Cisco Reports Strong Q3 Earnings, Shares Rise Nearly 60% YTD
Cisco's stock surged nearly 60% year-to-date following a strong Q3 report, showcasing resilience against memory cost pressures. The company's revenue reached $15.8 billion, exceeding expectations and indicating robust growth in enterprise networks and AI infrastructure.
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Cisco Systems reported a record revenue of $15.8 billion for Q3, a 12% increase year-over-year, exceeding analyst expectations of $15.3 billion. The adjusted earnings per share of $1.06 surpassed the forecast of $1.03.
Despite inflationary pressures, Cisco maintained a strong adjusted gross margin of 66%, driven by an increase in networking revenue to $8.8 billion, particularly from high-margin data center switches. The company raised its full-year revenue forecast to $63 billion, reflecting sustained momentum in campus network renewals.
Additionally, Cisco announced a quarterly dividend of $0.42 and executed $1.3 billion in stock buybacks. With $43.5 billion in remaining performance obligations, Cisco projects significant visibility into future revenue, positioning itself as a key player in AI infrastructure with a revised AI order expectation of $9 billion for 2026.
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