CSCO raises full-year AI infrastructure orders forecast to $9 billion following 25% networking revenue growth in Q3 FY26.
Cisco reported record Q3 FY26 revenue of $15.841 billion, driven by 25% growth in networking revenue and a 35% year-over-year surge in total product orders. The company also raised its AI infrastructure orders guidance to $9 billion for the full year, reinforcing its pivot to AI-driven demand.
The stock has rallied 51.59% year-to-date, outpacing many legacy tech peers, but a trailing P/E of 37 and recent insider selling suggest much of the upside may already be priced in. Analysts note the campus refresh cycle remains in early stages, though valuation concerns persist.
Shares traded at $115.53 after a 25.36% weekly gain tied to the earnings report. A 24/7 Wall St. price target of $112.47 implies modest downside over the next 12 months, with a hold recommendation at 90% confidence.