Cisco Systems (NASDAQ:CSCO – Get Free Report) announced its quarterly earnings results on Wednesday. The network equipment provider reported $1.06 earnings per share for the quarter, beating the consensus estimate of $1.04 by $0.02, FiscalAI reports. The company had revenue of $15.84 billion during the quarter, compared to analysts’ expectations of $15.56 billion. Cisco Systems had a return on equity of 27.88% and a net margin of 19.22%. Cisco Systems updated its Q4 2026 guidance to 1.160-1.180 EPS and its FY 2026 guidance to 4.270-4.290 EPS.
Here are the key takeaways from Cisco Systems’ conference call:
- Cisco delivered a record Q3 with revenue of $15.8 billion, up 12% year over year, and non-GAAP EPS of $1.06, up 10%, both above the high end of guidance. Management said the company is on track for its strongest year ever.
- AI infrastructure demand accelerated sharply, with hyperscaler AI orders totaling $1.9 billion in Q3 and year-to-date orders reaching $5.3 billion, already above prior full-year expectations. Cisco now expects about $9 billion of hyperscaler AI infrastructure orders in FY2026 and roughly $4 billion of related revenue.
- Broad-based order growth remained very strong, with total product orders up 35% year over year and ex-hyperscaler orders up 19%. Enterprise, public sector, service provider/cloud, and telco customers all showed healthy demand, especially across networking.
- Margins were pressured by product mix and memory costs, as non-GAAP gross margin fell to 66% from 68.6% a year ago. Management said pricing actions, memory-reduction programs, and supply-chain controls are helping stabilize margins, but gross margin remains under some pressure.
- Cisco announced a restructuring to reallocate resources toward silicon, optics, security, and AI, with up to $1 billion of pre-tax charges expected over FY2026-FY2027. The company said the move is aimed at shifting investment to faster-growing areas rather than driving near-term savings.
Cisco Systems Price Performance
CSCO stock traded up $2.58 during mid-day trading on Wednesday, hitting $101.87. 43,126,254 shares of the stock were exchanged, compared to its average volume of 22,598,432. The company has a debt-to-equity ratio of 0.45, a current ratio of 0.96 and a quick ratio of 0.85. The business has a fifty day moving average price of $83.48 and a 200 day moving average price of $79.14. Cisco Systems has a 12 month low of $60.85 and a 12 month high of $102.01. The stock has a market capitalization of $402.38 billion, a price-to-earnings ratio of 35.74, a PEG ratio of 3.70 and a beta of 0.92.
Analysts Set New Price Targets
Check Out Our Latest Research Report on Cisco Systems
Insider Activity
In other Cisco Systems news, EVP Thimaya K. Subaiya sold 1,744 shares of Cisco Systems stock in a transaction dated Thursday, March 12th. The stock was sold at an average price of $77.07, for a total transaction of $134,410.08. Following the completion of the sale, the executive vice president owned 156,693 shares of the company’s stock, valued at $12,076,329.51. The trade was a 1.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, EVP Deborah L. Stahlkopf sold 7,981 shares of Cisco Systems stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $79.50, for a total value of $634,489.50. Following the sale, the executive vice president directly owned 187,097 shares of the company’s stock, valued at approximately $14,874,211.50. This trade represents a 4.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 46,431 shares of company stock valued at $3,574,820. 0.01% of the stock is owned by insiders.
Institutional Investors Weigh In On Cisco Systems
Hedge funds have recently added to or reduced their stakes in the company. Intesa Sanpaolo Wealth Management bought a new stake in Cisco Systems during the fourth quarter worth about $25,000. Jessup Wealth Management Inc bought a new stake in Cisco Systems during the fourth quarter worth about $29,000. Swiss RE Ltd. bought a new stake in Cisco Systems during the fourth quarter worth about $35,000. Birchwood Financial Partners Inc. bought a new stake in Cisco Systems during the fourth quarter worth about $49,000. Finally, Quattro Advisors LLC bought a new stake in Cisco Systems during the fourth quarter worth about $49,000. Institutional investors own 73.33% of the company’s stock.
Key Headlines Impacting Cisco Systems
Here are the key news stories impacting Cisco Systems this week:
- Positive Sentiment: Cisco delivered a “beat and raise” quarter, with revenue of $15.8 billion, above expectations, and non-GAAP EPS of $1.06, also ahead of consensus. CISCO REPORTS THIRD QUARTER EARNINGS
- Positive Sentiment: The company raised its outlook, guiding FY 2026 EPS to $4.27-$4.29 and revenue to $62.8 billion-$63.0 billion, both above analyst estimates. CISCO REPORTS THIRD QUARTER EARNINGS
- Positive Sentiment: Management said demand was broad-based and tied to accelerating AI infrastructure spending, which investors are viewing as a sign Cisco is benefiting from the AI build-out and improving enterprise networking trends. Cisco stock pops as Q3 earnings defy memory headwinds
- Neutral Sentiment: Cisco also announced a restructuring plan to shift spending toward AI growth, but the move comes with up to $1 billion in related costs, which may weigh on near-term margins even as it supports longer-term growth. Cisco to Cut Jobs in Shift to Capture More AI Demand
Cisco Systems Company Profile
Cisco Systems, Inc is a global technology company that designs, manufactures and sells networking hardware, software and telecommunications equipment. Its core business focuses on enabling enterprise and service-provider networks through products such as routers, switches, network security appliances and wireless systems. Over time Cisco has broadened its portfolio to emphasize software-defined networking, cybersecurity, cloud infrastructure and edge computing solutions that help organizations build and manage modern IT environments.
In addition to hardware, Cisco offers a growing range of software platforms and subscription services for network management, security, analytics and collaboration.
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