Cisco Reports Record Q3 Revenue of $15.8 Billion with Strong AI Infrastructure Demand

Cisco Systems, Inc. announced in a press release its third quarter fiscal 2026 results, reporting record revenue of 15.8 billion dollars, up 12 percent from the previous year. Net income on a GAAP basis was 3.4 billion dollars, or 0.85 dollars per share, while non-GAAP net income reached 4.2 billion dollars, or 1.06 dollars per share.

The company recorded double-digit growth in both revenue and earnings, exceeding the high end of its guidance. GAAP gross margin was 63.6 percent and non-GAAP gross margin was 66.0 percent, with operating margins of 25.0 and 34.2 percent respectively. Product orders rose 35 percent year over year, excluding hyperscalers up 19 percent.

Cisco noted significant demand for its AI infrastructure offerings, with 5.3 billion dollars in orders taken year to date. The company raised its full fiscal 2026 AI infrastructure order forecast to 9 billion dollars, up from 5 billion dollars, and increased its expected AI infrastructure revenue to 4 billion dollars, up from 3 billion dollars.

Networking product orders grew more than 50 percent year over year, supported by a multi-year campus networking refresh cycle. Data center switching orders increased over 40 percent. For the fourth quarter, Cisco expects revenue between 16.7 and 16.9 billion dollars and non-GAAP earnings per share between 1.16 and 1.18 dollars.