CSCO · Cisco Systems, Inc.

Cisco delivered exceptional Q3 FY2026 results with record revenue of $15.8 billion, surpassing guidance highs through broad-based demand acceleration, particularly in networking products up 25% and total product orders surging 35% year-over-year (19% excluding hyperscalers). CEO Chuck Robbins highlighted Cisco's positioning as critical AI infrastructure, evidenced by hyperscaler AI orders reaching $5.3 billion year-to-date, prompting raised FY2026 expectations to $9 billion in orders and $4 billion in revenue from prior $5 billion/$3 billion. Campus networking orders grew over 25% amid a multi-year refresh cycle, with data center switching exceeding 40%, underscoring execution in high-growth areas. Margins reflected operational discipline: GAAP gross margin at 63.6% and operating margin at 25.0%, with non-GAAP figures stronger at 66.0% and 34.2%. To prioritize silicon, optics, security, and AI, Cisco announced a restructuring plan estimating up to $1 billion in pre-tax GAAP charges, mostly cash severance, with $450 million hitting Q4 FY2026 and the rest in FY2027. Guidance reflects confidence, raising Q4 revenue to $16.7-16.9 billion and full-year to $62.8-63.0 billion, incorporating tariff impacts. Capital returns remained robust at $2.9 billion in Q3 via $1.7 billion dividends and $1.3 billion buybacks, with $9.6 billion authorization remaining. Balance sheet strength persists with $16.6 billion in cash/investments supporting ongoing investments amid AI tailwinds.