Cisco Systems’ Stock Soars as AI Infrastructure Demand Fuels Growth
Cisco Systems shares soared by 13% on Thursday, following a stellar fiscal third-quarter performance that exceeded Wall Street’s expectations. The company also increased its full-year guidance by nearly $1 billion, a move driven by the booming demand for AI networking infrastructure.
The networking behemoth reported a record quarterly revenue of $15.84 billion, marking a 12% increase year-over-year. This figure surpassed analyst estimates of $15.56 billion. The adjusted earnings per share were reported at $1.06, beating the expected $1.04.
Adding to the impressive results, CEO Chuck Robbins announced that the company has received $5.3 billion in AI infrastructure orders year-to-date. Consequently, the fiscal 2026 AI order target has been raised to $9 billion, a significant increase from the earlier projection of $5 billion.
Looking forward, Cisco now anticipates fiscal fourth-quarter revenue to be between $16.7 billion and $16.9 billion. This projection is significantly higher than the analyst consensus of $15.82 billion. Product orders experienced a 35% year-over-year increase, with hyperscaler AI orders more than doubling since Q3 2025.
In line with the strong results, Cisco revealed plans to cut approximately 4,000 jobs—about 5% of its workforce. This strategic restructuring aims to focus investment on high-growth AI segments. Wall Street analysts responded positively, with six major firms increasing their price targets on the stock. The surge marks Cisco’s most significant single-day rally since 2002.
Source: CNBC