Cisco Stock Hits Record High as AI Orders Forecast Reaches $9 Billion

Cisco Systems shares surged over 13% to an all-time high of $119.36 following a strong third-quarter earnings report that highlighted the success of its artificial intelligence infrastructure strategy. The networking giant reported record revenue of $15.8 billion, a 12% year-over-year increase, surpassing analyst expectations. Consequently, management significantly raised its full-year 2026 guidance, lifting the AI revenue target to $4 billion and increasing the AI orders forecast from $5 billion to $9 billion. This performance marks a significant turnaround for the company, which had taken decades to reclaim its previous market peaks. Alongside the financial beat, Cisco announced a strategic workforce reduction of under 4,000 employees, representing less than 5% of its total headcount. The company framed these cuts as part of a reallocation of resources toward AI infrastructure, silicon, optics, and security, rather than direct replacement by automation. Analysts, including Morningstar, have responded positively, raising fair value estimates. The results underscore Cisco's effective pivot in the AI era, aligning with broader industry trends where early adopters of AI infrastructure are seeing substantial productivity and revenue gains.