Cisco Q3 Revenue Up 12% to $15.8B, Raises AI Order Forecast to $9B
Cisco reported Q3 revenue of $15.84 billion, up 12%, net income of $3.37 billion (85¢ per share) driven by a 25% rise in networking sales to $8.82 billion and over 50% growth in AI infrastructure orders. It raised full-year AI order target to $9 billion and guided Q4 EPS of $1.16–$1.18 on $16.7–$16.9 billion revenue.
1. Strong Q3 Financial Results
Cisco’s fiscal third-quarter revenue rose 12% year-over-year to $15.84 billion, with net income climbing to $3.37 billion, or 85 cents per share. Networking product sales surged 25% to $8.82 billion and data-center switching orders increased over 40%, driven by enterprise infrastructure investments.
2. Robust AI Infrastructure Demand
Orders for AI infrastructure exceeded 50% year-over-year growth in the quarter, with Cisco receiving $5.3 billion from hyperscalers and cloud providers so far this fiscal year. The company raised its full-year AI orders forecast to $9 billion and lifted its AI revenue outlook to $4 billion.
3. Q4 Outlook and Restructuring Plans
For the fiscal fourth quarter, Cisco guided adjusted EPS of $1.16 to $1.18 and revenue of $16.7 to $16.9 billion, well above consensus estimates. The company plans to cut fewer than 4,000 jobs, incurring $1 billion in severance and restructuring charges, about $450 million of which will be recognized this quarter.