Cisco Issues Upbeat Revenue Outlook, Announces Layoffs in AI Infrastructure Pivot

Cisco has long centered its business on networking equipment such as routers and switches. As cloud computing and generative AI reshape data center architecture, the company is redirecting capital and talent toward in-house chips, optical interconnects and cybersecurity. With hyperscale cloud providers accelerating AI infrastructure deployments, the shift could determine whether Cisco can maintain its edge in the networking market.

On May 13, 2026, Cisco reported revenue of $15.8 billion for its fiscal third quarter ended April 25, up 12% from a year earlier, and forecast fourth-quarter revenue of $16.7 billion to $16.9 billion. The company raised its full-year target for AI orders from hyperscalers to $9 billion from $5 billion. It also announced plans to cut nearly 4,000 jobs in the fourth quarter, representing less than 5% of its workforce, with restructuring charges of up to $1 billion.