Cisco Shares Rally 15% After AI Revamp

Cisco announced a $1 billion AI‑focused restructuring, cutting fewer than 4,000 jobs (<5% workforce) and incurring a cash‑based charge.
Shares surged about 15% after market opened, as the company raised FY2026 revenue guidance to $62.8‑$63 billion and forecast 14.5% Q4 growth.
Q3 record revenue hit $15.8 billion (+12% YoY) with networking orders up >50% and data‑center switching up >40%; adjusted net income $4.2 billion.
Bank of America raised its price target to $114, citing AI revenue expected to hit $4 billion in 2026 and $6 billion in FY2027.