Cisco Systems (CSCO) shares jumped nearly 18% in pre-market trading on May 14. The company reported record third-quarter revenue of $15.8 billion. This performance represents a 12% year-over-year increase. Adjusted earnings reached $1.06 per share, surpassing analyst estimates.
Management raised the fiscal 2026 forecast for artificial intelligence orders to $9 billion. Cisco has already booked $5.3 billion in AI-related orders during the current fiscal year. Robust demand from hyperscale cloud providers and enterprises drove the optimistic outlook.
The report suggests corporate investment in foundational AI technology remains resilient despite wider economic concerns. Cisco also announced a restructuring plan to lay off approximately 4,000 employees. The company will reallocate these resources toward high-growth areas including AI and security.