Cisco Systems, Inc. (CSCO) Income Statement

30Y historyFree accessUpdated daily

Revenue growth accelerated from -12.8% in 2024Q3 to +17.6% in 2026Q4, with operating margin expanding from 17.2% to 24.7% over the same period, indicating strong operating leverage.

Annual statement

CSCO Income Statement

Cisco Systems, Inc. (CSCO) annual income statement — 30-year revenue, gross profit & net income history

Annual Quarterly

Metric	Jul'26	Jul'25	Jul'24	Jul'23	Jul'22	Jul'21	Jul'20	Jul'19	Jul'18	Jul'17	Jul'16	Jul'15	Jul'14	Jul'13	Jul'12	Jul'11	Jul'10	Jul'09	Jul'08	Jul'07	Jul'06	Jul'05	Jul'04	Jul'03	Jul'02	Jul'01	Jul'00	Jul'99	Jul'98	Jul'97

Sales/Revenue	63.33B	56.65B	53.8B	57B	51.56B	49.82B	49.3B	51.9B	49.33B	48.01B	49.25B	49.16B	47.14B	48.61B	46.06B	43.22B	40.04B	36.12B	39.54B	34.92B	28.48B	24.8B	22.05B	18.88B	18.91B	22.29B	18.93B	12.15B	8.46B	6.44B
Revenue Growth %	11.77%	5.3%	-5.61%	10.55%	3.49%	1.05%	-5.01%	5.22%	2.76%	-2.52%	0.17%	4.28%	-3.01%	5.53%	6.58%	7.94%	10.86%	-8.66%	13.22%	22.6%	14.85%	12.5%	16.78%	-0.2%	-15.15%	17.78%	55.73%	43.69%	31.34%	57.23%
Cost of Goods Sold	22.46B	19.86B	18.98B	21.25B	19.31B	17.92B	17.62B	19.24B	18.72B	17.78B	18.29B	19.48B	19.37B	19.17B	17.85B	16.68B	14.4B	13.02B	14.06B	12.59B	9.74B	8.13B	6.92B	5.64B	6.9B	11.22B	6.75B	4.24B	2.92B	2.24B
COGS % of Revenue	35.48%	35.06%	35.27%	37.27%	37.45%	35.98%	35.74%	37.06%	37.96%	37.04%	37.13%	39.62%	41.09%	39.43%	38.76%	38.6%	35.96%	36.06%	35.55%	36.04%	34.18%	32.78%	31.39%	29.9%	36.49%	50.33%	35.64%	34.89%	34.49%	34.8%
Gross Profit	40.86B	36.79B	34.83B	35.75B	32.25B	31.89B	31.68B	32.67B	30.61B	30.22B	30.96B	29.68B	27.77B	29.44B	28.21B	26.54B	25.64B	23.09B	25.48B	22.34B	18.75B	16.67B	15.13B	13.23B	12.01B	11.07B	12.18B	7.91B	5.54B	4.2B
Gross Margin %	64.52%	64.94%	64.73%	62.73%	62.55%	64.02%	64.26%	62.94%	62.04%	62.96%	62.87%	60.38%	58.9%	60.57%	61.24%	61.4%	64.04%	63.94%	64.45%	63.96%	65.82%	67.22%	68.61%	70.1%	63.51%	49.67%	64.36%	65.11%	65.51%	65.2%
Gross Profit Growth %	11.06%	5.63%	-2.59%	10.87%	1.11%	0.67%	-3.01%	6.73%	1.26%	-2.38%	4.31%	6.89%	-5.68%	4.36%	6.3%	3.48%	11.04%	-9.38%	14.09%	19.14%	12.45%	10.21%	14.31%	10.16%	8.5%	-9.11%	53.93%	42.82%	31.97%	56.31%
Operating Expenses	25.49B	25.03B	22.65B	20.72B	18.28B	19.06B	18.06B	18.45B	18.3B	18.25B	18.3B	18.91B	18.01B	18.24B	18.05B	18.06B	16.48B	15.18B	15.9B	13.23B	11.75B	9.26B	8.83B	8.35B	9.09B	11.91B	8.95B	4.93B	3.44B	2.57B
OpEx % of Revenue	40.26%	44.18%	42.09%	36.36%	35.45%	38.26%	36.64%	35.54%	37.09%	38.02%	37.16%	38.47%	38.2%	37.53%	39.18%	41.8%	41.16%	42.02%	40.22%	37.88%	41.25%	37.32%	40.07%	44.24%	48.08%	53.41%	47.27%	40.56%	40.63%	39.93%
Selling, General & Admin	14.32B	13.95B	13.18B	12.36B	11.19B	11.41B	11.09B	11.4B	11.39B	11.18B	11.43B	11.86B	11.44B	11.8B	11.97B	11.72B	10.71B	9.97B	10.39B	8.73B	7.2B	5.68B	5.4B	4.82B	4.88B	6.07B	4.58B	2.87B	1.82B	1.36B
SG&A % of Revenue	22.61%	24.62%	24.49%	21.68%	21.7%	22.91%	22.5%	21.96%	23.08%	23.28%	23.22%	24.13%	24.26%	24.28%	25.99%	27.12%	26.76%	27.6%	26.27%	24.99%	25.28%	22.9%	24.48%	25.52%	25.81%	27.25%	24.19%	23.57%	21.55%	21.19%
Research & Development	9.56B	9.3B	7.98B	7.55B	6.77B	6.55B	6.35B	6.58B	6.33B	6.06B	6.3B	6.21B	6.29B	5.94B	5.49B	5.82B	5.27B	5.27B	5.16B	4.58B	4.16B	3.35B	3.19B	3.14B	3.51B	4.78B	4.08B	2.06B	1.61B	1.21B
R&D % of Revenue	15.1%	16.42%	14.84%	13.25%	13.14%	13.15%	12.87%	12.67%	12.84%	12.62%	12.78%	12.63%	13.35%	12.22%	11.91%	13.47%	13.17%	14.59%	13.04%	13.11%	14.6%	13.5%	14.49%	16.63%	18.57%	21.43%	21.54%	16.99%	19.08%	18.73%
Other Operating Expenses	1.61B	1.78B	1.49B	813M	319M	1.1B	622M	472M	579M	1.01B	571M	843M	275M	500M	590M	520M	491M	-63M	361M	0	393M	227M	242M	394M	699M	1.05B	291M	0	0	0
Operating Income	15.37B	11.76B	12.18B	15.03B	13.97B	12.83B	13.62B	14.22B	12.31B	11.97B	12.66B	10.77B	9.35B	11.34B	10.46B	7.67B	9.16B	7.32B	9.44B	8.62B	7B	7.42B	6.29B	4.88B	2.92B	-2B	3.23B	2.98B	2.1B	1.63B
Operating Margin %	24.27%	20.76%	22.64%	26.37%	27.09%	25.76%	27.63%	27.39%	24.95%	24.94%	25.71%	21.91%	19.82%	23.33%	22.71%	17.76%	22.89%	20.27%	23.88%	24.69%	24.56%	29.9%	28.54%	25.86%	15.43%	-8.99%	17.09%	24.55%	24.88%	25.27%
Operating Income Growth %	30.68%	-3.46%	-18.96%	7.6%	8.85%	-5.78%	-4.21%	15.52%	2.81%	-5.43%	17.55%	15.25%	-17.61%	8.41%	36.33%	-16.26%	25.16%	-22.45%	9.52%	23.23%	-5.66%	17.86%	28.88%	67.25%	245.66%	-161.95%	8.41%	41.8%	29.32%	16.17%
EBITDA	17.91B	14.62B	14.69B	16.76B	15.93B	14.7B	15.43B	16.12B	14.5B	14.21B	14.74B	13.21B	11.78B	13.69B	12.67B	10.16B	11.19B	9.09B	11.19B	10.03B	8.29B	8.43B	7.49B	6.34B	4.88B	232M	4.1B	3.47B	2.43B	1.84B
EBITDA Margin %	28.28%	25.81%	27.3%	29.4%	30.89%	29.5%	31.29%	31.05%	29.39%	29.61%	29.92%	26.88%	24.98%	28.17%	27.51%	23.51%	27.96%	25.17%	28.29%	28.73%	29.1%	33.97%	33.98%	33.61%	25.78%	1.04%	21.65%	28.55%	28.75%	28.56%
EBITDA Growth %	22.47%	-0.45%	-12.35%	5.22%	8.38%	-4.75%	-4.27%	11.14%	2.03%	-3.56%	11.54%	12.18%	-13.99%	8.07%	24.7%	-9.24%	23.15%	-18.74%	11.48%	21.05%	-1.61%	12.47%	18.06%	30.13%	2001.72%	-94.34%	18.1%	42.7%	32.19%	19.96%
D&A (Non-Cash Add-back)	2.54B	2.86B	2.51B	1.73B	1.96B	1.86B	1.81B	1.9B	2.19B	2.24B	2.08B	2.44B	2.43B	2.35B	2.21B	2.49B	2.03B	1.77B	1.74B	1.41B	1.29B	1.01B	1.2B	1.46B	1.96B	2.24B	863M	486M	327.33M	212.2M
EBIT	17.48B	12.52B	13.24B	15.74B	14.84B	13.7B	14.55B	15.43B	13.98B	13.14B	13.6B	11.77B	10.28B	11.81B	10.76B	8.45B	10.04B	8.04B	10.57B	9.84B	7.78B	8.04B	6.29B	4.88B	2.92B	-834M	3.23B	2.87B	2.07B	1.63B
Net Interest Income	-604M	-592M	359M	535M	116M	184M	335M	449M	565M	477M	329M	203M	127M	71M	54M	13M	12M	499M	824M	715M	607M	552M	512M	660M	895M	967M	1.11B	330M	196M	110M
Interest Income	866M	1B	1.36B	962M	476M	618M	920M	1.31B	1.51B	1.34B	1B	769M	691M	654M	650M	641M	635M	845M	1.14B	1.09B	755M	552M	512M	660M	895M	967M	1.11B	330M	196M	110M
Interest Expense	1.47B	1.59B	1.01B	427M	360M	434M	585M	859M	943M	861M	676M	566M	564M	583M	596M	628M	623M	346M	319M	377M	148M	0	0	0	0	0	0	0	0	0
Other Income/Expense	641M	-660M	53M	287M	508M	429M	350M	352M	730M	314M	260M	431M	370M	-115M	-303M	151M	251M	371M	813M	840M	637M	594M	700M	131M	-209M	1.13B	1.11B	219M	166.65M	263.71M
Pretax Income	16.01B	11.1B	12.23B	15.32B	14.48B	13.26B	13.97B	14.57B	13.04B	12.29B	12.92B	11.2B	9.71B	11.23B	10.16B	7.83B	9.41B	7.69B	10.26B	9.46B	7.63B	8.04B	6.99B	5.01B	2.71B	-874M	4.34B	3.32B	2.3B	1.89B
Pretax Margin %	25.28%	19.59%	22.74%	26.87%	28.08%	26.62%	28.34%	28.07%	26.43%	25.6%	26.24%	22.78%	20.61%	23.1%	22.06%	18.11%	23.51%	21.3%	25.94%	27.09%	26.8%	32.4%	31.72%	26.55%	14.33%	-3.92%	22.94%	27.28%	27.22%	29.33%
Income Tax	2.74B	920M	1.91B	2.71B	2.67B	2.67B	2.76B	2.95B	12.93B	2.68B	2.18B	2.22B	1.86B	1.24B	2.12B	1.33B	1.65B	1.56B	2.2B	2.13B	2.05B	2.29B	2.02B	1.44B	817M	140M	1.68B	1.22B	952.39M	840.19M
Effective Tax Rate %	17.13%	8.29%	15.64%	17.66%	18.41%	20.14%	19.73%	20.25%	99.16%	21.8%	16.88%	19.82%	19.17%	11.08%	20.85%	17.06%	17.5%	20.27%	21.48%	22.49%	26.9%	28.56%	28.95%	28.63%	30.15%	-16.02%	38.57%	36.79%	41.36%	44.48%
Net Income	13.27B	10.18B	10.32B	12.61B	11.81B	10.59B	11.21B	11.62B	110M	9.61B	10.74B	8.98B	7.85B	9.98B	8.04B	6.49B	7.77B	6.13B	8.05B	7.33B	5.58B	5.74B	4.4B	3.58B	1.89B	-1.01B	2.67B	2.1B	1.35B	1.05B
Net Margin %	20.95%	17.97%	19.18%	22.13%	22.91%	21.26%	22.75%	22.39%	0.22%	20.02%	21.81%	18.27%	16.66%	20.54%	17.46%	15.02%	19.4%	16.98%	20.36%	21%	19.59%	23.15%	19.96%	18.95%	10.01%	-4.55%	14.1%	17.25%	15.96%	16.28%
Net Income Growth %	30.32%	-1.36%	-18.18%	6.78%	11.53%	-5.56%	-3.5%	10464.55%	-98.86%	-10.52%	19.57%	14.36%	-21.34%	24.15%	23.9%	-16.44%	26.62%	-23.82%	9.8%	31.42%	-2.8%	30.45%	23%	89.01%	286.69%	-138.01%	27.29%	55.25%	28.74%	14.82%
Net Income (Continuing)	13.27B	10.18B	10.32B	12.61B	11.81B	10.59B	11.21B	11.62B	110M	9.61B	10.74B	8.98B	7.85B	9.98B	8.04B	6.49B	7.77B	6.13B	8.05B	7.33B	5.58B	5.74B	4.97B	3.58B	1.89B	-1.01B	2.67B	2.02B	1.33B	1.05B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	0	0	0	0	-1M	9M	7M	8M	15M	33M	18M	30M	49M	10M	6M	10M	90M	10M	15M	22M	45M	44M	43M	42.25M
EPS (Diluted)	3.33	2.55	2.54	3.07	2.82	2.50	2.64	2.61	0.02	1.90	2.11	1.75	1.49	1.86	1.49	1.17	1.33	1.05	1.31	1.17	0.89	0.87	0.62	0.50	0.25	-0.14	0.36	0.29	0.20	0.17
EPS Growth %	30.59%	0.39%	-17.26%	8.87%	12.8%	-5.3%	1.15%	11500%	-98.82%	-9.95%	20.57%	17.45%	-19.89%	24.83%	27.35%	-12.03%	26.67%	-19.85%	11.97%	31.46%	2.3%	40.32%	24%	100%	278.57%	-138.89%	24.14%	45%	17.65%	13.33%
EPS (Basic)	3.36	2.56	2.55	3.08	2.83	2.51	2.65	2.63	0.02	1.92	2.13	1.76	1.50	1.87	1.50	1.17	1.36	1.05	1.35	1.21	0.91	0.88	0.64	0.50	0.26	-0.14	0.39	0.30	0.21	0.18
Diluted Shares Outstanding	3.99B	4B	4.06B	4.11B	4.19B	4.24B	4.25B	4.45B	4.88B	5.05B	5.09B	5.15B	5.28B	5.38B	5.4B	5.56B	5.85B	5.86B	6.16B	6.26B	6.27B	6.61B	7.06B	7.22B	7.45B	7.2B	7.44B	7.06B	6.66B	6.26B
Basic Shares Outstanding	3.95B	3.98B	4.04B	4.09B	4.17B	4.22B	4.24B	4.42B	4.84B	5.01B	5.05B	5.1B	5.23B	5.33B	5.37B	5.53B	5.73B	5.83B	5.99B	6.05B	6.16B	6.49B	6.84B	7.12B	7.3B	7.2B	6.92B	6.65B	6.31B	5.98B
Dividend Payout Ratio	49.39%	63.23%	61.86%	49.96%	52.69%	58.19%	53.65%	51.45%	5425.45%	57.35%	44.23%	45.5%	47.85%	33.16%	18.67%	10.14%	-	-	-	-	-	-	-	-	-	-	-	-	-	-

Key Metrics

Growth RegimeAccelerating

ProfitabilityStrong

Balance SheetHealthy

Cash FlowRobust

Top Statement Risk

Core networking decline and integration risk

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q4)

AI-Driven Revenue Acceleration

Revenue growth accelerated from -12.8% in 2024Q3 to +17.6% in 2026Q4, driven by AI infrastructure demand, with product orders up 13% YoY per recent filings.

The sequential acceleration from negative growth in FY2024 to double-digit growth in FY2026 indicates a cyclical recovery, likely fueled by AI-related Ethernet demand and enterprise refresh cycles. However, the sustainability of this growth depends on the conversion of AI orders and the ability to offset softness in core networking, which warrants monitoring.

Stable Gross Margin Amid Mix Shift

Gross margin has remained resilient around 64-65% over the past ten quarters, despite revenue mix shifts, suggesting pricing power and software mix benefits, as reported in financial statements.

The stability of gross margin near 65% indicates that Cisco has successfully managed input costs and maintained pricing discipline, even as hardware sales fluctuate. The shift toward software and services, including the Splunk integration, may support margin expansion, but competitive pressure from white-box vendors could compress margins if pricing becomes aggressive.

Operating Leverage Emerging

Operating margin expanded from 17.2% in 2024Q3 to 24.7% in 2026Q4, as revenue growth outpaced fixed cost increases, indicating strong operating leverage, per income statement data.

The 730 basis point improvement in operating margin over the period suggests that Cisco is scaling revenue without proportionate increases in R&D and SG&A, which have remained relatively flat. This implies that the company is benefiting from higher-margin software and services, and that the Splunk acquisition may be contributing to efficiency gains, though integration costs could temper this trend.

Earnings Quality Supported by SBC Adjustments

Net income grew 51.6% YoY in 2026Q4, but stock-based compensation of $927M in that quarter suggests reported EPS may overstate cash earnings, based on disclosed SBC figures.

While EPS growth is impressive, the significant SBC expense (averaging ~$900M per quarter) indicates that a portion of reported earnings is non-cash. Investors should adjust for SBC to assess true cash generation, especially as the company integrates Splunk, which may introduce additional amortization that depresses GAAP earnings but not cash flows.

R&D and SG&A Discipline

R&D and SG&A expenses have remained stable at ~$2.4B and ~$3.5B respectively over the last five quarters, despite revenue growth, indicating cost discipline, as per income statement data.

The flat R&D and SG&A spending while revenue grew 17.6% YoY in 2026Q4 suggests that Cisco is leveraging its existing infrastructure and sales force to drive incremental revenue. This cost containment is a positive sign for margin sustainability, but the company may need to increase investment in AI and security to remain competitive, which could pressure margins if not offset by revenue growth.

FY2026: The AI Inflection Point

The most significant inflection occurred in FY2026, with revenue growth turning from negative to double-digit, driven by AI infrastructure demand, as evidenced by the 17.6% YoY growth in 2026Q4.

The transition from a declining revenue base in FY2024 to accelerating growth in FY2026 marks a strategic pivot, likely tied to the AI-driven Ethernet opportunity and the Splunk acquisition. This inflection has not only reversed the top-line trend but also expanded margins, suggesting that the company's mix shift toward software and AI-related products is gaining traction. The durability of this inflection will depend on the sustainability of AI capex cycles and Cisco's ability to compete with specialized players like Arista.

Core Networking Erosion Risks

Despite overall growth, core networking revenue has declined, and intense AI competition from Nvidia and Arista may limit Cisco's ability to sustain margin expansion, per recent risk disclosures.

Short-sellers could argue that the AI-driven growth is masking underlying weakness in Cisco's legacy switching and routing business, which faces structural pressure from white-box vendors and cloud-native architectures. Additionally, the Splunk integration carries execution risk, and if cross-selling fails to materialize, the high acquisition price could weigh on returns. The market may be overestimating the durability of AI-related orders, which could normalize as hyperscalers optimize their networks.

CSCO — Frequently Asked Questions

Quick answers to the most common questions about buying CSCO stock.

What was Cisco Systems, Inc.'s (CSCO) revenue in 2026?

For fiscal year 2026, Cisco Systems, Inc. (CSCO) reported total revenue of $63.33B. This represents a 883.3% increase compared to $6.44B in 1997.

Is Cisco Systems, Inc. (CSCO) profitable?

Cisco Systems, Inc. (CSCO) is profitable, generating $13.27B in net income for the fiscal year ending 2026 with a net profit margin of 21.0%.

What is Cisco Systems, Inc.'s operating profit margin?

Cisco Systems, Inc. (CSCO) reported an operating income of $15.37B, resulting in an operating profit margin of 24.3%. This margin reflects the operational efficiency of the business before interest and taxes.

What is Cisco Systems, Inc.'s gross profit and gross margin?

Cisco Systems, Inc. (CSCO) generated $40.86B in gross profit for the year, representing a gross profit margin of 64.5%. This demonstrates the company's core pricing power and production efficiency.