---
title: "Cisco's financial report exceeded expectations. In order to focus on AI, the company will lay off 6,000 employees, causing the stock price to surge by 6%!"
description: "Cisco released its fourth-quarter financial report for the 2024 fiscal year, with revenue of $13.64 billion, exceeding expectations, and predicting future revenue growth. Despite a 10% decline in tota"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/211643988.md"
published_at: "2024-08-15T06:50:50.000Z"
---

# Cisco's financial report exceeded expectations. In order to focus on AI, the company will lay off 6,000 employees, causing the stock price to surge by 6%!

> Cisco released its fourth-quarter financial report for the 2024 fiscal year, with revenue of $13.64 billion, exceeding expectations, and predicting future revenue growth. Despite a 10% decline in total annual income, adjusted EPS was $0.87, surpassing the expected $0.85. Cisco announced a 7% workforce reduction (about 6,000 people) and a focus on investing in the AI field. Following the financial report, the stock price rose by 6% to $48.05, with analysts setting a target price of $56.08

Investment Insights - **Cisco's New Fiscal Year Guidance Stronger Than Expected, Also Announces 7% Workforce Reduction, Stock Price Surges 6% After Announcement.**

After the U.S. stock market closed on August 14th, Cisco (CSCO) released its fourth-quarter fiscal 2024 earnings report.

The data shows that the company's fourth-quarter revenue was $13.64 billion, a 10% decrease year-on-year, but exceeded the expected $13.54 billion; adjusted EPS was $0.87, a 24% decrease from the same period last year, surpassing the expected $0.85.

Looking ahead, Cisco expects revenue for the next quarter to be between $13.65 billion and $13.85 billion, in line with analysts' expectations. For fiscal year 2025, revenue is expected to be between $55 billion and $56.2 billion, slightly exceeding analysts' expectations.

Cisco executives stated that AI orders have exceeded $1 billion to date, with an additional $1 billion in AI product orders expected in fiscal year 2025.

【Image Source: Cisco Financial Report; Fiscal Year 2025 Guidance】

In addition, Cisco announced a restructuring plan that is expected to reduce its global workforce by approximately 7%, or over 6,000 people.

Cisco executives stated that the layoffs are not aimed at increasing profits, but rather to focus resources on developing high-growth areas such as AI. According to media reports, the company recently announced a partnership with Nvidia to develop the infrastructure for AI systems.

After the financial report was released, Cisco (CSCO) stock price surged by 6%, closing at $48.05.

Year-to-date, Cisco's stock price has declined by 8%.

【Image Source: TradingView; 2024 Cisco (CSCO) Stock Performance】

Analysts have an average target price of $56.08 for Cisco in the future, indicating a potential 23% increase in stock price 【Image Source: Tipranks; Cisco Target Price】

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
