Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Fiscal 2026 was a year of accelerating double-digit revenue growth for Cisco, driven by surging demand for AI infrastructure from hyperscaler customers. Management noted that AI infrastructure represented approximately 6% of total revenue, up from less than 2% in fiscal 2025, and expects it to remain a significant driver in fiscal 2027. The Networking product category, which includes AI Infrastructure solutions, grew 22% year-over-year. However, gross margin declined 0.4 percentage points to 64.5% due to product mix and higher memory costs, and the company faces supply chain and customer concentration risks tied to this rapid growth.
Revenue
$63.33B
+11.77% YoY
EPS (Diluted)
$3.33
+30.59% YoY
Gross Margin
64.5%
-0.4 pts YoY
Operating Income
$15.37B
+30.68% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing · Audit Opinion: Unqualified (Source: Report of Independent Registered Public Accounting Firm)
Next CSCO earnings expected
Source: SEC XBRL
Cisco Systems (CSCO) reported FY2026 revenue of $63.33B, up 11.8% year over year. Operating margin was 24.3%, up 3.5 points from 20.8% a year earlier. Operating cash flow was $14.18B, down 0.1% year over year.
Last 4 quarters: 2 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Sep 2026This filing | 1.22 | 1.19 | Beat +2.2% |
| Jun 2026 | 1.06 | 1.06 | Beat +0.4% |
| Mar 2026 | 1.04 | 1.04 | Miss -0.2% |
| Dec 2025 | 1.00 | 1.00 | Miss -0.1% |
Reported EPS of $1.22 versus the $1.19 analyst consensus — a +2.2% beat for Sep 2026.
3 reported regions · SEC XBRL
Revenue across regions totals $63.33B, which is the $63.33B of consolidated revenue on the income statement.
Profit above is reported as gross profit, the measure CSCO itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-K Item 7 of this filing
Management disclosed that AI infrastructure from hyperscaler customers represented approximately 6% of total revenue in fiscal 2026, up from less than 2% in fiscal 2025, and expects it to remain a significant driver in fiscal 2027.
Source: 10-K Item 7 MD&A
In Q4 fiscal 2026, total revenue grew 18% year-over-year, driven by a 24% increase in product revenue, with Networking up 28% on AI infrastructure and data center switching.
Source: 10-K Item 7 MD&A
Total gross margin declined 0.4 percentage points to 64.5%, primarily due to negative product mix and higher memory costs, partially offset by productivity and pricing actions.
Source: 10-K Item 7 MD&A
Operating income as a percentage of revenue increased 3.5 percentage points to 24.3%, driven by revenue growth and disciplined expense management, which helped total R&D, sales and marketing, and G&A expenses decline as a percentage of revenue by 3.4 points.
Source: 10-K Item 7 MD&A
Inventories rose to $5.7 billion from $3.2 billion a year earlier, reflecting increased demand for Cisco Silicon One and higher memory prices, while purchase commitments significantly increased supply chain exposure.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 2 high, 3 medium, 0 low
The company faces significant supply chain risks from memory shortages, increased purchase commitments for Cisco Silicon One and memory components, and potential excess or obsolete inventory if demand decreases or customers change orders with limited notice. These commitments and prepayments have significantly increased supply chain exposure and may lead to charges or lower gross margins.
Source: 10-K Item 1A Risk Factors
Sales of AI infrastructure solutions to large cloud and hyperscaler customers are volatile and may be concentrated among a limited number of customers. Changes in the timing or size of purchases by these customers, or decisions to develop technologies internally, could have a material impact on revenue and results.
Source: 10-K Item 1A Risk Factors
The company faces intense competition across product categories, including price-focused competition from Asian competitors, particularly China, and new entrants in AI and cloud infrastructure. Customers may adopt alternative architectures that do not include Cisco's products, limiting opportunities.
Source: 10-K Item 1A Risk Factors
Product gross margin may decline due to changes in customer, geographic, or product mix, higher component costs (especially memory), and increased competition. The company expects rising memory costs to continue adversely impacting margins in the near term.
Source: 10-K Item 1A Risk Factors
A substantial portion of products is sold through channel partners, and disruption to the distribution model, such as competition with partners or financial weakness of distributors, could harm sales and margins. Changes in the balance of distribution channels may also reduce forecasting accuracy.
Source: 10-K Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 63.33 $B | 56.65 $B | +11.77% |
Cost of Revenue $B | 22.47 $B | 19.86 $B | +13.09% |
Gross Profit $B | 40.86 $B | 36.79 $B | +11.06% |
Operating Income $B | 15.37 $B | 11.76 $B | +30.68% |
Net Income $B | 13.27 $B | 10.18 $B | +30.32% |
EPS (Basic) $ | 3.36 $ | 2.56 $ | +31.25% |
EPS (Diluted) $ | 3.33 $ | 2.55 $ | +30.59% |
R&D Expense $B | 9.56 $B | 9.30 $B | +2.83% |
Answers draw on this SEC filing and the data on this page
Cisco delivered strong Q3 FY2026 results with revenue surging 12.0% YoY to $15.8B and net income jumping 35.4% YoY to $3.4B, driven by robust operating leverage even as gross margin compressed slightly.
Cisco delivered a strong Q2 FY2026 with revenue of $15.35B (+9.7% YoY), net income surging 30.8% to $3.18B, and operating margin expanding 240 bps to 24.6%, reflecting robust demand and improving profitability.
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