Cisco Surges After Record Quarter Fuelled by AI Infrastructure Boom

Cisco Systems (NASDAQ: CSCO) shares rocketed 16.2% in after-hours trading on Wednesday after the networking giant delivered a record-breaking third quarter, comfortably beating Wall Street expectations on both revenue and earnings.

The San Jose-based company reported Q3 FY2026 revenue of $15.8 billion, up 12% year-over-year and ahead of the analyst consensus of $15.56 billion. Non-GAAP earnings per share came in at $1.06, topping the $1.04 consensus estimate, while GAAP EPS surged 37% year-over-year to $0.85.

The standout driver was an explosive surge in AI-related demand. Cisco revealed it has taken $5.3 billion in AI infrastructure orders year-to-date from hyperscalers, dramatically raising its full-year FY2026 AI order expectations to $9 billion — up from a prior forecast of just $5 billion. Meanwhile, total product orders rose 35% year-over-year, with networking orders accelerating to more than 50% growth.

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“Cisco is well-positioned as the critical infrastructure for the AI era,” said CEO Chuck Robbins, pointing to strong demand across campus networking, which grew more than 25%, and data centre switching, up more than 40%.

Looking ahead, Cisco issued bullish Q4 guidance, forecasting revenue of $16.7–$16.9 billion and non-GAAP EPS of $1.16–$1.18. Full-year FY2026 revenue guidance was raised to $62.8–$63.0 billion.

The company also announced a new restructuring plan of up to $1 billion to redirect investment into silicon, optics, security, and AI — signalling a bold strategic pivot as the networking landscape is reshaped by the generative AI buildout.