Description

Cisco Systems’ 35% Product Order Growth Signals A Broader Networking Rebound; What Lies Ahead?

Cisco Systems, Incorporated reported record financial results for its third quarter of fiscal year 2026, demonstrating solid growth amid a dynamic market environment shaped by increasing AI adoption. Total revenue reached $15.8 billion, up 12% year-over-year, surpassing the high end of guidance. Product revenue, the main growth driver, increased 17%, led by strong demand for AI infrastructure and campus networking solutions. Non-GAAP earnings per share rose 10% to $1.06, supported by operating efficiencies and effective cost management to offset higher memory prices. Demand was broad-based with total product orders growing 35% year-over-year. Excluding hyperscalers, orders were up 19%, signaling robust enterprise, public sector, and service provider engagement. AI infrastructure orders from hyperscalers totaled $1.9 billion this quarter, bringing the year-to-date figure to $5.3 billion—already above prior expectations for the entire fiscal year.