Cisco Boosts Q4 Revenue Outlook to $16.7B–$16.9B, Cuts 4,000 Jobs
Cisco raised its fiscal Q4 revenue outlook to $16.7–$16.9 billion, topping Street forecasts of about $15.8 billion, while announcing cuts of fewer than 4,000 jobs to refocus on AI. Hyperscaler AI orders are now projected at $9 billion for fiscal 2026, up from a prior target of $5 billion.
1. Revenue Outlook Exceeds Estimates
Cisco raised its fiscal fourth quarter revenue outlook to $16.7 billion–$16.9 billion, surpassing analyst forecasts of approximately $15.8 billion and signaling strong demand.
2. Workforce Reductions and AI Refocus
The company plans to cut fewer than 4,000 positions, under 5% of staff, to reallocate resources towards artificial intelligence initiatives and sharpen strategic focus.
3. Surge in Hyperscaler AI Orders
Orders from major data center operators are now projected at $9 billion for fiscal 2026, up from a prior $5 billion target, driven by demand for networking silicon, fiber optics, and cybersecurity solutions tailored for AI workloads.
4. Stock Reaction and Strategic Implications
Shares jumped over 15% in premarket trading and are up 30% year to date, reflecting investor confidence in Cisco's AI-driven strategy and anticipated revenue growth.