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Press Contact:Investor Relations Contact:
Robyn BlumSami Badri
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CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2026 EARNINGS

News Summary:
•Record top and bottom-line performance with double-digit growth in Q4 and FY 2026, exceeding the high end of guidance ranges
•Exceptional FY 2026 operating margin results, demonstrating strong execution and operating efficiency
•Broad-based, record high demand for Cisco technology with a networking supercycle underway
◦Q4 total product orders up 35% year over year; up 25% excluding hyperscalers, with double-digit growth across every geography and customer market
◦Networking product orders grew 40% year over year in Q4, marking the eighth consecutive quarter of double-digit growth
•Significant momentum and raised expectations for AI infrastructure from hyperscalers
◦$4 billion of orders taken in Q4, bringing the total for FY 2026 to $9.3 billion
◦Delivered approximately $4 billion of revenue in FY 2026; $7.5 billion expected in FY 2027
•Q4 FY 2026 Results:
◦Revenue: $17.3 billion
▪Increase of 18% year over year
◦Operating Margin: GAAP: 24.7%; Non-GAAP: 35.9%
◦Earnings per Share: GAAP: $0.97; Non-GAAP: $1.22
▪GAAP EPS increased 52% year over year
▪Non-GAAP EPS increased 23% year over year
•FY 2026 Results:
◦Revenue: $63.3 billion
▪Increase of 12% year over year
◦Operating Margin: GAAP: 24.3%; Non-GAAP: 34.8%
◦Earnings per Share: GAAP: $3.33; Non-GAAP: $4.33
▪GAAP EPS increased 31% year over year
▪Non-GAAP EPS increased 14% year over year
•Q1 FY 2027 Guidance:
◦Revenue: $18.0 billion to $18.2 billion
◦Earnings per Share: GAAP: $1.08 to $1.10; Non-GAAP: $1.32 to $1.34
•FY 2027 Guidance:
◦Revenue: $72.2 billion to $73.4 billion
◦Earnings per Share: GAAP: $4.00 to $4.06; Non-GAAP: $5.05 to $5.11


1

SAN JOSE, Calif. -- August 12, 2026 -- Cisco (NASDAQ: CSCO) today reported fourth quarter and fiscal year results for the period ended July 25, 2026. Cisco reported fourth quarter revenue of $17.3 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.9 billion or $0.97 per share, and non-GAAP net income of $4.9 billion or $1.22 per share.
“We delivered a very strong close to fiscal 2026, marking another record year for Cisco. Our record performance is a testament to the accelerated pace of innovation and the excellent execution by our teams,” said Chuck Robbins, Chair and CEO of Cisco. “With the breadth and depth of our portfolio and our competitive differentiation in secure networking, Cisco is well positioned to support our customers however or wherever they decide to deploy AI.”
“In Q4, we delivered record revenue, non-GAAP operating income and EPS, all exceeding the high end of our guidance ranges and demonstrating strong financial discipline and operating leverage,” said Mark Patterson, CFO of Cisco. “In fiscal 2026, Cisco achieved its highest productivity metrics in 30 years measured by revenue, non-GAAP operating margin, and earnings per employee. As we enter fiscal 2027, we remain focused on delivering durable growth, consistent profitability and continued capital returns as we make the strategic investments to capitalize on the significant growth opportunities we see ahead.”

Q4 GAAP Results
Q4 FY 2026Q4 FY 2025Vs. Q4 FY 2025
Revenue$17.3   billion$14.7   billion18%
Net Income$3.9   billion$2.6   billion51%
Diluted Earnings per Share (EPS)$0.97 $0.64 52%
Q4 Non-GAAP Results
Q4 FY 2026Q4 FY 2025Vs. Q4 FY 2025
Net Income$4.9   billion$4.0   billion23%
EPS$1.22 $0.99 23%
Fiscal Year GAAP Results
FY 2026FY 2025Vs. FY 2025
Revenue$63.3   billion$56.7   billion12%
Net Income$13.3   billion$10.2   billion30%
EPS$3.33 $2.55 31%
Fiscal Year Non-GAAP Results
FY 2026FY 2025Vs. FY 2025
Net Income$17.2   billion$15.2   billion13%
EPS$4.33 $3.81 14%
Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."
Cisco Declares Quarterly Dividend
Cisco has declared a quarterly dividend of $0.42 per common share to be paid on October 21, 2026, to all stockholders of record as of the close of business on October 2, 2026. Future dividends will be subject to Board approval.



2

Financial Summary
All comparative percentages are on a year-over-year basis unless otherwise noted.
Q4 FY 2026 Highlights
Revenue -- Total revenue was $17.3 billion, up 18%, with product revenue up 24% and services revenue was flat.
Revenue by geographic segment was: Americas up 18%, EMEA up 19%, and APJC up 14%. Product revenue performance reflected growth in Networking up 28%, Security up 14%, Collaboration up 12%, and Observability up 6%.
Gross Margin -- On a GAAP basis, total gross margin, product gross margin, and services gross margin were 64.1%, 62.6%, and 69.4%, respectively, as compared with 63.2%, 61.5%, and 68.3%, respectively, in the fourth quarter of fiscal 2025.
Total gross margins by geographic segment were: 64.5% for the Americas, 70.1% for EMEA and 67.3% for APJC.
On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 66.3%, 64.8%, and 71.6%, respectively, as compared with 68.4%, 67.5%, and 70.8%, respectively, in the fourth quarter of fiscal 2025.
Operating Expenses -- On a GAAP basis, operating expenses were $6.8 billion, up 10% year over year, and were 39.4% of revenue. Non-GAAP operating expenses were $5.2 billion, up 5%, and were 30.4% of revenue.
Operating Income -- GAAP operating income was $4.3 billion, up 38%, with GAAP operating margin of 24.7%. Non-GAAP operating income was $6.2 billion, up 23%, with non-GAAP operating margin at 35.9%.
Provision for Income Taxes -- The GAAP tax provision rate was 21.8%. The non-GAAP tax provision rate was 18.8%.
Net Income and EPS -- On a GAAP basis, net income was $3.9 billion, an increase of 51%, and EPS was $0.97, an increase of 52%. On a non-GAAP basis, net income was $4.9 billion, an increase of 23%, and EPS was $1.22, an increase of 23%.
Cash Flow from Operating Activities -- $5.4 billion for the fourth quarter of fiscal 2026, an increase of 27% compared with $4.2 billion for the fourth quarter of fiscal 2025.
FY 2026 Highlights
Revenue -- Total revenue was $63.3 billion, an increase of 12%.
Operating Income -- GAAP operating income was $15.4 billion, up 31%, with GAAP operating margin of 24.3%. Non-GAAP operating income was $22.0 billion, up 13%, with non-GAAP operating margin at 34.8%.
Net Income and EPS -- On a GAAP basis, net income was $13.3 billion, an increase of 30%, and EPS was $3.33, an increase of 31%. On a non-GAAP basis, net income was $17.2 billion, an increase of 13%, and EPS was $4.33, an increase of 14%.
Cash Flow from Operating Activities -- $14.2 billion for fiscal 2026, flat compared with fiscal 2025.
Balance Sheet and Other Financial Highlights
Cash and Cash Equivalents and Investments -- $15.9 billion at the end of the fourth quarter of fiscal 2026, compared with $16.6 billion at the end of the third quarter of fiscal 2026, and compared with $16.1 billion at the end of fiscal 2025.
Remaining Performance Obligations (RPO) -- $46.7 billion, up 7% in total. Product RPO was up 9% and services RPO was up 6%.
Deferred Revenue -- $29.8 billion, up 3% in total, with deferred product revenue up 2%. Deferred services revenue up 4%.
Capital Allocation -- In the fourth quarter of fiscal 2026, we returned $3.2 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.42 per common share, or $1.7 billion, and repurchased approximately 13 million shares of common stock under our stock repurchase program at an average price of $111.53 per share for an aggregate purchase price of $1.5 billion. The remaining authorized amount for stock repurchases under the program is $8.1 billion with no termination date.
Acquisitions
In the fourth quarter of fiscal 2026, we closed the following acquisitions:
•Galileo Technologies, Inc., a privately held observability company
•Astrix Securities Ltd., a privately held security company focused on Non-Human Identity (NHI) Security


3

Guidance
Cisco expects to achieve the following results for the first quarter of fiscal 2027:
Q1 FY 2027
Revenue$18.0 billion - $18.2 billion
Non-GAAP gross margin65% - 66%
Non-GAAP operating margin35.5% - 36.5%
Non-GAAP EPS $1.32 - $1.34
Cisco estimates that GAAP EPS will be $1.08 to $1.10 for the first quarter of fiscal 2027.
Cisco expects to achieve the following results for fiscal 2027:
FY 2027
Revenue$72.2 billion - $73.4 billion
Non-GAAP EPS $5.05 - $5.11
Cisco estimates that GAAP EPS will be $4.00 to $4.06 for fiscal 2027.
Our Q1 FY 2027 guidance assumes an effective tax provision rate of approximately 15% for GAAP and approximately 18.5% for non-GAAP results. Our FY 2027 guidance assumes an effective tax provision rate of approximately 14.5% for GAAP and approximately 18.5% for non-GAAP results.
A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled "GAAP to non-GAAP Guidance" located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."

Editor's Notes:
•Q4 fiscal year 2026 conference call to discuss Cisco's results along with its guidance will be held on Wednesday, August 12, 2026 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).
•Conference call replay will be available from 4:00 p.m. Pacific Time, August 12, 2026 to 10:00 p.m. Pacific Time, August 18, 2026 at 1-800-839-2232 (United States) or 1-203-369-3662 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.
•Additional information regarding Cisco's financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August 12, 2026. The conference call will also be livestreamed on YouTube at https://www.youtube.com/live/yYJFmYwIPeM, LinkedIn at https://www.linkedin.com/events/7490076339694387200 & X at https://x.com/i/broadcasts/1AxRnnDawDgxl. Text of the conference call's prepared remarks will be available within 24 hours of completion of the call. The webcast and livestreaming will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.
4

CISCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per-share amounts)
(Unaudited) 
Three Months EndedFiscal Year Ended
July 25,
2026		July 26,
2025		July 25,
2026		July 26,
2025
REVENUE:
Product$13,459 $10,886 $48,295 $41,608 
Services3,793 3,787 15,030 15,046 
Total revenue17,252 14,673 63,325 56,654 
COST OF SALES:
Product5,029 4,194 17,781 15,121 
Services1,160 1,199 4,684 4,743 
Total cost of sales6,189 5,393 22,465 19,864 
GROSS MARGIN11,063 9,280 40,860 36,790 
OPERATING EXPENSES:
Research and development2,431 2,380 9,563 9,300 
Sales and marketing2,952 2,818 11,559 10,966 
General and administrative679 706 2,761 2,992 
Amortization of purchased intangible assets226 254 916 1,028 
Restructuring and other charges511 35 693 744 
Total operating expenses6,799 6,193 25,492 25,030 
OPERATING INCOME4,264 3,087 15,368 11,760 
Interest income220 227 866 1,001 
Interest expense(373)(368)(1,470)(1,593)
Other income (loss), net822 53 1,245 (68)
Interest and other income (loss), net669 (88)641 (660)
INCOME BEFORE PROVISION FOR INCOME TAXES4,933 2,999 16,009 11,100 
Provision for income taxes1,074 449 2,742 920 
NET INCOME$3,859 $2,550 $13,267 $10,180 
Net income per share:
Basic$0.98 $0.64 $3.36 $2.56 
Diluted$0.97 $0.64 $3.33 $2.55 
Shares used in per-share calculation:
Basic3,949 3,960 3,953 3,976 
Diluted3,984 3,992 3,987 3,998 





5

CISCO SYSTEMS, INC.
REVENUE BY SEGMENT
(In millions, except percentages)

July 25, 2026
Three Months EndedFiscal Year Ended
AmountY/Y%AmountY/Y%
Revenue:
Americas$10,396 18%$37,799 12%
EMEA4,350 19%16,613 12%
APJC2,506 14%8,914 9%
Total$17,252 18%$63,325 12%
Amounts may not sum and percentages may not recalculate due to rounding.

CISCO SYSTEMS, INC.
GROSS MARGIN PERCENTAGE BY SEGMENT
(In percentages)

July 25, 2026
Three Months EndedFiscal Year Ended
Gross Margin Percentage:
Americas64.5%65.1%
EMEA70.1%71.2%
APJC67.3%66.6%


CISCO SYSTEMS, INC.
REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES
(In millions, except percentages)

July 25, 2026
Three Months EndedFiscal Year Ended
AmountY/Y %AmountY/Y %
Revenue:
Networking$9,791 28%$34,668 22%
Security2,226 14%8,232 2%
Collaboration1,167 12%4,300 4%
Observability275 6%1,095 4%
Total Product13,459 24%48,295 16%
Services3,793 —%15,030 —%
Total$17,252 18%$63,325 12%
Amounts may not sum and percentages may not recalculate due to rounding.

6

CISCO SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)

July 25,
2026		July 26,
2025
ASSETS
Current assets:
Cash and cash equivalents$7,218 $8,346 
Investments8,700 7,764 
Accounts receivable, net of allowance
of $78 at July 25, 2026 and $69 at July 26, 2025
7,470 6,701 
Inventories5,694 3,164 
Financing receivables, net3,392 3,061 
Other current assets6,191 5,950 
Total current assets38,665 34,986 
Property and equipment, net2,760 2,113 
Financing receivables, net4,940 3,466 
Goodwill59,477 59,136 
Purchased intangible assets, net7,557 9,175 
Deferred tax assets7,109 7,356 
Other assets9,129 6,059 
TOTAL ASSETS$129,637 $122,291 
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt$10,161 $5,232 
Accounts payable3,366 2,528 
Income taxes payable190 1,857 
Accrued compensation4,057 3,611 
Deferred revenue16,988 16,416 
Other current liabilities6,763 5,420 
Total current liabilities41,525 35,064 
Long-term debt19,372 22,861 
Income taxes payable2,339 2,165 
Deferred revenue12,793 12,363 
Other long-term liabilities3,323 2,995 
Total liabilities79,352 75,448 
Total equity50,285 46,843 
TOTAL LIABILITIES AND EQUITY$129,637 $122,291 




7

CISCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three Months EndedFiscal Year Ended
July 25,
2026		July 26,
2025		July 25,
2026		July 26,
2025
Cash flows from operating activities:
Net income$3,859 $2,550 $13,267 $10,180 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization, and other638 635 2,540 2,811 
Share-based compensation expense927 948 3,830 3,641 
Provision for receivables12 7 23 24 
Deferred income taxes443 (341)226 (1,133)
(Gains) losses on divestitures, investments and other, net(858)(90)(1,358)(38)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures:
Accounts receivable(1,019)(1,428)(832)(22)
Inventories(992)(332)(2,541)209 
Financing receivables(1,801)(291)(1,835)214 
Other assets(430)17 (1,032)(499)
Accounts payable398 267 842 257 
Income taxes, net38 163 (2,304)(1,839)
Accrued compensation789 378 457 (53)
Deferred revenue1,266 772 1,125 248 
Other liabilities2,116 979 1,769 193 
Net cash provided by operating activities5,386 4,234 14,177 14,193 
Cash flows from investing activities:
Purchases of investments(1,607)(1,523)(8,974)(4,589)
Proceeds from sales of investments129 415 2,013 2,643 
Proceeds from maturities of investments2,294 958 6,105 4,943 
Acquisitions, net of cash and cash equivalents acquired and divestitures(470)— (516)(291)
Purchases of non-marketable equity securities(247)(118)(946)(383)
Return of investments in non-marketable equity securities47 198 270 306 
Acquisition of property and equipment(390)(217)(1,410)(905)
Other(20)14 (26)9 
Net cash provided by (used in) investing activities(264)(273)(3,484)1,733 
Cash flows from financing activities:
Issuances of common stock451 416 805 736 
Repurchases of common stock - repurchase program(1,501)(1,252)(6,106)(6,000)
Shares repurchased for tax withholdings on vesting of restricted stock units(511)(312)(1,873)(1,222)
Short-term borrowings, original maturities of 90 days or less, net204 448 616 (31)
Issuances of debt2,408 1,904 13,048 19,292 
Repayments of debt(4,397)(3,528)(12,251)(22,073)
Dividends paid(1,659)(1,625)(6,553)(6,437)
Other(1)— (33)(80)
Net cash used in financing activities(5,006)(3,949)(12,347)(15,815)
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents28 (20)(29)(43)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents144 (8)(1,683)68 
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period7,083 8,918 8,910 8,842 
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period$7,227 $8,910 $7,227 $8,910 
Supplemental cash flow information:
Cash paid for interest$116 $130 $1,421 $1,500 
Cash paid for income taxes, net$593 $627 $4,821 $3,892 
8


CISCO SYSTEMS, INC.
REMAINING PERFORMANCE OBLIGATIONS
(In millions, except percentages)
July 25, 2026April 25, 2026July 26, 2025
AmountY/Y %AmountY/Y %AmountY/Y %
Product$23,436 9 %$22,058 6 %$21,572 8 %
Services23,298 6 %21,404 2 %21,961 5 %
Total$46,734 7 %$43,462 4 %$43,533 6 %


CISCO SYSTEMS, INC.
DEFERRED REVENUE
(In millions)
July 25,
2026		April 25,
2026		July 26,
2025
Deferred revenue:
Product$13,817 $13,461 $13,490 
Services15,964 15,138 15,289 
Total$29,781 $28,599 $28,779 
Reported as:
Current$16,988 $16,446 $16,416 
Noncurrent12,793 12,153 12,363 
Total$29,781 $28,599 $28,779 

CISCO SYSTEMS, INC.
DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK
(In millions, except per-share amounts)
DIVIDENDSSTOCK REPURCHASE PROGRAMTOTAL
Quarter EndedPer ShareAmountSharesWeighted-Average Price per ShareAmountAmount
Fiscal 2026
July 25, 2026$0.42 $1,659 13 $111.53 $1,502 $3,161 
April 25, 2026$0.42 $1,660 16 $80.28 $1,252 $2,912 
January 24, 2026$0.41 $1,617 18 $76.29 $1,351 $2,968 
October 25, 2025$0.41 $1,617 29 $68.28 $2,001 $3,618 
Fiscal 2025
July 26, 2025$0.41 $1,625 19 $64.65 $1,252 $2,877 
April 26, 2025$0.41 $1,627 25 $59.78 $1,504 $3,131 
January 25, 2025$0.40 $1,593 21 $58.58 $1,236 $2,829 
October 26, 2024$0.40 $1,592 40 $49.56 $2,003 $3,595 




9

CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP NET INCOME
(In millions)
Three Months EndedFiscal Year Ended
July 25,
2026		July 26,
2025		July 25,
2026		July 26,
2025
GAAP net income$3,859 $2,550 $13,267 $10,180 
Adjustments to cost of sales:
Share-based compensation expense138 150 589 584 
Amortization of acquisition-related intangible assets236 233 918 1,150 
Acquisition/divestiture-related costs4 13 25 66 
Legal and indemnification settlements/charges— 355 — 355 
Supplier component remediation charge (adjustment)— — — (7)
Total adjustments to GAAP cost of sales378 751 1,532 2,148 
Adjustments to operating expenses:
Share-based compensation expense751 797 3,181 3,019 
Amortization of acquisition-related intangible assets226 255 916 1,029 
Acquisition/divestiture-related costs68 104 350 791 
Significant asset impairments and restructurings511 35 693 744 
Total adjustments to GAAP operating expenses1,556 1,191 5,140 5,583 
Adjustments to interest and other income (loss), net:
(Gains) and losses on investments(869)(115)(1,398)(187)
Total adjustments to GAAP interest and other income (loss), net(869)(115)(1,398)(187)
Total adjustments to GAAP income before provision for income taxes1,065 1,827 5,274 7,544 
Income tax effect of non-GAAP adjustments(386)(426)(1,490)(1,682)
Significant tax matters330 — 198 (829)
Total adjustments to GAAP provision for income taxes(56)(426)(1,292)(2,511)
Non-GAAP net income$4,868 $3,951 $17,249 $15,213 

10

CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GAAP TO NON-GAAP EPS
Three Months EndedFiscal Year Ended
July 25,
2026		July 26,
2025		July 25,
2026		July 26,
2025
GAAP EPS$0.97 $0.64 $3.33 $2.55 
Adjustments to GAAP:
Share-based compensation expense0.22 0.24 0.95 0.90 
Amortization of acquisition-related intangible assets0.12 0.12 0.46 0.55 
Acquisition/divestiture-related costs0.02 0.03 0.09 0.21 
Legal and indemnification settlements/charges— 0.09 — 0.09 
Significant asset impairments and restructurings0.13 0.01 0.17 0.19 
(Gains) and losses on investments(0.22)(0.03)(0.35)(0.05)
Income tax effect of non-GAAP adjustments(0.10)(0.11)(0.37)(0.42)
Significant tax matters0.08 — 0.05 (0.21)
Non-GAAP EPS$1.22 $0.99 $4.33 $3.81 
Amounts may not sum due to rounding.





11

CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME
(In millions, except percentages)
Three Months Ended
July 25, 2026
Product Gross MarginServices Gross MarginTotal Gross MarginOperating ExpensesY/YOperating IncomeY/YInterest and other income (loss), netNet IncomeY/Y
GAAP amount$8,430 $2,633 $11,063 $6,799 10%$4,264 38%$669 $3,859 51%
% of revenue62.6 %69.4 %64.1 %39.4 %24.7 %3.9 %22.4 %
Adjustments to GAAP amounts:
Share-based compensation expense59 79 138 751 889 — 889 
Amortization of acquisition-related intangible assets236 — 236 226 462 — 462 
Acquisition/divestiture-related costs1 3 4 68 72 — 72 
Significant asset impairments and restructurings— — — 511 511 — 511 
(Gains) and losses on investments— — — — — (869)(869)
Income tax effect/significant tax matters— — — — — — (56)
Non-GAAP amount$8,726 $2,715 $11,441 $5,243 5%$6,198 23%$(200)$4,868 23%
% of revenue64.8 %71.6 %66.3 %30.4 %35.9 %(1.2)%28.2 %
Three Months Ended
July 26, 2025
Product Gross MarginServices Gross MarginTotal Gross MarginOperating ExpensesOperating
Income		Interest and other income (loss), netNet
Income
GAAP amount$6,692 $2,588 $9,280 $6,193 $3,087 $(88)$2,550 
% of revenue61.5 %68.3 %63.2 %42.2 %21.0 %(0.6)%17.4 %
Adjustments to GAAP amounts:
Share-based compensation expense66 84 150 797 947 — 947 
Amortization of acquisition-related intangible assets233 — 233 255 488 — 488 
Acquisition/divestiture-related costs2 11 13 104 117 — 117 
Legal and indemnification settlements/charges355 — 355 — 355 — 355 
Significant asset impairments and restructurings— — — 35 35 — 35 
(Gains) and losses on investments— — — — — (115)(115)
Income tax effect/significant tax matters— — — — — — (426)
Non-GAAP amount$7,348 $2,683 $10,031 $5,002 $5,029 $(203)$3,951 
% of revenue67.5 %70.8 %68.4 %34.1 %34.3 %(1.4)%26.9 %
Amounts may not sum and percentages may not recalculate due to rounding.
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CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME
(In millions, except percentages)
Fiscal Year Ended
July 25, 2026
Product Gross MarginServices Gross MarginTotal Gross MarginOperating ExpensesY/YOperating IncomeY/YInterest and other income (loss), netNet IncomeY/Y
GAAP amount$30,514 $10,346 $40,860 $25,492 2%$15,368 31%$641 $13,267 30%
% of revenue63.2 %68.8 %64.5 %40.3 %24.3 %1.0 %21.0 %
Adjustments to GAAP amounts:
Share-based compensation expense254 335 589 3,181 3,770 — 3,770 
Amortization of acquisition-related intangible assets918 — 918 916 1,834 — 1,834 
Acquisition/divestiture-related costs7 18 25 350 375 — 375 
Significant asset impairments and restructurings— — — 693 693 — 693 
(Gains) and losses on investments— — — — — (1,398)(1,398)
Income tax effect/significant tax matters— — — — — — (1,292)
Non-GAAP amount$31,693 $10,699 $42,392 $20,352 5%$22,040 13%$(757)$17,249 13%
% of revenue65.6 %71.2 %66.9 %32.1 %34.8 %(1.2)%27.2 %
Fiscal Year Ended
July 26, 2025
Product Gross MarginServices Gross MarginTotal Gross MarginOperating ExpensesOperating
Income		Interest and other income (loss), netNet
Income
GAAP amount$26,487 $10,303 $36,790 $25,030 $11,760 $(660)$10,180 
% of revenue63.7 %68.5 %64.9 %44.2 %20.8 %(1.2)%18.0 %
Adjustments to GAAP amounts:
Share-based compensation expense255 329 584 3,019 3,603 — 3,603 
Amortization of acquisition-related intangible assets1,150 — 1,150 1,029 2,179 — 2,179 
Acquisition/divestiture-related costs14 52 66 791 857 — 857 
Legal and indemnification settlements/charges355 — 355 — 355 — 355 
Supplier component remediation charge (adjustment)(7)— (7)— (7)— (7)
Significant asset impairments and restructurings— — — 744 744 — 744 
(Gains) and losses on investments— — — — — (187)(187)
Income tax effect/significant tax matters— — — — — — (2,511)
Non-GAAP amount$28,254 $10,684 $38,938 $19,447 $19,491 $(847)$15,213 
% of revenue67.9 %71.0 %68.7 %34.3 %34.4 %(1.5)%26.9 %
Amounts may not sum and percentages may not recalculate due to rounding.
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CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

EFFECTIVE TAX RATE
(In percentages)
Three Months EndedFiscal Year Ended
July 25, 2026July 26, 2025July 25, 2026July 26, 2025
GAAP effective tax rate21.8 %15.0 %17.1 %8.3 %
Total adjustments to GAAP provision for income taxes(3.0)%3.1 %1.9 %10.1 %
Non-GAAP effective tax rate18.8 %18.1 %19.0 %18.4 %





GAAP TO NON-GAAP GUIDANCE
Q1 FY 2027Gross MarginOperating Margin
Earnings per Share (1)
GAAP 63% - 64%28% - 29%$1.08 - $1.10
Estimated adjustments for:
Share-based compensation expense1.0%4.5%$0.14
Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs1.0%2.5%$0.09
Significant asset impairments and restructurings (2)
—0.5%$0.01
Non-GAAP65% - 66%35.5% - 36.5%$1.32 - $1.34
FY 2027
Earnings per Share (1)
GAAP $4.00 - $4.06
Estimated adjustments for:
Share-based compensation expense$0.60
Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs$0.34
Significant asset impairments and restructurings (2)
$0.11
Non-GAAP$5.05 - $5.11
(1) Estimated adjustments to GAAP earnings per share are shown after income tax effects.
(2) Reflects charges related to a restructuring plan announced on May 13, 2026. We expect this plan to be substantially completed by the end of fiscal 2027.
Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, significant tax matters, or other items, which may or may not be significant.
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Forward Looking Statements, Non-GAAP Information and Additional Information
This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as being well positioned to support our customers however or wherever they decide to deploy AI, the significant momentum and raised expectations of AI infrastructure from hyperscalers, the broad-based high demand for Cisco technology, and the significant growth opportunities ahead) and the future financial performance of Cisco (including the guidance for Q1 FY 2027 and full year FY 2027) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q1 FY 2027 and full year FY 2027. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market, cloud, enterprise and other customer markets; the return on our investments in certain key priority areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and services markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in results of operations; and other factors listed in Cisco's most recent reports on Forms 10-Q and 10-K filed on May 19, 2026 and September 3, 2025, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco's most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco's results of operations for the three months and the year ended July 25, 2026 are not necessarily indicative of Cisco's results of operations for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.
This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.
These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco's results of operations in conjunction with the corresponding GAAP measures.
Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.
For its internal budgeting process, Cisco's management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco's management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future
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there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.
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