Cisco Systems (CSCO) Q3 FY2026: Networking +25%, Inventory +49%, Q4 Revenue +18%
Cisco Systems posted Q3 FY2026 (quarter ended April 25, 2026) revenue of $15.84 billion (+12.0%) and net income of $3.37 billion (+35.4%), reaffirming double-digit growth. Networking product revenue surged 24.7% year-over-year to $8.82 billion, signaling that the company has entered an AI infrastructure demand cycle. Inventory rose 48.8% versus fiscal year-end (July 26, 2025) to $4.71 billion, and short-term borrowings more than doubled over the same period, flagging risk and liquidity variables. Diluted EPS was $0.85, up 37% from $0.62 in the year-ago quarter.
Important Note: This analysis examines Cisco's Q3 FY2026 10-Q filing. However, Cisco has already reported Q4 and full-year FY2026 results on August 12, 2026. The open questions that existed at the Q3 stage — whether the inventory build reflected demand or a mismatch, and whether the security segment stall was structural — have already been answered. Section 5 verifies each against actual Q4 figures.
