TLDR
- Cisco stock jumps as record revenue and AI orders lift FY26 outlook
- CSCO surges after Q3 revenue beats and AI order target rises to $9B
- Cisco reports record Q3 revenue as networking and AI demand accelerate
- CSCO rallies after strong earnings, higher guidance, and AI order growth
- Cisco’s $9B AI order target fuels sharp after-hours stock breakout
Cisco Systems (CSCO) shares delivered a sharp earnings-driven breakout after record quarterly revenue, stronger profit growth, and a higher AI infrastructure outlook lifted market confidence. CSCO closed at $101.87, up 2.60%, then jumped after hours to $118.38, up 16.21%. The move followed broad demand across networking, data center switching, campus products, and hyperscaler AI infrastructure.
Cisco Reports Record Q3 Revenue
Cisco reported third-quarter fiscal 2026 revenue of $15.8 billion, up 12% from $14.1 billion a year earlier. The company also posted GAAP net income of $3.4 billion, compared with $2.5 billion in Q3 fiscal 2025. Diluted GAAP earnings reached $0.85 per share, up 37% year over year.
Non-GAAP net income rose to $4.2 billion from $3.8 billion a year earlier. Non-GAAP earnings per share reached $1.06, up 10% from $0.96 in the prior-year period. The results exceeded the high end of Cisco’s guidance and showed stronger operating discipline.
Product revenue increased 17%, while services revenue slipped 1%. Networking led the quarter with revenue of $8.8 billion, up 25% year over year. Security revenue remained flat, Collaboration fell 1%, and Observability rose 3%.
AI Orders and Networking Demand Lift Outlook
Cisco reported total product orders growth of 35% year over year. Excluding hyperscalers, product orders still rose 19%, showing broad demand beyond large cloud customers. Networking product orders increased more than 50%, adding strength to the company’s core business.
AI infrastructure remained a major growth driver during the quarter. Cisco booked $5.3 billion of AI infrastructure orders year to date. The company also raised its expected fiscal 2026 AI order target to $9 billion from $5 billion.
Cisco lifted its expected fiscal 2026 AI infrastructure revenue to $4 billion from $3 billion. Data center switching orders grew more than 40% year over year. Meanwhile, campus networking orders rose more than 25% as a multi-year refresh cycle gained pace.
Guidance, Margins and Capital Returns Support Momentum
Cisco guided for fourth-quarter fiscal 2026 revenue of $16.7 billion to $16.9 billion. It also expects non-GAAP earnings per share of $1.16 to $1.18. GAAP earnings per share should range between $0.80 and $0.85.
For full-year fiscal 2026, Cisco expects revenue of $62.8 billion to $63.0 billion. The company also projects non-GAAP earnings per share of $4.27 to $4.29. Its margin and earnings outlook include the estimated tariff impact under current trade policy.
Cisco ended the quarter with $16.6 billion in cash, cash equivalents, and investments. It returned $2.9 billion to shareholders through dividends and buybacks during Q3. The company also declared a quarterly dividend of $0.42 per share, payable on July 22, 2026.
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