Cisco’s AI bet got Wall Street cheering

Cisco’s having a very Cisco morning

If you’ve ever wondered what it takes to make a networking giant feel like a growth stock again, Cisco Systems just offered a pretty good recipe: beat the quarter, raise the outlook, and whisper the magic letters A-I.

The company reported third-quarter revenue of $15.84 billion, ahead of Wall Street’s $15.56 billion target, while adjusted earnings came in at $1.06 a share, also beating estimates. That was enough to send shares up 17.3% to $119.44 in premarket trading. Not bad for a name that usually lives in the “steady, dependable, and mildly beige” bucket.

The real headline: Cisco wants to spend like a startup

Management also laid out a restructuring plan designed to redirect more resources into AI, security, and silicon. Translation: Cisco doesn’t want to just sell the pipes for the internet anymore — it wants a bigger bite of the infrastructure buffet that powers the AI boom.

For investors, that matters because it suggests two things:

• Cisco thinks demand is strong enough to keep investing
• The company is trying to turn its old-school networking machine into a more modern growth story

Why you should care

The raise to FY26 guidance is the part that keeps the party going. A one-quarter beat is nice; a better forecast says this isn’t just a lucky lap around the track. If Cisco can keep pairing cash flow, share gains, and AI spending, it may finally earn a little more respect from the market than the usual “solid but sleepy” label.

Meanwhile, this article’s other premarket movers are mostly just the usual chaotic salad of earnings beats, misses, and stock-offering drama. Cisco is the main event here — and it’s the one that actually has a shot at moving the broader networking/infrastructure conversation.

Big picture: Cisco is trying to prove that in the AI era, the old internet guard can still reinvent itself — and Wall Street, at least for today, is buying the pitch.