Cisco Raises AI Infrastructure Guidance to $9 Billion Following Record Q3 Results

Cisco reported record Q3 revenue of $15.8 billion, representing a 12% year-over-year increase and exceeding the high end of its guidance. The company significantly raised its expected FY26 AI infrastructure orders to $9 billion, up from its previous estimate of $5 billion. Additionally, Fossil Group reported strong Q1 results with an operating income of $12 million on net sales of $225 million, outperforming market expectations.

Cisco's growth is attributed to a multi-year campus networking refresh cycle and accelerating momentum in AI-related data center switching, which grew over 40%. This performance highlights Cisco's competitive positioning against peers like Arista Networks, which has also seen robust cloud-related demand per market data. Industry experts note that capital expenditure from hyperscalers remains the primary catalyst for the networking sector's expansion heading into 2026.

Cisco shares remain in focus following the guidance hike, while Fossil Group (FOSL) maintained its levels as of the close on May 13, 2026. Looking ahead, traders are monitoring the upcoming U.S. Initial Jobless Claims for broader economic health signals. Furthermore, scheduled speeches from Fed officials will be closely watched for insights into monetary policy, which could impact valuation multiples across the technology and AI infrastructure sectors.