InferentialThe Picks-and-Shovels Tax
Cisco raised its FY26 AI infrastructure order target from $5 billion to $9 billion on Wednesday — an 80% guide-raise nine months into the fiscal year — and lost 260 basis points of non-GAAP gross mar
The Picks-and-Shovels Tax
Cisco raised its FY26 AI infrastructure order target from $5 billion to $9 billion on Wednesday — an 80% guide-raise nine months into the fiscal year — and lost 260 basis points of non-GAAP gross margin doing it. Hyperscaler AI orders printed $1.9 billion in Q3 alone against $600 million in the year-ago quarter. Networking revenue grew 25% to $8.82 billion. Total revenue hit a record $15.8 billion. The stock jumped roughly 15% after-hours. And the same press release announced 4,000 layoffs with up to $1 billion in restructuring charges, $450 million of which lands in Q4.