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Networking alone carried this year's growth

Networking rose 22.5% to $34.7B while every other line grew 3.8% or less, so this year's growth was one business, not a broad recovery.

FY2026, the fiscal year to Jul 25, 2026 · 10-K filed Sep 2, 2026

FY2026 · revenue
$63.3B+11.8% on the year
Operating margin
24.3%
Net income
$13.3B
Free cash flow
$12.8B

Largest source of revenue: Networking, 54.8% of the total.

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Key insights · FY2026
  1. 01

    Networking alone carried this year's growth

    Networking rose 22.5% to $34.7B while every other line grew 3.8% or less, so this year's growth was one business, not a broad recovery.

    Why it matters

    Networking revenue was $34.7B, up 22.5%, and its share of total revenue rose 4.8 points to 54.7%. Total revenue grew 11.8% to $63.3B, so Networking supplied nearly all of the added revenue. Security grew 1.7%, Collaboration 3.5% and Observability 3.8%, while Services slipped 0.1% and lost 2.8 points of share, to 23.7%.1

    The filing credits the Networking gain mainly to AI Infrastructure solutions built on Cisco Silicon One systems and optics, with double-digit growth in service provider routing, data center switching, wireless and servers, and growth in campus switching. Hyperscaler AI infrastructure was about 6% of total revenue, by the company's own estimate.1

    AnalysisAnalysis: the mix moved toward hardware sold in large orders to a few buyers, and away from the services and software that renew. Security and Observability, both built up through acquisitions to make Cisco more of a software company, grew 1.7% and 3.8%. Revenue rose faster than the recurring base under it, which makes next year's revenue harder to read from this year's.

  2. 02

    Flat costs turned 11.8% growth into 30.7%

    Operating expenses rose 1.9% against revenue growth of 11.8%, so operating income rose 30.7% even though gross margin slipped 0.41 points.

    Why it matters

    Gross margin dollars rose 11.1% to $40.9B, while total operating expenses rose 1.9% to $25.5B, so their share of revenue fell 3.9 points to 40.3%. R&D rose 2.8%, sales and marketing 5.4%, and general and administrative fell 7.7%. Operating income reached $15.4B and operating margin rose 3.5 points to 24.3%. More than half of the added revenue reached operating income.1

    The gain built through the year. Operating margin was 22.6% in the first quarter and 24.7% in the fourth, as quarterly revenue rose from $14.9B to $17.3B. The filing attributes the margin increase primarily to revenue growth, partly offset by lower gross margin and higher operating expenses.1

    In FY2019, operating margin was 27.4% on a gross margin of 62.9%. Gross margin is higher now, at 64.5%, so the gap to that level sits in the operating cost base, which this year's leverage only partly closed.1

    AnalysisAnalysis: leverage of this kind works in both directions. The cost base is set ahead of demand, and Cisco is reshaping it again with a restructuring plan announced in the fourth quarter to fund silicon, optics, security and AI; restructuring and other charges were $693M after $744M last year. If Networking orders slow, expenses that barely grew on the way up would not shrink as quickly on the way down.

  3. 03

    Net income rose 30.3%, free cash flow fell

    Free cash flow fell to $12.8B from $13.3B while net income rose 30.3%, as supplier payments and capital spending absorbed the profit gain.

    Why it matters

    Operating cash flow was $14.2B in both years, $14,177M against $14,193M, while net income rose 30.3% to $13.3B. Cash conversion, operating cash flow divided by net income, fell to 1.07. Capital spending rose to $1.41B from $905M, and free cash flow fell to $12.8B from $13.3B.1

    The filing attributes flat operating cash flow to higher cash collections, offset by higher payments to contract manufacturers and suppliers and by the final payment of the one-time U.S. transition tax on foreign subsidiaries' accumulated earnings under the Tax Act.1

    The quarters show the strain. In the second quarter, operating cash flow was $1.8B against net income of $3.2B; in the fourth, it was $5.4B against $3.9B. For the year, free cash flow was 20.2% of revenue, against a net margin of 21.0%.1

    AnalysisAnalysis: part of the gap is timing. The transition tax does not recur, and payments made to suppliers ahead of AI shipments can turn back into cash if the products ship and are paid for. The open part is whether the demand those payments were made for arrives on the schedule they assume.

  4. 04

    A private-stake gain offset a higher tax rate

    Net income grew 30.3%, in step with operating income, because a $1,245M investment gain offset a tax rate that rose from 8.3% to 17.1%.

    Why it matters

    Other income swung from a $68M loss to a $1,245M gain, which the filing attributes mainly to unrealized gains on non-marketable equity securities, its stakes in privately held companies. That lifted income before taxes 44.2%, against 30.7% for operating income. The gain equals 7.8% of income before taxes.1

    The provision for income taxes rose to $2.7B from $920M, taking the effective rate from 8.3% to 17.1%. The filing attributes the rise mainly to a one-time tax benefit last year from a U.S. Tax Court opinion, and to a valuation allowance against California deferred tax assets this year.1

    AnalysisAnalysis: in growth terms the two items roughly cancelled, so net income and diluted earnings per share, $3.33 against $2.55, tracked operating income. Neither item is a steady guide. The filing notes that gains on private stakes depend on future financing rounds at varying valuations, which makes operating income the cleaner measure of this year's progress.

Sources

  1. 1.Cisco 10-K for the period to 2026-07-25 (the filing), Sep 2, 2026, read Nov 2, 2026

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Business performance

Growth, profit and margin

Revenue went from $39.5B in FY2008 to $63.3B in FY2026, the operating margin from 23.9% to 24.3%, over 18 years.

  • Revenue$63.3B
  • Operating income$15.4B
  • Operating margin24.3%
Period
FY2026
Revenue
$63.3B
Operating income
$15.4B
Operating margin
24.3%
Net income
$13.3B
Free cash flow
$12.8B
Business performance

Does the profit turn into cash?

FY2026: free cash flow of $12.8B against net income of $13.3B.

  • Operating cash flow$14.2B
  • Capital expenditure$1.4B
  • Free cash flow$12.8B
  • Net income$13.3B

Capital expenditure is drawn below the axis as cash out. Cash conversion is operating cash flow over net income, shown in the tooltip for years with a profit.

Financial data and sources

How the revenue mix has shifted

Each breakdown the filing reports, as shares of revenue, for every period it restates.

Segment Information and Major Customers - Summary of Net Revenue for Groups of Similar Products and Services (Details). The filing restates this breakdown for 3 periods.

Click a member to isolate it across the years shown.

The figures

Margins, cash and growth for the period, each with what it was computed from.

Gross margin
64.5%
Source10-K, Derived from Gross margin and Total revenue in the 10-K filed 2026-09-02
Operating margin
24.3%
Source10-K, Derived from Operating income and Total revenue in the 10-K filed 2026-09-02
Net margin
21.0%
Source10-K, Derived from Net income and Total revenue in the 10-K filed 2026-09-02
Free cash flow
$12.8B
Source10-K, Derived from Net cash provided by operating activities and Acquisition of property and equipment in the 10-K filed 2026-09-02
Free cash flow margin
20.2%
Source10-K, Derived from Net cash provided by operating activities and Acquisition of property and equipment and Total revenue in the 10-K filed 2026-09-02
Cash conversion
1.07x
Source10-K, Derived from Net cash provided by operating activities and Net income in the 10-K filed 2026-09-02
Capital spending
2.2%
Source10-K, Derived from Acquisition of property and equipment and Total revenue in the 10-K filed 2026-09-02
Revenue growth
+11.8%
From the record's own history, against the prior year.

Where revenue comes from

Every breakdown the filing reports for the period, with each item's share.

Revenue streams

Networking$34.7B54.7%
Services$15.0B23.7%
Security$8.2B13.0%
Collaboration$4.3B6.8%
Observability$1.1B1.7%

Source10-K, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-K filed 2026-09-02

Segments

Americas$37.8B59.7%
Emea$16.6B26.2%
Apjc$8.9B14.1%

Source10-K, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-K filed 2026-09-02

What it costs

The cost lines beneath operating income, each as a share of revenue, then the operating result.

Costs are reported by function: what it cost to make what was sold, then the expenses of selling, developing and administering.

Cost lineFY2026Of revenueSource
Total cost of sales$22.5B35.5%Source10-K, us-gaap:CostOfGoodsAndServicesSold, as reported in the 10-K filed 2026-09-02
Operating income$15.4B24.3%Source10-K, us-gaap:OperatingIncomeLoss, as reported in the 10-K filed 2026-09-02

Operating figures the company states

From the text of the filing rather than its statements, each with the sentence that states it.

Channel partner financing volume
$29.9B
As of Jul 25, 2026
View source
The volume of channel partner financing was $29.9 billion, $24.9 billion, and $27.1 billion in fiscal 2026, 2025, and 2024, respectively.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-K filed Sep 2, 2026
Employees
82,400 employees
As of Jul 25, 2026
View source
As of July 25, 2026, we had approximately 82,400 employees and they are categorized as follows:
Hyperscaler AI infrastructure share of total revenue
6.0%
As of Jul 25, 2026
View source
We saw demand in fiscal 2026 for AI infrastructure from our hyperscaler customers, which represented approximately 6% of total revenue in fiscal 2026 compared with less than 2% in fiscal 2025.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations, 10-K filed Sep 2, 2026
Sales and marketing employees
25,400 employees
As of Jul 25, 2026
View source
As of the end of fiscal 2026, our worldwide sales and marketing functions consisted of approximately 25,400 employees, including managers, sales representatives, and technical support personnel.

The statements, as filed

The income statement, cash flow statement and balance sheet in the company's own order and words. Every line links to the filing.

Income statement25 lines, as presented in the 10-K
LineFY2026A year earlierChangeOf revenueSource
Revenue:
Total revenue$63.33B$56.65B+12%100%Source10-K, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax, as reported in the 10-K filed 2026-09-02
Product$48.30B$41.61B+16%76.3%Source10-K, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax [us-gaap:ProductMember], as reported in the 10-K filed 2026-09-02
Services$15.03B$15.05B-0.1%23.7%Source10-K, us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax [us-gaap:ServiceMember], as reported in the 10-K filed 2026-09-02
Cost of sales:
Total cost of sales$22.47B$19.86B+13%35.5%Source10-K, us-gaap:CostOfGoodsAndServicesSold, as reported in the 10-K filed 2026-09-02
Product$17.78B$15.12B+18%28.1%Source10-K, us-gaap:CostOfGoodsAndServicesSold [us-gaap:ProductMember], as reported in the 10-K filed 2026-09-02
Services$4.68B$4.74B-1.2%7.4%Source10-K, us-gaap:CostOfGoodsAndServicesSold [us-gaap:ServiceMember], as reported in the 10-K filed 2026-09-02
Income Statement
Gross margin$40.86B$36.79B+11%64.5%Source10-K, us-gaap:GrossProfit, as reported in the 10-K filed 2026-09-02
Operating expenses:
Research and development$9.56B$9.30B+2.8%15.1%Source10-K, us-gaap:ResearchAndDevelopmentExpense, as reported in the 10-K filed 2026-09-02
Sales and marketing$11.56B$10.97B+5.4%18.3%Source10-K, us-gaap:SellingAndMarketingExpense, as reported in the 10-K filed 2026-09-02
General and administrative$2.76B$2.99B-7.7%4.4%Source10-K, us-gaap:GeneralAndAdministrativeExpense, as reported in the 10-K filed 2026-09-02
Amortization of purchased intangible assets$916.0M$1.03B-11%1.4%Source10-K, us-gaap:AmortizationOfIntangibleAssets, as reported in the 10-K filed 2026-09-02
Restructuring and other charges$693.0M$744.0M-6.9%1.1%Source10-K, csco:RestructuringAndOtherCharges, as reported in the 10-K filed 2026-09-02
Total operating expenses$25.49B$25.03B+1.8%40.3%Source10-K, us-gaap:OperatingExpenses, as reported in the 10-K filed 2026-09-02
Income Statement
Operating income$15.37B$11.76B+31%24.3%Source10-K, us-gaap:OperatingIncomeLoss, as reported in the 10-K filed 2026-09-02
Interest income$866.0M$1.00B-13%1.4%Source10-K, us-gaap:InvestmentIncomeInterestAndDividend, as reported in the 10-K filed 2026-09-02
Interest expense (shown as a deduction)($1.47B)$1.59B-7.7%2.3%Source10-K, us-gaap:InterestExpenseNonoperating, as reported in the 10-K filed 2026-09-02
Other income (loss), net$1.25B-$68.0M2.0%Source10-K, us-gaap:OtherNonoperatingIncomeExpense, as reported in the 10-K filed 2026-09-02
Interest and other income (loss), net$641.0M-$660.0M1.0%Source10-K, us-gaap:NonoperatingIncomeExpense, as reported in the 10-K filed 2026-09-02
Income before provision for income taxes$16.01B$11.10B+44%25.3%Source10-K, us-gaap:IncomeLossFromContinuingOperationsBeforeIncomeTaxesExtraordinaryItemsNoncontrollingInterest, as reported in the 10-K filed 2026-09-02
Provision for income taxes$2.74B$920.0M+198%4.3%Source10-K, us-gaap:IncomeTaxExpenseBenefit, as reported in the 10-K filed 2026-09-02
Net income$13.27B$10.18B+30%21.0%Source10-K, us-gaap:NetIncomeLoss, as reported in the 10-K filed 2026-09-02
Net income per share:
Basic (in dollars per share)$3$3+31%0.0%Source10-K, us-gaap:EarningsPerShareBasic, as reported in the 10-K filed 2026-09-02
Diluted (in dollars per share)$3$3+31%0.0%Source10-K, us-gaap:EarningsPerShareDiluted, as reported in the 10-K filed 2026-09-02
Shares used in per-share calculation:
Basic (in shares)3,953,000,0003,976,000,000-0.6%Source10-K, us-gaap:WeightedAverageNumberOfSharesOutstandingBasic, as reported in the 10-K filed 2026-09-02
Diluted (in shares)3,987,000,0003,998,000,000-0.3%Source10-K, us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding, as reported in the 10-K filed 2026-09-02
Cash flow statement39 lines, as presented in the 10-K
LineFY2026A year earlierChangeSource
Cash flows from operating activities:
Net income$13.27B$10.18B+30%Source10-K, us-gaap:NetIncomeLoss, as reported in the 10-K filed 2026-09-02
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and other$2.54B$2.81B-9.6%Source10-K, csco:DepreciationAmortizationAndOther, as reported in the 10-K filed 2026-09-02
Share-based compensation expense$3.83B$3.64B+5.2%Source10-K, us-gaap:ShareBasedCompensation, as reported in the 10-K filed 2026-09-02
Provision for receivables$23.0M$24.0M-4.2%Source10-K, csco:AccountsReceivableAndFinancingReceivableCreditLossExpenseReversal, as reported in the 10-K filed 2026-09-02
Deferred income taxes$226.0M-$1.13BSource10-K, us-gaap:DeferredIncomeTaxesAndTaxCredits, as reported in the 10-K filed 2026-09-02
(Gains) losses on divestitures, investments and other, net (shown as a deduction)($1.36B)$38.0M+3,474%Source10-K, us-gaap:GainLossOnInvestments, as reported in the 10-K filed 2026-09-02
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Accounts receivable (shown as a deduction)($832.0M)$22.0M+3,682%Source10-K, us-gaap:IncreaseDecreaseInAccountsReceivable, as reported in the 10-K filed 2026-09-02
Inventories (shown as a deduction)($2.54B)-$209.0MSource10-K, us-gaap:IncreaseDecreaseInInventories, as reported in the 10-K filed 2026-09-02
Financing receivables (shown as a deduction)($1.84B)-$214.0MSource10-K, us-gaap:IncreaseDecreaseInFinanceReceivables, as reported in the 10-K filed 2026-09-02
Other assets (shown as a deduction)($1.03B)$499.0M+107%Source10-K, us-gaap:IncreaseDecreaseInOtherOperatingAssets, as reported in the 10-K filed 2026-09-02
Accounts payable$842.0M$257.0M+228%Source10-K, us-gaap:IncreaseDecreaseInAccountsPayable, as reported in the 10-K filed 2026-09-02
Income taxes, net-$2.30B-$1.84B+25%Source10-K, us-gaap:IncreaseDecreaseInAccruedIncomeTaxesPayable, as reported in the 10-K filed 2026-09-02
Accrued compensation$457.0M-$53.0MSource10-K, us-gaap:IncreaseDecreaseInEmployeeRelatedLiabilities, as reported in the 10-K filed 2026-09-02
Deferred revenue$1.13B$248.0M+354%Source10-K, us-gaap:IncreaseDecreaseInContractWithCustomerLiability, as reported in the 10-K filed 2026-09-02
Other liabilities$1.77B$193.0M+817%Source10-K, us-gaap:IncreaseDecreaseInOtherOperatingLiabilities, as reported in the 10-K filed 2026-09-02
Cash flows from operating activities:
Net cash provided by operating activities$14.18B$14.19B-0.1%Source10-K, us-gaap:NetCashProvidedByUsedInOperatingActivities, as reported in the 10-K filed 2026-09-02
Cash flows from investing activities:
Purchases of investments (shown as a deduction)($8.97B)$4.59B+96%Source10-K, us-gaap:PaymentsToAcquireInvestments, as reported in the 10-K filed 2026-09-02
Proceeds from sales of investments$2.01B$2.64B-24%Source10-K, us-gaap:ProceedsFromSaleOfAvailableForSaleSecuritiesDebt, as reported in the 10-K filed 2026-09-02
Proceeds from maturities of investments$6.11B$4.94B+24%Source10-K, us-gaap:ProceedsFromMaturitiesPrepaymentsAndCallsOfAvailableForSaleSecurities, as reported in the 10-K filed 2026-09-02
Acquisitions, net of cash and cash equivalents acquired and divestitures (shown as a deduction)($516.0M)$291.0M+77%Source10-K, us-gaap:PaymentsToAcquireBusinessesNetOfCashAcquired, as reported in the 10-K filed 2026-09-02
Purchases of non-marketable equity securities (shown as a deduction)($946.0M)$383.0M+147%Source10-K, csco:PaymentsForPurchaseOfInvestmentsInPrivatelyHeldCompanies, as reported in the 10-K filed 2026-09-02
Return of investments in non-marketable equity securities$270.0M$306.0M-12%Source10-K, csco:ProceedsFromInvestmentsInPrivatelyHeldCompanies, as reported in the 10-K filed 2026-09-02
Acquisition of property and equipment (shown as a deduction)($1.41B)$905.0M+56%Source10-K, us-gaap:PaymentsToAcquirePropertyPlantAndEquipment, as reported in the 10-K filed 2026-09-02
Other (shown as a deduction)($26.0M)-$9.0MSource10-K, us-gaap:PaymentsForProceedsFromOtherInvestingActivities, as reported in the 10-K filed 2026-09-02
Net cash provided by (used in) investing activities-$3.48B$1.73BSource10-K, us-gaap:NetCashProvidedByUsedInInvestingActivities, as reported in the 10-K filed 2026-09-02
Cash flows from financing activities:
Issuances of common stock$805.0M$736.0M+9.4%Source10-K, us-gaap:ProceedsFromIssuanceOfCommonStock, as reported in the 10-K filed 2026-09-02
Repurchases of common stock - repurchase program (shown as a deduction)($6.11B)$6.00B+1.8%Source10-K, us-gaap:PaymentsForRepurchaseOfCommonStock, as reported in the 10-K filed 2026-09-02
Shares repurchased for tax withholdings on vesting of restricted stock units (shown as a deduction)($1.87B)$1.22B+53%Source10-K, us-gaap:PaymentsRelatedToTaxWithholdingForShareBasedCompensation, as reported in the 10-K filed 2026-09-02
Short-term borrowings, original maturities of 90 days or less, net$616.0M-$31.0MSource10-K, us-gaap:ProceedsFromRepaymentsOfShortTermDebtMaturingInThreeMonthsOrLess, as reported in the 10-K filed 2026-09-02
Issuances of debt$13.05B$19.29B-32%Source10-K, us-gaap:ProceedsFromIssuanceOfLongTermDebt, as reported in the 10-K filed 2026-09-02
Repayments of debt (shown as a deduction)($12.25B)$22.07B-44%Source10-K, us-gaap:RepaymentsOfOtherLongTermDebt, as reported in the 10-K filed 2026-09-02
Repayments of Splunk convertible debt, net of capped call proceeds (shown as a deduction)($0)$0Source10-K, us-gaap:RepaymentsOfConvertibleDebt, as reported in the 10-K filed 2026-09-02
Dividends paid (shown as a deduction)($6.55B)$6.44B+1.8%Source10-K, us-gaap:PaymentsOfDividends, as reported in the 10-K filed 2026-09-02
Other-$33.0M-$80.0M-59%Source10-K, us-gaap:ProceedsFromPaymentsForOtherFinancingActivities, as reported in the 10-K filed 2026-09-02
Net cash provided by (used in) financing activities-$12.35B-$15.82B-22%Source10-K, us-gaap:NetCashProvidedByUsedInFinancingActivities, as reported in the 10-K filed 2026-09-02
Statement of Cash Flows
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents-$29.0M-$43.0M-33%Source10-K, us-gaap:EffectOfExchangeRateOnCashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsDisposalGroupIncludingDiscontinuedOperations, as reported in the 10-K filed 2026-09-02
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents-$1.68B$68.0MSource10-K, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalentsPeriodIncreaseDecreaseIncludingExchangeRateEffect, as reported in the 10-K filed 2026-09-02
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of fiscal year$8.91BSource10-K, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-K filed 2026-09-02
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of fiscal year$7.23B$8.91B-19%Source10-K, us-gaap:CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents, as reported in the 10-K filed 2026-09-02
Balance sheet32 lines, as presented in the 10-K
LineFY2026A year earlierChangeSource
Current assets:
Cash and cash equivalents$7.22B$8.35B-14%Source10-K, us-gaap:CashAndCashEquivalentsAtCarryingValue, as reported in the 10-K filed 2026-09-02
Investments$8.70B$7.76B+12%Source10-K, us-gaap:ShortTermInvestments, as reported in the 10-K filed 2026-09-02
Accounts receivable, net of allowance of $78 at July 25, 2026 and $69 at July 26, 2025$7.47B$6.70B+11%Source10-K, us-gaap:AccountsReceivableNetCurrent, as reported in the 10-K filed 2026-09-02
Inventories$5.69B$3.16B+80%Source10-K, us-gaap:InventoryNet, as reported in the 10-K filed 2026-09-02
Financing receivables, net$3.39B$3.06B+11%Source10-K, us-gaap:NotesAndLoansReceivableNetCurrent, as reported in the 10-K filed 2026-09-02
Other current assets$6.19B$5.95B+4.1%Source10-K, us-gaap:OtherAssetsCurrent, as reported in the 10-K filed 2026-09-02
Total current assets$38.67B$34.99B+11%Source10-K, us-gaap:AssetsCurrent, as reported in the 10-K filed 2026-09-02
Assets
Property and equipment, net$2.76B$2.11B+31%Source10-K, us-gaap:PropertyPlantAndEquipmentNet, as reported in the 10-K filed 2026-09-02
Financing receivables, net$4.94B$3.47B+43%Source10-K, us-gaap:NotesAndLoansReceivableNetNoncurrent, as reported in the 10-K filed 2026-09-02
Goodwill$59.48B$59.14B+0.6%Source10-K, us-gaap:Goodwill, as reported in the 10-K filed 2026-09-02
Purchased intangible assets, net$7.56B$9.18B-18%Source10-K, us-gaap:IntangibleAssetsNetExcludingGoodwill, as reported in the 10-K filed 2026-09-02
Deferred tax assets$7.11B$7.36B-3.4%Source10-K, us-gaap:DeferredIncomeTaxAssetsNet, as reported in the 10-K filed 2026-09-02
Other assets$9.13B$6.06B+51%Source10-K, us-gaap:OtherAssetsNoncurrent, as reported in the 10-K filed 2026-09-02
Total assets$129.64B$122.29B+6.0%Source10-K, us-gaap:Assets, as reported in the 10-K filed 2026-09-02
Current liabilities:
Short-term debt$10.16B$5.23B+94%Source10-K, us-gaap:DebtCurrent, as reported in the 10-K filed 2026-09-02
Accounts payable$3.37B$2.53B+33%Source10-K, us-gaap:AccountsPayableCurrent, as reported in the 10-K filed 2026-09-02
Income taxes payable$190.0M$1.86B-90%Source10-K, us-gaap:AccruedIncomeTaxesCurrent, as reported in the 10-K filed 2026-09-02
Accrued compensation$4.06B$3.61B+12%Source10-K, us-gaap:EmployeeRelatedLiabilitiesCurrent, as reported in the 10-K filed 2026-09-02
Deferred revenue$16.99B$16.42B+3.5%Source10-K, us-gaap:ContractWithCustomerLiabilityCurrent, as reported in the 10-K filed 2026-09-02
Other current liabilities$6.76B$5.42B+25%Source10-K, us-gaap:OtherLiabilitiesCurrent, as reported in the 10-K filed 2026-09-02
Total current liabilities$41.53B$35.06B+18%Source10-K, us-gaap:LiabilitiesCurrent, as reported in the 10-K filed 2026-09-02
Liabilities and equity
Long-term debt$19.37B$22.86B-15%Source10-K, us-gaap:LongTermDebtNoncurrent, as reported in the 10-K filed 2026-09-02
Income taxes payable$2.34B$2.17B+8.0%Source10-K, us-gaap:AccruedIncomeTaxesNoncurrent, as reported in the 10-K filed 2026-09-02
Deferred revenue$12.79B$12.36B+3.5%Source10-K, us-gaap:ContractWithCustomerLiabilityNoncurrent, as reported in the 10-K filed 2026-09-02
Other long-term liabilities$3.32B$3.00B+11%Source10-K, us-gaap:OtherLiabilitiesNoncurrent, as reported in the 10-K filed 2026-09-02
Total liabilities$79.35B$75.45B+5.2%Source10-K, us-gaap:Liabilities, as reported in the 10-K filed 2026-09-02
Cisco stockholders’ equity:
Preferred stock, $0.001 par value: 5 shares authorized; none issued and outstanding$0$0Source10-K, us-gaap:PreferredStockValue, as reported in the 10-K filed 2026-09-02
Common stock and additional paid-in capital, $0.001 par value: 20,000 shares authorized; 3,946 and 3,960 shares issued and outstanding at July 25, 2026 and July 26, 2025, respectively$49.68B$47.75B+4.0%Source10-K, us-gaap:CommonStocksIncludingAdditionalPaidInCapital, as reported in the 10-K filed 2026-09-02
Retained earnings$1.57B$50.0M+3,030%Source10-K, us-gaap:RetainedEarningsAccumulatedDeficit, as reported in the 10-K filed 2026-09-02
Accumulated other comprehensive loss-$956.0M-$954.0M+0.2%Source10-K, us-gaap:AccumulatedOtherComprehensiveIncomeLossNetOfTax, as reported in the 10-K filed 2026-09-02
Equity:
Total equity$50.29B$46.84B+7.3%Source10-K, us-gaap:StockholdersEquity, as reported in the 10-K filed 2026-09-02
Liabilities and equity
Total liabilities and equity$129.64B$122.29B+6.0%Source10-K, us-gaap:LiabilitiesAndStockholdersEquity, as reported in the 10-K filed 2026-09-02

About this data

Source
Cisco 10-K, accession 0000858877-26-000132, filed Sep 2, 2026, read on Nov 2, 2026.
History
From the SEC's XBRL company facts, the value from the latest filing that stated each period.
Reading
Paragraphs marked Analysis are CXProWealth's reading; everything else is the filing's own numbers and words, or a cited source.
Version
methodology business-lens-1.0 · schema 1.2.0 · run business-lens-2026-11-02
Edge and risks

What holds Cisco's model up, and what could bend it

Competitive edge

  • Owns the chip design, rents the factories

    Contract manufacturers build Cisco's systems, so capital spending is 2.2% of revenue against a 64.5% gross margin and a 20.2% free cash flow margin.

    The detail

    Cisco's switches and routers run largely on its own Cisco Silicon One chips, while printed-circuit board assembly, testing, repair and product assembly are done by independent contract manufacturers, with no significant long-term contracts. Capital spending was $1.4B, 2.2% of revenue, and free cash flow was $12.8B, 20.2% of revenue.1

    AnalysisAnalysis: the advantage holds because the scarce parts stay in-house: chip architecture, software and customer relationships. The factories do not. The cost is that capacity must be reserved and components bought ahead of demand, which moves the risk from plants on the balance sheet into inventory and purchase commitments.

  • Support contracts ride on the installed base

    Services brought in $15.0B, 23.7% of revenue, at a cost of 31.2% of that revenue, renewing for the life of installed gear.

    The detail

    Cisco sells technical support, software updates, hardware replacement and professional services over the life of the equipment it ships. Services revenue was $15.0B, 23.7% of revenue, against cost of services of $4.7B, or 31.2% of services revenue. The filing says professional services typically carry a lower gross margin than technical support.1

    The line did not grow this year. Services revenue slipped 0.1% while Networking grew 22.5%, and services lost 2.8 points of share. The filing says lower support revenue was offset by higher professional services revenue.1

    AnalysisAnalysis: each box shipped, including this year's AI networking wave, is a candidate for a future support contract. Whether those shipments turn into renewals is the test of how durable the Networking growth becomes.

  • Partners sell it, financing helps close it

    Channel partner financing reached $29.9B, equal to 47.2% of revenue, letting resellers and customers spread large infrastructure purchases over time.

    The detail

    A substantial portion of Cisco's products and services is sold through channel partners: systems integrators, service providers, resellers and two-tier distributors. Third parties finance those partners' working capital, with Cisco guaranteeing a portion, and that volume was $29.9B against $24.9B last year. Cisco Capital also lends and leases to end customers.1

    The company calls customer financing "a competitive advantage in obtaining business and enabling sales". Its own sales and marketing organization is about 25,400 people, 30.8% of its 82,400 employees, and sales and marketing cost $11.6B, 18.3% of revenue.1

    AnalysisAnalysis: a channel of this reach, with financing behind it, is hard for a newer rival to copy. It also spreads credit exposure across partners and customers, which the filing lists among its risks.

What to watch

  • A few cloud buyers now move the results

    Hyperscaler AI infrastructure reached about 6% of revenue, bought in large, lumpy orders by a few customers able to build their own equipment.

    The detail

    The filing says AI infrastructure sales to cloud and hyperscaler customers involve large, concentrated purchases from a limited number of customers, who may delay, reduce or cancel deployments, develop the technology internally, or buy directly from contract manufacturers. Some products have bespoke designs that would be difficult to sell to other customers.1

    AnalysisAnalysis: at about 6% of revenue this business is still small, but it drove much of the Networking gain behind this year's 30.7% rise in operating income. Because operating expenses barely moved, a pause in these orders would reach profit faster than revenue.

  • Supply committed well ahead of the orders

    Cisco secured Silicon One and memory supply ahead of expected hyperscaler demand, so a delay or design change could turn into inventory charges.

    The detail

    Cisco entered additional purchase commitments and prepayments for Silicon One, memory and other components, which it says "significantly increased our supply chain exposure". The MD&A shows inventory and purchase commitments both rising sharply this year. If demand falls, is delayed or shifts architecture, the company warns of excess and obsolete inventory, losses on commitments and prepayments it cannot recover.1

    The cash cost is already visible: free cash flow fell to $12.8B while net income rose 30.3%, and the filing names higher payments to contract manufacturers and suppliers. Higher memory costs also weighed on product gross margin, and the company expects constrained memory to keep raising its costs.1

  • The growth mix is diluting gross margin

    Cost of sales rose 13.1% against revenue's 11.8%, cutting gross margin 0.41 points, and the filing warns product margin may not be sustainable.

    The detail

    Gross margin fell to 64.5%. The filing names product mix, primarily higher Networking revenue, and higher memory costs, partly offset by productivity, pricing, lower amortization and the absence of last year's supplier dispute charge. It states that its "level of product gross margin may not be sustainable", citing mix, component costs, tariffs and price competition from Asia, especially China.1

    AnalysisAnalysis: this year the gross margin slip was small enough for flat operating costs to outrun it. If the lower-margin AI mix keeps growing while memory costs rise, more of the work of lifting profit falls on holding expenses down.

Sources

  1. 1.Cisco 10-K for the period to 2026-07-25 (the filing), Sep 2, 2026, read Nov 2, 2026
Go deeper

Cisco, further in

Member research, then your own questions on ChatGPT.

What could change the outlook

What Cisco's numbers depend on from here, read from the filing: the conditions behind this period's margins and growth, and where a change would show first.

  • What has to hold for the margin gain to last

    How much of this year's profit gain rests on costs staying flat, what the supply commitments imply if AI orders slow, and which reported figures would show the shift first.

  • Why cash fell behind profit this year

    What the gap between net income and free cash flow says about supplier prepayments and the one-time tax payment, and the conditions under which that cash comes back.

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Questions to start with
  • If Cisco's operating expenses keep growing near 1.9% a year, how much does each point of Networking growth add to its operating income?
  • Why did Cisco's free cash flow fall to $12.8B this year while its net income rose 30.3%?
  • What would a pause in hyperscaler AI orders, about 6% of Cisco's revenue, do to its gross margin and inventory?

Business Lens describes Cisco from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing, the dates and the version are under the financial data above.