Cisco reports record revenue, slashes 4,000 jobs

Cisco reported a record $15.8 billion in revenue during its Q3 FY26 earnings call on Wednesday alongside a note that it would be axing less than 5% of its staff. 

The networking company is reaping the benefits as AI workloads sprawl across distributed hardware and multiple data centre sites, raising its hyperscaler AI infrastructure revenue guidance from $3 billion to $4 billion for the financial year.

Cisco also raised its full-year AI infrastructure orders guidance to $9 billion, up from $5 billion previously.

Even as Cisco positions itself as a leader in AI networking – largely thanks to the success of its Silicon One and Acacia Optics products – the company announced layoffs for fewer than 4,000 employees.

CEO Chuck Robbins said in a note to staff: "While we are reducing roles in some areas, we are making clear, strategic investments – particularly in silicon, optics, security, and in our employees’ use of AI across the company."