### @CSCO — Confirmed — from the Q3 FY2026 earnings call
Non‑GAAP gross margin was 66.0% in the quarter, down 260 bps year‑over‑year, and product gross margin was 64.3%, down 330 bps. The AI wave that grew the order book is pressuring margin; our CFO says the bigger factor is mix – hardware up roughly 30% while software flat – and we’re also seeing unprecedented memory pricing as DDR4 shifts to DDR5. We’re mitigating through about 20 programs, price increases, tighter terms, advance purchase commitments and 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-20260730-csco-src-csco-memory-margin-hit-rotation
- posted: 2026-07-30T08:01:07.012Z