Cisco (CSCO) Q3 earnings report 2026

Cisco Shares rose 14% in extended trading Wednesday after the networking company released results and guidance that beat Wall Street’s forecasts.

The company said it would cut its workforce by fewer than 4,000 jobs this quarter, representing less than 5% of total employees.

Here is the company’s performance compared to the LSEG consensus:

• Earnings per share: Adjusted $1.06, expected $1.04
• Revenues: 15.56 billion dollars is expected against the expectation of 15.84 billion dollars

Revenue rose 12% in the quarter ended April 25, compared to $14.15 billion a year earlier, Cisco said in a statement. Net income rose to $3.37 billion, or 85 cents per share, from $2.49 billion, or 62 cents per share, a year earlier.

For the fiscal fourth quarter, Cisco called for adjusted earnings per share of $1.16 to $1.18 and revenue of $16.7 billion to $16.9 billion. Analysts polled by LSEG expected revenue of $15.82 billion and adjusted earnings of $1.07 per share.

Cisco said it has received $5.3 billion in AI infrastructure and hyperscaler orders so far this year, bringing its expected orders for the fiscal year to $5 billion to $9 billion. The company said it expects revenue in that market for the fiscal year to rise to $4 billion, up from the previous estimate of $3 billion.

While Cisco has outpaced most of its data center peers in the AI ​​race, Wall Street has kept up with the company’s recent story, pushing the stock to a record late last year and eventually surpassing its dot-com peak. Shares continued their rise this year, rising 33%, outpacing the Nasdaq’s 14% rise.

CEO Chuck Robbins wrote: blog post On Wednesday, it was announced that the final round of layoffs would begin on May 14. Cisco became the latest company to announce headcount reductions related to artificial intelligence.

“The companies that will win in the age of AI will be those that are focused, urgent and disciplined to continually shift their investments to areas where demand and long-term value creation are strongest,” Robbins said. “I’m confident Cisco will be one of these winners. This means making tough decisions about where we invest, how we organize, and how our cost structure reflects the opportunity before us.”

Severance pay and other costs will result in pre-tax expenses of $1 billion, of which the company will collect about $450 million in the fiscal fourth quarter, Cisco said in a filing.

Cisco announced in the third quarter: switches and routers It uses the new generation processor. The company is also debuted on a leaderboard To rank generative AI models based on their resilience to cybersecurity attacks.

Cisco’s network revenue rose 25% to $8.82 billion, beating the $8.47 billion consensus among analysts surveyed by StreetAccount. Security revenue was flat at about $2 billion, compared to StreetAccount’s forecast of $1.99 billion.

Executives will discuss the results in a conference call with analysts starting at 4:30 p.m. ET.

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