# Cisco Systems, Inc. (CSCO)

> Cisco sells networking equipment, security and collaboration software, and technical services to businesses, governments, and communications and cloud providers.

- Exchange: Nasdaq · Sector: Technology · Industry: Communication Equipment
- Headquarters: San Jose, California
- Founded: 1984 (incorporated in California)
- Employees: approximately 82,400 (July 25, 2026)
- SEC CIK: 0000858877 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000858877))
- Full page: https://inspectstocks.com/stocks/csco
- Data as of: price 2026-09-28; newest filing used 2026-09-02; latest fiscal period ended 2026-07-25

## Grade

**C+** on the growth-and-cash rubric, 3 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $63.3B | $57B |
| Revenue growing recently | passed | $63.3B | $56.7B |
| Free cash flow positive | passed | $12.8B |  |
| Free cash flow growing overall | failed | $12.8B | $19B |
| Free cash flow growing recently | failed | $12.8B | $13.3B |

Business quality (the + / − mark): 6 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 21.0% |  |
| Healthy profit margin | passed | 21.0% |  |
| Strong operating margin | passed | 24.3% |  |
| Good return on equity | passed | 26.4% |  |
| Debt under control | passed | 0.49 |  |
| Turns sales into cash | passed | 20.2% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $63.3B |
| Net income, trailing twelve months | $13.3B |
| Free cash flow, trailing twelve months | $12.8B |
| Net margin | 21.0% |
| Operating margin | 24.3% |
| Return on equity | 26.4% |
| Debt to equity | 0.49 |
| Diluted EPS, trailing twelve months | $3.34 |
| Share price | $106.76 |
| Market value | $420.9B |
| Price / earnings | 32.0x |
| Price / sales | 6.6x |

## What the business does

Cisco makes switches, routers, wireless equipment, servers, and optical networking products that connect computers, data centers, workplaces, and communications networks. It also sells security, collaboration, and observability software, including Webex and Splunk products, and provides technical support and consulting. Customers buy directly from Cisco or through resellers and other channel partners.

### How it makes money

- **Networking equipment and related products** (32.1% (year ended July 31, 2025)) — Customers pay for products such as switches, routers, wireless equipment, servers, and optical networking equipment. The reported product breakdown lists networking separately.
- **Software subscriptions tied to products** (20.2% (year ended July 31, 2025)) — Customers pay recurring fees for software subscriptions associated with Cisco products.
- **Security products and software** (9.2% (year ended July 31, 2025)) — Customers pay for security products and software, including network security and threat detection tools.
- **Collaboration products and software** (4.7% (year ended July 31, 2025)) — Customers pay for Webex software, collaboration devices, contact-center products, and communications services.
- **Observability products and software** (1.2% (year ended July 31, 2025)) — Customers pay for tools such as Splunk Observability and ThousandEyes to monitor applications, networks, and digital services.
- **Services, including subscription services** (32.7% (year ended July 31, 2025)) — Customers pay for technical support, software maintenance, hardware replacement, consulting, and other services. This share combines the reported service and subscription-service figures.

### Products

- **Networking** — Switches connect devices within offices and data centers; routers direct data between networks; wireless access points provide Wi-Fi; and servers and optical products help carry and process network traffic.
- **Security** — Products include firewalls, tools for managing user access, cloud-based network security, and extended detection and response (XDR) software that helps find and address cyberattacks.
- **Collaboration** — Webex software, video and other collaboration devices, contact-center products, and cloud communications tools let employees and businesses communicate with customers.
- **Observability** — Splunk products help customers monitor applications, infrastructure, and networks; ThousandEyes checks how networks and cloud services affect access to applications.
- **Services** — Cisco provides technical support, software maintenance, hardware replacement, and professional services such as planning, design, installation, and consulting.

### Customers

- Businesses of different sizes buy equipment, software, and support directly from Cisco or through resellers, systems integrators, and service-provider partners.
- Federal, state, and local governments and educational institutions generally buy through technology vendors and channel partners.
- Telecommunications and other service providers buy networking equipment and related services for their own networks and for services they provide to their customers.
- Large cloud providers, including hyperscalers, buy networking equipment and optical products for data centers and connections between facilities.

### Competitors

- Arista Networks, Inc. (ANET) — Data-center and other networking equipment.
- Amazon Web Services (a division of Amazon.com, Inc.) (AMZN) — Cloud and networking services; the ticker and listing are for its publicly traded parent.
- Fortinet, Inc. (FTNT) — Network security products, including firewalls.
- Hewlett Packard Enterprise Company (HPE) — Networking and data-center equipment.
- Palo Alto Networks, Inc. (PANW) — Cybersecurity products and services.
- Datadog, Inc. (DDOG) — Software for monitoring applications, networks, and technology systems.

### What it depends on

- Cisco relies on independent contract manufacturers for printed-circuit-board assembly, product assembly, repair, and testing; its 10-K says it has no significant long-term manufacturing contracts.
- A substantial portion of sales goes through channel partners, including distributors, systems integrators, service providers, and resellers.
- Cisco products use some third-party software and other intellectual property, so it depends on obtaining or renewing licenses.
- Cisco's networking products depend on semiconductor and other component supply chains; management discussed direct work with Taiwan Semiconductor Manufacturing Company (TSMC) on supply in the fiscal fourth-quarter 2026 call.

### What could go wrong

- Sales to cloud and service-provider customers, including hyperscalers buying artificial-intelligence infrastructure, can be volatile and concentrated among a limited number of customers.
- If Cisco fails to develop new products or keep existing products aligned with changing technology and customer needs, customers may choose competing products and Cisco's results may suffer.
- Cisco sells through distributors and other channel partners; changes or disruption in that route to customers, or excess inventory held in its two-tier distribution channel, can hurt sales or margins.

## More on this company

- [Overview](https://inspectstocks.com/stocks/csco)
- [Financial statements](https://inspectstocks.com/stocks/csco/financials)
- [Competitors](https://inspectstocks.com/stocks/csco/peers)
- [Earnings](https://inspectstocks.com/stocks/csco/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.