Cisco stock jumps 17% on surging AI orders as company cuts 4,000 jobs

Cisco shares jumped 17% in after-hours trading after the company reported third-quarter results that topped expectations and revealed a sharp rise in orders for artificial intelligence networking gear. The stock pushed close to record territory, extending a rally that has run throughout the year.

Cisco said orders for AI networking products surpassed $1.3 billion in the period. The company also announced it would lay off roughly 4,000 staff, about 5% of its global workforce, and redirect the savings into AI development and its data-centre product line. The restructuring will incur charges of up to $1.3 billion.

Chief executive Chuck Robbins said hyperscaler customers were rapidly expanding AI infrastructure capacity and that Cisco was positioned as a key supplier in that build-out. The company also raised its full-year revenue guidance. Analysts said Cisco was emerging as a more credible player in AI hardware against rivals such as Nvidia and Broadcom.