CSCO · 10-Q · 2026Q2 · Full report

Restructuring and Headcount

CISCO SYSTEMS, INC. · 2026-05-19 · Importance 58 · Surprise 42 · In source text

Cisco announced a fiscal 2026 restructuring plan focused on investments in silicon, optics, security, and AI. The company expects approximately $450 million of pretax charges in the fourth quarter of fiscal 2026 and total charges of up to $1 billion through substantial completion by the end of fiscal 2027. Cisco expects to reinvest substantially all cost savings in growth opportunities, so overall savings are not expected to be material. The prior fiscal 2025 restructuring plan generated cumulative charges of $926 million and was substantially completed in the second quarter of fiscal 2026.

Key facts

• The total pre-tax charges related to the restructuring plan are estimated to be up to $1 billion, with the plan expected to be substantially completed by the end of fiscal 2027. source
• We announced a restructuring plan in the fourth quarter of fiscal 2026 and expect to recognize approximately $450 million in pre-tax charges in the fourth quarter of fiscal 2026. source
• A restructuring plan initiated in fiscal 2025 resulted in cumulative charges of $926 million and was substantially completed in the second quarter of fiscal 2026. source
• We expect to reinvest substantially all of the cost savings from the restructuring plan in key growth opportunities and overall cost savings are not expected to be material. source
• There was no impairment of goodwill in each of the first nine months of fiscal 2026 and 2025. source

Impact estimates