Non‑GAAP gross margin was 66.0% in the quarter, down 260 bps YoY, and non‑GAAP product gross margin was 64.3%, down 330 bps. The same AI wave that grew the order book pressured margin. Our CFO says the bigger factor is mix — hardware revenue grew roughly 30% while software was about flat, tilting the blend toward lower‑margin hardware — and we’re also seeing unprecedented memory pricing as the

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CSCO / The counterweight - AI demand fills the book and squeezes the margin

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/p/p-day-20260724-csco-src-csco-memory-margin-hit-rotation ↗

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2026-07-24T23:30:45.366Z