Cisco Shares Hit Record High as AI Revenue Surge Drives Earnings Beat

Cisco Systems reported record third-quarter revenue of $15.8 billion, a 12% year-over-year increase that exceeded guidance and propelled its shares to an all-time high. The networking giant’s strategic pivot toward artificial intelligence infrastructure is yielding significant results, with AI orders nearly doubling to $9 billion. Consequently, Cisco raised its fiscal 2026 outlook, increasing its AI revenue target to $4 billion and AI orders target to $9 billion. CEO Chuck Robbins positioned the company as critical infrastructure for the AI era, emphasizing technology leadership and customer trust. Despite the strong financial performance, Cisco announced a workforce reduction of fewer than 4,000 employees, representing less than 5% of its total headcount. This restructuring aims to reallocate investments toward high-growth areas such as AI infrastructure, silicon, optics, and security, following the recent acquisition of Splunk. The stock rally marks a significant milestone in Cisco’s recovery, having reclaimed its dot-com era highs in late 2025. The company continues to integrate AI-native security solutions like Hypershield while maintaining financial discipline to capitalize on the growing demand for robust networking and security frameworks in the evolving technological landscape.