Cisco Systems Inc (NASDAQ:CSCO) reported financial results for the third quarter of fiscal 2026 after the market close on Wednesday. Here’s a look at the key details from the report.
- Cisco Systems stock is approaching key resistance levels. What’s driving CSCO to record levels?
Cisco Q3 Earnings Highlights
Cisco posted third-quarter revenue of $15.84 billion, beating analyst estimates of $15.56 billion. The networking equipment company reported adjusted earnings of $1.06 per share for the quarter, beating analyst estimates of $1.03 per share, according to Benzinga Pro.
Total revenue was up 12% year-over-year as product revenue increased 17% and services revenue decreased by 1%. Product revenue growth was fueled by a 25% increase in Networking and a 3% increase in Observability. Collaboration product revenue was down 1% and Security product revenue was flat.
Cisco generated $3.8 billion in cash flow from operations during the quarter, down 7% year-over-year. The company ended the period with $16.6 billion in cash, cash equivalents and investments.
“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.”
What’s On The Horizon For Cisco?
Cisco expects fiscal fourth-quarter revenue to be in the range of $16.7 billion to $16.9 billion, versus estimates of $15.82 billion. The company anticipates adjusted earnings for the fourth quarter of $1.16 to $1.18 per share, versus estimates of $1.07 per share.
Cisco also raised its full-year revenue guidance from a range of $61.2 billion to $61.7 billion to a new range of $62.8 billion to $63 billion, versus estimates of $61.6 billion.
The company raised its full-year adjusted earnings guidance to a range of $4.27 to $4.29 per share, up from a prior range of $4.13 to $4.17 per share. Analysts are anticipating full-year earnings of $4.16 per share.
Cisco noted that it has already received $5.3 billion of orders year-to-date. The company now expects total orders of $9 billion in fiscal 2026, up from prior guidance of $5 billion.
Cisco’s management team will further discuss the quarter on an earnings call with investors and analysts at 4:30 p.m. ET. A link to the call has been provided below.
CSCO Shares Surge After The Bell
CSCO Price Action: Cisco shares were up 14.32% in after-hours Wednesday, trading at $116.46 at the time of publication, according to Benzinga Pro.
Image: Shutterstock.com
Recent Comments