Cisco Reports Record $15.84B Q3 Revenue, Cuts 4,000 Jobs for AI Growth
Cisco posted record Q3 revenue of $15.84B, up 12% YoY, beating estimates and raised its full-year AI infrastructure order target to $9B from $5B while cutting 4,000 jobs (<5% headcount) in a $1B restructuring to refocus on AI. The company also declared a steady quarterly dividend of $0.42 per share, maintaining shareholder payout while supporting growth in AI and networking.
1. Fiscal Third Quarter Results
Cisco posted record Q3 revenue of $15.84 billion, up 12% year over year, with GAAP profit of $3.37 billion ($0.85 per share) and adjusted EPS of $1.06, surpassing consensus estimates on both top and bottom lines.
2. AI Infrastructure Orders and Guidance
Cumulative AI infrastructure orders from hyperscale customers reached $5.3 billion through Q3, prompting Cisco to raise its full-year AI orders target to $9 billion from $5 billion and lift AI-related revenue guidance to $4 billion for fiscal 2026. For Q4, the company projects revenue of $16.7–16.9 billion and adjusted EPS of $1.16–1.18.
3. Workforce Restructuring
Cisco plans to cut nearly 4,000 positions, representing under 5% of global headcount, as part of a $1 billion pre-tax restructuring to reallocate resources toward silicon, optics, security, and AI initiatives. About $450 million of restructuring charges will be recognized before fiscal year-end, with the remainder in fiscal 2027.
4. Dividend and Shareholder Returns
The board declared a quarterly dividend of $0.42 per share, payable July 22 to shareholders of record on July 6, underscoring Cisco’s commitment to steady shareholder returns while funding growth in AI infrastructure and enterprise networking.