artificial intelligence<\/a> and \u200crelated growth areas, and raised its annual revenue forecast after a surge in hyperscaler \u200corders.<\/p>\nShares of the San Jose, California-based networking equipment maker rose more than 16% in extended trading.<\/p>\n
“The companies that will win in \u200bthe AI era will be those with focus, urgency, and the discipline to continuously shift investment toward the areas where demand and long-term value creation are strongest,” CEO Chuck Robbins said in a post on Cisco’s website.<\/p>\n
The company said it was making strategic investments in silicon, optics, security and employees’ use \u200cof AI across the company, as \u2060it reduces roles in some areas.<\/p>\n
Cisco has taken $5.3 billion in AI infrastructure orders from hyperscalers so far this fiscal year, and raised its full-year order expectation \u2060to $9 billion from $5 billion previously.<\/p>\n
“Though much will likely be made about a slight decrease in headcount, the post-market move we are seeing is truly the result of hyperscaler capex spilling downstream. This move validates that this \u200bcapex \u200bis about more than just chips,” said Ryan Lee, \u200bDirexion’s senior vice president of product and \u200cstrategy.<\/p>\n
Cisco is benefiting as companies expand spending beyond AI processors to the high-speed networks required to connect large data-center systems. Its networking product orders grew more than 50% in the third quarter compared to a year earlier, while data-center switching orders rose more than 40%.<\/p>\n
Shares of the company have risen 32% this year.<\/p>\n
On a post-earnings call, Cisco’s finance chief, Mark Patterson, said it is “reasonable” to expect \u200cat least $6 billion of revenue on the AI hyperscale side \u200bin fiscal 2027.<\/p>\n
The company reported revenue of $15.84 billion for \u200bthe third quarter ended April 25, beating \u200banalysts’ average estimate of $15.56 billion, according to data compiled by LSEG.<\/p>\n
It now expects \u200cfiscal 2026 revenue in the range of $62.8 \u200bbillion to $63 billion, compared with \u200bits earlier forecast of $61.2 billion to $61.7 billion.<\/p>\n
Cisco will reduce its workforce by fewer than 4,000 jobs in the fourth quarter, representing less than 5% of its workforce. It had about \u200b86,200 employees as of July 26.<\/p>\n
The \u200crestructuring plan is expected to cost Cisco up to $1 billion, with about $450 million to \u200bbe recognized in the fourth quarter and the remainder in fiscal 2027.<\/p>\n
(Reporting by Juby \u200bBabu in Mexico City; Editing by Shinjini Ganguli)<\/p>\n","protected":false},"excerpt":{"rendered":"By Juby Babu May 13 (Reuters) – Cisco said on Wednesday it would cut nearly 4,000 jobs, as…\n","protected":false},"author":2,"featured_media":668277,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,276,277,49,48,204882,61001,61],"class_list":{"0":"post-668276","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-ca","12":"tag-canada","13":"tag-cisco","14":"tag-restructuring","15":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/668276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=668276"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/668276\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/668277"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=668276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=668276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=668276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}