Cisco books $5.3bn in AI orders

Cisco reported record quarterly revenue of $15.8 billion on May 13 and said demand tied to artificial intelligence had pushed year-to-date AI infrastructure and hyperscaler orders to $5.3 billion. The company raised its fiscal 2026 AI orders target to $9 billion from $5 billion and increased its expected revenue from that market to $4 billion from $3 billion. (newsroom.cisco.com) Shares jumped after the results, which topped Wall Street estimates for revenue and adjusted earnings. Cisco also said it would cut fewer than 4,000 jobs in its fiscal fourth quarter as it shifts spending toward areas including silicon, optics and security. (msn.com) ### Where is the $5.3 billion coming from? Cisco said the $5.3 billion reflects AI infrastructure orders from hyperscalers booked so far in fiscal 2026. (cnbc.com) The company said those orders reached $1.9 billion in the third quarter alone, up from $600 million a year earlier. Chuck Robbins said on the earnings call that demand was broadening beyond cloud giants. Network World reported that non-hyperscaler AI infrastructure orders from neocloud, sovereign and enterprise customers totaled about $300 million in the quarter, with a pipeline of $3 billion. ### Why did Cisco raise its outlook so sharply? (newsroom.cisco.com) Cisco said total product orders rose 35% year over year in the quarter, or 19% excluding hyperscalers, while networking product orders accelerated to more than 50% growth. The company also said campus networking orders grew more than 25% and data-center switching orders grew more than 40%. (cnbc.com) Robbins told CNBC the company is entering a “networking supercycle.” Cisco’s results showed gains across data-center switching, enterprise routing, wireless networking and industrial Internet of Things products, according to the company and Network World. (networkworld.com) ### Why is a networking company talking like an AI supplier? Cisco said AI demand is showing up in the parts of infrastructure that connect and secure computing clusters, campuses and data centers. In its earnings release, Robbins said the quarter showed “the relevance of our technology for connecting and securing AI.” (newsroom.cisco.com) Mark Patterson, Cisco’s finance chief, said the company delivered double-digit growth on both revenue and earnings while expanding operating income. Cisco’s release tied that performance to demand for networking gear, AI infrastructure and a multi-year campus refresh cycle already under way. (msn.com) ### Why cut nearly 4,000 jobs after posting record revenue? Cisco said the workforce reduction will affect fewer than 4,000 employees, or less than 5% of its employee base, during the fiscal fourth quarter. Robbins said in a blog post that most notifications would begin on May 14. Robbins said the company is reducing roles in some areas while increasing investment in silicon, optics, security and employees’ use of AI across the company. (newsroom.cisco.com) He said companies that win in the AI era will need “focus, urgency, and the discipline to continuously shift investment” toward stronger demand and long-term value creation. ### What did Cisco tell investors to watch next? (newsroom.cisco.com) Cisco guided for fiscal fourth-quarter revenue of $16.7 billion to $16.9 billion and adjusted earnings per share of $1.16 to $1.18. Analysts polled by LSEG, as cited by CNBC, had expected $15.82 billion in revenue and $1.07 in adjusted earnings per share. (cnbc.com) For the full fiscal year, Cisco said it now expects revenue of $62.8 billion to $63.0 billion and adjusted earnings per share of $4.27 to $4.29. The company’s next scheduled milestone is its fiscal fourth-quarter report, after investors track whether AI infrastructure orders move toward the new $9 billion target and whether the job cuts beginning May 14 are completed within the quarter. (cnbc.com) (newsroom.cisco.com)