Cisco Systems shares rally after lifting Q4 sales guidance, restructuring plans
Make us a preferred source
Make us a preferred source on Google
The news: Global technology conglomerate Cisco Systems shares rose more than 19% in after-market trading after the company posted a strong sales forecast alongside announcing restructuring plans.
Shares had soared 19.76% to USD101.87 ($140.47) at the end of after market trade.
The context: Cisco expects its fourth-quarter revenue to be in the range of USD16.7 billion to USD16.9 billion, exceeding Bloomberg analyst consensus of USD15.8 billion.
The company also announced plans to cut 5% of its total workforce, or roughly 4,000 jobs, in an attempt to shift its priorities toward the fast-growing AI market. The cuts will result in as much as USD1 billion in severance costs and other one-time expenses.
Cisco now expects to secure USD9 billion in orders from hyperscalers in fiscal 2026, up from its previous USD5 billion target.
The source: Bloomberg
