Cisco Systems, Inc. · CSCO · FY2026 Q3 · Calendar Q2 2026

Cisco Q3 FY26: Record $15.8B Revenue as AI Infrastructure Orders Surge to $1.9B

Cisco's Q3 FY26 results mark a decisive step in its AI infrastructure transformation. Record revenue of $15.84B beat consensus by 1.8%, with EPS of $1.06 exceeding the $1.03 estimate by 2.9%. The stock surged 13.4% in the session following the print. The standout was AI infrastructure orders from hyperscalers reaching $1.9B in the quarter, prompting management to raise the full-year AI orders target from $5B to $9B and AI infrastructure revenue from $3B to $4B. Product orders grew 35% YoY, with hyperscaler orders at triple-digit rates. Silicon One and Acacia optics racked up multiple P200 design wins, validating Cisco's vertically integrated silicon-and-optics strategy. A newly announced restructuring will further concentrate investment in silicon, optics, security, and AI. The key question investors are weighing: whether this double-digit growth is durable or partly pulled forward by…

Reported After market closeNASDAQTechnology $451.57B market cap
100quality score

Company context

Snapshot as of publication

Cisco Systems, Inc. is a leading global technology company focused on designing, producing, and marketing Internet Protocol (IP)-based networking equipment, software, and associated products within the communications and information technology industries. The company operates extensively across major regions including the Americas, Europe, the Middle East, Africa, and the Asia Pacific, specifically covering Japan and China. Its comprehensive product lineup features switching solutions for both enterprise campuses and data centers. Cisco's enterprise routing segment is crucial for securely and reliably interconnecting public, private, wired, and mobile networks, ensuring vital connectivity across corporate campuses, data centers, and branch offices. Additionally, the company provides a range of wireless products offering seamless indoor and outdoor roaming for voice, video, and data applications.…

Earnings scorecard

Reported versus consensus
Reported EPS $1.06 Consensus $1
EPS surprise +2.9% Reported versus consensus
Reported revenue $15.84B Consensus $15.56B
Revenue surprise +1.8% Reported versus consensus

Market reaction

event-close to next-session close
Stock move +13.4% Event window
SPY move +0.8% Same window
Abnormal move +12.6% Stock minus SPY
Volume 3.4× Versus trailing sessions
Subsequent drift +4.8% Up to 20 sessions
CSCOSPY benchmark

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Transcript intelligence

What changed

Revenue of $15.84B beat the $15.56B consensus by 1.8% (up 12% YoY). EPS of $1.06 beat the $1.03 estimate by 2.9%. AI infrastructure orders from hyperscalers reached $1.9B in Q3. FY26 AI orders target raised from $5B to $9B; AI infrastructure revenue target raised from $3B to $4B. Product orders surged 35% YoY with hyperscaler orders at triple-digit rates. Stock gained 13.4% on 3.4x volume with 4.8% subsequent drift. Restructuring announced to concentrate investment in silicon, optics, security, and AI. Acquisitions of Galileo and Astrix announced.

Guidance delta

Management maintained overall guidance sentiment while significantly raising AI infrastructure targets. The full-year FY26 AI orders goal increased from exceeding $5B (stated in Q2) to $9B, and AI infrastructure revenue from $3B to $4B. Capex outlook remains stable. Management indicated continued double-digit growth for the remainder of FY26.

Key takeaways

  • Record Q3 FY26 revenue of $15.8B with double-digit growth across core networking and AI infrastructure businesses
  • AI infrastructure orders from hyperscalers jumped to $1.9B in Q3, with the FY26 target raised to $9B
  • Silicon One and Acacia optics gained multiple P200 design wins, validating the silicon-and-optics strategy
  • Security portfolio posted double-digit growth in new products, though legacy mix remains a modest drag
  • Restructuring announced to concentrate investment in silicon, optics, security, and AI; capex outlook stable

Management priorities

  • Achieve $9B in AI infrastructure orders and $4B in AI infrastructure revenue for FY26
  • Scale Acacia optics business and launch new high-speed pluggable optics
  • Roll out Cisco Unified Edge solutions to enterprise and edge customers
  • Advance quantum networking research with the Universal Quantum Switch prototype
  • Execute restructuring to reallocate resources toward silicon, optics, security, and AI

Related earnings events

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-17T18:26:59.983775+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-28T07:34:27.789424+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T07:34:27.786770+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.