CSCO
AI is the main character now
Cisco’s latest earnings story had two very different vibes. On one hand, the networking giant said revenue hit a record and AI demand is still ripping. On the other, it’s cutting thousands of jobs as it reshapes the business for a more AI-heavy world. Classic corporate plot twist: celebrate the future, then sweep the floor.
Why the layoffs matter
This isn’t just a “cost discipline” headline to toss into the filing cabinet. When a mature giant like Cisco trims headcount while talking up AI, it’s usually trying to do two things at once:
- move resources toward faster-growing AI infrastructure demand
- protect margins while the business mix shifts
In investor land, that can be a good thing if the AI revenue is real and durable. But it also tells you Cisco is still in transition mode, not full victory-lap mode.
The market takeaway
The record revenue and surging AI demand are the sugar rush. The job cuts are the protein shake. Together, they suggest Cisco is trying to turn AI enthusiasm into a cleaner, more efficient operating model — because Wall Street loves growth, but it also really loves not paying for bloat.
Big picture: Cisco’s AI push looks stronger, but this earnings beat came with a corporate makeover. The question now is whether the new look actually earns a premium multiple, or just a nicer LinkedIn banner.