Cisco’s stock jumps sharply after the company issues a stronger-than-expected sales outlook and signals a sharper focus on the fast-growing AI market. Multiple outlets report that the shares rise around 15% and move toward or beyond record levels following upbeat results and a forecast that exceeds analyst expectations.
Bloomberg says Cisco forecasts fiscal fourth-quarter revenue of about $16.7 billion to $16.9 billion for the quarter running through July, compared with analyst estimates of roughly $15.8 billion. Bloomberg and other reports attribute the move to accelerating orders from data center customers tied to AI demand.
Cisco also announces a restructuring plan that includes cutting close to 4,000 jobs, framed as part of reallocating resources toward AI-related investments. MarketWatch characterizes the stock reaction as following the combination of the forecast and investment plans, while CNBC highlights the surge in AI orders alongside the job cuts.
Overall, the sources describe a market response to Cisco’s improved outlook and its shift in spending and staffing to support AI infrastructure needs.
