Cisco Systems Forecasts $16.7–$16.9B Q4 Revenue, Shares Soar 17%
Cisco Systems raised fiscal fourth-quarter revenue guidance to $16.7–$16.9 billion versus analyst estimates of $15.8 billion, propelling shares up 17% to a record intraday high. The company will cut fewer than 4,000 jobs with up to $1 billion in severance charges and boosted its fiscal 2026 hyperscaler AI order target to $9 billion from $5 billion.
1. Fiscal Fourth-Quarter Outlook
Cisco Systems said fiscal Q4 revenue will range $16.7 billion–$16.9 billion, topping consensus by roughly $900 million and driving its stock up 17% to an intraday high of $119.36, the biggest gain since August 2011.
2. Organizational Restructuring
The company plans to reduce fewer than 4,000 positions, or under 5% of its workforce, and expects related severance and one-time charges of up to $1 billion to refocus investments on AI networking and data center technologies.
3. AI Networking Order Growth
Cisco raised its fiscal 2026 hyperscaler AI networking order target to $9 billion from $5 billion, reflecting stronger demand for silicon chips, fiber optics, security solutions and AI tools supporting data center buildouts.
4. Q3 Performance and Competition
In fiscal Q3 ended April 25, revenue rose 12% year-over-year to $15.8 billion and adjusted EPS reached $1.06, outpacing estimates, as competitors Broadcom, Hewlett Packard Enterprise and Arista Networks also vie for AI networking market share.