Cisco posts record AI orders

Cisco reported fiscal third-quarter revenue of $15.8 billion on May 13, 2026, as the networking company raised its target for full-year AI infrastructure orders and pointed to stronger demand from hyperscale customers. The San Jose, California-based company said orders tied to AI infrastructure from hyperscalers reached $5.3 billion year to date, leading it to increase its fiscal 2026 target to $9 billion from $5 billion. (investor.cisco.com) Cisco also lifted its fiscal 2026 AI infrastructure revenue target to $4 billion from $3 billion, according to its earnings release. Chief Executive Chuck Robbins said the quarter showed “very strong, broad-based demand” for products that connect and secure AI systems. (newsroom.cisco.com) (investor.cisco.com) ### Where did the AI number come from? Cisco said the $5.3 billion figure covers AI infrastructure orders taken from hyperscalers in fiscal 2026 through the third quarter ended April 25. The company had previously pointed investors to a $5 billion fiscal-year target, and the new $9 billion goal marked a higher expectation with one quarter left in the year. The May 13 earnings materials tied that increase to “significant momentum” in AI infrastructure from hyperscalers. Cisco did not frame the figure as broad enterprise AI demand; it identified hyperscalers as the customer group behind the order tally. (investor.cisco.com) ### How strong was the core networking business? Cisco said total product orders rose 35% year over year in the quarter, or 19% excluding hyperscalers. The company said growth in networking product orders accelerated to more than 50% year over year, while campus networking orders grew more than 25% and data center switching orders rose more than 40%. (newsroom.cisco.com) Mark Patterson, Cisco’s chief financial officer, said the company delivered double-digit growth in revenue and earnings that exceeded the high end of its guidance. Cisco reported GAAP net income of $3.4 billion, or $0.85 per share, and non-GAAP net income of $4.2 billion, or $1.06 per share. (newsroom.cisco.com) ### What did Cisco say about the quarter overall? Chuck Robbins said in the earnings release that Cisco “delivered record quarterly revenue in Q3” and described demand as broad-based across its product portfolio. The company said revenue rose 12% from a year earlier to $15.8 billion, while GAAP gross margin was 63.6% and non-GAAP gross margin was 66.0%. (newsroom.cisco.com) Cash flow from operations totaled $3.8 billion in the quarter, down 7% from $4.1 billion a year earlier, according to Cisco’s newsroom release. Cisco said cash, cash equivalents and investments stood at $16.6 billion at the end of the third quarter, compared with $16.1 billion at the end of fiscal 2025. (investor.cisco.com) ### What guidance did Cisco give for the next quarter and year? Cisco forecast fourth-quarter fiscal 2026 revenue of $16.7 billion to $16.9 billion and non-GAAP earnings per share of $1.16 to $1.18. The company projected full-year fiscal 2026 revenue of $62.8 billion to $63.0 billion and non-GAAP earnings per share of $4.27 to $4.29. (investor.cisco.com) The company said its earnings-per-share guidance includes the estimated impact of tariffs based on current trade policy. That language appeared in both the fourth-quarter and full-year outlook released on May 13. (newsroom.cisco.com) ### What comes next for investors watching this story? Cisco said its next scheduled investor appearances are at the J.P. Morgan 2026 Global Technology, Media and Communications Conference on May 18 and May 19, followed by the Bank of America Global Technology Conference on June 4. The company’s investor relations site lists a May 13 presentation titled “Cisco AI Infrastructure Orders Taken from Hyperscalers,” which is the latest posted deck alongside the earnings materials. (newsroom.cisco.com) (investor.cisco.com)