News Summary:
Double-digit top and bottom-line growth exceeding the high end of our guidance
Record revenue of $15.8 billion, up 12% year over year; GAAP EPS of $0.85, up 37% year over year; and non-GAAP EPS of $1.06, up 10% year over year
GAAP gross margin of 63.6% and non-GAAP gross margin of 66.0%; GAAP operating margin of 25.0% and non-GAAP operating margin of 34.2%, demonstrating strong execution and operational efficiencies
Broad-based, record high demand for Cisco technology
Total product orders up 35% year over year; up 19% excluding hyperscalers
Growth in networking product orders accelerated to more than 50% year over year
Significant momentum and raised expectations for AI infrastructure from hyperscalers
$5.3 billion of orders taken year to date; raising expected FY26 orders to $9 billion, up from $5 billion
Raising expected FY26 revenue to $4 billion, up from $3 billion
Major multi-year, multi-billion-dollar campus networking refresh cycle underway
Campus networking orders grew greater than 25% year over year, with the next-generation portfolio ramping faster than prior product launches
Data center switching orders grew greater than 40% year over year
Q3 FY 2026 Results:
Revenue: $15.8 billion
Increase of 12% year over year
Earnings per Share: GAAP: $0.85; Non-GAAP: $1.06
GAAP EPS increased 37% year over year
Non-GAAP EPS increased 10% year over year
Q4 FY 2026 Guidance (1):
Revenue: $16.7 billion to $16.9 billion
Earnings per Share: GAAP: $0.80 to $0.85; Non-GAAP: $1.16 to $1.18
FY 2026 Guidance (1):
Revenue: $62.8 billion to $63.0 billion
Earnings per Share: GAAP: $3.16 to $3.21; Non-GAAP: $4.27 to $4.29
(1) EPS guidance includes the estimated impact of tariffs based on current trade policy.
Cisco (NASDAQ:CSCO) today reported third quarter results for the period ended April 25, 2026. Cisco reported third quarter revenue of $15.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.4 billion or $0.85 per share, and non-GAAP net income of $4.2 billion or $1.06 per share.
"Cisco delivered record quarterly revenue in Q3 and we saw very strong, broad-based demand for our products, demonstrating the relevance of our technology for connecting and securing AI," said Chuck Robbins, chair and CEO of Cisco. "Cisco is well-positioned as the critical infrastructure for the AI era, building on our technology leadership and customer trust, while innovating at the speed and scale that our dynamic world demands."
"In Q3, we once again delivered double-digit growth on both the top and bottom lines which exceeded the high end of our guidance, coupled with record non-GAAP operating income," said Mark Patterson, CFO of Cisco. "Our record results demonstrate great execution and financial discipline by our teams, enabling us to deliver shareholder value while we pursue the significant opportunities we see ahead."
GAAP Results
Q3 FY 2026
Q3 FY 2025
vs. Q3 FY 2025
Revenue
$
15.8 billion
$
14.1 billion
12 %
Net Income
$
3.4 billion
$
2.5 billion
35 %
Diluted Earnings per Share (EPS)
$
0.85
$
0.62
37 %
Non-GAAP Results
Q3 FY 2026
Q3 FY 2025
vs. Q3 FY 2025
Net Income
$
4.2 billion
$
3.8 billion
10 %
EPS
$
1.06
$
0.96
10 %
Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."
Cisco Declares Quarterly Dividend
Cisco has declared a quarterly dividend of $0.42 per common share to be paid on July 22, 2026, to all stockholders of record as of the close of business on July 6, 2026. Future dividends will be subject to Board approval.
Financial Summary
All comparative percentages are on a year-over-year basis unless otherwise noted.
Q3 FY 2026 Highlights
Revenue -- Total revenue was $15.8 billion, up 12%, with product revenue up 17% and services revenue down 1%.
Revenue by geographic segment was: Americas up 14%, EMEA up 9%, and APJC up 9%. Product revenue performance reflected growth in Networking, up 25% and Observability up 3%. Collaboration was down 1%. Security was flat.
Gross Margin -- On a GAAP basis, total gross margin, product gross margin, and services gross margin were 63.6%, 61.9%, and 69.2%, respectively, as compared with 65.6%, 64.4%, and 68.7%, respectively, in the third quarter of fiscal 2025.
On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 66.0%, 64.3%, and 71.6%, respectively, as compared with 68.6%, 67.6%, and 71.3%, respectively, in the third quarter of fiscal 2025.
Total gross margins by geographic segment were: 63.7% for the Americas, 71.3% for EMEA and 66.1% for APJC.
Operating Expenses -- On a GAAP basis, operating expenses were $6.1 billion, up 1% year over year, and were 38.6% of revenue. Non-GAAP operating expenses were $5.0 billion, up 5%, and were 31.9% of revenue.
Operating Income -- GAAP operating income was $4.0 billion, up 24%, with GAAP operating margin of 25.0%. Non-GAAP operating income was $5.4 billion, up 11%, with non-GAAP operating margin at 34.2%.
Provision for Income Taxes -- The GAAP tax provision rate was 16.5%. The non-GAAP tax provision rate was 19.0%.
Net Income and EPS -- On a GAAP basis, net income was $3.4 billion, an increase of 35%, and EPS was $0.85, an increase of 37%. On a non-GAAP basis, net income was $4.2 billion, an increase of 10%, and EPS was $1.06, an increase of 10%.
Cash Flow from Operating Activities -- $3.8 billion for the third quarter of fiscal 2026, a decrease of 7%, compared with $4.1 billion for the third quarter of fiscal 2025.
Balance Sheet and Other Financial Highlights
Cash and Cash Equivalents and Investments -- $16.6 billion at the end of the third quarter of fiscal 2026, compared with $16.1 billion at the end of fiscal 2025.
Remaining Performance Obligations (RPO) -- $43.5 billion, up 4% in total. Product RPO was up 6%, of which long-term RPO was $11.7 billion, up 6%. Services RPO was up 2%.
Deferred Revenue -- $28.6 billion, up 2% in total, with deferred product revenue up 2% and deferred services revenue up 2%.
Capital Allocation -- In the third quarter of fiscal 2026, we returned $2.9 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.42 per common share, or $1.7 billion, and repurchased approximately 16 million shares of common stock under our stock repurchase program at an average price of $80.28 per share for an aggregate purchase price of $1.3 billion. The remaining authorized amount for stock repurchases under the program is $9.6 billion with no termination date.
Guidance
Cisco expects to achieve the following results for the fourth quarter of fiscal 2026:
Q4 FY 2026
Revenue
$16.7 billion - $16.9 billion
Non-GAAP gross margin
65.5% - 66.5%
Non-GAAP operating margin
34% - 35%
Non-GAAP EPS
$1.16 - $1.18
Cisco estimates that GAAP EPS will be $0.80 to $0.85 for the fourth quarter of fiscal 2026.
Cisco expects to achieve the following results for fiscal 2026:
FY 2026
Revenue
$62.8 billion - $63.0 billion
Non-GAAP EPS
$4.27 - $4.29
Cisco estimates that GAAP EPS will be $3.16 to $3.21 for fiscal 2026.
Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.
Our Q4 FY 2026 guidance assumes an effective tax provision rate of approximately 16% for GAAP and approximately 19% for non-GAAP results. Our FY 2026 guidance assumes an effective tax provision rate of approximately 15% for GAAP and approximately 19% for non-GAAP results.
A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled "GAAP to non-GAAP Guidance" located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."
Editor's Notes:
Q3 fiscal year 2026 conference call to discuss Cisco's results along with its guidance will be held on Wednesday, May 13, 2026 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).
Conference call replay will be available from 4:00 p.m. Pacific Time, May 13, 2026 to 10:00 p.m. Pacific Time, May 19, 2026 at 1-800-839-2232 (United States) or 1-203-369-3662 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.
Additional information regarding Cisco's financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, May 13, 2026. The conference call will also be livestreamed on YouTube at https://www.youtube.com/live/oihjxLboqdk & LinkedIn at https://www.linkedin.com/events/7455725440733798400. Text of the conference call's prepared remarks will be available within 24 hours of completion of the call. The webcast and livestreaming will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.
CISCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per-share amounts)
(Unaudited)
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 administrative
661
739
2,082
2,286
Amortization of purchased intangible assets
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.
REVENUE BY SEGMENT
(In millions, except percentages)
April 25, 2026
Three Months Ended
Nine Months Ended
Amount
Y/Y %
Amount
Y/Y %
Revenue:
Americas
$ 9,569
14 %
$ 27,403
10 %
EMEA
4,054
9 %
12,262
10 %
APJC
2,218
9 %
6,409
7 %
Total
$ 15,841
12 %
$ 46,073
10 %
Amounts may not sum and percentages may not recalculate due to rounding.
CISCO SYSTEMS, INC.
GROSS MARGIN PERCENTAGE BY SEGMENT
(In percentages)
April 25, 2026
Three Months Ended
Nine Months Ended
Gross Margin Percentage:
Americas
63.7 %
65.4 %
EMEA
71.3 %
71.7 %
APJC
66.1 %
66.3 %
CISCO SYSTEMS, INC.
REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES
(In millions, except percentages)
April 25, 2026
Three Months Ended
Nine Months Ended
Amount
Y/Y %
Amount
Y/Y %
Revenue:
Networking
$ 8,815
25 %
$ 24,877
20 %
Security
2,008
— %
6,006
(2) %
Collaboration
1,024
(1) %
3,133
1 %
Observability
269
3 %
820
3 %
Total Product
12,117
17 %
34,836
13 %
Services
3,724
(1) %
11,237
— %
Total
$ 15,841
12 %
$ 46,073
10 %
Amounts may not sum and percentages may not recalculate due to rounding.
CISCO SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
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
5,950
Total current assets
36,559
34,986
Property and equipment, net
2,577
2,113
Financing receivables, net
3,642
3,466
Goodwill
59,292
59,136
Purchased intangible assets, net
7,850
9,175
Deferred tax assets
7,558
7,356
Other assets
8,068
6,059
TOTAL ASSETS
$ 125,546
$ 122,291
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt
$ 11,932
$ 5,232
Accounts payable
2,970
2,528
Income taxes payable
173
1,857
Accrued compensation
3,290
3,611
Deferred revenue
16,446
16,416
Other current liabilities
4,730
5,420
Total current liabilities
39,541
35,064
Long-term debt
19,371
22,861
Income taxes payable
2,304
2,165
Deferred revenue
12,153
12,363
Other long-term liabilities
3,316
2,995
Total liabilities
76,685
75,448
Total equity
48,861
46,843
TOTAL LIABILITIES AND EQUITY
$ 125,546
$ 122,291
CISCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months Ended
Nine Months Ended
April 25,2026
April 26,2025
April 25,2026
April 26,2025
Cash flows from operating activities:
