Cisco Forecasts $16.7B–$16.9B Q4 Revenue, Cuts 4,000 Jobs for AI Push
Cisco forecast fiscal Q4 revenue of $16.7–$16.9 billion, beating the $15.8 billion estimate, and will cut up to 4,000 jobs (under 5% of its workforce) to focus on AI-driven data center products. It doubled its hyperscaler order target to $9 billion from $5 billion.
1. Cisco's Q4 Revenue Forecast
Cisco forecast $16.7–$16.9 billion in fiscal Q4 revenue, surpassing the $15.8 billion consensus. The growth reflects accelerating orders from data center customers, particularly hyperscalers handling AI workloads.
2. AI-Focused Restructuring Plan
The company will cut up to 4,000 roles (under 5% of its workforce) and incur up to $1 billion in severance and one-time charges. Freed resources will be redirected toward silicon chips, fiber optics, security solutions and internal AI tool development.
3. Implications for Competitor Arista Networks
Arista Networks, a key rival in data center networking, may face intensified competition as Cisco expands its AI-focused offerings and secures larger hyperscaler contracts. Arista may accelerate its own AI infrastructure portfolio and cost optimization measures to protect market share.