Cisco (CSCO) posts record fiscal Q3 results, raises full-year guidance on strong AI demand
Cisco Systems reported record fiscal third-quarter 2026 results on 13 May 2026, posting revenue of $15.8 billion and raising its guidance for both the fourth quarter and the full fiscal year. The networking giant highlighted robust growth across its segments, driven significantly by demand for artificial intelligence infrastructure. Cisco shares are trading at $116.50, down 1.4% on the day, following a period of strong gains earlier in the week.
The company's Q3 performance included a 12% year-over-year increase in revenue. GAAP earnings per share reached $0.85, a 37% rise, while non-GAAP earnings per share grew 10% to $1.06. Networking revenue expanded by 25%, and total product orders saw a 35% surge, which Cisco attributed directly to the escalating requirements of AI infrastructure. Alongside these results, the company declared a quarterly dividend of $0.42.
The positive earnings report and elevated outlook underscore Cisco's position in the expanding AI market. The current trading price of $116.50 represents a modest decline from its previous close of $118.21 on Friday, 15 May, but follows a week that saw the stock rally substantially after the results were published.
Why Cisco's rally is pausing for breath
Cisco is a major provider of the essential infrastructure that underpins computer networks globally. They design and sell the hardware, software, and services businesses need to connect their systems, manage data traffic, and secure their digital operations. Their revenue comes from enabling companies, from small enterprises to large corporations, to build and maintain the complex digital backbone required for modern communication and data exchange, increasingly driven by demands like artificial intelligence.
The core mechanic explaining today's modest dip is profit-taking after a significant rally. Cisco delivered excellent fiscal third-quarter results on 13 May 2026, exceeding expectations and raising future guidance, largely due to strong demand for AI infrastructure. This positive news sent the stock rallying substantially earlier in the week. Today's decline suggests that some investors, having seen the stock price jump on the back of the good news, are now selling a portion of their shares to secure those recent gains. The market has absorbed the positive news, leading to a natural cool-down as early buyers cash out.
This profit-taking has led to Cisco shares trading down 1.4% today, currently at $116.50, a dip from its previous close of $118.21 on Friday, 15 May.
Consider it like a highly anticipated concert where tickets sold out instantly, and the show itself was a massive success. The day after, some fans who bought tickets early at face value might sell them for a small profit to those who missed out, even though the concert was fantastic. The initial excitement has peaked, and now the market for tickets is simply settling.
Cisco
Cisco Systems, Inc. (CSCO) is a technology company specialising in Internet Protocol-based networking and communication products. Its extensive portfolio includes switching solutions for campus and data centres, alongside enterprise routing that secures and connects public and private networks. Cisco also provides wireless products for seamless voice, video, and data applications. The company's security offerings encompass network security, identity management, and threat intelligence. Furthermore, it delivers collaboration tools such as Webex Suite and contact centre solutions, available across cloud, on-premise, and hybrid environments. Observability services provide network assurance, monitoring, and analytics. Cisco serves diverse clients, from businesses and public institutions to governments and service providers, distributing its products directly and through various partners. Established in 1984, Cisco Systems, Inc. is headquartered in San Jose, California.