Cisco Stock Rises on $15.8 Billion Revenue, AI Guidance Boost
Cisco stock moved on May 13, 2026 after the company reported record third-quarter revenue of $15.8 billion and said FY26 AI infrastructure expectations were higher. The quarter added 12% revenue growth year over year, giving shareholders a fresh read on demand across networking and data center gear.
For buyers and investors, the updated view points to a longer runway for Cisco’s AI infrastructure business, while the margin profile shows the company is still converting that demand into profit. The harder part is the mix: Cisco also said its guidance includes the estimated impact of tariffs based on current trade policy.
Record Revenue And 12% Growth
$15.8 billion in quarterly revenue set a record for Cisco, and the 12% increase from a year earlier showed the company is still getting traction in core networking. That growth did not come from one small product line. Cisco said broad-based demand helped the quarter, including hyperscaler-related AI infrastructure demand and a campus networking refresh cycle.
$0.85 in GAAP EPS came in 37% above the prior year, while non-GAAP EPS reached $1.06, up 10% year over year. Those numbers matter because they show Cisco’s top-line growth was not just a sales story; the business also expanded earnings on both accounting bases.
Orders Surge Past 35%
35% year-over-year growth in total product orders showed the order book moving faster than revenue, and that helps explain why management lifted its FY26 outlook. Excluding hyperscalers, product orders still rose 19%, which suggests demand was not limited to the largest cloud customers.
More than 50% growth in networking product orders pointed to strength in Cisco’s core franchise, with campus networking orders rising greater than 25% and data center switching orders rising greater than 40%. Cisco said it had $5.3 billion of orders taken year to date, a running tally that shows how quickly the pipeline has filled.
FY26 Orders Rise To $9 Billion
$9 billion is Cisco’s new FY26 orders expectation, up from $5 billion. Revenue expectations for AI infrastructure were also raised to $4 billion from $3 billion. Those changes tell customers and investors the company is no longer treating AI buildout as a narrow bet; it is now feeding into the broader order and revenue plan.
63.6% GAAP gross margin and 66.0% non-GAAP gross margin show Cisco kept a healthy share of each sales dollar after direct costs, while operating margin stayed at 25.0% on a GAAP basis and 34.2% on a non-GAAP basis. EPS guidance also includes the estimated impact of tariffs based on current trade policy, so the next read on execution will come with a policy cost already baked in.
