AI Infrastructure Networking revenue increased 28% year over year to $9.8B. Within Networking, AI infrastructure revenue reached approximately $4B for FY2026, up approximately 300% from $1B, and AI infrastructure orders reached $9.3B. Security revenue increased 14% to $2.23B, Collaboration revenue increased 12% to $1.17B, Observability revenue increased 6% to $275M, while Services revenue was flat at $3.79B.
Nebius AI Cloud Nebius AI cloud revenue increased 514% to $574.9M representing 98% of group revenue. Management attributed revenue growth to capacity added in Q1, higher utilization, and high margin revenue from Token Factory and recent acquisitions.
Spacecraft Manufacturing Launch Services declined 4% year over year to $44.6M while Space Systems revenue increased 94% to $189.5M. Within Space Systems, Products revenue was $181.4M and Services revenue was $8.1M. Space Systems revenue increased primarily due to spacecraft manufacturing growth and acquisitions. Launch Services revenue decreased primarily due to revenue recognition timing.
Installation & Maintenance Engineering & Consulting revenue increased 14.0% year over year to $165.8M and Installation & Maintenance revenue increased 141.9% to $872.1M. Engineering & Consulting adjusted gross margin declined to 33.2% from 40.7%, primarily due to a higher percentage of subcontractor expenses, a revenue mix shift toward the lower margin Program & Project Management service line and lower project margins in Engineering & Design.
AI Infrastructure Networking revenue increased 25% year over year to $8.8B. Within Networking, Cisco reported $5.3B in AI infrastructure orders year to date through Q3 FY2026, with the company expecting FY2026 AI infrastructure orders to reach $9B and AI infrastructure revenue to reach $4B. Security revenue was flat at $2.0B, Collaboration revenue decreased 1% to $1.0B, Observability revenue increased 3% to $269M, while Services revenue declined 1% to $3.7B.
Nebius AI Cloud Nebius AI cloud revenue increased 841% to $389.7M. Management attributed group revenue growth to capacity scaling, supported by pricing and utilization.
New Construction New Construction revenue increased 61.1% to $650.7M and Existing Infrastructure revenue declined 5.8% to $25.0M. Management attributed the significant increase in New Construction revenue to backlog realization, supported by productivity gains from continued strong project execution and seasonally favorable weather conditions in key regions.
Space Systems Launch Services revenue increased 79% year over year to $63.7M and Space Systems revenue increased 57.2% to $136.7M. Neutron remained on track for its debut launch later in 2026, while research and development expenses increased primarily due to Neutron development progress.
