Cisco Shares Hit Record on Strong Forecast, AI Push with Job Cuts
Cisco says the cuts will help shift spending toward artificial intelligence and cybersecurity after record revenue and double-digit quarterly growth.
- On Thursday, Cisco Systems announced plans to cut nearly 4,000 jobs, or around 5% of its workforce, while reporting record Q3 FY2026 revenue of $15.84 billion, up 12% year over year.
- Cisco management framed the staff reduction as necessary to change its "cost structure" and prioritize investments in AI and cybersecurity, doubling its FY2026 AI infrastructure order target to $9 billion from $5 billion.
- Shares climbed roughly 17% in early trading Thursday as investors responded to the record revenue and "double-digit growth" touted by CEO Chuck Robbins, positioning Cisco to extend its lead over networking peers like Arista Networks.
- This decision follows a broader trend of technology companies reducing headcount to prioritize AI spending. Cisco cut 150 jobs in 2025 and thousands during two separate layoffs in 2024, establishing a pattern of repeated reductions.
- Cisco continues to address security vulnerabilities in its routers and firewalls while maintaining capital-return commitments through a $0.42 quarterly dividend and $9.6 billion remaining buyback authorization for shareholders.
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The post Cisco Is Up 17% Today: Is It Outperforming Other Networking Stocks Like Hewlett Packard Enterprise and Arista Networks? appeared first on 24/7 Wall St.. Quick Read Cisco Systems (CSCO) reported record Q3 FY2026 revenue of $15.84B, up 12% year over year, and doubled its AI infrastructure order target to $9B from $5B, sending shares up 17%. Hewlett Packard Enterprise (HPE) stock rose 6% with networking segment revenue surging 152% to $…
Cisco cuts 4,000 jobs despite record turnover
Cisco has announced plans to cut around 4,000 jobs this quarter, despite reporting record revenue. The decision affects less than 5% of Cisco’s workforce and will mainly impact staff worldwide. Although the company did not specify the number of redundancies in particular locations such as San Jose or California, the job cuts are part of [… The post Cisco cuts 4,000 jobs despite record turnover appeared first on TechCentral.ie.
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