Cisco Stock Jumps 17% After AI and Job Cut News
Cisco's stock jumped up to 17% after two big announcements. The company said it would invest more in artificial intelligence.
It also said it would cut almost 4,000 jobs. A strong earnings report also helped push the stock up.
Cisco earned $15.84 billion in revenue. That beat what analysts had expected.
AI orders from large tech companies drove much of the excitement. Cisco has taken $5.3 billion in AI orders this financial year.
It now expects $9 billion in AI orders for the full year. That is up from an earlier target of $5 billion.
The job cuts will cost up to $1 billion. About $450 million of that is expected in the next quarter. Cisco's stock had already hit a record late last year and kept rising in 2026.
Klear Note — AI is artificial intelligence—computer systems that learn and make decisions. Stock prices rise when investors think a company will make more money.
Key Terms 4
- revenue Total money a company earns from sales
- analysts Experts who study companies and predict their performance
- hyperscalers Very large tech companies that run massive cloud computing systems
- artificial intelligence Computer systems that can learn and perform human-like tasks