Image Source: TradingView
By Brian Nelson, CFA
Cisco (CSCO) recently reported fiscal third-quarter 2026 results for the period ended April 25 that came in better than expected on both the top and bottom lines. The company achieved double-digit top and bottom-line growth, exceeding the high end of its guidance range for the period. It posted record revenue of $15.8 billion (consensus was at $15.6 billion), up 12% year-over-year, with non-GAAP earnings per share of $1.06, up 10% year-over-year and exceeding consensus by $0.02.
Cisco experienced record high demand for its technology in the period, with total product orders up 35% year-over-year (19% excluding hyperscalers). The company raised its expectations for AI infrastructure orders from hyperscalers to $9 billion in fiscal year 2026, up from $5 billion previously. Management had the following to say about the results:
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. 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.
In Q3, we once again delivered double-digit growth on both the top and bottom lines which exceeded the high end of our guidance, coupled with record non-GAAP operating income. Our record results demonstrate great execution and financial discipline by our teams, enabling us to deliver shareholder value while we pursue the significant opportunities we see ahead.
In the third quarter of fiscal 2026, Cisco returned $2.9 billion to shareholders in the form of buybacks and dividends. The company had $9.6 billion remaining authorized for stock repurchases at the end of the quarter with no termination date. Looking to the fourth quarter of fiscal 2026, Cisco’s revenue is expected in the range of $16.7-$16.9 billion, significantly higher than consensus estimate of $15.8 billion, with non-GAAP earnings per share expected to be between $1.16-$1.18 for the quarter, better than the $1.07 consensus estimate.
For all of fiscal 2026, revenue is guided to $62.8-$63 billion, above the $61.6 billion consensus estimate, with non-GAAP earnings per share expected to be between $4.27-$4.29, above the $4.16 consensus estimate. We continue to like Cisco as an idea in the newsletter portfolios.
—–
Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
Valuentum members have access to our 16-page stock reports, Valuentum Buying Index ratings, Dividend Cushion ratios, fair value estimates and ranges, dividend reports and more. Not a member? Subscribe today. The first 14 days are free.