Why Cisco Systems Stock Jumped 17% Today

Cisco Systems (NASDAQ: CSCO) reported fiscal Q3 2026 net past night. Investors loved what they saw, and the banal is up by 17% astatine 10 a.m. ET.

Cisco crushed expectations

This was a cleanable beat-and-raise report. Cisco's Q3 income roseate 12% twelvemonth implicit twelvemonth to $15.8 billion. Adjusted net accrued 10% to $1.06 per diluted share. The Street statement had pointed to net adjacent $1.04 per stock connected income of astir $15.5 billion.

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Looking ahead, Cisco's absorption besides acceptable full-year and next-quarter guidance targets good supra the existent expert projections. Revenue guidance was astir $1 cardinal supra the statement and the net targets raced 10% up of existing expert targets.

Management cited dense request for AI information halfway infrastructure, acold outweighing tariff uncertainty and flattish income successful the information segment. Product orders jumped 35% from the year-ago period, mounting Cisco up with a beardown bid publication to person into revenues implicit the adjacent mates of years.

And AI is fueling the fires. According to quotes from the net call, CEO Charles Robbins said hyperscaler orders roseate by a triple-digit percentage.

Old dog, caller tricks, tenable terms

Cisco archetypal broke done its dot-com-era banal terms highest successful February 2025, past did it again successful February 2026. Today's 17% jump? That's not a betterment communicative anymore; it's conscionable accordant momentum.

The networking satellite has changed beyond designation since 2000, but Cisco stuck astir and kept adapting. Now it's riding the AI infrastructure boom, with hyperscaler orders much than doubling since Q3 2025 and a $9 cardinal AI bid publication for the year.

Even so, Cisco's valuation remains reasonable. At a guardant P/E of astir 27x based connected the caller FY2026 guidance, Cisco trades astatine a important discount to networking peers similar Ciena (68x forward) and Nokia (32x forward).

This manufacture seasoned looks similar the reasonably priced enactment astatine a array afloat of costly menus. If you privation vulnerability to AI infrastructure without paying arsenic if the roar had already happened, Cisco mightiness merit a person look.

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