Cisco Systems Beats Earnings and Revenue Estimates

Cisco Systems (CSCO) delivered record-breaking third-quarter fiscal 2026 results on May 14, surpassing both earnings and revenue estimates by a wide margin. Revenue hit $15.8 billion, up 12% year-over-year, while non-GAAP earnings per share came in at $1.06, a 10% increase. The stock surged over 15% in after-hours trading following the announcement.

The standout driver was AI infrastructure, with Cisco reporting $1.9 billion in AI-related orders during Q3 alone — more than triple the $600 million recorded in the same period a year ago. Product revenue jumped 17%, reflecting broad-based demand across Cisco's networking and security portfolio. The company's pivot toward AI-driven infrastructure spending is paying off as hyperscalers and enterprise customers alike accelerate their buildouts.

Looking ahead, Cisco guided Q4 revenue between $16.7 billion and $16.9 billion, with full-year fiscal 2026 revenue expected to land in the $62.8–$63 billion range. Evercore ISI analyst Amit Daryanani raised his price target to $110, reiterating a Buy rating and citing sustainable double-digit growth potential. Investors are watching whether Cisco can maintain this AI order momentum into fiscal 2027.

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