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📊 View earnings presentation

📄 Source: Cisco Q3 FY2026 press release

⚡ Q/Q Change Highlights

Revenue $15.8B, +12% YoY (Q4 FY26: $17.3B, +18%) — record; Q4 accelerated further
Non-GAAP EPS $1.06, +10% YoY (Q4 FY26: $1.22, +23%); non-GAAP OM 34.2% (Q4 FY26: 35.9%, record)
Total orders +35% YoY (+19% ex-hyperscalers) → Q4 orders +35% with hyperscaler triple-digit
AI infrastructure: $5.3B orders YTD; FY26 AI orders raised to $9B (from $5B); FY26 AI revenue raised to $4B (from $3B) → Q4 delivered $4B Q4 AI orders, $9.3B FY26 (4.5x FY25)
Networking +25% YoY in Q3 (Q4: also strong); RPO $43.5B (+4%) → Q4 FY26 RPO $46.7B (+7%)
Non-GAAP GM 66.0% (-260 bps YoY) on hardware mix/memory → Q4 FY26 66.3% (-210 bps YoY)
Restructuring announced (up to $1B) to invest in silicon, optics, security, AI; Q4 FY26 guide $16.7–16.9B (+~11% YoY at mid)

🎙️ CSCO — May 13, 2026

📄 Original Transcript

Cisco (CSCO) Q3 FY2026 Earnings Call — May 13, 2026

Source: Cisco Q3 FY2026 press release (May 13, 2026) + CNBC earnings coverage.

Chuck Robbins (Chair & CEO): 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. We delivered double-digit growth on both the top and bottom lines which exceeded the high end of our guidance, with record non-GAAP operating income.

Our record results demonstrate great execution and financial discipline by our teams, enabling us to deliver shareholder value while we pursue the significant opportunities we see ahead. We saw broad-based, record-high demand, with total product orders up 35% year over year (19% excluding hyperscalers), and we raised our expectations for AI infrastructure from hyperscalers: we now expect $5.3 billion of AI infrastructure orders taken year to date to reach $9 billion for fiscal 2026 (up from $5 billion), and we raised our expected FY26 AI revenue to $4 billion (up from $3 billion).

We remain confident in our ability to win in the AI era as the networking super cycle unfolds, driven by hyperscaler AI build-outs, enterprise AI readiness, and the secular shift toward AI-scale networking.

Mark Patterson (CFO): In Q3, total revenue was $15.8 billion, up 12% year over year, with product revenue up 17% and services revenue down 1%. Networking revenue was up 25%. GAAP gross margin was 63.6% and non-GAAP gross margin was 66.0%. GAAP operating margin was 25.0% and non-GAAP operating margin was 34.2%. GAAP EPS was $0.85, up 37%, and non-GAAP EPS was $1.06, up 10%.

RPO was $43.5 billion, up 4% in total. We returned $2.9 billion to stockholders through share buybacks and dividends in the quarter.

For Q4 FY2026, we expect 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. For fiscal 2026, we expect revenue of $62.8 billion to $63.0 billion and non-GAAP EPS of $4.27 to $4.29.

On May 13, 2026, Cisco announced a restructuring plan to allow it to invest in key growth opportunities including silicon, optics, security and AI. Cisco estimates it will recognize pre-tax charges of up to $1 billion, with approximately $450 million expected in Q4 FY26 and the remainder in FY27.

Q&A Highlights (condensed)

Q: AI infrastructure revenue and orders? A: $5.3B of AI/hyperscaler orders YTD; raised FY26 orders to $9B and FY26 AI revenue to $4B; AI orders are nonlinear and placed well ahead of revenue.
Q: Gross margin pressure? A: Hardware mix and memory costs are pressuring gross margin; operating margin of 34%+ demonstrates strong execution; networking demand is broad-based.
Q: Networking super cycle durability? A: Driven by hyperscaler AI, telco build-outs, enterprise AI readiness, and the refresh cycle; demand strength is record and broad-based.
Q: Supply chain / component costs? A: Managing dynamic component costs with disciplined pricing and strong supply-chain execution; record order growth shows demand outpaces supply.

📝 Summary

CSCO (Cisco) — Q3 FY2026 (May 13, 2026). Record revenue + beat-and-raise; AI orders outlook doubled to $9B; "networking super cycle".

Results

Revenue $15.8B, +12% YoY; product +17%, services -1%; Networking +25%, Observability +3%, Security flat, Collaboration -1%
GAAP GM 63.6% / non-GAAP GM 66.0%; GAAP OM 25.0% / non-GAAP OM 34.2%
GAAP EPS $0.85 (+37%); non-GAAP EPS $1.06 (+10%); non-GAAP net income $4.2B
RPO $43.5B (+4%); deferred revenue $28.6B (+2%); returned $2.9B to shareholders
AI infra orders $5.3B YTD; FY26 AI revenue raised to $4B; orders +35% YoY (+19% ex-hyperscalers)

Guidance

Q4 FY26: revenue $16.7–16.9B; non-GAAP GM 65.5–66.5%; OM 34–35%; EPS $1.16–1.18
FY26: revenue $62.8–63.0B; non-GAAP EPS $4.27–4.29
Restructuring up to $1B (~$450M in Q4 FY26) to fund silicon/optics/security/AI investments

Capex

Not disclosed as a target; inventory built ahead of demand; supply chain managed to meet record demand

Key Q&A

Q: AI infra orders vs revenue?
A: $5.3B YTD, FY26 orders raised to $9B, revenue to $4B; orders nonlinear and placed well ahead of revenue
Q: GM pressure?
A: Hardware mix + memory costs; OM 34%+ shows execution; networking demand broad-based
Q: Super-cycle durability?
A: Hyperscaler AI, telco build-outs, enterprise AI readiness, refresh cycle; record demand
Q: Restructuring?
A: Up to $1B pre-tax to invest in silicon, optics, security, AI — positioning for the AI era

Notes

Q3 FY26 marked the inflection: record revenue, beat-and-raise, orders +35%, and a doubling of the AI infrastructure outlook ($3B → $9B orders, $3B → $4B revenue)
The "networking super cycle" + AI infrastructure thesis is the core story; restructuring announced to lean into silicon/optics/security/AI
GM pressure (hardware mix, memory) is the main counterpoint; management argues OM (34%+) is the right lens
Q4 FY26 (next print, Aug 12) delivered even bigger numbers ($17.3B, record OM 35.9%, FY27 +15% guide) — consistent with this re-acceleration