Cisco’s stock pops 11% on earnings beat, strong guidance
The company said the cuts will affect less than 5% of its workforce as it boosts AI spending and lifts full-year revenue guidance.
- On Wednesday, May 13, 2026, Cisco Systems reported fiscal third-quarter earnings of $1.06 per share on $15.84 billion in revenue, beating analyst consensus of $1.04 and $15.56 billion. Shares surged in extended trading following the results.
- Networking revenue surged 25% to $8.82 billion, exceeding the $8.47 billion consensus, as Cisco deployed new switches and routers using its next-generation processor. This growth reflects strong demand for AI-driven infrastructure.
- Cisco CEO Chuck Robbins raised the fiscal year 2026 hyperscaler AI order target to "in excess of $5 billion," with over $3 billion in recognized revenue. Quarterly AI orders totaled $2.1 billion.
- Executives guided for fiscal fourth-quarter adjusted earnings per share between $1.16 and $1.18 on revenue ranging from $16.7 billion to $16.9 billion. This outlook reflects confidence in continued momentum.
- Cisco guided non-GAAP gross margins down to 65.5% to 66.5% due to memory cost pressure, while security revenue fell 4% amid the Splunk cloud transition. These headwinds offset gains in core networking.
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The company also announced almost 4,000 layoffs, representing less than 5% of its workforce
Cisco Surges Most Since Dot-Com On Raised Outlook, AI-Focused Job Cuts
Cisco Surges Most Since Dot-Com On Raised Outlook, AI-Focused Job Cuts Cisco Systems shares posted their biggest gain since the Dot-Com boom-and-bust era after the networking giant delivered third-quarter results that beat analysts' estimates. The company also announced a workforce restructuring, aligning with a broader hyperscaler playbook that cuts labor costs and redirects capital toward AI infrastructure and data-center buildouts. Cisco rais…
Cisco lays off 4,000 employees, CEO says must take hard decisions in AI era
American tech firm Cisco has announced that it plans to lay off just under 4,000 workers. Cisco CEO Chuck Robbins wrote in an internal memo that the company needed to make hard decisions to win in the “AI era.”
The Register
technewstube.comCisco to fire 4,000 staff and generously give them free training – on Cisco
Cisco will make around five percent of staff redundant and has generously offered them free Cisco training for a year once they’re gone. CEO Chuck Robbins broke the news in a Wednesday blog post titled “Our Path Forward” that opens “Today we announced our Q3 FY26 earnings with record revenue of $15.8 billion, up 12 percent year over year, and double-digit top and bottom-line growth. The ELT [executive leadership team] and I could not be prouder …
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