 4:06pm ET · SEC source
$1.06
Beat +2.29%
EPS · est. $1.04
$15.8B
Beat +1.80%
Revenue · est. $15.6B
+3.2%
Beating market
CSCO vs S&P since report
6 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−12%−6%0+6%May 13May 14report 4:06pm ETearnings+0.7%+1.5%
−12%−6%0+6%May 13May 14earnings+0.7%+1.5%
CSCO +1.5%S&P 500 +0.7%
−12%−6%0+6%May 13May 14report 4:06pm ETearnings+0.6%+1.5%
−12%−6%0+6%May 13May 14earnings+0.6%+1.5%
CSCO +1.5%NASDAQ +0.6%
−12%−6%0+6%May 12May 21report 4:06pm ETearnings−0.0%+1.7%
−12%−6%0+6%May 12May 21earnings−0.0%+1.7%
CSCO +1.7%S&P 500 −0.0%
−12%−6%0+6%May 12May 21report 4:06pm ETearnings−0.2%+1.7%
−12%−6%0+6%May 12May 21earnings−0.2%+1.7%
CSCO +1.7%NASDAQ −0.2%
+13.41%
Day of report
+2.32%
Next session
+2.31%
One week
+3.50%
30 days

S&P 500 over the same 30 days: +0.29%.

Did CSCO Beat Earnings? Q3 2026 Results

Cisco Systems delivered a strong fiscal third quarter, with record revenue of $15.84 billion rising 12.0% year over year and non-GAAP EPS of $1.06 beating the $1.04 consensus estimate by 2.30%, extending the networking giant's streak of consensus EPS beats to four consecutive quarters. The standout driver was an explosive acceleration in AI infrastructure demand, with total product orders surging 35% year over year and Cisco raising its fiscal 2026 AI infrastructure order expectation to $9.00 billion from $5.00 billion, while expected AI revenue for the year was lifted to $4.00 billion from $3.00 billion. Networking revenue climbed 25% to $8.81 billion as data center switching orders jumped more than 40%, reflecting broad enterprise appetite for AI-ready infrastructure, a trend also evident in Cisco's recently announced partnership with AT&T on a post-quantum cryptography SD-WAN solution. Gross margins contracted modestly, reflecting a product mix shift toward higher-volume AI hardware. Looking ahead, Cisco guided Q4 revenue of $16.70 billion to $16.90 billion and raised its full-year revenue outlook to $62.80 billion to $63.00 billion.

Key Takeaways
  • Networking product revenue grew 25% year over year, driven by AI infrastructure and campus refresh demand
  • Total product orders up 35% year over year; up 19% excluding hyperscalers
  • Networking product orders accelerated to more than 50% year over year growth
  • Campus networking orders grew greater than 25% year over year
  • Data center switching orders grew greater than 40% year over year
  • AI infrastructure orders taken year to date reached $5.3 billion

“Cisco delivered record quarterly revenue in Q3 and we saw very strong, broad-based demand for our products, demonstrating the relevance of our technology for connecting and securing AI.”

Cisco Systems CEO, on the earnings call

Forward Guidance & Outlook

For Q4 FY2026, Cisco expects revenue of $16.7 billion to $16.9 billion, non-GAAP gross margin of 65.5% to 66.5%, non-GAAP operating margin of 34% to 35%, and non-GAAP EPS of $1.16 to $1.18 (GAAP EPS of $0.80 to $0.85). For full-year FY2026, Cisco expects revenue of $62.8 billion to $63.0 billion and non-GAAP EPS of $4.27 to $4.29 (GAAP EPS of $3.16 to $3.21). All guidance includes estimated tariff impacts based on current trade policy. Cisco raised its FY26 AI infrastructure order expectation to $9 billion (from $5 billion) and expected FY26 AI revenue to $4 billion (from $3 billion). The company also announced a restructuring plan with estimated pre-tax charges of up to $1 billion to invest in silicon, optics, security, and AI.

CSCO YoY Financials

Q3 2026 vs Q3 2025 · SEC filings Q3 2025 Q3 2026
$0$5.0B$10.0B$15.0B$14.1B$15.8BRevenue$9.3B$10.1BGross Profit$3.2B$4.0BOperating Income$2.5B$3.4BNet Income
$0$5.0B$10.0B$15.0BRevenueGross ProfitOperating IncomeNet Income

CSCO Revenue by Segment

Networking$8.8B+25.0%
Services$3.7B−1.0%
Security$2.0B+0.0%
Collaboration$1.0B−1.0%
Observability$269.0M+3.0%

CSCO Revenue by Geography

Americas$9.6B+14.0%
EMEA$4.1B+9.0%
Asia Pacific$2.2B+9.0%

Figures from SEC filings and company reports. Not investment advice.