Cisco Q3 revenue +12% on AI infrastructure; gross margin falls 200bp on memory costs

Filed May 19, 2026 · Period ending April 25, 2026 · Compared to 10-Q May 20, 2025 · ~1 min read

Key Changes

• high

  Inventory commitments surged 111% to $16.0B, driven by Cisco Silicon One production for hyperscalers and a new supplier agreement to secure memory components amid ongoing cost pressures.

  MD&A: Inventory and Purchase Commitments verify on EDGAR →
• high

  Gross margin declined 200 basis points as unfavorable product mix and higher memory costs offset productivity gains, reversing prior year's 50bp improvement.

  MD&A: Gross Margin verify on EDGAR →
• high

  AI Infrastructure explicitly called out as a key driver of 25% Networking revenue growth, marking the first time this solution category appears as a named revenue contributor.

  MD&A: Product Revenue verify on EDGAR →