Cisco (CSCO) Q3 2023 Financial Results Summary
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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.