Cisco's stock pops 17% on surging AI orders, as company says it's cutting almost 4,000 jobs
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- Cisco shares jumped 17% in after trading after the company posted earnings and guidance that beat Wall Street forecasts.
- Cisco earnings for the quarter ended April 25 came in at $1.06 adjusted EPS (vs $1.04 expected) on $15.84 billion revenue (12% YoY growth), with net income rising to $3.37 billion.
- Cisco job cuts will affect fewer than 4,000 employees (under 5% of its workforce) with pre‑tax severance charges of about $1 billion, $450 million of which will be recognized in the fourth quarter.
- Cisco AI orders total $5.3 billion so far this year, and the company lifted its FY AI order forecast to $9 billion and AI‑related revenue outlook to $4 billion (up from $3 billion).
- Cisco networking revenue climbed 25% to $8.82 billion, beating analyst estimates, while security revenue held steady near $2 billion.
Why it matters: Investors gain as Cisco's 17% stock surge reflects strong AI demand, while the workforce loses up to 4,000 jobs; the AI order influx and higher revenue outlook position Cisco to capture growing data‑center spend.
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