Cisco surges 15% on AI orders boom, plans to cut 4,000 jobs
Cisco beat Wall Street estimates as orders for AI infrastructure surged in the latest quarter, sending the stock up about 15% toward a record. Management said the company will cut roughly 4,000 jobs globally to reinvest in artificial intelligence and security.
Networking giant Cisco beat Wall Street's earnings and revenue forecasts in its quarterly results released Wednesday, with management pointing to a sharp acceleration in orders tied to artificial intelligence infrastructure. Data centre customers expanded annual contracts in the period, executives said.
The company said it will cut about 4,000 jobs worldwide as part of a restructuring that frees up funds for AI networking products and cybersecurity. Shares rallied roughly 15% after hours, putting the stock near a record high and adding to a strong year for AI-linked names.
Cisco lifted its full-year revenue outlook and said it expects continued strength from hyperscale cloud providers in the coming quarters. The combination of expanding AI demand and aggressive restructuring gives investors a fresh benchmark for how legacy hardware vendors are translating the AI capex wave into profits.
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