AI Takeaway
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.
Revenue
$15.35B
++9.71% YoY
EPS (Basic)
$0.80
++31.15% YoY
Gross Margin
65.0%
-0.15% YoY
Operating Income
$3.78B
++21.46% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue grew 9.7% YoY to $15.35B in Q2 FY2026, compared to $13.99B in Q2 FY2025, signaling a meaningful recovery in enterprise and service provider spending after a period of inventory digestion.
Source: Source: 10-Q Income Statement
Operating income jumped 21.5% YoY to $3.78B, with operating margin expanding approximately 240 basis points to 24.6%, as revenue growth outpaced cost increases and operating expenses remained relatively controlled.
Source: Source: 10-Q Income Statement
Net income rose 30.8% YoY to $3.18B and basic EPS increased 31.1% to $0.80, significantly outpacing revenue growth and indicating strong bottom-line leverage and potentially favorable tax or below-the-line items.
Source: Source: 10-Q Income Statement
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Upgrade to unlockCisco's current ratio stands at 0.955, meaning current liabilities of $36.79B exceed current assets of $35.13B. While this is common for large investment-grade companies with strong cash generation, it leaves limited buffer for unexpected short-term obligations. Cash and equivalents also declined 12.8% YoY to $7.46B.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $1.04 versus the $1.04 analyst consensus — a -0.2% miss for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $15.35B | $13.99B | +9.71% |
Cost of Revenue | $5.38B | $4.88B | +10.18% |
Gross Profit | $9.97B | $9.11B | +9.45% |
Operating Income | $3.78B | $3.11B | +21.46% |
Net Income | $3.17B | $2.43B | +30.77% |
EPS (Basic) | $0.80 | $0.61 | +31.15% |
EPS (Diluted) | $0.80 | $0.61 | +31.15% |
R&D Expense | $2.35B | $2.3B | +2.44% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $123.37B | $121.38B | +1.64% |
Current Assets | $35.13B | $34.68B | +1.30% |
Total Liabilities | $75.65B | $75.84B | -0.26% |
Current Liabilities | $36.79B | $40.02B | -8.08% |
Stockholders' Equity | $47.72B | $45.53B | +4.82% |
Cash & Equivalents | $7.46B | $8.56B | -12.83% |
Long-Term Debt | $24.62B | $20.12B | +22.34% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $5.03B | $5.9B | -14.71% |
Investing Cash FlowYTD | $-1.15B | $1.5B | -176.62% |
Financing Cash FlowYTD | $-5.3B | $-6.73B | +21.21% |
Dividends PaidYTD | $3.23B | $3.19B | +1.54% |
Share BuybacksYTD | $3.35B | $3.24B | +3.45% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 65.0% | 65.1% | -0.15% |
Operating Margin | 24.6% | 22.3% | +2.38% |
Net Margin | 20.7% | — | — |
ROE | 6.7% | — | — |
ROA | 2.6% | — | — |
Current Ratio | $0.955 | — | — |
Debt to Equity | $1.585 | — | — |
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Based on the filing data, Cisco reported EPS of $0.80 in Q2 FY2026, up 31.1% from $0.61 in Q2 FY2025, and revenue of $15.35B, up 9.7% YoY. Whether these figures beat Wall Street consensus estimates would require comparison to analyst forecasts, which are not included in the 10-Q filing itself.
Cisco's Q2 FY2026 results showed strong revenue growth of 9.7% to $15.35B, with net income surging 30.8% to $3.18B and operating margin expanding to 24.6%. The standout theme was significant bottom-line leverage, with EPS growing 31.1% YoY to $0.80, well ahead of the revenue growth rate.
Cisco's revenue grew 9.7% YoY to $15.35B in Q2 FY2026, compared to $13.99B in Q2 FY2025, suggesting a meaningful rebound in enterprise and service provider technology spending. This growth rate represents a notable acceleration from recent periods of inventory digestion in the networking industry.
Key financial risks evident from the Q2 FY2026 10-Q data include a current ratio below 1.0 (0.955), long-term debt rising 22.3% YoY to $24.6B, and YTD operating cash flow declining 14.7% despite strong earnings growth. These factors suggest potential liquidity and leverage considerations investors should monitor.
Cisco's overall financial health appears solid, with $15.35B in quarterly revenue, a 64.97% gross margin, and $47.7B in stockholders' equity. However, the current ratio of 0.955 and rising long-term debt of $24.6B are areas to watch, even as the company continues to return capital to shareholders via $3.23B in dividends and $3.36B in buybacks on a YTD basis.