Cisco’s Q4 earnings guidance exceeds expectations; announces restructuring plan and layoffs

According to Golden Ten Data on May 14, Cisco (CSCO.O), the world’s largest network equipment manufacturer, has provided a fourth-quarter sales forecast that exceeds analyst expectations, indicating that AI infrastructure construction is driving increased demand for networking equipment. In its third-quarter financial report released on Wednesday, the company stated it expects revenue for the quarter ending in July to be between $16.7 billion and $16.9 billion, with earnings per share projected at about $1.16 to $1.18. Previously, analysts had forecast revenue of $15.8 billion and earnings per share of $1.07. The company also announced a restructuring plan, saying this will allow Cisco to increase investment in AI and other growth opportunities. The plan will result in up to $1 billion in severance and other one-off expenses. The company stated that fewer than 4,000 positions will be laid off, accounting for less than 5% of total staff. After the earnings report was released, Cisco’s share price rose more than 13% in after-hours trading and, as of Wednesday’s close, had gained 32% since the start of the year.