Cisco Q3 strong, cashes in on AI infrastructure boom

Cisco reported strong third quarter results and raised its fourth quarter outlook as it cashes in on the AI infrastructure boom.

In the third quarter, Cisco reported third quarter earnings of 85 cents a share on revenue of $15.8 billion, up 12% from a year ago. Non-GAAP earnings in the third quarter were $1.06 a share.

Wall Street was looking for non-GAAP earnings of $1.04 a share on revenue of $15.56 billion.

But the outlook was the big news. Cisco said it is expecting fourth quarter revenue of $16.7 billion to $16.9 billion, more than $1 billion ahead of estimates. Non-GAAP earnings in the fourth quarter will be $1.16 a share to $1.18 a share.

CEO Chuck Robbins said "we saw very strong, broad-based demand for our products, demonstrating the relevance of our technology for connecting and securing AI."

By the numbers for the third quarter:

• Product orders in the quarter were up 35% from a year ago and 19% excluding hyperscalers.
• Network product orders were up more than 50% from a year ago.
• AI revenue for fiscal 2026 is expected to be $4 billion.
• Campus networking orders were up 25% from a year ago and data center switching orders were up 40% from a year ago.