U.S. markets climbed to fresh highs as Cisco delivered earnings and guidance that beat expectations, sending its shares up 14.6%—potentially its best day in 15 years. The broader rally also lifted two non-AI names: StubHub jumped 19.3% and Viking Holdings rose 10%, both posting stronger profit than analysts forecast. Results fueled optimism that consumers still spend, even as sentiment remains shaky. Treasury yields barely moved, while global trading tilted higher in Europe and Asia amid oil jitters tied to Hormuz shipping.
Cisco shares soared 17% to a record high after the networking giant delivered strong results tied to booming AI demand and raised its annual revenue forecast. The rally could be its biggest one-day gain in over two decades, reminiscent of the May 2002 surge that followed strong earnings after the dotcom crash. Cisco also announced nearly 4,000 job cuts and a $1 billion AI-focused restructuring, shifting spending into silicon, optics, security, and AI enablement.
Your news, in seconds
Get the Beige app — every story in 60 words, updated hourly. Free on iOS & Android.
Cisco is drawing fresh investor optimism after reporting stronger-than-expected earnings and signaling rapid growth in AI infrastructure demand. The company is restructuring operations and stepping up investments across artificial intelligence, cybersecurity, and cloud infrastructure, aligning itself with a multi-year AI networking investment cycle analysts say could extend momentum.
Cisco reported a 12% year-over-year revenue jump to $15.8 billion in Q3 2026, marking its best quarter in years. But the headline was quickly eclipsed by a plan to cut around 4,000 jobs. CEO Chuck Robbins said the restructuring is meant to free capital for an AI-focused buildout, including silicon, optics, security, and enterprise AI tools.
Cisco’s stock surged about 17% after results beat expectations, with stronger revenue, profit, and forward guidance. Investors are also reacting to rising demand for the company’s AI infrastructure offerings. But Cisco simultaneously announced workforce reductions, signaling a pivot to long-term growth priorities—leaving the market to balance momentum against restructuring risk.
Swipe through stories, personalise your feed, and save articles for later — all on the app.
