Networking firm CSCO raises fiscal Q4 revenue outlook to $16.7B-$16.9B, exceeding estimates, as AI orders surge.
Cisco shares jumped over 15% in premarket trading after the company issued a stronger-than-expected revenue outlook for its fiscal fourth quarter. The forecast of $16.7 billion to $16.9 billion surpassed Wall Street estimates of $15.8 billion, driven by rising demand for AI-related infrastructure.
The company also announced job cuts affecting fewer than 4,000 employees, or under 5% of its workforce, as part of a strategic shift toward AI. Cisco plans to expand investments in AI networking, cybersecurity, and data center tools, with hyperscaler orders now projected at $9 billion for fiscal 2026, up from $5 billion.
Cisco’s focus on AI appears to be paying off, with shares up 30% year-to-date. The restructuring aims to position the company for long-term growth in the AI era.