Cisco reported fiscal Q3 2026 revenue of $15.8 billion, up 12% year-over-year, with net income rising 35% to $3.4 billion and adjusted EPS of $1.06, beating analyst estimates. The results covered the quarter ending April 25, 2026 [1, 2, 3, 4, 5, 6].
On May 13, Cisco announced plans to lay off nearly 4,000 workers worldwide, roughly 5% of its July 2025 workforce of 86,200. The layoffs are part of a restructuring to prioritize investments in artificial intelligence, network security, chips, and optical components—high-growth areas the company sees as critical for future success [7, 2, 3, 4, 8, 6].
CEO Chuck Robbins stressed the need for focus, urgency, and disciplined investment to win in the AI era, saying, "能夠在AI時代勝出的企業，將是那些具備專注力、緊迫感，並且能夠持續把投資轉向需求最強、長期價值創造最顯著領域的公司." [2]
Cisco raised its fiscal 2026 AI infrastructure order forecast from $5 billion to $9 billion, driven by strong demand from hyperscale cloud customers. The company’s AI-related order backlog totals $5.3 billion so far this year. It expects AI business to generate at least $6 billion in revenue in fiscal 2027 [9, 3, 4, 8, 5, 6].
The restructuring will cost up to $1 billion, mostly in severance and other one-time charges, with about $450 million recognized in Q3 2026 and the remainder stretching into 2027. Robbins noted, "此次重組將產生約10億美元的資遣費用與其他一次性支出，其中約4.5億美元將於本季認列，餘款將延續至2027年." [3]
Following the earnings and restructuring announcements on May 13, Cisco’s stock jumped between 13% and 19% in after-hours trading, closing near $20 [2, 10, 4, 8, 5, 6].
For fiscal Q4 2026, Cisco projects revenue between $16.7 billion and $16.9 billion and adjusted EPS between $1.16 and $1.18, exceeding analyst forecasts [1, 2, 4, 5, 6].
On May 14, Cisco began notifying affected employees of the planned layoffs. Robbins reiterated the company’s AI-driven strategy as it reshapes its focus for future growth [3, 4, 6].
