Filing Flows › Cisco Systems (CSCO) › Q3 FY26 › vs Q2 FY26
Cisco Systems (CSCO) Q3 FY26 vs Q2 FY26 (quarter over quarter)
Cisco Systems's revenue rose $492M (+3%) from $15.3B in Q2 FY26 to $15.8B in Q3 FY26. The biggest changes: Product +$473M (+4%); Services +$17.0M (+0.5%). Gross margin 63.6% against 65.0% (-1.3 pts).
Cisco Systems, Q3 FY26: revenue $15.8B (+12% year over year), operating margin 25.0%, net earnings $3.4B, operating cash flow $3.8B. The chart draws each line against Q2 FY26, the increases inside each band.
Margins
| Q3 FY26 | Q2 FY26 | Change | |
|---|---|---|---|
| Gross margin | 63.6% | 65.0% | -1.3 pts |
| Operating margin | 25.0% | 24.6% | +0.4 pts |
| Net margin | 21.3% | 20.7% | +0.6 pts |
| Free cash flow margin | 21.1% | 10.0% | +11.1 pts |
Every line
| Line | Q3 FY26 | Q2 FY26 | Change | % |
|---|---|---|---|---|
| Networking | $8.8B | $8.3B | $521M | +6% |
| Security | $2.0B | $2.0B | −$10.0M | -0.5% |
| Collaboration | $1.0B | $1.1B | −$30.0M | -3% |
| Observability | $269M | $277M | −$8.0M | -3% |
| Product | $12.1B | $11.6B | $473M | +4% |
| Services | $3.7B | $3.7B | $17.0M | +0.5% |
| Revenue | $15.8B | $15.3B | $492M | +3% |
| Gross profit | $10.1B | $10.0B | $108M | +1% |
| Cost of revenue | $5.8B | $5.4B | $384M | +7% |
| Other income, net | $79.0M | −$135M | $214M | — |
| Operating profit | $4.0B | $3.8B | $179M | +5% |
| Operating expenses | $6.1B | $6.2B | −$71.0M | -1% |
| Pre-tax earnings | $4.0B | $3.6B | $393M | +11% |
| Research & development | $2.4B | $2.4B | $22.0M | +0.9% |
| Sales & marketing | $2.9B | $2.9B | −$26.0M | -0.9% |
| General & admin | $661M | $688M | −$27.0M | -4% |
| Other operating costs | $227M | $267M | −$40.0M | -15% |
| Net earnings | $3.4B | $3.2B | $198M | +6% |
| Income tax | $666M | $471M | $195M | +41% |
| Share-based compensation | $914M | $934M | −$20.0M | -2% |
| Working capital & other | $530M | $2.3B | −$1.8B | -77% |
| Operating cash flow | $3.8B | $1.8B | $1.9B | +106% |
| Free cash flow (OCF − capex) | $3.3B | $1.5B | $1.8B | +117% |
| Capital expenditures | $414M | $283M | $131M | +46% |
Questions
How much did Cisco Systems's revenue grow quarter over quarter in Q3 FY26?
Cisco Systems's revenue rose $492M (+3%) from $15.3B in Q2 FY26 to $15.8B in Q3 FY26.
What drove Cisco Systems's revenue change in Q3 FY26?
Product +$473M (+4%); Services +$17.0M (+0.5%).