CLAIM #17943 · Cisco Systems Inc (CSCO) · 2026Q3 earnings call · May 13, 2026

“You'll start to see some of that benefit in Q4, which is good because that's really -- those are the actions that are helping us stabilize gross margins.”

Mark Patterson · CFO

How to check this claim

Look at: Gross margin (company-reported, quarterly), Q4 fiscal quarter

It came true if: Q4 gross margin sequentially stable or higher versus Q3 gross margin (i.e., Q4 gross margin >= Q3 gross margin)

Where: Quarterly income statement / earnings release (Q4 FY2026 results)

Knowable after: 2026-07-31

In context

“ng impact. You mentioned 4 to 5 points in this past quarter. As you look forward, is it fair that in the July quarter, you'll get a more significant impact from pricing being fully baked into the full quarter? Is that a dynamic here that is part of your guidance? Mark Patterson: Yes. George, so I think that as you look forward, there's a little bit of a difference between orders and revenue. So on the order side, I think that, that is a fair assumption that you would see a higher impact from price increases as the price increases are now sort of fully absorbed, if you will, as we get into Q4. On the revenue side, you really didn't see any impact in Q3 per se that was due to the price increases just based on timing of when you take the order and when it goes into the build plan, et cetera. You'll start to see some of that benefit in Q4, which is good because that's really -- those are the actions that are helping us stabilize gross margins. So the impact of higher memory prices is actually much more acute in Q4, but you also have the price increases helping us in terms of what we'll ship out in Q4, and that's really been a big part of what's helped us stabilize gross margins. Ahmed Sami Badri: I'm going to hand it over to Chuck for some closing remarks. Charles Robbins: First of all, thanks to all of you for joining our call today, and I want to thank our teams. I'm very proud of what we've been able to achieve, the great results, really driven by the relevance of our technology and our role as what we believe to be a critical infrastructure player for this AI era. We've made incredible progress with hyperscalers based on Silicon One and Optics positioning us so well. We continue to be incredibly relevant in the enterprise a”

Verify independently

SEC filings for CSCO ↗ · Quote is verbatim from the 2026Q3 earnings call.