Cisco raised its annual revenue forecast on May 13 after reporting stronger-than-expected quarterly results, driven largely by growing demand for artificial intelligence infrastructure and networking products.
The company also announced plans to cut around 4,000 jobs as part of a restructuring effort aimed at shifting resources toward high-growth sectors including AI, cybersecurity, and cloud infrastructure. The layoffs add to broader restructuring measures introduced by major technology firms seeking to reduce costs while increasing investment in artificial intelligence.
Cisco said enterprise customers continued increasing spending on cloud computing and AI-related systems, while orders improved across several business segments. The company now expects higher full-year revenue than previously projected, reflecting confidence in continued demand for data centre equipment and networking solutions supporting AI expansion.
Following the announcement, Cisco shares rose in after-hours trading as investors reacted positively to the upgraded forecast and earnings performance. Analysts said the results highlight how major technology companies are increasingly reorganising operations to prioritise AI development and digital infrastructure growth.
