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Cisco Raises Outlook After Earnings Beat, Plans Sub-5% Job Cuts for AI

The pivot reflects surging data-center orders for AI hardware that Cisco now pegs at about $9 billion this fiscal year.

Overview

  • Cisco, which reported results Wednesday, posted record fiscal Q3 revenue of $15.84 billion and adjusted EPS of $1.06, topping estimates as shares jumped in extended trading.
  • Management lifted its full-year revenue target to $62.8 billion to $63.0 billion after stronger demand from cloud giants building AI data centers.
  • The company will cut fewer than 4,000 roles in Q4 to redirect spending into silicon, optics and security, with up to $1 billion in restructuring charges and about $450 million booked this quarter.
  • Cisco boosted its AI order outlook to about $9 billion for FY26 after logging $5.3 billion year to date, as networking gear tied to AI buildouts gains traction.
  • Networking revenue rose 25% to $8.82 billion, yet analysts warned higher memory and component costs could squeeze gross margins even as Cisco raises prices.