Cisco Q3 Revenue Climbs 8% to $15.4 B, Raises FY26 Guidance
CSCO•Cisco’s Q3 2026 revenue reached a record $15.4 billion, up 8% year-over-year, driven by 16% growth in software subscription revenue and strong demand for switching and routing hardware. Management raised full-year revenue guidance by $0.2 billion and increased adjusted EPS outlook, citing robust hybrid-cloud and AI-networking uptake.
1. Record Q3 Financial Performance
Cisco reported Q3 revenue of $15.4 billion, marking an 8% increase from the prior year. Software subscription revenue climbed 16%, while infrastructure hardware sales—particularly switching and routing—also saw mid-single-digit growth.
2. Strategic Investments in AI and Cloud
Management highlighted continued investment in AI-driven networking solutions and expanded hybrid-cloud offerings as key long-term growth catalysts. Spending on R&D increased to 13.5% of revenue, supporting development of predictive network analytics.
3. Raised Full-Year Outlook
Cisco raised its FY26 revenue guidance by $0.2 billion to a range of $60.5 billion–$61 billion and increased its adjusted EPS forecast by $0.05 to $3.10–$3.15. Executives cited strong commercial backlog and accelerating digital transformation demand.
