Cisco plans to reduce its workforce by up to 4,000 roles in the fourth quarter of its 2026 financial year, representing around 5% of its total employee base.
The layoffs will begin on 14 May and continue globally in line with applicable local laws and regulations. For employees whose roles are impacted, leaders will share details directly, including timing, available resources, support and benefits in each country.
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Cisco also plans to provide pro-rated payment of FY26 bonuses to impacted employees.
The company will offer support for employees seeking new roles, either inside or outside Cisco, through its placement services.
Cisco reported that the placement programme should enable 75% of participants to find their next role. It will also provide one year of access to Cisco U courses and certifications, covering AI, security and networking, among other topics.
The company’s chief executive Chuck Robbins linked the restructuring to a shift in focus and spending priorities due to market changes. He pointed to intensifying competition and a global shortage of components that Cisco needs to support its portfolio and customer AI buildouts.
Cisco unveiled the job cuts alongside its third-quarter FY26 results, with revenue of $15.8bn, up 12% year on year.
Net income was $3.4bn, a 35% increase from $2.5bn, with GAAP diluted earnings per share rising 37% to $0.85 from $0.62. On a non-GAAP basis, net income was $4.2bn, up 10% from $3.8bn, while EPS increased 10% to $1.06 from $0.96.
Cisco reported that results exceeded the high end of its guidance, alongside double-digit growth in both top and bottom lines.
Margins also increased across GAAP and non-GAAP measures. Cisco’s GAAP gross margin was 63.6% and its non-GAAP gross margin was 66.0%. GAAP operating margin was 25.0%, while non-GAAP operating margin was 34.2%.
Cisco reported cash flow from operating activities of $3.8bn, down 7% from $4.1bn a year earlier.
The company’s total product orders increased by 35% year on year, and by 19% excluding hyperscalers. Networking product orders grew by more than 50% year on year.
The company outlined a multi-year, multi-billion-dollar campus networking refresh cycle, with campus networking orders up by more than 25% year on year. It added that its next-generation portfolio is ramping faster than previous product launches. In data centre switching, Cisco reported orders up by more than 40% year on year.
Cisco also highlighted AI infrastructure momentum. It reported $5.3bn of AI infrastructure orders taken year-to-date.
The company raised its expected fiscal year 2026 orders to $9bn, up from $5bn, and increased its expected fiscal year 2026 revenue to $4bn, up from $3bn.
Regional performance showed growth across major geographies. Revenue in the Americas rose by 14%, while Europe, the Middle East and Africa (EMEA) and Asia Pacific, Japan and China (APJC) each grew by 9%.
Cisco declared a quarterly dividend of $0.42 per share, payable on 22 July 2026.
Cisco chief financial officer Mark Patterson said: “In Q3, we once again delivered double-digit growth on both the top and bottom lines which exceeded the high end of our guidance, coupled with record non-GAAP operating income.
“Our record results demonstrate great execution and financial discipline by our teams, enabling us to deliver shareholder value while we pursue the significant opportunities we see ahead.”
For the fourth quarter of fiscal 2026, Cisco expects revenue between $16.7bn and $16.9bn. It forecast GAAP EPS of $0.80 to $0.85 and non-GAAP EPS of $1.16 to $1.18.
For the full fiscal year 2026, Cisco projects revenue between $62.8bn and $63.0bn, with GAAP EPS between $3.16 and $3.21, and non-GAAP EPS between $4.27 and $4.29.
Robbins also set expectations for investment areas during the restructuring. Cisco plans to continue strategic investment in silicon, optics and security, and in employee use of AI across the company.
Earlier this year, Cisco unveiled an expansion of its AgenticOps operating model at the Cisco Live EMEA event in Amsterdam. The update introduced new features in networking, security, and observability, designed to support IT operations at scale across diverse environments.
