Cisco Systems, Inc.

Q3 results beat guidance; strong top-line + EPS, driven by AI infrastructure & networking - Record Q3 revenue: $15.8B (+12% YoY); non-GAAP EPS: $1.06 (+10% YoY), both above the high end of guidance. - Product revenue: $12.1B (+17%); services revenue: $3.7B (-1%) (timing of service contract start dates). - Non-GAAP operating margin: 34.2%; non-GAAP gross margin: 66% (-260 bps YoY) (mainly memory/mix headwinds offset by productivity).

Orders momentum broad-based, with hyperscaler AI driving step-change and networking accelerating - Total product orders: +35% YoY; ex-hyperscaler orders: +19% YoY (signals strength beyond just hyperscalers). - Enterprise orders: +18% YoY; public sector: +27% YoY. - Service provider & cloud orders: +105% YoY, with top hyperscalers each growing in triple digits. - Networking product orders: >+50% YoY (service provider routing & compute triple-digit; data center switching, campus switching/routing/wireless, and industrial IoT all growing). - AI infrastructure orders (hyperscalers): $1.9B in Q3 vs $0.6B YoY ago.

AI infrastructure outlook upgraded/strengthened for FY26: expectations of ~$9B hyperscaler AI orders - Hyperscaler AI infrastructure orders expected: ~ $9B in FY26 (4.5x FY25)—reflecting very strong demand. - AI infrastructure revenue expected: ~$4B from hyperscalers in FY26. - Management says FY26 AI hyperscaler orders YTD $5.3B already exceed the prior expectation of $5B with one quarter remaining. - Acacia coherent pluggable optics: > $1B orders in Q3; on track for >200% YoY growth in FY26; shipped >750k 400G and >40k 800G coherent pluggables; multiple design wins (systems + optics).