:

CISCO JUMPS 17% ON STRONG FORECAST, AI PIVOT

AI DESK1 MIN READ
WED, MAY 13, 2026

■ AI-SUMMARIZED FROM 1 SOURCE ▸ TIMELINE

Cisco Systems delivered a better-than-expected sales forecast and announced significant job cuts as it pivots toward artificial intelligence. The stock surged as much as 17% in late trading.

The networking giant's improved revenue outlook signaled resilience in a competitive market. The company is restructuring operations to capitalize on the booming AI sector, with layoffs part of the strategy to reallocate resources. Cisco's move reflects broader industry trends as tech companies race to develop and deploy AI capabilities. By cutting costs in legacy operations, the company aims to fund innovation in high-growth areas. The stock surge indicates investor confidence in the company's strategy, though the layoffs underscore the challenges facing established tech firms adapting to rapid market shifts. The forecast improvement suggests demand remains solid for Cisco's core networking products while the company positions itself for the next growth phase.

■ SOURCES

Bloomberg Tech

■ SUMMARY WRITTEN BY AI FROM THE LINKS ABOVE

■ MORE FROM THE BIG TECH DESK

YouTube is expanding its content strategy with new exclusive streaming shows featuring high-profile creators, positioning itself as a bridge between content makers and brands. The platform unveiled the slate at its annual advertiser event in New York.

JUST NOWIndustry Desk

Netflix's ad-supported plan reached 250 million monthly viewers in 2025, more than doubling its user base for the second consecutive year. The company generated $1.5 billion in ad revenue last year and plans to expand ad placements across the platform.

1H AGOIndustry Desk

Tencent plans to significantly increase AI infrastructure spending in the second half of 2026, capitalizing on improved domestic chip production from Chinese manufacturers. The move follows strong first-quarter financial results.

3H AGOAI Desk

Meta has rolled out Instants, a new feature for sharing disappearing photos within Instagram and as a standalone app in select countries. The feature lets users share candid, unedited photos with Close Friends or mutual followers that vanish after 24 hours.

3H AGOIndustry Desk

■ SUBSCRIBE TO THE DAILY BRIEF

ONE EMAIL, 5 STORIES, 06:00 UTC. UNSUBSCRIBE ANYTIME.