Cisco Surges 15% After Blowout Quarter Fueled by AI Demand

CNBC reported Wednesday that Cisco shares jumped roughly 15% in after-hours trading after the networking giant delivered earnings and forward guidance that comfortably cleared Wall Street expectations. The company also disclosed plans to cut nearly 4,000 jobs this quarter.

Earnings Beat Drives Sharpest Rally in Over a Decade

Cisco posted adjusted earnings per share of $1.06 against a consensus estimate of $1.04. Quarterly revenue came in at $15.84 billion, topping the expected $15.56 billion. That represented 12% year-over-year growth from $14.15 billion in the same period a year prior. Net income climbed to $3.37 billion from $2.49 billion twelve months earlier. If the after-hours gain holds through Thursday, it would mark the stock’s strongest single-session rally since 2011.

Cisco AI Orders Jump, Full-Year Target Doubles

The standout figure was Cisco’s AI infrastructure pipeline. The company said Cisco AI orders have reached $5.3 billion year-to-date and raised its full-year order target to $9 billion, up sharply from a prior forecast of $5 billion. Expected AI-related revenue for the fiscal year was also lifted to $4 billion from $3 billion. Networking hardware led the charge, with segment revenue rising 25% to $8.82 billion. Security revenue held steady near $2 billion.

A Stock That Spent Years Chasing the AI Rally

Cisco had long lagged behind data center peers as Wall Street chased more direct AI plays. That narrative began shifting late last year when the stock finally broke above its dot-com era peak and set a fresh record. Shares have since gained 33% in 2026, well ahead of the Nasdaq’s 14% advance over the same stretch.

Job Cuts Tied to AI Restructuring

CEO Chuck Robbins announced that the latest round of layoffs, affecting fewer than 5% of total staff, begins May 14. Writing in a blog post Wednesday, Robbins framed the cuts as a deliberate reallocation of capital toward high-growth areas. He said companies that win in the AI era will combine focus and urgency with the discipline to shift investment toward areas of strongest demand. Cisco estimates the restructuring will trigger around $1 billion in pre-tax charges, with roughly $450 million landing in the fiscal fourth quarter.

Looking ahead, Cisco guided for fourth-quarter adjusted earnings per share of $1.16 to $1.18 on revenue of $16.7 billion to $16.9 billion. Analysts had penciled in $1.07 per share on $15.82 billion in revenue, making the guidance raise notable by any measure.

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