Cisco raises revenue forecast and plans restructuring
Cisco shares rose 14 percent after the company raised its annual revenue forecast and announced a restructuring plan focused on AI. The firm expects to record a 1 billion dollar charge for severance and other costs.
CISCO SYSTEMS INC will restructure its business to prioritize AI growth, booking a $1 billion charge for severance and related costs. The networking giant raised its fiscal 2026 revenue forecast to a range of $62.8 billion to $63 billion. Investors sent shares up 14% in extended trading.
### AI Pivot Triggers $1 Billion Restructuring Charge Cisco expects to recognize $450 million of the pre-tax restructuring charges in the fourth quarter. The remaining costs will be recorded throughout fiscal 2027, according to a company statement. While Cisco did not specify the total number of job cuts, the $1 billion budget for severance indicates a broad workforce reduction.
