Cisco Systems (CSCO) Q3 2026 Earnings
How Did CSCO Stock React to Q3 2026 Earnings?
S&P 500 over the same 30 days: +0.29%.
Did CSCO Beat Earnings? Q3 2026 Results
Yes. Cisco Systems reported Q3 2026 earnings of $1.06 a share on May 13, 2026, beating the $1.04 consensus estimate by 2.3%. Revenue was $15.8B against a $15.6B estimate.
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.
- 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
What Was Cisco Systems's Outlook in Q3 2026?
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
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $15.8B | $14.1B | +12.0% |
| Gross Profit | $10.1B | $9.3B | +8.6% |
| Operating Income | $4.0B | $3.2B | +23.7% |
| Net Income | $3.4B | $2.5B | +35.4% |
CSCO Revenue by Segment
CSCO Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.