By Dean Seal
Cisco Systems is cutting jobs as part of a shift toward high-growth parts of its business, including AI infrastructure.
The networking company said Wednesday that it is launching a restructuring that will cost up to $1 billion in severance, one-time termination benefits and other costs.
The plan will allow Cisco to invest in growth opportunities around silicon, optics, security and AI, the company said.
The overhaul was announced in tandem with Cisco's latest quarterly earnings report, in which is raised full-year guidance on the back of strong revenue and earnings.
The San Jose, Calif., company now expects $62.8 billion to $63.0 billion of revenue for the current fiscal year, which ends in late July. That's up from a previous forecast for $61.2 billion to $61.7 billion.
Earnings are now expected to reach $3.16 to $3.21 a share for the current fiscal year, up from the $3.00 to $3.08 previously projected, Cisco said.
Adjusted earnings are forecasted to reach $4.27 to $4.29 a share, up from a prior forecast of $4.13 to $4.17.
For the fiscal third quarter that ended April 25, revenue rose 12% to $15.84 billion. That beat analyst estimates for revenue of $15.56 billion, according to a survey by FactSet, and topped its own guidance from February for up to $15.60 billion.
Cisco logged a third-quarter profit of $3.37 billion, or 85 cents a share, up from $2.49 billion, or 62 cents a share, in the same quarter a year earlier.
Adjusted earnings were $1.06 a share, beating the $1.03 cents forecast of analysts surveyed by FactSet.
The rose 13% to $114.80 in aftermarket trading following the results.
Write to Dean Seal at dean.seal@wsj.com
(END) Dow Jones Newswires
05-13-26 1656ET
