### @CSCO — Confirmed — from the Q3 FY2026 earnings call
Non-GAAP gross margin was 66.0% in the quarter, down 260 basis points year-over-year, and non-GAAP product gross margin was 64.3%, down 330 basis points. Our CFO says the bigger factor actually 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 market shifts from DDR4 to DDR5. We’re mitigating this through about 20 programs, price increases, tighter contractual terms and advance purchase commitments, with productivity improvements as a partial offset.
- 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-rotation
- posted: 2026-07-13T00:14:47.326Z