Overview
- Cisco’s workforce reduction, which began Thursday, May 14, targets fewer than 4,000 roles as the company shifts funding toward silicon, optics, security and AI-focused products.
- Cisco reported record Q3 FY26 revenue of $15.8 billion, up 12% year over year, and guided Q4 sales to $16.7–$16.9 billion, above analyst expectations.
- Management raised its FY26 AI infrastructure orders outlook to $9 billion and lifted expected AI revenue to about $4 billion after booking $1.9 billion in AI orders in the quarter and winning new hyperscaler designs.
- Shares jumped to an intraday record on Thursday, with analysts boosting targets including HSBC to $137 (Buy), Morgan Stanley to $120 and Rosenblatt to a Street-high $150.
- The restructuring carries roughly $1 billion in charges, including about $450 million in Q4 FY26, and affected employees will receive pro-rated bonuses, job placement support and one year of access to Cisco U training.