Cisco Beats Q3, Cuts 4,000 Jobs, Lifts AI Outlook
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- Cisco reported Q3 revenue up 12% YoY to $15.84B, topping the $15.56B Wall Street estimate (per CNBC, Reuters, Bloomberg)
- Cisco is cutting approximately 4,000 jobs as part of an AI- and security-focused restructuring, per CRN, Business Insider, and the SF Chronicle
- Cisco raised its FY 2026 AI orders forecast, sending shares up 17–19%+ after hours and toward a record high (per Investor's Business Daily, Dow Jones, Barron's)
- Cloud providers are ramping AI-related networking orders, a key driver of the beat, per The Information and Bloomberg
- CEO Chuck Robbins sent employees a memo titled 'Our Path Forward' explaining the restructuring rationale, per Cisco Blogs
- San Jose absorbs the local impact: the SF Chronicle and SFGATE framed the cuts as a record-revenue quarter that nonetheless comes with thousands of Bay Area layoffs
Why it matters: Cisco is reallocating roughly 4,000 roles toward AI and security priorities even while posting record revenue and raising its FY 2026 AI orders outlook—a signal that legacy networking headcount is being sacrificed to fund the AI infrastructure build-out. With shares spiking 17–19%+ after hours (CNBC, Investor's Business Daily), the market is treating the layoffs as a positive reallocation, not a distress signal.
