# CISCO SYSTEMS, INC. (CSCO)

Informational only - not investment advice.

CIK: 0000858877
SIC: 3576 Computer Communications Equipment
SIC breadcrumb: [Manufacturing](/division/D/) > [Industrial And Commercial Machinery And Computer Equipment](/major-group/35/) > [SIC 3576 Computer Communications Equipment](/industry/3576/)
Latest 10-K filed: 2025-09-03
SEC page: https://www.sec.gov/edgar/browse/?CIK=858877
Filing source: https://www.sec.gov/Archives/edgar/data/858877/000085887725000111/csco-20250726.htm

## At a glance

FY2025 · period end 2025-07-26 · filed 2025-09-03 · accession 0000858877-25-000111 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000858877.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 56,654,000,000 USD | 2025 | verified |
| Net income | 10,180,000,000 USD | 2025 | verified |
| Assets | 122,291,000,000 USD | 2025 | verified |
| Free cash flow | 13,288,000,000 USD | 2025 | computed |
| Net margin | 17.97% | 2025 | computed |
| Operating margin | 20.76% | 2025 | computed |
| Revenue YoY | +5.30% | 2025 | computed |
| ROE | 21.73% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | CSCO | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 18.0% | 7.7% | 90 | 110 |
| Operating margin | 20.8% | 13.1% | 83 | 104 |
| Revenue growth | 5.3% | 5.8% | 44 | 111 |
| FCF margin | 23.5% | 9.6% | 88 | 103 |
| ROE | 21.7% | 11.7% | 77 | 108 |
| ROA | 8.3% | 5.6% | 73 | 111 |
| Liabilities / equity | 1.61 | 1.10 | 67 | 108 |
| Current ratio | 1.00 | 2.02 | 10 | 110 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 35 Industrial And Commercial Machinery And Computer Equipment, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 56654000000 | USD | 2025 | 2025-09-03 |
| Net income | 10180000000 | USD | 2025 | 2025-09-03 |
| Assets | 122291000000 | USD | 2025 | 2025-09-03 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2025-09-03. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000858877.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 48,005,000,000 | 49,330,000,000 | 51,904,000,000 | 49,301,000,000 | 49,818,000,000 | 51,557,000,000 | 56,998,000,000 | 53,803,000,000 | 56,654,000,000 |
| Net income | 10,739,000,000 | 9,609,000,000 | 110,000,000 | 11,621,000,000 | 11,214,000,000 | 10,591,000,000 | 11,812,000,000 | 12,613,000,000 | 10,320,000,000 | 10,180,000,000 |
| Operating income | 12,660,000,000 | 11,973,000,000 | 12,309,000,000 | 14,219,000,000 | 13,620,000,000 | 12,833,000,000 | 13,969,000,000 | 15,031,000,000 | 12,181,000,000 | 11,760,000,000 |
| Gross profit | 30,960,000,000 | 30,224,000,000 | 30,606,000,000 | 32,666,000,000 | 31,683,000,000 | 31,894,000,000 | 32,248,000,000 | 35,753,000,000 | 34,828,000,000 | 36,790,000,000 |
| Diluted EPS | 2.11 | 1.90 | 0.02 | 2.61 | 2.64 | 2.50 | 2.82 | 3.07 | 2.54 | 2.55 |
| Operating cash flow | 13,570,000,000 | 13,876,000,000 | 13,666,000,000 | 15,831,000,000 | 15,426,000,000 | 15,454,000,000 | 13,226,000,000 | 19,886,000,000 | 10,880,000,000 | 14,193,000,000 |
| Capital expenditures | 1,146,000,000 | 964,000,000 | 834,000,000 | 909,000,000 | 770,000,000 | 692,000,000 | 477,000,000 | 849,000,000 | 670,000,000 | 905,000,000 |
| Dividends paid | 4,750,000,000 | 5,511,000,000 | 5,968,000,000 | 5,979,000,000 | 6,016,000,000 | 6,163,000,000 | 6,224,000,000 | 6,302,000,000 | 6,384,000,000 | 6,437,000,000 |
| Share buybacks | 3,909,000,000 | 3,685,000,000 | 17,547,000,000 | 20,717,000,000 | 2,659,000,000 | 2,877,000,000 | 7,689,000,000 | 4,293,000,000 | 5,787,000,000 | 6,000,000,000 |
| Assets | 121,652,000,000 | 129,818,000,000 | 109,872,000,000 | 97,793,000,000 | 94,853,000,000 | 97,497,000,000 | 94,002,000,000 | 101,852,000,000 | 124,413,000,000 | 122,291,000,000 |
| Liabilities | 58,067,000,000 | 63,681,000,000 | 65,580,000,000 | 64,222,000,000 | 56,933,000,000 | 56,222,000,000 | 54,229,000,000 | 57,499,000,000 | 78,956,000,000 | 75,448,000,000 |
| Stockholders' equity | 63,586,000,000 | 66,137,000,000 | 43,204,000,000 | 33,571,000,000 | 37,920,000,000 | 41,275,000,000 | 39,773,000,000 | 44,353,000,000 | 45,457,000,000 | 46,843,000,000 |
| Cash and cash equivalents | 7,631,000,000 | 11,708,000,000 | 8,934,000,000 | 11,750,000,000 | 11,809,000,000 | 9,175,000,000 | 7,079,000,000 | 10,123,000,000 | 7,508,000,000 | 8,346,000,000 |
| Free cash flow | 12,424,000,000 | 12,912,000,000 | 12,832,000,000 | 14,922,000,000 | 14,656,000,000 | 14,762,000,000 | 12,749,000,000 | 19,037,000,000 | 10,210,000,000 | 13,288,000,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 20.02% | 0.22% | 22.39% | 22.75% | 21.26% | 22.91% | 22.13% | 19.18% | 17.97% |
| Operating margin |  | 24.94% | 24.95% | 27.39% | 27.63% | 25.76% | 27.09% | 26.37% | 22.64% | 20.76% |
| Return on equity | 16.89% | 14.53% | 0.25% | 34.62% | 29.57% | 25.66% | 29.70% | 28.44% | 22.70% | 21.73% |
| Return on assets | 8.83% | 7.40% | 0.10% | 11.88% | 11.82% | 10.86% | 12.57% | 12.38% | 8.29% | 8.32% |
| Liabilities / equity | 0.91 | 0.96 | 1.52 | 1.91 | 1.50 | 1.36 | 1.36 | 1.30 | 1.74 | 1.61 |
| Current ratio | 3.16 | 3.03 | 2.29 | 1.51 | 1.72 | 1.49 | 1.43 | 1.38 | 0.91 | 1.00 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-05-19. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000858877.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2023-Q1 | 2022-10-29 |  |  | 0.65 | reported discrete quarter |
| 2023-Q2 | 2023-01-28 |  |  | 0.67 | reported discrete quarter |
| 2023-Q3 | 2023-04-29 |  |  | 0.78 | reported discrete quarter |
| 2023-Q4 | 2023-07-29 | 15,203,000,000 | 3,958,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2023-10-28 | 14,668,000,000 | 3,638,000,000 | 0.89 | reported discrete quarter |
| 2024-Q2 | 2024-01-27 | 12,791,000,000 | 2,634,000,000 | 0.65 | reported discrete quarter |
| 2024-Q3 | 2024-04-27 | 12,702,000,000 | 1,886,000,000 | 0.46 | reported discrete quarter |
| 2024-Q4 | 2024-07-27 | 13,642,000,000 | 2,162,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2024-10-26 | 13,841,000,000 | 2,711,000,000 | 0.68 | reported discrete quarter |
| 2025-Q2 | 2025-01-25 | 13,991,000,000 | 2,428,000,000 | 0.61 | reported discrete quarter |
| 2025-Q3 | 2025-04-26 | 14,149,000,000 | 2,491,000,000 | 0.62 | reported discrete quarter |
| 2025-Q4 | 2025-07-26 | 14,673,000,000 | 2,550,000,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2025-10-25 | 14,883,000,000 | 2,860,000,000 | 0.72 | reported discrete quarter |
| 2026-Q2 | 2026-01-24 | 15,349,000,000 | 3,175,000,000 | 0.80 | reported discrete quarter |
| 2026-Q3 | 2026-04-25 | 15,841,000,000 | 3,373,000,000 | 0.85 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from CSCO's latest 10-K: [/company/CSCO/business/](/company/CSCO/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from CSCO's latest 10-K: [/company/CSCO/risk-factors/](/company/CSCO/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/858877/000085887726000078/csco-20260425.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-05-19
Report date: 2026-04-25

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q, including this Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “momentum,” “seeks,” “estimates,” “continues,” “endeavors,” “strives,” “may,” variations of such words, and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those identified below under “Part II, Item 1A. Risk Factors,” and elsewhere herein. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for any reason.

OVERVIEW

Cisco designs and sells a broad range of technologies that help to power, secure, and draw insights from the Internet. We are incorporating artificial intelligence (AI) into our product portfolios across networking, security, collaboration and observability as well as integrating our products more tightly together. We are simplifying how our technology is delivered, managed and optimized and helping customers maximize the business value of their technology investments.

A summary of our results is as follows (in millions, except percentages and per-share amounts):

[[GREPCENT_TABLE]]
[["","Three Months Ended","","","Nine Months Ended"],["","April 25, 2026","","April 26, 2025","","% Variance","","","April 25, 2026","","April 26, 2025","","% Variance"],["Revenue","$","15,841","","","$","14,149","","","12","%","","","$","46,073","","","$","41,981","","","10","%"],["Gross margin percentage","63.6","%","","65.6","%","","(2.0)","","pts","","64.7","%","","65.5","%","","(0.8)","","pts"],["Research and development","$","2,377","","","$","2,335","","","2","%","","","$","7,132","","","$","6,920","","","3","%"],["Sales and marketing","$","2,855","","","$","2,724","","","5","%","","","$","8,607","","","$","8,148","","","6","%"],["General and administrative","$","661","","","$","739","","","(11)","%","","","$","2,082","","","$","2,286","","","(9)","%"],["Total research and development, sales and marketing, general and administrative","$","5,893","","","$","5,798","","","2","%","","","$","17,821","","","$","17,354","","","3","%"],["Total as a percentage of revenue","37.2","%","","41.0","%","","(3.8)","","pts","","38.7","%","","41.3","%","","(2.6)","","pts"],["Operating income as a percentage of revenue","25.0","%","","22.6","%","","2.4","","pts","","24.1","%","","20.7","%","","3.4","","pts"],["Income tax percentage","16.5","%","","15.5","%","","1.0","","pts","","15.1","%","","5.8","%","","9.3","","pts"],["Net income","$","3,373","","","$","2,491","","","35","%","","","$","9,408","","","$","7,630","","","23","%"],["Net income as a percentage of revenue","21.3","%","","17.6","%","","3.7","","pts","","20.4","%","","18.2","%","","2.2","","pts"],["Earnings per share\u2014diluted","$","0.85","","","$","0.62","","","37","%","","","$","2.36","","","$","1.91","","","24","%"]]
[[/GREPCENT_TABLE]]

Percentages may not recalculate due to rounding.

36

Table of Contents

CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Three Months Ended April 25, 2026 Compared with Three Months Ended April 26, 2025

In the third quarter of fiscal 2026, we delivered strong revenue growth and profitability as we saw a continued positive demand environment. Total revenue increased by 12% compared with the third quarter of fiscal 2025. Within total revenue, product revenue increased by 17% and services revenue decreased by 1%. In the third quarter of fiscal 2026, total software revenue was $5.7 billion across all product areas and services, an increase of 1%. Total subscription revenue decreased 2%.

Total gross margin decreased by 2.0 percentage points. Product gross margin decreased by 2.5 percentage points, primarily driven by negative impacts from product mix and higher memory costs, partially offset by productivity improvements and lower amortization of purchased intangible assets. As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, decreased by 3.8 percentage points. Operating income as a percentage of revenue increased by 2.4 percentage points, primarily driven by revenue growth, partially offset by lower gross margin in the third quarter of fiscal 2026. Diluted earnings per share increased 37%, driven by revenue growth and operating margin improvement.

In terms of our geographic segments, revenue from the Americas increased by $1.2 billion, EMEA revenue increased by $0.3 billion and APJC revenue increased by $0.2 billion. From a customer market standpoint, we experienced product revenue growth across all of our customer markets.

From a product category perspective, the product revenue increase of 17% was driven by growth in Networking of 25%, particularly within our AI Infrastructure and Campus Networking solutions. We also saw product revenue growth in Observability of 3%. This growth was partially offset by a product revenue decline in Collaboration of 1%. Product revenue in Security was flat.

We continue to operate in a highly competitive and complex environment, especially as it relates to memory constraints and costs, and trade policy. Notwithstanding these challenges, we believe that we are making progress on our strategic priorities. We continue to invest in key priority areas with the objective of driving profitable growth over the long term. We remain focused on delivering innovation across our technologies to assist our customers in executing on their digital transformations and on accelerating innovation across our portfolio.

37

Table of Contents

CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Nine Months Ended April 25, 2026 Compared with Nine Months Ended April 26, 2025

Total revenue increased 10%, with product revenue increasing 13% and services revenue was flat. Total gross margin decreased 0.8 percentage points, primarily driven by negative impacts from product mix and to a lesser extent pricing, partially offset by productivity improvements and lower amortization of purchased intangible assets. As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, decreased by 2.6 percentage points. Operating income as a percentage of revenue increased by 3.4 percentage points, primarily driven by higher revenue, lower restructuring and other charges and lower amortization of purchased intangible assets, partially offset by lower gross margin in the first nine months of fiscal 2026. Diluted earnings per share increased 24%, driven by revenue growth and operating margin improvement, partially offset by the income tax benefit of $720 million we had in the first nine months of fiscal 2025.

Strategy and Priorities

In today’s digital-first world, businesses and organizations globally are deploying technology to pursue their strategic objectives, from accelerating growth to enhancing operational efficiency and fostering innovation. Our strategy is to securely connect everything to make those desired outcomes possible.

For additional discussion of our strategy and priorities, see Item 1. Business in our Annual Report on Form 10-K for the fiscal year ended July 26, 2025.

Other Key Financial Measures

The following is a summary of our other key financial measures for the third quarter of fiscal 2026 (in millions):

[[GREPCENT_TABLE]]
[["","","April 25, 2026","","July 26, 2025"],["Cash and cash equivalents and investments","","$","16,640","","","$","16,110"],["Remaining performance obligations","","$","43,462","","","$","43,533"],["Inventories","","$","4,708","","","$","3,164"],["Total debt","","$","31,303","","","$","28,093"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","","Nine Months Ended"],["","","April 25, 2026","","April 26, 2025"],["Cash provided by operating activities","","$","8,791","","","$","9,959"],["Repurchases of common stock\u2014stock repurchase program","","$","4,604","","","$","4,743"],["Dividends paid","","$","4,894","","","$","4,812"]]
[[/GREPCENT_TABLE]]

38

Table of Contents

CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

CRITICAL ACCOUNTING ESTIMATES

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires us to make judgments, assumptions, and estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Note 2 to the Consolidated Financial Statements in our Annual Report on Form 10-K for the fiscal year ended July 26, 2025, as updated as applicable in Note 2 to the Consolidated Financial Statements herein, describes the significant accounting policies and methods used in the preparation of the Consolidated Financial Statements. The accounting policies described below are significantly affected by critical accounting estimates. Such accounting policies require significant judgments, assumptions, and estimates used in the preparation of the Consolidated Financial Statements, and actual results could differ materially from the amounts reported based on these policies.

Revenue Recognition

We enter into contracts with customers that can include various combinations of products and services which are generally distinct and accounted for as separate performance obligations, resulting in contracts that may contain multiple performance obligations. We determine whether arrangements are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether our commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. We classify our hardware, perpetual software licenses, and SaaS as distinct performance obligations. Term software licenses represent multiple obligations, which include software licenses and software maintenance. In transactions where we deliver hardware or software, we are typically the principal and we record revenue and costs of goods sold on a gross basis.

We recognize revenue upon transfer of control of promised goods or services in a contract with a customer in an amount that reflects the consideration we expect to receive in exchange for those products or services. Transfer of control occurs once the customer has the contractual right to use the product, generally upon shipment, electronic delivery (or when the software is available for download by the customer), or once title and risk of

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/858877/000085887725000111/csco-20250726.htm
Complete FY 2025 MD&A: /company/CSCO/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2025-09-03
Report date: 2025-07-26

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Annual Report on Form 10-K, including this Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements regarding future events and our future results that are subject to the safe harbors created under the Securities Act of 1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical facts are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which we operate and the beliefs and assumptions of our management. Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “momentum,” “seeks,” “estimates,” “continues,” “endeavors,” “strives,” “may,” variations of such words, and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, our anticipated growth and trends in our businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned that these forward-looking statements are only predictions and are subject to risks, uncertainties, and assumptions that are difficult to predict, including those under “Part I, Item 1A. Risk Factors,” and elsewhere herein. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. We undertake no obligation to revise or update any forward-looking statements for any reason.

OVERVIEW

Cisco designs and sells a broad range of technologies that help to power, secure, and draw insights from the Internet. We are incorporating artificial intelligence (AI) into our product portfolios across networking, security, collaboration and observability as well as integrating our products more tightly together. We are simplifying how our technology is delivered, managed and optimized and helping customers maximize the business value of their technology investments.

A summary of our results is as follows (in millions, except percentages and per-share amounts):

[[GREPCENT_TABLE]]
[["","Three Months Ended","","Years Ended"],["","July 26, 2025","","July 27, 2024","","Variance","","July 26, 2025","","July 27, 2024","","Variance"],["Revenue","$","14,673","","","$","13,642","","","8","%","","$","56,654","","","$","53,803","","","5","%"],["Gross margin percentage","63.2","%","","64.4","%","","(1.2)","","pts","64.9","%","","64.7","%","","0.2","","pts"],["Research and development","$","2,380","","","$","2,179","","","9","%","","$","9,300","","","$","7,983","","","16","%"],["Sales and marketing","$","2,818","","","$","2,841","","","(1)","%","","$","10,966","","","$","10,364","","","6","%"],["General and administrative","$","706","","","$","763","","","(8)","%","","$","2,992","","","$","2,813","","","6","%"],["Total R&D, sales and marketing, general and administrative","$","5,904","","","$","5,783","","","2","%","","$","23,258","","","$","21,160","","","10","%"],["Total as a percentage of revenue","40.2","%","","42.4","%","","(2.2)","","pts","41.1","%","","39.3","%","","1.8","","pts"],["Restructuring and other charges included in operating expenses","$","35","","","$","112","","","(69)","%","","$","744","","","$","789","","","(6)","%"],["Operating income as a percentage of revenue","21.0","%","","19.2","%","","1.8","","pts","20.8","%","","22.6","%","","(1.8)","","pts"],["Interest and other income (loss), net","$","(88)","","","$","(222)","","","(60)","%","","$","(660)","","","$","53","","","NM"],["Income tax percentage","15.0","%","","9.8","%","","5.2","","pts","8.3","%","","15.6","%","","(7.3)","","pts"],["Net income","$","2,550","","","$","2,162","","","18","%","","$","10,180","","","$","10,320","","","(1)","%"],["Net income as a percentage of revenue","17.4","%","","15.8","%","","1.6","","pts","18.0","%","","19.2","%","","(1.2)","","pts"],["Earnings per share\u2014diluted","$","0.64","","","$","0.54","","","19","%","","$","2.55","","","$","2.54","","","\u2014","%"]]
[[/GREPCENT_TABLE]]

Percentages may not recalculate due to rounding.

NM — Not meaningful

30

Table of Contents

CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Fiscal 2025 Compared with Fiscal 2024

In fiscal 2025, we delivered strong revenue growth across all geographies and solid margins as we saw a positive demand environment. Total revenue increased by 5% compared with fiscal 2024. Our results for fiscal 2025 include a full year of Splunk's results compared to approximately four months for fiscal 2024. Within total revenue, product revenue increased by 6% and services revenue increased by 3%. In fiscal 2025, total software revenue was $22.3 billion, an increase of 21%, driven by the contribution of Splunk. Total subscription revenue increased 15%, driven by the contribution of Splunk.

Total gross margin increased by 0.2 percentage points. Product gross margin increased by 0.2 percentage points, driven by benefits from Splunk and productivity improvements, partially offset by negative impacts from pricing, a charge as a result of a legal dispute with a supplier, and the amortization of purchased intangible assets primarily related to Splunk. As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, increased by 1.8 percentage points. Operating income as a percentage of revenue decreased by 1.8 percentage points primarily due to increases in amortization of purchased intangible assets and share-based compensation expense in fiscal 2025, and a charge in the fourth quarter of fiscal 2025 as a result of a legal dispute with a supplier. Diluted earnings per share was flat compared with fiscal 2024.

In terms of our geographic segments, revenue from the Americas increased by $1.7 billion, EMEA revenue increased by $0.7 billion and revenue in our APJC segment increased by $0.5 billion. From a customer market perspective, product revenue growth was led by the enterprise market and the service provider and cloud market. The revenue increase in our service provider and cloud market was driven by AI infrastructure revenue from webscale customers. From a product category perspective, the product revenue increased 6% year over year, driven by a growth in revenue in Security of 59%, Observability of 26%, and Collaboration of 1%, partially offset by a decline in Networking of 3%. The product revenue growth in Security and Observability were each driven in large part by the contribution of Splunk.

We continue to operate in a highly competitive environment, and one that is complex especially with respect to tariffs and trade policy. We plan to continue to invest in key priority areas with the objective of driving profitable growth over the long term. We remain focused on delivering innovation across our technologies to assist our customers in executing on their digital transformations and on accelerating innovation across our portfolio. We believe that we are making progress on our strategic priorities.

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CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

Fourth Quarter Snapshot

For the fourth quarter of fiscal 2025, as compared with the fourth quarter of fiscal 2024, total revenue increased by 8%. Within total revenue, product revenue increased by 10% and services revenue was flat. With regard to our geographic segment performance, on a year-over-year basis, revenue in Americas increased by 9%, EMEA increased by 4% and APJC increased by 7%. From a product category perspective, we experienced product revenue growth in Networking, Security, Observability, and Collaboration. Total gross margin decreased by 1.2 percentage points, driven primarily by a charge as a result of a legal dispute with a supplier. As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, decreased by 2.2 percentage points. Operating income as a percentage of revenue increased by 1.8 percentage points primarily driven by lower amortization of purchased intangible assets, lower restructuring and other charges, and a decrease in cash compensation expenses from acquisitions, partially offset by a charge as a result of a legal dispute with a supplier. Diluted earnings per share increased by 19%, primarily driven by the revenue increase and the increase in our operating margin percentage.

Strategy and Priorities

In today's digital-first world, businesses and organizations globally are deploying technology to pursue their strategic objectives, from accelerating growth to enhancing operational efficiency and fostering innovation. Our strategy is to securely connect everything to make those desired outcomes possible.

For a full discussion of our strategy and priorities, see “Item 1. Business.”

Other Key Financial Measures

The following is a summary of our other key financial measures for fiscal 2025 compared with fiscal 2024 (in millions):

[[GREPCENT_TABLE]]
[["","","Fiscal 2025","","Fiscal 2024"],["Cash and cash equivalents and investments","","$16,110","","$17,854"],["Cash provided by operating activities","","$14,193","","$10,880"],["Remaining performance obligations","","$43,533","","$41,048"],["Repurchases of common stock\u2014stock repurchase program","","$5,995","","$5,764"],["Dividends paid","","$6,437","","$6,384"],["Inventories","","$3,164","","$3,373"],["Total debt","","$28,093","","$30,962"]]
[[/GREPCENT_TABLE]]

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CISCO SYSTEMS, INC.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (Continued)

CRITICAL ACCOUNTING ESTIMATES

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires us to make judgments, assumptions, and estimates that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Note 2 to the Consolidated Financial Statements describes the significant accounting policies and methods used in the preparation of the Consolidated Financial Statements. The accounting policies described below are significantly affected by critical accounting estimates. Such accounting policies require significant judgments, assumptions, and estimates used in the preparation of the Consolidated Financial Statements, and actual results could differ materially from the amounts reported based on these policies.

Revenue Recognition

We enter into contracts with customers that can include various combinations of products and services which are generally distinct and accounted for as separate performance obligations, resulting in contracts that may contain multiple performance obligations. We determine whether arrangements are distinct based on whether the customer can benefit from the product or service on its own or together with other resources that are readily available and whether our commitment to transfer the product or service to the customer is separately identifiable from other obligations in the contract. We classify our hardware, perpetual software licenses, and SaaS as distinct performance obligations. Term software licenses represent multiple obligations, which include software licenses and software maintenance. In transactions where we deliver hardware or software, we are typically the principal and we record revenue and costs of goods sold on a gross basis.

We recognize revenue upon transfer of control of promised goods or services in a contract with a cus

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/CSCO/mda/fy2025/
All MD&A years: /company/CSCO/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/CSCO/mda/fy2024/): filed 2024-09-05; accession 0000858877-24-000017 (https://www.sec.gov/Archives/edgar/data/858877/000085887724000017/csco-20240727.htm)
- [FY 2023 MD&A](/company/CSCO/mda/fy2023/): filed 2023-09-07; accession 0000858877-23-000023 (https://www.sec.gov/Archives/edgar/data/858877/000085887723000023/csco-20230729.htm)
- [FY 2022 MD&A](/company/CSCO/mda/fy2022/): filed 2022-09-08; accession 0000858877-22-000013 (https://www.sec.gov/Archives/edgar/data/858877/000085887722000013/csco-20220730.htm)
- [FY 2021 MD&A](/company/CSCO/mda/fy2021/): filed 2021-09-09; accession 0000858877-21-000013 (https://www.sec.gov/Archives/edgar/data/858877/000085887721000013/csco-20210731.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 3576 Computer Communications Equipment) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [INDPRO](/indicator/INDPRO/): Industrial Production: Total Index
- [TCU](/indicator/TCU/): Capacity Utilization: Total Index
- [PPIACO](/indicator/PPIACO/): Producer Price Index by Commodity: All Commodities
- [GDPC1](/indicator/GDPC1/): Real Gross Domestic Product
- [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity
- [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/CSCO.md · JSON record: /company/CSCO.json · verified financials: /company/CSCO/financials.json / /company/CSCO/financials.csv · machine TOC for the whole site: /llms.txt