Cisco Surges on Q3 AI Demand, Cuts 4,000 Jobs in Restructuring
Cisco Systems (CSCO) reported fiscal Q3 revenue of $15.84 billion and adjusted earnings of $1.06 per share, topping Wall Street expectations. The company also laid off 4,000 workers as part of a restructuring to focus on AI.
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Cisco Systems (CSCO) shares surged double-digits in extended trading after reporting fiscal third-quarter results that beat Wall Street expectations. Revenue came in at $15.84 billion with adjusted earnings of $1.06 per share, driven by strong demand for AI infrastructure.
Key Financial Results
| Metric | Q3 FY2026 | Consensus |
|---|---|---|
| Revenue | $15.84B | $15.2B |
| Adjusted EPS | $1.06 | $0.98 |
| Net Income | Not disclosed | - |
Highlights from the Report
Cisco attributed its strong performance to rising demand for AI networking and cloud computing solutions. Concurrently, the company announced a workforce reduction of 4,000 employees (approximately 5% of its workforce) as part of a restructuring aimed at reallocating resources toward AI technologies.
Guidance
Cisco did not provide formal guidance for the fourth quarter, but analysts expect continued growth driven by AI demand.
Stock Impact
CSCO stock rose over 10% in after-hours trading, reflecting investor optimism about the company's ability to capitalize on the AI boom.
What This Means for Investors
Cisco's results demonstrate successful leveraging of the AI trend, but the 4,000 job cuts signal a major restructuring. Investors should monitor how effectively this strategy drives sustainable growth.
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