CISCO SYSTEMS, INC. Earnings Summary — Q3 2026

• Revenue growth accelerated to 11.96% YoY, reaching $15.84 billion for the quarter.
• Net income surged by over 35% compared to the prior year period, reflecting strong operational leverage.
• Operating income reached $3.96 billion, marking the third consecutive quarter of growth.
• The ongoing business model transition toward software and security is showing positive momentum in recurring revenues.
• Cost of revenue was effectively managed at $5.76 billion despite increased shipment volumes.
• Shares outstanding continues a slow decline, supporting EPS through targeted buybacks.
• Research and Development spending remains high at $2.38 billion to maintain technological competitiveness.

Management is focusing on 'The Network. Intuitive.' vision with an emphasis on shifting the revenue mix further toward Security and Software, targeting stabilized absolute net income above $10B annually.

Improving

The transition from hardware-centric networking to a software-and-subscription model is gaining traction, evidenced by strong YoY growth and margin expansion.

The company is successfully navigating the shift to SaaS, though it faces intense competition from hyper-scale rivals. Outlook remains stable as the Splunk acquisition integration bolsters data and security capabilities.