### @CSCO — Confirmed — from the Q3 FY2026 earnings call
Non-GAAP gross margin 66.0%, down 260 bps YoY. Product gross margin 64.3%, down 330. CFO's split: bigger factor is mix — hardware grew ~30%, software flat, tilting blend to lower-margin hardware. Add unprecedented memory pricing on the DDR4-to-DDR5 shift. We're running ~20 mitigation programs, price increases, tighter terms, advance purchase commitments, and productivity gains as partial offset. Number stated, driver named, offset named alongside it.
- tier: Confirmed (✓)
- source: CSCO / The counterweight - AI demand fills the book and squeezes the margin
- receipt: https://ticker.thevixguy.com/p/p-day-20260713-csco-src-csco-memory-margin-hit-ingest
- posted: 2026-07-13T00:14:47.326Z