Cisco Forecasts $16.7-16.9B Q4 Revenue, Cuts Under 5% Workforce
HPE•Cisco Systems projects fiscal Q4 revenue of $16.7 billion to $16.9 billion versus a $15.8 billion analyst estimate and plans to cut fewer than 4,000 jobs (under 5% of headcount). The restructuring will incur up to $1 billion in severance costs while boosting AI-focused silicon, fiber optics and security investments.
1. Revenue Forecast
Cisco projects fiscal fourth-quarter revenue of $16.7 billion to $16.9 billion, exceeding the $15.8 billion consensus. The strong guidance reflects accelerating demand from data center customers pivoting to AI workloads.
2. Workforce Reduction & Costs
The company will eliminate fewer than 4,000 positions, representing under 5% of its global workforce, to reallocate resources. These cuts will trigger up to $1 billion in severance and other one-time charges.
3. AI-Focused Restructuring
Cisco is reallocating investment toward AI initiatives, including expanded silicon development, fiber optics and cybersecurity. Management intends to deepen internal AI usage and roll out products tailored to data center operators handling AI tasks.
4. Hyperscaler Order Surge
Orders from hyperscale data center operators are expected to reach $9 billion in fiscal 2026, up from a prior $5 billion target. This uplift underscores growing traction with the largest AI infrastructure customers.
