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Cisco Systems (CSCO)
NASDAQ:CSCO
Earnings Data
Report Date
May 20, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
1.03Last Year’s EPS
0.96Same Quarter Last Year
Moderate Buy
Based on 13 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed strong overall momentum: record revenue, double-digit product and EPS growth, robust order activity across networking and AI infrastructure, meaningful progress with Silicon One and optics, expanding recurring revenue and solid capital returns. These positives are tempered by near-term margin pressure driven by memory price inflation and product mix, the Splunk transition and a one-time tax cash impact that reduced operating cash flow. Hyperscaler demand is substantial but lumpy and concentrated, creating some timing and visibility risk. Management communicated clear mitigation actions (price increases, contract adjustments, advanced purchase commitments) and reiterated confidence in FY26 targets.Company Guidance
Record Revenue and EPS Growth
Total revenue of $15.3 billion, up 10% year-over-year; non-GAAP net income of $4.1 billion, up 10%; non-GAAP EPS of $1.04, up 11%, both exceeding the high end of guidance.
Product Revenue and Networking Strength
Total product revenue of $11.6 billion, up 14% YoY; Networking product growth of 21% driven by AI infrastructure, campus refresh, data center and campus switching, wireless, routing and servers; networking product orders >20% and sixth consecutive quarter of double-digit networking growth.
Robust Order Trends and Broad-Based Demand
Product orders up 18% YoY (excluding hyperscalers up 10%); geographic product order growth with Americas +23%, EMEA +11%, APJC +15%; customer market orders: service provider & cloud +65%, public sector +11%, enterprise +8%; telco & cable orders nearly +20%.
AI Infrastructure Momentum and Silicon One Milestones
Hyperscaler AI infrastructure orders of $2.1 billion in Q2 (vs. $1.3B last quarter and equal to FY25 total); shipped 1 millionth Silicon One chip; introduced 102.4Tbps G300 chip and new 102.4Tbps systems; company now expects AI orders in excess of $5 billion and to recognize >$3 billion in hyperscaler AI infrastructure revenue in FY26.
Security and New Product Traction
New and refreshed security products (roughly one-third of portfolio) added >1,000 new customers in Q2 (>100% QoQ growth) and ~4,000 net new customers since launch; Secure Access booked >2.5 million users in Q2; three consecutive quarters of double-digit firewall unit growth.
Recurring Revenue and Subscription Mix
Total RPO $43.4 billion, up 5%; product long-term RPO $11.8 billion, up 11%; total ARR $31 billion, up 3% (product ARR +6%); subscription revenue $7.8 billion representing 51% of total revenue; total software revenue $5.7 billion, up 2%.
Capital Return and Dividend Increase
Returned $3.0 billion to shareholders in the quarter ($1.6B dividends, $1.4B buybacks), YTD $6.6B returned; announced quarterly dividend increase of $0.01 to $0.42 and $10.8 billion remaining under repurchase authorization.
Operational Execution and Profitability
Non-GAAP operating margin 34.6% (above the high end of guidance); demonstrated operating leverage with EPS growing faster than revenue; advanced purchase commitments increased ~$1.8 billion in 90 days (up ~73% YoY), helping secure supply.
Customer Adoption of AI and Internal Productivity Gains
Splunk reached 500 new logos in H1 and is on track for 1,000 in FY26; majority of product developers using AI coding assistants; >90% of customer support cases touched by AI/automation, resolving a greater proportion of complex cases within 1 day and driving highest ever customer satisfaction scores.
Strategic Partnerships and New Ventures
Announced joint venture plans with AMD and HUMAIN to deliver up to 1 gigawatt of AI infrastructure by 2030 (Phase 1: 100MW in Saudi Arabia) and strengthened ecosystem engagements (e.g., increased NVIDIA engagements +70% sequentially).
CSCO Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
CSCO Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Feb 11, 2026 | $85.54 | $75.00 | -12.32% |
Nov 13, 2025 | $76.97 | $77.58 | +0.80% |
Aug 14, 2025 | $68.52 | $65.45 | -4.47% |
May 14, 2025 | $60.23 | $63.15 | +4.85% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Cisco Systems (CSCO) report earnings?
Cisco Systems (CSCO) is schdueled to report earning on May 20, 2026, After Close (Confirmed).
What is Cisco Systems (CSCO) earnings time?
Cisco Systems (CSCO) earnings time is at May 20, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is CSCO EPS forecast?
CSCO EPS forecast for the fiscal quarter 2026 (Q3) is 1.03.
