Cisco Systems, Inc. (CSCO) Q3 2026 Financial Results Summary

San Jose, Calif. -- May 13, 2026 -- Cisco Systems, Inc. (NASDAQ: CSCO) today reported its financial results for the third quarter of fiscal year 2026, which ended on April 25, 2026. Below is a summary of the key metrics and highlights from the report.

Key Financial Metrics

• Revenue:
  • Total revenue: $15.8 billion
  • Year-over-year increase: 12% (up from $14.1 billion in Q3 FY 2025)
  • Product revenue: $12.1 billion, up 17% YoY
  • Services revenue: $3.7 billion, down 1% YoY
• Earnings per Share (EPS):
  • GAAP EPS: $0.85, up 37% (vs. $0.62 in Q3 FY 2025)
  • Non-GAAP EPS: $1.06, up 10% (vs. $0.96 in Q3 FY 2025)
• Net Income:
  • GAAP: $3.4 billion, up 35% YoY (vs. $2.5 billion in Q3 FY 2025)
  • Non-GAAP: $4.2 billion, up 10% YoY (vs. $3.8 billion in Q3 FY 2025)
• Margins:
  • GAAP gross margin: 63.6% (vs. 65.6% in Q3 FY 2025)
  • Non-GAAP gross margin: 66.0% (vs. 68.6% in Q3 FY 2025)
  • GAAP operating margin: 25.0% (up from 21.3% in Q3 FY 2025)
  • Non-GAAP operating margin: 34.2% (up from 31.9% in Q3 FY 2025)

Operational Highlights

• Product Orders:
  • Total product orders increased by 35% YoY, or 19% excluding hyperscalers.
  • Networking product orders grew more than 50% YoY.
• AI Infrastructure Demand:
  • Orders taken year-to-date for AI infrastructure amounted to $5.3 billion.
  • Raised FY26 orders expectation to $9 billion, up from $5 billion.
  • Raised FY26 revenue expectation from $3 billion to $4 billion.
• Campus Networking Refresh Cycle:
  • Campus networking orders increased more than 25% YoY.
  • Data center switching orders rose by over 40% YoY.

Capital Allocation

• Dividend:
  • Cisco declared a quarterly dividend of $0.42 per common share, payable on July 22, 2026, for stockholders of record as of July 6, 2026.
• Share Buybacks:
  • Returned $2.9 billion to stockholders through buybacks and dividends.
  • Repurchased approximately 16 million shares at an average price of $80.28 for an aggregate purchase of $1.3 billion.

Guidance

• Q4 FY 2026 Expectations:
  • Revenue projected between $16.7 billion and $16.9 billion.
  • GAAP EPS forecasted between $0.80 and $0.85; Non-GAAP EPS expected between $1.16 and $1.18.
• FY 2026 Forecasts:
  • Total revenue expected between $62.8 billion and $63.0 billion.
  • GAAP EPS projected between $3.16 and $3.21; Non-GAAP EPS expected between $4.27 and $4.29.

Balance Sheet and Cash Flow

• Cash and Cash Equivalents:
  • Stand at $16.6 billion, an increase compared to $16.1 billion the previous year.
• Remaining Performance Obligations (RPO):
  • Total RPO equals $43.5 billion, a 4% year-over-year increase.
• Cash Flow from Operating Activities:
  • Total of $3.8 billion for this quarter, down 7% from $4.1 billion in Q3 FY 2025.

Cisco's third quarter financial results demonstrate a robust demand across its product lines, particularly in networking and AI infrastructure, contributing to strong revenue and earnings growth. The company not only returned substantial value to its shareholders through dividends and share buybacks but is also looking ahead with raised revenue expectations for the upcoming quarters.

CISCO SYSTEMS, INC. - CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per-share amounts)

Note: All amounts are in thousands.

	Three Months Ended		Nine Months Ended
	April 25, 2026	April 26, 2025	April 25, 2026	April 26, 2025
REVENUE:
Product	$12,117	$10,374	$34,836	$30,722
Services	$3,724	$3,775	$11,237	$11,259
Total revenue	$15,841	$14,149	$46,073	$41,981
COST OF SALES:
Product	$4,613	$3,688	$12,752	$10,927
Services	$1,148	$1,183	$3,524	$3,544
Total cost of sales	$5,761	$4,871	$16,276	$14,471
GROSS MARGIN	$10,080	$9,278	$29,797	$27,510
OPERATING EXPENSES:
Research and development	$2,377	$2,335	$7,132	$6,920
Sales and marketing	$2,855	$2,724	$8,607	$8,148
General and administration	$661	$739	$2,082	$2,286
Amortization of purchased intangibles	$228	$244	$690	$774
Restructuring and other charges	$-1	$34	$182	$709
Total operating expenses	$6,120	$6,076	$18,693	$18,837
OPERATING INCOME	$3,960	$3,202	$11,104	$8,673
Interest income	$214	$250	$646	$774
Interest expense	$-377	$-403	$-1,097	$-1,225
Other income (loss), net	$242	$-102	$423	$-121
Interest and other income (loss), net	$79	$-255	$-28	$-572
INCOME BEFORE PROVISION FOR INCOME TAXES	$4,039	$2,947	$11,076	$8,101
Provision for income taxes	$666	$456	$1,668	$471
NET INCOME	$3,373	$2,491	$9,408	$7,630
Net income per share:
Basic	$0.85	$0.63	$2.38	$1.92
Diluted	$0.85	$0.62	$2.36	$1.91
Shares used in per-share calculation:
Basic	3,952	3,972	3,954	3,981
Diluted	3,982	4,002	3,987	4,004

CISCO SYSTEMS, INC. - CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)

Note: All amounts are in millions.

	April 25, 2026	July 26, 2025
ASSETS
Current assets:
Cash and cash equivalents	$7,083	$8,346
Investments	$9,557	$7,764
Accounts receivable, net of allowance of $73 at April 25, 2026 and $69 at July 26, 2025	$6,480	$6,701
Inventories	$4,708	$3,164
Financing receivables, net	$2,936	$3,061
Other current assets	$5,795	$5 Disclaimer The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.