Cisco Jumps 13% as Q4 Guidance Tops Estimates by $1B
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- Cisco Systems (CSCO) shares climbed 13% in after-hours trading Wednesday following the release of its Q3 fiscal 2026 results and Q4 guidance, as the company's forecast topped consensus by nearly $1 billion on AI infrastructure momentum.
- For the quarter ended April 25, Cisco reported adjusted EPS of $1.06 versus the $1.04 consensus estimate, with GAAP EPS of $0.85.
- The article's headline frames the surge as 'AI infrastructure taking off,' linking the $1 billion guidance beat directly to demand for AI-related networking products.
Why it matters: A nearly $1 billion guidance beat is a material signal that AI infrastructure spending is flowing into Cisco's networking business, not just to chip and cloud providers. The 13% after-hours pop rewards investors who positioned for an AI-driven upside surprise, while the gap between adjusted ($1.06) and GAAP ($0.85) EPS shows the reported beat still rests on notable adjustments that bulls and bears will parse differently.
