Cisco Layoffs: Revenue Jumps 12% to $15.8B, Net Income Hits $3.4B as Networking Orders Surge 50%+ and 4,000 Jobs Cut

On May 13, 2026, Cisco surprised Wall Street with a strong earnings report. The company posted $15.8 billion in quarterly revenue, up 12% year over year, while net income reached $3.4 billion. 

At the same time, Cisco announced plans to cut nearly 4,000 jobs as it shifts deeper into AI and cloud infrastructure. Networking orders also jumped more than 50%, showing how fast AI demand is transforming the tech industry and forcing companies to rethink growth, hiring, and future strategy.

Cisco Q3 FY2026 Earnings Beat Wall Street Expectations 

Revenue Climbs to $15.84 Billion

Cisco delivered one of its strongest quarterly performances in years during Q3 FY2026. The company reported revenue of $15.84 billion for the quarter ended April 25, 2026. That marked a 12% year-over-year increase and easily beat Wall Street estimates of $15.56 billion. 

The growth came mainly from rising AI infrastructure demand and stronger enterprise networking sales. Cisco’s networking product orders jumped more than 50% compared to last year. Data-center switching orders also rose over 40%. The company said hyperscaler customers continued expanding AI-focused cloud infrastructure aggressively.

Net Income and EPS Show Strong Profitability

Cisco posted GAAP net income of $3.4 billion, up 35% year over year. Adjusted earnings per share reached $1.06, beating analyst expectations of about $1.03. Gross margins also stayed strong despite higher hardware and memory costs.

Cisco Raises Full-Year Revenue Forecast

The company raised its FY2026 revenue guidance to between $62.8 billion and $63 billion. Earlier forecasts were much lower at $61.2 billion to $61.7 billion. Cisco also boosted its AI infrastructure order outlook from $5 billion to nearly $9 billion for the full fiscal year. CEO Chuck Robbins said the company is seeing “broad-based demand” for AI networking products and cloud infrastructure solutions.

Why Cisco Is Cutting Nearly 4,000 Jobs Despite Strong Earnings?

Is Cisco Restructuring Around AI?

Yes. Cisco confirmed it will cut fewer than 4,000 jobs globally during Q4 FY2026. The layoffs represent less than 5% of its total workforce. The company said the restructuring is part of a larger shift toward AI, cybersecurity, silicon, and optics investments. Cisco expects the restructuring to cost nearly $1 billion, including severance expenses and operational adjustments.

Why Would a Profitable Company Cut Jobs?

Many tech companies are now redirecting spending toward AI infrastructure instead of traditional business units. Cisco’s leadership believes future growth will come from AI networking and enterprise cloud systems. That means older departments and legacy roles are becoming less important.

Key reasons behind the layoffs include:

• Faster AI product expansion
• Rising investment in hyperscaler infrastructure
• Demand for AI-native cybersecurity solutions
• Pressure to improve efficiency and margins

Cisco still plans to hire workers in strategic AI-related fields.

CEO Chuck Robbins Explains the Strategy

Chuck Robbins said Cisco is “building from a position of strength.” He explained that the company wants to move resources into faster-growing technology areas. These include AI chips, quantum networking, optics, and cloud security.

AI Infrastructure Boom Pushes Cisco Networking Orders Up 50%+ 

Why are Cisco’s AI Orders Growing So Fast?

The global AI race is creating massive demand for networking hardware. Hyperscalers and cloud providers are building larger AI data centers that require faster connectivity and advanced switching systems. Cisco has become one of the biggest beneficiaries of this trend.

The company revealed that AI infrastructure orders reached $5.3 billion year-to-date in FY2026. Cisco now expects AI orders to hit $9 billion before the fiscal year ends.

Data-Center Networking Demand Accelerates

Cisco’s networking business showed broad strength across several areas:

• Networking product orders rose over 50%
• Campus networking orders increased by more than 25%
• Data-center switching orders climbed over 40%
• Wireless product demand reached record highs

The growth shows enterprises are upgrading infrastructure to handle generative AI workloads and cloud computing expansion.

Cisco’s Long-Term AI Revenue Outlook

Cisco expects AI hyperscaler revenue to reach at least $6 billion by FY2027. The company is also expanding partnerships with AI infrastructure providers and cloud firms. Its Silicon One chips and optics business are becoming major growth drivers in the AI era.

Cisco Stock Surges as Investors Bet Big on AI Networking

How Did CSCO Stock React After Earnings?

CSCO stock surged sharply after Cisco released its earnings report on May 13, 2026. Shares jumped more than 16% in extended trading and continued climbing toward record highs. Investors reacted positively to the company’s stronger guidance and explosive AI infrastructure growth.

Technical Analysis Summary

Short-term momentum for CSCO remains bullish. The stock has gained over 32% in 2026 so far. Analysts point to strong institutional buying, rising AI-related revenue, and improving networking demand as key drivers. Technical indicators also show strong support levels after the earnings breakout.

What Meyka Says About CSCO Stock?

According to the AI stock analysis tool on Meyka, Cisco’s long-term outlook remains positive because of rising enterprise AI infrastructure demand. The platform highlights strong order growth, improving cloud partnerships, and expanding AI networking exposure as major bullish factors for CSCO shares.

Cisco Layoffs Reflect a Bigger Tech Industry Trend in 2026

Are AI Layoffs Becoming the New Tech Trend?

Yes. Cisco’s workforce reduction reflects a wider shift happening across the technology industry in 2026. Many large tech companies are cutting jobs in traditional business divisions while investing heavily in AI-focused operations.

LAYOFF ALERT: CISCO 🚨

4,000 jobs cut while reporting record revenue.

CEO says they need "focus, urgency, and discipline" for the AI era. The severance package includes free AI training courses (seriously).

Cisco is a top H-1B filer every single year, if you were wondering. pic.twitter.com/BvPxM5nQEW

— Official Layoff (@LayoffAI) May 13, 2026

Several firms are now prioritizing:

• AI software development
• Cloud infrastructure
• AI cybersecurity
• Data-center networking
• Automation systems

This trend shows that AI is changing how companies allocate capital and talent.

Employee Reactions and Public Criticism

Cisco’s layoffs sparked criticism online because the company announced job cuts right after posting record revenue. Some employees and tech workers questioned why companies continue reducing staff despite strong profits and rising stock prices. Discussions on Reddit and industry forums reflected growing frustration across the tech sector.

Why Investors Still Support the Move?

Wall Street generally views AI-focused restructuring as a positive long-term strategy. Investors believe Cisco’s shift toward AI networking, optics, and cloud infrastructure could strengthen future earnings growth.

What Cisco’s AI Pivot Means for Enterprise Networking and Cybersecurity?

• Enterprise AI spending is rising, increasing demand for faster networks and scalable cloud systems
• Cisco is strengthening its role in AI-driven cybersecurity and real-time threat detection, including Splunk integration
• Future growth will focus on AI networking, silicon, optics, and secure cloud infrastructure
• Quantum networking and AI security are expected to drive long-term revenue expansion

Wrap Up

Cisco’s earnings show strong revenue and profit growth driven by AI demand. Despite this, the company is cutting nearly 4,000 jobs to speed up its AI shift. Rising hyperscaler and enterprise AI spending is boosting networking growth. Cisco is positioning itself as a key winner in AI infrastructure and cybersecurity.

Disclaimer: The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.