CSCO CISCO SYSTEMS, INC.

Overview and Growth

Fiscal 2026 results for CISCO SYSTEMS, INC. combined $63.33B of revenue with net income of $13.27B and an operating cash inflow of $14.18B. Revenue of $63.33B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Compared with $56.65B in fiscal 2025, revenue recorded a 11.8% year-over-year increase. Diluted earnings per share were $3.33, translating the period’s attributable earnings into the amount reported for each diluted share. Against diluted EPS of $2.55 in fiscal 2025, the current result was 30.6% higher. The revenue-to-assets relationship was 0.49x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

After reported cost of revenue, the company retained $40.86B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 64.5% of revenue, quantifying the portion retained before operating expenses were recognized. The reported operating result was $15.37B, capturing profitability after direct costs and the operating expenses reflected in the statements. The operating result equaled 24.3% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. The bottom-line result was net income of $13.27B, after the operating, financing, tax, and other items recognized for the period. Net margin was 21.0%, meaning that this portion of revenue remained as net income after all recognized expenses. Pretax income was $16.01B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. The pretax margin was 25.3%, relating income before taxes directly to revenue. The company recognized $2.74B of income tax for the period, completing the transition from pretax income to net income. Relative to pretax income, the tax provision measured 17.1%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

At period end, the $129.64B asset base was financed through $79.35B of liabilities and $50.28B of equity. Current assets were $38.66B against $41.52B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. The current ratio was 0.93x; current liabilities exceeded current assets, leaving a short-term liquidity deficit. The company held $7.22B in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 17.4%, excluding receivables and other current assets. Borrowings totaled $29.53B, adding a fixed financing obligation alongside the company’s equity capital. The debt-to-equity relationship was 0.59x, showing how much debt the company carried for each unit of book equity. Debt represented 22.8% of total assets, placing borrowing in the context of the company’s full resource base. The liabilities-to-assets relationship was 61.2%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 5.6%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $122.29B in fiscal 2025, the current asset base moved 6.0% and finished higher.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $14.18B, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. Operating cash flow equaled 1.07x of net income, showing how strongly accounting earnings converted into cash from operations. The cash-flow statement records $1.41B of capital expenditures, the investment amount considered after operating cash generation. Capital expenditures represented 9.9% of operating cash flow, leaving the remainder available as free cash flow. Free cash flow came to $12.77B, leaving a positive amount after capital expenditures. The free-cash-flow margin was 20.2%, measuring cash remaining after capital spending against revenue. The free-cash-flow-to-assets relationship was 9.8%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Jul 25, 2026. Analysis generated Oct 21, 2026.