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Technology · NASDAQ: CSCO

Cisco: how the business works

Cisco sells network equipment, security software and support to businesses, governments and telecom and cloud companies, with revenue of $63.3 billion in FY2026.

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Cisco Systems, Inc. · San Jose, California · Founded 1984

Last updated

Revenue, FY2026
$63.3B
Operating income, FY2026
$15.4B
Net income, FY2026 (incl. investment gains)
$13.3B
Employees, Jul 25, 2026
About 82,400
Incorporated
1984

For learning only. Cityfort is not a registered investment adviser or broker-dealer and does not recommend buying or selling any security. Prices shown are dated and may be out of date.

The short version

Cisco in 5 points

  1. 1 · What it sells

    Cisco sells network equipment, security software and support to businesses, governments and telecom and cloud companies, with $63.3 billion of revenue in FY2026.

    More: what it sells

  2. 2 · Who pays it

    Cisco does not split revenue by customer type, and one unnamed channel partner was about 11 percent of it; by product in FY2026, networking buyers paid 54.7%, services 23.7%, security 13.0%, collaboration 6.8% and observability 1.7%.

    More: who pays it

  3. 3 · What it keeps from $100

    Of every $100 that came in during FY2026, Cisco kept $20.3 as net income, including $1.4 billion of investment gains; on revenue alone, operating income was 24.3% and net income 21.0%.

    More: what it keeps from $100

  4. 4 · Where the operating profit comes from

    Cisco reports no operating income by segment or product; in FY2026 products earned $30.5 billion of gross margin at 63.2% and services $10.3 billion at 68.8%.

    More: where the operating profit comes from

  5. 5 · The one thing to watch

    Cisco said on Aug 12, 2026 that it expects $7.5 billion of hyperscaler AI revenue in FY2027, after about $4 billion in FY2026, and its purchase commitments rose to $17.2 billion from $7.6 billion in a year.

    More: the one thing to watch

Sources: From Cisco's FY2026 10-K and Q4 FY2026 earnings release · checked

See the full receipt and the management scorecard below

Sources (2)
Next: Where $100 goes

01Where the money goes · FY2026

Where does $100 of Cisco's money go?

Of every $100 that came in (revenue plus other income), this is where it went.

Cisco · FY2026

Receipt for every $100

Where $100 of Cisco's money went in FY2026
Cost of products and services$34.3
Sales and marketing$17.7
Research and development$14.6
Admin, amortization and restructuring$6.7
Interest$2.2
Income tax$4.2
Kept as net income$20.3
Total$100

Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.

How this is worked out

Cityfort calculation from FY2026 10-K. Of every $100 that came in during FY2026 (revenue plus interest and other income): each line = line ÷ $65.4 billion × 100. Net income includes $1.4 billion of investment gains.

Sources (1)
Next: The business in one line

Each week: one company explained in 5 points, picked by earnings date.

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02The business in one line

What does Cisco do?

Businesses, governments and cloud companies pay Cisco for network equipment, software and support; most of the money goes on making products, selling and research, and what is left is profit.

  • In FY2026, networking brought in 54.7% of revenue, services 23.7%, security 13.0%, collaboration 6.8% and observability 1.7%.
  • Operating income was 24.3% of FY2026 revenue. Net income was 21.0%, and it includes $1.4 billion of investment gains, mostly unrealized.
Next: Who pays it

03Who pays it

Who pays Cisco?

  • Businesses (Cisco calls this Enterprise)

    Not disclosed

    Large companies with many sites, and mid-sized and small businesses. Product orders from this group rose 21% in Q4 FY2026.

  • Public sector

    Not disclosed

    Federal, state and local governments, and schools and universities, reached mainly through partners. Product orders rose 30% in Q4 FY2026.

  • Service providers and cloud companies

    Not disclosed

    Telecom, internet and cable firms, media companies and hyperscalers, the largest cloud companies. Product orders rose 95% in Q4 FY2026. AI infrastructure for hyperscalers was about 6% of FY2026 revenue.

Customer concentration

One global channel partner, not named, was about 11% of FY2026 revenue. It is a partner, not an end customer. No customer reached 10% in FY2025 or FY2024. Cisco gives no revenue split by customer market, and says only that a "substantial portion" of sales goes through channel partners.

Largest customer
11%
Sources (2)
Next: Why it makes money

04Why it makes money

Why does Cisco make money?

Cisco keeps earning after the sale, because installed networks need support and software.

Services kept 68.8% as gross margin in FY2026, against 63.2% on products. Remaining performance obligationsSigned contracts with customers that have not been billed yet., contracted work not yet recognized as revenue, were $46.7 billion at Jul 25, 2026. Cisco expects about 49% of that to become revenue within 12 months.

Gross margin per $100 of revenue

$64.0$64.5

FY2021 to FY2026

  1. A customer buys Cisco switches, routers or security products
  2. Support and software subscriptions follow
  3. That contracted revenue arrives over several years
  4. Gross margin pays for research and selling
  5. New products are sold to the same customers

↺ Step 5 feeds back into step 1.

Sources (2)
Next: Business segments

05Business segments · FY2026

Which businesses make up Cisco?

  • Americas

    60%

    North and South America. FY2026 gross margin was $24.6 billion, or 65.1%. Cisco reports gross margin by segment, not operating income, and $1.5 billion of costs stay outside the segments.

    Revenue $37.8B

  • Europe, Middle East and Africa

    26%

    FY2026 gross margin was $11.8 billion, or 71.2%.

    Revenue $16.6B

  • Asia Pacific, Japan and China

    14%

    FY2026 gross margin was $5.9 billion, or 66.6%. Across all regions, products earned $30.5 billion of gross margin and services $10.3 billion.

    Revenue $8.9B

How the mix changed

  • Americas
  • Europe, Middle East and Africa
  • Asia Pacific, Japan and China

Revenue by segment, FY2022 to FY2026.

US$

See the numbers
How the mix changed (US$)
YearAmericasEurope, Middle East and AfricaAsia Pacific, Japan and China
FY2022$29.8B$13.7B$8.0B
FY2023$33.4B$15.1B$8.4B
FY2024$32.0B$14.1B$7.7B
FY2025$33.7B$14.8B$8.2B
FY2026$37.8B$16.6B$8.9B
Sources (2)
Next: How has it done

06The numbers · Consolidated · US$

How has Cisco done?

Revenue

$63.3BFY2026

Revenue rose from $49.8 billion in FY2021 to $63.3 billion in FY2026, with one fall: FY2024, down 5.6% to $53.8 billion even with about $1.4 billion from Splunk.

US$

See the numbers
Revenue (US$)
PeriodRevenue (US$)
FY2021$49.8B
FY2022$51.6B
FY2023$57.0B
FY2024$53.8B
FY2025$56.7B
FY2026$63.3B
Q1 FY2025$13.8B
Q2 FY2025$14.0B
Q3 FY2025$14.1B
Q4 FY2025$14.7B
Q1 FY2026$14.9B
Q2 FY2026$15.3B
Q3 FY2026$15.8B
Q4 FY2026$17.3B

Net profit

$13.3BFY2026

Net income rose to $13.3 billion in FY2026 from $10.2 billion in FY2025; FY2026 includes $1.4 billion of investment gains, and FY2025 a $720 million tax benefit and a supplier charge of about $355 million.

US$

See the numbers
Net profit (US$)
PeriodNet profit (US$)EPS ($)
FY2021$10.6B$2.50
FY2022$11.8B$2.82
FY2023$12.6B$3.07
FY2024$10.3B$2.54
FY2025$10.2B$2.55
FY2026$13.3B$3.33
Q1 FY2025$2.7B$0.68
Q2 FY2025$2.4B$0.61
Q3 FY2025$2.5B$0.62
Q4 FY2025$2.6B$0.64
Q1 FY2026$2.9B$0.72
Q2 FY2026$3.2B$0.80
Q3 FY2026$3.4B$0.85
Q4 FY2026$3.9B$0.97

Profit kept per $100 of revenue

$21.0FY2026

Operating income was 24.3% of revenue in FY2026, after 20.8% in FY2025 and 27.1% in FY2022; net income was 21.0% in FY2026, including the investment gains.

$ of profit per $100 of revenue (net margin)

See the numbers
Profit kept per $100 of revenue ($ of profit per $100 of revenue (net margin))
YearNet marginEBITDA margin
FY202121.3%29.5%
FY202222.9%30.9%
FY202322.1%29.4%
FY202419.2%27.3%
FY202518.0%25.7%
FY202621.0%28.3%

Free cash flow

$12.8BFY2026

Free cash flow was $12.8 billion in FY2026, after a final $2.3 billion US transition-tax payment and a larger inventory; the six-year high was $19.0 billion in FY2023.

US$ · cash from operations minus spending on plants and equipment

See the numbers
Free cash flow (US$ · cash from operations minus spending on plants and equipment)
YearCash from operationsCapital spendingFree cash flow
FY2021$15.5B$692M$14.8B
FY2022$13.2B$477M$12.7B
FY2023$19.9B$849M$19.0B
FY2024$10.9B$670M$10.2B
FY2025$14.2B$905M$13.3B
FY2026$14.2B$1.4B$12.8B
See all yearly numbers
Cisco annual financials, FY2021–FY2026, US$
YearRevenueEBITDANet profitEPS ($)Operating cashCapexFree cash
FY2021$49.8B$14.7B$10.6B$2.50$15.5B$692M$14.8B
FY2022$51.6B$15.9B$11.8B$2.82$13.2B$477M$12.7B
FY2023$57.0B$16.8B$12.6B$3.07$19.9B$849M$19.0B
FY2024$53.8B$14.7B$10.3B$2.54$10.9B$670M$10.2B
FY2025$56.7B$14.6B$10.2B$2.55$14.2B$905M$13.3B
FY2026$63.3B$17.9B$13.3B$3.33$14.2B$1.4B$12.8B

EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (Last Saturday in July (FY2026 ended Jul 25, 2026; FY2024 to FY2026 had 52 weeks, and FY2021 had an extra week)). Net profit is the share belonging to the company's owners.

Learn: Fiscal years that don't end in December: Nvidia's FY2027 explained · Stock-based compensation and dilution: pay that becomes shares

Sources (11)
Next: What they said, and what happened

07Who runs it

Who runs Cisco, and did they deliver?

  • Charles H. Robbins

    Chair and Chief Executive Officer · since 2015

    CEO since July 2015 and Chair since December 2017; joined Cisco in December 1997. FY2026 total pay was $48,527,813, or 217 times the median employee's $223,675.

  • Mark Patterson

    Executive Vice President and Chief Financial Officer · since 2025

    CFO since July 2025; joined Cisco in September 2000.

  • Jeetu Patel

    President and Chief Product Officer · since 2025

    President since May 2025; joined Cisco in July 2020.

What they said, and what happened

4 delivered · 2 too early to tell

  1. Said on Aug 13, 2025

    Cisco guided FY2026 revenue of $59.0 billion to $60.0 billion.

    What happened

    Reported revenue of $63.3 billion, above the range.

    Delivered

  2. Said on Nov 12, 2025

    Cisco said it expected to recognize "roughly $3B" of AI infrastructure revenue from hyperscalers in FY2026.

    What happened

    Cisco reported approximately $4 billion, about 6% of total revenue.

    Delivered

  3. Said on Feb 11, 2026

    Cisco said it expected AI orders from hyperscalers "in excess of $5B" in FY2026.

    What happened

    Cisco reported $9.3 billion of orders for FY2026.

    Delivered

  4. Said on May 13, 2026

    Cisco guided Q4 FY2026 revenue of $16.7 billion to $16.9 billion.

    What happened

    Reported revenue of $17.3 billion, above the range.

    Delivered

  5. Said on May 13, 2026

    Cisco announced a restructuring plan with charges of up to $1 billion, about $450 million in Q4 FY2026 and the rest in FY2027.

    What happened

    Restructuring and other charges were $511 million in Q4 FY2026. The rest is due in FY2027.

    Too early to tell

  6. Said on Aug 12, 2026

    Cisco said it expects $7.5 billion of AI infrastructure revenue from hyperscalers in FY2027.

    What happened

    FY2027 ends Jul 31, 2027.

    Too early to tell
Sources (10)
Next: What could go wrong

08What could go wrong

What could go wrong for Cisco?

  • Concentration

    AI sales are large, uneven and concentrated

    Cisco says sales to cloud and hyperscaler customers are large and sporadic, and may depend on a limited number of customers' spending. AI infrastructure for hyperscalers was about 6% of FY2026 revenue, up from under 2%.

    Watch Hyperscaler AI orders and revenue each quarter ($4.0 billion of orders in Q4 FY2026).

  • Demand

    Large purchase commitments

    Purchase commitments rose to $17.2 billion from $7.6 billion in a year. Cisco says it could face excess and obsolete charges if demand falls or customers cancel or change designs.

    Watch Purchase commitments and inventory ($5.7 billion at Jul 25, 2026) in the next 10-Q.

  • Raw-material prices

    Memory costs and outside suppliers

    Cisco reports memory shortages in FY2026 and expects rising memory costs to keep hurting it. It relies on contract manufacturers, and some components come from a single supplier.

    Watch Product gross margin (63.2% in FY2026).

  • Pricing

    Lower-margin hardware mix

    Product mix cut product gross margin by 3.6 points in FY2026, Cisco reports. Productivity, pricing and other items offset part of that, and product gross margin ended at 63.2%, from 63.7%.

    Watch Product gross margin as hyperscaler AI revenue grows.

  • Regulation

    Tariffs and trade policy

    Cisco says its exposure to new and proposed tariffs is "uncertain but could be significant" if it cannot reduce it.

    Watch Tariff comments in the next 10-Q and earnings release.

  • Competition

    Competition, including from customers

    Cisco says barriers to entry are relatively low, and lists more price competition, including from rivals in Asia, especially China. It says some of its largest customers can design their own equipment and chips.

    Watch Networking revenue ($34.7 billion in FY2026) and product gross margin.

  • Concentration

    One channel partner is about 11% of revenue

    One unnamed global channel partner was about 11% of FY2026 revenue; none reached 10% in FY2025 or FY2024. Cisco says changes to its distribution model could harm sales and margins.

    Watch The major-customer note in the next 10-K.

  • Debt

    Debt and acquired assets

    Debt was $29.5 billion at Jul 25, 2026, with $10.2 billion short-term. Goodwill and purchased intangibles were $67.0 billion, or 52% of total assets.

    Watch Short-term debt and any goodwill impairment.

Sources (2)
Next: Supporters vs. critics

09Both sides

What do supporters and critics point to?

Facts each side points to. We don't say which side is right.

What supporters point to

  • Revenue rose 11.8% to $63.3 billion in FY2026, and Q4 FY2026 revenue rose 18% to $17.3 billion.
  • Cisco stated $9.3 billion of AI infrastructure orders from hyperscalers in FY2026, after $2 billion in FY2025. Revenue from them was about $4 billion in FY2026.
  • Reported revenue came in above the top of Cisco's own guidance range in all four FY2026 quarters.
  • Remaining performance obligations rose to $46.7 billion at Jul 25, 2026 from $43.5 billion a year earlier.
  • Cisco returned $12.7 billion to stockholders in FY2026, which it states was 99% of free cash flow.

What critics point to

  • FY2026 net income of $13.3 billion includes $1.4 billion of investment gains, mostly unrealized.
  • Purchase commitments rose 126% to $17.2 billion and inventory 80% to $5.7 billion, while Cisco says large customers may change orders.
  • Product mix cut product gross margin by 3.6 points in FY2026, and Cisco expects rising memory costs to keep hurting it.
  • Security revenue rose 2% in FY2026, and services revenue was flat at $15.0 billion.
  • Debt was $29.5 billion at Jul 25, 2026, up from $8.4 billion at the end of FY2023, and one unnamed channel partner was about 11% of FY2026 revenue.
Next: What to watch next

10What to watch next

What should you watch next at Cisco?

Next event

Q1 FY2027 results

Nov 12, 2026

Date confirmed by the company

  • Q1 FY2027 against Cisco's guidance

    Cisco said on Aug 12, 2026 that it expects revenue of $18.0 billion to $18.2 billion and GAAP EPS of $1.08 to $1.10. Its call is on Nov 12, 2026.

  • AI orders against AI revenue

    Hyperscaler AI orders were $9.3 billion and revenue about $4 billion in FY2026. Cisco said on Aug 12, 2026 that it expects $7.5 billion of this revenue in FY2027.

  • Supplies and margin

    Purchase commitments were $17.2 billion, up from $7.6 billion a year earlier. Product gross margin was 63.2% in FY2026.

Next: Key dates

11Key dates

What are the key dates for Cisco?

Dates as stated in the filings. A date that no filing has given yet shows as not yet stated.
Key dates for Cisco
EventDateSource
Q1 FY2027 earnings call1:30 p.m. Pacific Time, as Cisco stated on Aug 12, 2026.Q4 FY2026 call: prepared remarks only (no Q&A)
2026 annual meeting of stockholdersRecord date Oct 16, 2026.2026 Proxy Statement (DEF 14A), meeting Dec 15, 2026, record date Oct 16, 2026

Learn: IPO lock-up agreements: what they are and when they end

Sources (2)
Next: Key facts

12Key facts

Key facts about Cisco

What does Cisco do?
Cisco Systems designs and sells network equipment, security and collaboration software, and support services. Cisco's revenue was $63.3 billion in FY2026, the year ended Jul 25, 2026, and it had about 82,400 employees.
What is Cisco's business model?
Cisco sells hardware and software through channel partners and its own sales force, and earns support and subscription revenue on them. In FY2026 Cisco's product revenue was $48.3 billion and its services revenue was $15.0 billion.
How does Cisco make money?
Cisco makes money on the gap between its prices and its costs. In FY2026 Cisco's gross margin was 64.5% of revenue, and its operating income was $15.4 billion, or 24.3% of revenue.
Is Cisco profitable?
Yes. Cisco's net income was $13.3 billion in FY2026, up from $10.2 billion in FY2025, and its operating income was $15.4 billion. Cisco's FY2026 net income includes $1.4 billion of investment gains, mostly unrealized.
What is Cisco's revenue by segment?
Cisco reports three regional segments. In FY2026 the Americas brought in $37.8 billion (59.7%), Europe, the Middle East and Africa $16.6 billion (26.2%), and Asia Pacific, Japan and China $8.9 billion (14.1%).
How much does Cisco earn from networking?
Cisco's networking products brought in $34.7 billion in FY2026, 54.7% of revenue and up 22% from FY2025. AI infrastructure sold to hyperscalers, the largest cloud companies, was about 6% of Cisco's total FY2026 revenue.
How much does Cisco earn from security, collaboration and observability?
Cisco's security products brought in $8.2 billion in FY2026, 13.0% of revenue. Cisco's collaboration products brought in $4.3 billion (6.8%), and its observability tools $1.1 billion (1.7%).
How much does Cisco earn from services?
Cisco's services, mainly technical support and professional services, brought in $15.0 billion in FY2026, 23.7% of revenue. Cisco's gross margin on services was 68.8%, against 63.2% on products.
Who are Cisco's customers?
Cisco sells to businesses, governments and schools, and telecom and cloud companies, often through channel partners. One unnamed global channel partner was about 11% of Cisco's FY2026 revenue, and Cisco does not split revenue by customer market.
Who owns Cisco?
Cisco's 2026 proxy statementThe yearly filing about shareholder votes, the board and executive pay. Learn more lists BlackRock at 8.9%, Vanguard Capital Management at 7.2% and State Street at 5.0%. Cisco's officers and directors as a group held less than 1% on Aug 27, 2026, and Cisco has one share class with one vote per share.
Sources (3)
Next: Go deeper

Go deeper

More detail from the same filings. Open any section.

13What it sells

13What it sells

What does Cisco sell?

Cisco makes the equipment and software that move data around offices, data centers and the internet. It also sells tools that protect those networks, and support to keep them running.

  • Networking ($34.7B, 54.7% of FY2026 revenue)

    Switches and routers that direct data inside buildings, in data centers and across long distances, plus wireless gear, servers and optical parts.

  • Services ($15.0B, 23.7%)

    Technical support, hardware replacement and professional help to plan and install systems.

  • Security ($8.2B, 13.0%)

    Products that protect networks, check who is logging in and secure remote access. Part of Splunk, bought in 2024, sits here.

  • Collaboration ($4.3B, 6.8%)

    The Webex software suite, collaboration devices, contact center software and communication tools for developers.

  • Observability ($1.1B, 1.7%)

    Tools that watch applications and networks and help fix problems, including Splunk Observability.

  • Cisco Capital

    Cisco's financing arm, which helps qualified customers pay over time. Financing receivables were $8.3 billion at Jul 25, 2026.

Think of it like this

Switches and routers work like road junctions: they send each piece of data the right way.

What it does

  • Does: Sells directly and through channel partners such as distributors, systems integrators and service providers
  • Does: Builds some of its routers and switches on Silicon One, its own chip design
  • Does: Sells support and software subscriptions alongside its equipment

What it does not do

  • Does not: Does not do its own manufacturing: it relies on contract manufacturers
  • Does not: Does not name the channel partner that was about 11% of FY2026 revenue
  • Does not: Does not report Splunk's revenue separately after FY2024
Sources (1)
14How the money flows

14How the money flows · FY2026

How does money flow through Cisco?

Money in

  • Product revenue$48.3B
  • Services revenue$15.0B
  • Interest income and other income$2.1B

The company

Cisco

$65.4B came in

Money out

  • Cost of products and services$22.5B
  • Sales and marketing$11.6B
  • Research and development$9.6B
  • Admin, amortization and restructuring$4.4B
  • Interest$1.5B
  • Income tax$2.7B
  • Net income$13.3B
  1. Customers paid Cisco $63.3 billion in FY2026: $48.3 billion for products and $15.0 billion for services. Interest and other income added $2.1 billion.
  2. Making and delivering those products and services cost $22.5 billion.
  3. Sales and marketing took $11.6 billion, research $9.6 billion, and admin, amortization and restructuring $4.4 billion.
  4. That left operating income of $15.4 billion. Interest cost $1.5 billion and income tax $2.7 billion.
  5. What was left was net income of $13.3 billion, including $1.4 billion of investment gains, mostly unrealized.
Sources (1)
15What it needs to run

15What it needs to run

What does Cisco need to run?

  • Contract manufacturers

    Outside companies assemble and test Cisco's products. Cisco says it has no significant long-term contracts with them.

  • Chips and memory

    Some components come from a single supplier. Purchase commitments were $17.2 billion at Jul 25, 2026, partly to secure memory and other parts.

  • Engineers

    Research and development cost $9.6 billion in FY2026, 15.1% of revenue.

  • Sales force and partners

    About 25,400 of Cisco's 82,400 employees worked in sales and marketing at Jul 25, 2026, alongside channel partners.

Sources (1)
16Where it sells

16Where it sells · FY2026

Where does Cisco sell?

  • United States ($34.4 billion, as rounded by Cisco)54%
  • All other countries46%
Sources (1)
17Competitors and what protects it

17Competitors and what protects it

Who does Cisco compete with?

Cisco's FY2026 10-K names 18 competitors, each for only some of its products, and says barriers to entry are relatively low. It does not give market shares.

  • Arista Networks

    Named in Cisco's FY2026 10-K as a competitor for some products; the 10-K does not say which.

  • Nvidia

    Named in Cisco's FY2026 10-K as a competitor for some products; the 10-K does not say which.

  • Broadcom

    Named in Cisco's FY2026 10-K as a competitor for some products; the 10-K does not say which.

  • Palo Alto Networks

    Named in Cisco's FY2026 10-K as a competitor for some products; the 10-K does not say which.

  • Microsoft

    Named in Cisco's FY2026 10-K as a competitor for some products; the 10-K does not say which.

What protects the business

Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.

  • Range of products4 of 5

    Cisco sells networking, security, collaboration, observability and services, with $63.3 billion of revenue in FY2026.

  • Contracted revenue4 of 5

    Remaining performance obligations were $46.7 billion and deferred revenue $29.8 billion at Jul 25, 2026.

  • Sales reach4 of 5

    About 25,400 employees work in sales and marketing, and channel partners sell a "substantial portion" of its products and services.

  • Own chip design3 of 5

    Cisco builds systems on Silicon One and plans to use it across high-performance networking systems by FY2029, it said on Aug 12, 2026. Contract manufacturers still make its products.

Weak spot

Low barriers and large customers who can build their own

Cisco says barriers to entry are relatively low. It says some of its largest customers, including hyperscalers, can design their own networking equipment and chips.

Sources (2)
18Where growth could come from

18Where growth could come from

Where could Cisco's growth come from?

Cisco said in its Q4 FY2026 earnings release (Aug 12, 2026) that it expects FY2027 revenue of $72.2 billion to $73.4 billion and GAAP EPS of $4.00 to $4.06. For Q1 FY2027 it said it expects revenue of $18.0 billion to $18.2 billion and GAAP EPS of $1.08 to $1.10.
Management statement, Aug 12, 2026. Reported as a statement, not our forecast.

  • AI infrastructure for hyperscalers

    Working

    $9.3B of orders, about $4B of revenue, FY2026

    Orders were $2 billion and revenue $1 billion in FY2025, Cisco stated. On Aug 12, 2026 Cisco said it expects $7.5 billion of this revenue in FY2027.

    Status: Working, on track against what the company said.

  • Networking

    Working

    Up 22% to $34.7B in FY2026

    Networking revenue fell to $28.3 billion in FY2025 from $34.6 billion in FY2023, then rose in FY2026.

    Status: Working, on track against what the company said.

  • Security, including Splunk

    Mixed

    Up 2% to $8.2B in FY2026

    Security revenue was $5.1 billion in FY2024 and $8.1 billion in FY2025. Cisco's FY2025 10-K says offerings that include Splunk drove most of that rise, and Cisco does not report Splunk separately.

    Status: Mixed, partly on track.

  • Recurring revenue

    Mixed

    Contracted work (RPO) up 7% to $46.7B

    Total software revenue rose 4% to $23.2 billion in FY2026, and total subscription revenue rose 1%.

    Status: Mixed, partly on track.

  • AI orders from other customers

    Early

    Over $400M of orders in Q4 FY2026

    Cisco said on Aug 12, 2026 that these came from neocloud (smaller AI cloud), sovereign (government-backed) and enterprise customers.

    Status: Early, too early to judge.

Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.

Sources (6)
19The company's own measures (non-GAAP)

19The company's own measures · FY2025, FY2026 and Q4 FY2026

What do Cisco's own measures show?

Adjusted (non-GAAP) figures and these order measures are Cisco's own, shown next to the official (GAAP) number. They are never added together.

  • Official (GAAP): Net income, FY2026

    $13.3B

    Company's own measure: Non-GAAP net income, FY2026

    $17.2B

    Cisco leaves out stock-based payPay given as shares instead of cash, which spreads ownership more thinly. Learn more, amortization of acquired intangibles, acquisition costs, legal settlements, restructuring, investment gains and losses, and significant tax matters.

  • Official (GAAP): Net income, FY2025

    $10.2B

    Company's own measure: Non-GAAP net income, FY2025

    $15.2B

    Same exclusions. The supplier charge of about $355 million is left out of this measure, so it did not change after the Aug 13, 2025 release.

  • Official (GAAP): Diluted EPS, FY2026

    $3.33

    Company's own measure: Non-GAAP EPS, FY2026

    $4.33

    Same exclusions, per share.

  • Official (GAAP): Operating income, FY2026

    $15.4B

    Company's own measure: Non-GAAP operating income, FY2026

    $22.0B

    Same exclusions.

  • Official (GAAP): Operating margin, FY2026

    24.3%

    Company's own measure: Non-GAAP operating margin, FY2026

    34.8%

    Same exclusions, as a share of revenue.

  • Official (GAAP): Product revenue, FY2026

    $48.3B

    Company's own measure: AI infrastructure orders from hyperscalers, FY2026

    $9.3B

    A management measure of orders, not revenue. Revenue from these customers was about $4 billion, about 6% of total revenue. It leaves out neocloud, sovereign and enterprise customers.

  • Official (GAAP): Remaining performance obligations, Jul 25, 2026

    $46.7B

    Company's own measure: Annualized recurring revenue (ARR), Jul 25, 2026

    $32.1B

    The yearly run-rate of active subscriptions, term licenses, operating leases and maintenance contracts. ARR rose 3%. Cisco says to view it separately from revenue, deferred revenue and remaining performance obligations.

  • Official (GAAP): Product revenue growth, Q4 FY2026

    24.0%

    Company's own measure: Product orders growth, Q4 FY2026

    35%

    Orders are customer commitments that have not yet become revenue. Excluding hyperscalers, Cisco said product orders rose 25%.

These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.

Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out · Stock-based compensation and dilution: pay that becomes shares

Sources (5)
20Financial strength and debt

20Financial strength · Jul 25, 2026

How much debt does Cisco have?

At Jul 25, 2026 Cisco's debt exceeded its cash and investments by $13.6 billion, about the same as its $14.2 billion of FY2026 cash from operations.
  • Total debt$29.5B
  • Cash and investments$15.9B
  • Net debt (debt minus cash)$13.6B
  • Net worth (shareholders' money)$50.3B
Debt to equity
0.59×
$ of debt for every $1 of shareholders' money
Interest cover
10.5×
how many times operating profit covers interest
  • Net debt is a Cityfort calculation from FY2026 10-K: $29,533 million of debt less $15,918 million of cash and investments.
  • Interest coverage is FY2026 operating income divided by interest expense: $15,368 million ÷ $1,470 million (Cityfort calculation from FY2026 10-K).
  • $10.2 billion of the debt is short-term, including $6.7 billion of commercial paper (short-term notes). A $5.0 billion revolving credit line was undrawn. Operating leases of $1.7 billion are not counted as debt.
  • Cisco had net cash of $17.8 billion at the end of FY2023 and net debt of $13.1 billion at the end of FY2024, after buying Splunk (Cityfort calculation from FY2024 10-K and FY2025 10-K).
  • Goodwill and purchased intangible assets were $67.0 billion, or 52% of total assets of $129.6 billion.
  • Inventory rose 80% to $5.7 billion, and purchase commitments rose 126% to $17.2 billion from $7.6 billion. Financing receivables rose 28% to $8.3 billion.
Sources (3)
21Who owns it

21Who owns it · ownership as of Aug 27, 2026

Who owns Cisco?

Cisco has one class of common stock, with one vote per share; no preferred shares are outstanding. Officers, directors and nominees as a group (15 people) held 462,966 shares on Aug 27, 2026, which the proxy marks as less than 1%. CEO Chuck Robbins's 1,056 shares exclude 243,000 vested deferred stock units and 53,895 dividend equivalents.
Share classes
Cisco share classes: shares outstanding (millions) and votes per share
ClassShares (millions)Votes per shareHeld by% of shares% of votesTraded
Common stock (3,942,586,873 shares on Aug 27, 2026 (FY2026 10-K cover).)3,942.61–––Yes
Holders of 5% or more
Cisco holders of 5% or more, from the proxy statement or later Schedule 13G filings; each row shows its own date
HolderSharesVotesAs ofSourceNote
BlackRock, Inc.8.9%–Jan 25, 2024S6, S33Proxy figure, from a Schedule 13G filed Jan 25, 2024 (351,115,676 shares). That older filing itself shows 8.6%.
Vanguard Capital Management7.2%–Apr 29, 2026S6, S30Proxy figure, from a Schedule 13G filed Apr 29, 2026 (283,833,451 shares, holding on Mar 31, 2026).
State Street Corporation5.0%–Aug 7, 2026S6, S31Proxy figure, from a Schedule 13G filed Aug 7, 2026 (197,373,659 shares, holding on Jun 30, 2026).
The Vanguard Group0.0%–Mar 26, 2026S32Reported 0% in a Schedule 13G/A filed Mar 26, 2026, after a Jan 12, 2026 internal realignment.

From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.

Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes

Sources (6)
22What it does with profit

22What it does with profit

What does Cisco do with its profit?

Cisco says it targets returning at least 50% of free cash flow each year. It returned $12.7 billion in FY2026, which it states was 99% of free cash flow. It said on Aug 12, 2026 that it raised the dividend for the 15th straight year. The dividend is $0.42 a quarter, last payable Oct 21, 2026. About $8.1 billion of buyback authority remained at Jul 25, 2026. Payout is cash dividends ÷ net income (Cityfort calculation from FY2023 10-K and FY2026 10-K).

Dividend per share

$1.66FY2026

Dividend paid for each share, by financial year.

$ per share

See the numbers
Dividend per share ($ per share)
YearDividend per shareShare of profit paid out
FY2021$1.4658.2%
FY2022$1.5052.7%
FY2023$1.5450.0%
FY2024$1.5861.9%
FY2025$1.6263.2%
FY2026$1.6649.4%

  • Buyback · Jul 30, 2022

    Shares repurchased under the program during FY2022 (cash paid).

    $7.7B

  • Buyback · Jul 29, 2023

    Shares repurchased under the program during FY2023 (cash paid).

    $4.3B

  • Buyback · Jul 27, 2024

    Shares repurchased under the program during FY2024 (cash paid).

    $5.8B

  • Buyback · Jul 26, 2025

    Shares repurchased under the program during FY2025 (cash paid).

    $6.0B

  • Buyback · Jul 25, 2026

    Shares repurchased under the program during FY2026 (cash paid).

    $6.1B

Sources (2)
23Governance signals

23Governance signals

What do Cisco's governance filings show?

Auditor
PricewaterhouseCoopers LLP, since 1988
Auditor changes
None in the period covered
Audit qualifications
None reported
Related-party dealings
A daughter of CFO Mark Patterson and a son of CEO Chuck Robbins work at Cisco as account managers. In fiscal 2026 they received about $507,000 and $376,000 in total pay. Cisco's Audit Committee reviews related-person transactions.
Credit rating
No public credit rating found

Flags to know about

  • disclosure

    No revenue by customer market

    Cisco gives order growth by customer market but no revenue split. Its roughly 11% channel partner is not named, and it stopped reporting Splunk revenue separately after FY2024.

  • other · Aug 26, 2025

    FY2025 results changed after the earnings release

    Cisco settled a supplier dispute on Aug 26, 2025, after its Aug 13 release, adding about $355 million to Q4 product cost. Q4 net income went from $2,823 million to $2,550 million in the FY2025 10-K, which supersedes the release.

  • regulatory

    Brazil import tax claims

    Brazilian tax authorities assert claims against a Cisco subsidiary over alleged evasion of import taxes: $153 million of tax, $969 million of interest and $315 million of penalties. Cisco says the claims are without merit and cannot estimate a loss.

  • other

    Patent suits over optical parts

    Ramot at Tel Aviv University alleges certain optical modules and line cards infringe three patents. Cisco says any damages would not have a material effect on its financial statements.

  • other

    Insider share rules

    Cisco's proxy says executive officers and directors may not use Cisco shares in margin accounts or as collateral for loans. It also bars speculative transactions, such as short sales and options, by all employees.

  • other

    Recent board and finance changes

    Nichlas A. Fink became Chief Accounting Officer on May 20, 2026. Daniel Schulman left the board on May 21, 2026; Peter A. Shimer and Girish D. Rishi joined in 2026.

Sources (7)
24What the market paid

24What the market paid · price as of Nov 4, 2026

What did the market pay for Cisco on Nov 4, 2026?

Price as of Nov 4, 2026 (shown for education; prices change daily).

Price as of Nov 4, 2026: Cisco closed at $103.61 on Nasdaq. Times 3,942.6 million shares (Aug 27, 2026), that is a market value of about $408.5 billion (Cityfort calculation from the Nov 4, 2026 closing price and the FY2026 10-K cover). P/E is price ÷ earnings per share: 31.1 on FY2026 diluted EPS of $3.33, which includes investment gains. P/B is market value ÷ equity of $50.3 billion: 8.1. EV/EBITDA adds net debt of $13.6 billion to market value, then divides by FY2026 EBITDA of $17.9 billion: 23.6. The $0.42 quarterly dividend is $1.68 over four quarters, or 1.62% of that price.

Share price
$103.61
Market value (market cap)
$408.5B
P/E
31.1×
P/B
8.1×
EV/EBITDA
23.6×

Source: CSCO historical daily prices, Nasdaq (close of Nov 4, 2026: $103.61); Form 10-K for fiscal year 2026 (year ended Jul 25, 2026); Q4 and FY2026 earnings release (8-K Ex. 99.1)

Sources (3)
25How it got here

25How it got here

How did Cisco get here?

  1. 1984

    Milestone

    Incorporated in California

    Cisco reincorporated in Delaware in 2021.

  2. 2015

    Milestone

    Chuck Robbins becomes CEO

    He joined Cisco in 1997 and added the Chair role in December 2017.

  3. 2023

    Business-model change

    Agrees to buy Splunk

    Cisco signed a deal on Sep 20, 2023, announced the next day, to buy the security and observability software company for $157 a share in cash.

  4. 2024

    Business-model change

    Splunk purchase closes

    Closed on Mar 18, 2024, for about $27 billion. Debt rose to $31.0 billion at the end of FY2024 from $8.4 billion a year earlier.

  5. 2025

    Crisis

    Supplier dispute changes reported results

    A settlement on Aug 26, 2025 added about $355 million to Q4 FY2025 product cost, after Cisco had released its results.

  6. 2026

    Milestone

    Final transition-tax payment

    Cisco paid the last $2.3 billion of its US transition tax in FY2026, which lowered that year's cash from operations.

  7. 2026

    Business-model change

    Restructuring toward silicon, optics, security and AI

    On May 13, 2026 Cisco announced a plan with charges of up to $1 billion, to invest in those areas.

Sources (6)

26Sources and changes

Where every number on this page comes from

Sources (30 documents)
  1. S1Form 10-K for fiscal year 2026 (year ended Jul 25, 2026) · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 2, 2026
  2. S2Form 10-K for fiscal year 2025 · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 3, 2025
  3. S3Form 10-K for fiscal year 2024 · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 5, 2024
  4. S4Form 10-K for fiscal year 2023 · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 7, 2023
  5. S62026 Proxy Statement (DEF 14A), meeting Dec 15, 2026, record date Oct 16, 2026 · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 29, 2026
  6. S12Form 10-Q, Q1 FY2025 · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 19, 2024
  7. S13Q4 and FY2026 earnings release (8-K Ex. 99.1) · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 12, 2026
  8. S14Q3 FY2026 earnings release (8-K Ex. 99.1) · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 13, 2026
  9. S15Q2 FY2026 earnings release (8-K Ex. 99.1) · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 11, 2026
  10. S16Q1 FY2026 earnings release (8-K Ex. 99.1) · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 12, 2025
  11. S17Q4 and FY2025 earnings release (8-K Ex. 99.1); GAAP Q4 and FY2025 figures superseded by the FY2025 10-K · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Aug 13, 2025
  12. S18Q3 FY2025 earnings release (8-K Ex. 99.1) · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 14, 2025
  13. S19Q2 FY2025 earnings release (8-K Ex. 99.1) · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Feb 12, 2025
  14. S20Q1 FY2025 earnings release (8-K Ex. 99.1) · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Nov 13, 2024
  15. S23Q4 FY2026 call: prepared remarks only (no Q&A) · Cisco Systems, Inc. (investor relations) · Tier 1: company or exchange filing · Aug 12, 2026
  16. S25Q2 FY2026 call: prepared remarks only (no Q&A) · Cisco Systems, Inc. (investor relations) · Tier 1: company or exchange filing · Feb 11, 2026
  17. S26Q1 FY2026 call: prepared remarks only (no Q&A) · Cisco Systems, Inc. (investor relations) · Tier 1: company or exchange filing · Nov 12, 2025
  18. S28Q4 FY2026 earnings slides · Cisco Systems, Inc. (investor relations) · Tier 1: company or exchange filing · Aug 12, 2026
  19. S30Schedule 13G, Vanguard Capital Management, event Mar 31, 2026 · Vanguard Capital Management (SEC EDGAR) · Tier 1: company or exchange filing · Apr 29, 2026
  20. S31Schedule 13G, State Street Corporation, event Jun 30, 2026 · State Street Corporation (SEC EDGAR) · Tier 1: company or exchange filing · Aug 7, 2026
  21. S32Schedule 13G/A, The Vanguard Group (reports 0 after the Jan 12, 2026 realignment) · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 26, 2026
  22. S33Schedule 13G/A, BlackRock, Inc. · BlackRock, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Jan 25, 2024
  23. S348-K filed May 13, 2026: Q3 FY2026 results and Item 2.05 restructuring plan · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 13, 2026
  24. S358-K filed Mar 18, 2024: completion of Splunk acquisition · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Mar 18, 2024
  25. S368-K filed Sep 21, 2023: Splunk merger agreement · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Sep 21, 2023
  26. S378-K filed Oct 9, 2026: Girish D. Rishi appointed director · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 9, 2026
  27. S388-K filed May 1, 2026: Chief Accounting Officer change · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 1, 2026
  28. S398-K filed Apr 6, 2026: Schulman resignation, Shimer appointment · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Apr 6, 2026
  29. S418-K filed May 14, 2025: CFO succession, President appointed · Cisco Systems, Inc. (SEC EDGAR) · Tier 1: company or exchange filing · May 14, 2025
  30. S42CSCO historical daily prices, Nasdaq (close of Nov 4, 2026: $103.61) · Nasdaq, Inc. · Tier 1: company or exchange filing · Nov 4, 2026
Changes to this page (v1 · Nov 5, 2026)
  1. v1 · Nov 5, 2026First version, through Q4 FY2026 (quarter ended Jul 25, 2026). (first version)

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