Cisco tops Q3 revenue, profit estimates on strong demand

Cisco Systems

13/05/2026 21:15

Overview

U.S. networking equipment maker's fiscal Q3 revenue rose 12%, beating analyst expectations

Adjusted EPS for fiscal Q3 rose 10%, beating analyst expectations

Company cites broad-based demand and record product orders, especially in networking

Outlook

Cisco sees Q4 revenue between $16.7 bln and $16.9 bln

Company expects Q4 non-GAAP EPS of $1.16 to $1.18

Cisco raises FY26 AI infrastructure orders outlook to $9 bln from $5 bln

Result Drivers

NETWORKING DEMAND - Product revenue growth was led by networking's 25% year over year jump, with networking product orders accelerating to more than 50% growth

AI INFRASTRUCTURE ORDERS - Significant momentum and raised expectations for AI infrastructure from hyperscalers, with $5.3 bln of orders year to date

CAMPUS NETWORKING REFRESH - Major multi-year, multi-bln-dollar campus networking refresh cycle underway, with campus networking orders up more than 25% year over year

Company press release: ID:nPn8RdSLJa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
$15.8 bln
$15.56 bln (17 Analysts)
Q3 Adjusted EPS
Beat
$1.06
$1.04 (17 Analysts)
Q3 EPS
$0.85
Q3 Net Income
$3.4 bln
Q3 Adjusted Operating Margin
34.20%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the communications & networking peer group is "buy"

Wall Street's median 12-month price target for Cisco Systems Inc is $89.00, about 10.4% below its May 12 closing price of $99.29

The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)