| Financing Receivables |
Financing Receivables (a)Financing Receivables Financing receivables primarily consist of loan receivables and lease receivables. Loan receivables represent financing arrangements related to the sale of our hardware, software, and services (including technical support and professional services), and also may include additional funding for other costs associated with network installation and integration of our products and services. Loan receivables have terms of one year to three years on average. Lease receivables represent sales-type leases resulting from the sale of Cisco’s and complementary third-party products and are typically collateralized by a security interest in the underlying assets. Lease receivables consist of arrangements with terms of four years on average. A summary of our financing receivables is presented as follows (in millions): | | | | | | | | | | | | | | | | | | | July 25, 2026 | Loan Receivables | | Lease Receivables | | Total | | Gross | $ | 7,457 | | | $ | 941 | | | $ | 8,398 | | | Residual value | — | | | 67 | | | 67 | | | Unearned income | — | | | (83) | | | (83) | | | Allowance for credit loss | (40) | | | (10) | | | (50) | | | Total, net | $ | 7,417 | | | $ | 915 | | | $ | 8,332 | | | Reported as: | | | | | | | Current | $ | 3,024 | | | $ | 368 | | | $ | 3,392 | | | Noncurrent | 4,393 | | | 547 | | | 4,940 | | | Total, net | $ | 7,417 | | | $ | 915 | | | $ | 8,332 | |
| | | | | | | | | | | | | | | | | | | July 26, 2025 | Loan Receivables | | Lease Receivables | | Total | | Gross | $ | 5,628 | | | $ | 982 | | | $ | 6,610 | | | Residual value | — | | | 66 | | | 66 | | | Unearned income | — | | | (99) | | | (99) | | | Allowance for credit loss | (37) | | | (13) | | | (50) | | | Total, net | $ | 5,591 | | | $ | 936 | | | $ | 6,527 | | | Reported as: | | | | | | | Current | $ | 2,715 | | | $ | 346 | | | $ | 3,061 | | | Noncurrent | 2,876 | | | 590 | | | 3,466 | | | Total, net | $ | 5,591 | | | $ | 936 | | | $ | 6,527 | |
The fair value of our short-term loan receivables and financed service contracts approximates their carrying value due to their short duration. The aggregate carrying value of our long-term loan receivables and financed service contracts as of July 25, 2026 and July 26, 2025 was $4.4 billion and $2.9 billion, respectively. The estimated fair value of our long-term loan receivables and financed service contracts approximates their carrying value. We use significant unobservable inputs in determining discounted cash flows to estimate the fair value of our long-term loan receivables and financed service contracts, and therefore they are categorized as Level 3 in the fair value hierarchy. (b)Credit Quality of Financing Receivables The tables below present our gross financing receivables, excluding residual value, less unearned income, categorized by our internal credit risk rating by period of origination (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | July 25, 2026 | | | Fiscal Year | | | | Internal Credit Risk Rating | Prior | | July 30, 2022 | | July 29, 2023 | | July 27, 2024 | | July 26, 2025 | | July 25, 2026 | | Total | | Loan Receivables: | | | | | | | | | | | | | | | 1 to 4 | $ | 5 | | | $ | 39 | | | $ | 164 | | | $ | 681 | | | $ | 1,282 | | | $ | 2,479 | | | $ | 4,650 | | | 5 to 6 | 8 | | | 8 | | | 79 | | | 226 | | | 760 | | | 1,685 | | | 2,766 | | | 7 and Higher | — | | | 1 | | | 2 | | | 8 | | | 16 | | | 14 | | | 41 | | | Total Loan Receivables | $ | 13 | | | $ | 48 | | | $ | 245 | | | $ | 915 | | | $ | 2,058 | | | $ | 4,178 | | | $ | 7,457 | | | Lease Receivables: | | | | | | | | | | | | | | | 1 to 4 | $ | — | | | $ | 7 | | | $ | 63 | | | $ | 139 | | | $ | 176 | | | $ | 158 | | | $ | 543 | | | 5 to 6 | — | | | 7 | | | 39 | | | 69 | | | 76 | | | 115 | | | 306 | | | 7 and Higher | — | | | — | | | 1 | | | 4 | | | 1 | | | 3 | | | 9 | | | Total Lease Receivables | $ | — | | | $ | 14 | | | $ | 103 | | | $ | 212 | | | $ | 253 | | | $ | 276 | | | $ | 858 | | | Total | $ | 13 | | | $ | 62 | | | $ | 348 | | | $ | 1,127 | | | $ | 2,311 | | | $ | 4,454 | | | $ | 8,315 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | July 26, 2025 | | | Fiscal Year | | | | Internal Credit Risk Rating | Prior | | July 31, 2021 | | July 30, 2022 | | July 29, 2023 | | July 27, 2024 | | July 26, 2025 | | Total | | Loan Receivables: | | | | | | | | | | | | | | | 1 to 4 | $ | 2 | | | $ | 83 | | | $ | 236 | | | $ | 371 | | | $ | 1,258 | | | $ | 1,556 | | | $ | 3,506 | | | 5 to 6 | 2 | | | 56 | | | 53 | | | 167 | | | 561 | | | 1,248 | | | 2,087 | | | 7 and Higher | — | | | — | | | 6 | | | 9 | | | 4 | | | 16 | | | 35 | | | Total Loan Receivables | $ | 4 | | | $ | 139 | | | $ | 295 | | | $ | 547 | | | $ | 1,823 | | | $ | 2,820 | | | $ | 5,628 | | | Lease Receivables: | | | | | | | | | | | | | | | 1 to 4 | $ | — | | | $ | 9 | | | $ | 23 | | | $ | 112 | | | $ | 187 | | | $ | 207 | | | $ | 538 | | | 5 to 6 | — | | | 6 | | | 25 | | | 77 | | | 120 | | | 103 | | | 331 | | | 7 and Higher | — | | | — | | | 1 | | | 3 | | | 8 | | | 2 | | | 14 | | | Total Lease Receivables | $ | — | | | $ | 15 | | | $ | 49 | | | $ | 192 | | | $ | 315 | | | $ | 312 | | | $ | 883 | | | Total | $ | 4 | | | $ | 154 | | | $ | 344 | | | $ | 739 | | | $ | 2,138 | | | $ | 3,132 | | | $ | 6,511 | |
The following tables present the aging analysis of gross receivables as of July 25, 2026 and July 26, 2025 (in millions): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED) | | | | | | | | | | July 25, 2026 | 31 - 60 | | 61 - 90 | | 91+ | | Total
Past Due | | Current | | Total | | 120+ Still Accruing | | Nonaccrual
Financing
Receivables | | Loan receivables | $ | 31 | | | $ | 14 | | | $ | 12 | | | $ | 57 | | | $ | 7,400 | | | $ | 7,457 | | | $ | 7 | | | $ | 1 | | | Lease receivables | 9 | | | 2 | | | 3 | | | 14 | | | 844 | | | 858 | | | 1 | | | — | | | Total | $ | 40 | | | $ | 16 | | | $ | 15 | | | $ | 71 | | | $ | 8,244 | | | $ | 8,315 | | | $ | 8 | | | $ | 1 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED) | | | | | | | | | | July 26, 2025 | 31 - 60 | | 61 - 90 | | 91+ | | Total
Past Due | | Current | | Total | | 120+ Still Accruing | | Nonaccrual
Financing
Receivables | | Loan receivables | $ | 18 | | | $ | 18 | | | $ | 16 | | | $ | 52 | | | $ | 5,576 | | | $ | 5,628 | | | $ | 4 | | | $ | 5 | | | Lease receivables | 7 | | | 3 | | | 6 | | | 16 | | | 867 | | | 883 | | | 4 | | | 1 | | | Total | $ | 25 | | | $ | 21 | | | $ | 22 | | | $ | 68 | | | $ | 6,443 | | | $ | 6,511 | | | $ | 8 | | | $ | 6 | |
Past due financing receivables are those that are 31 days or more past due according to their contractual payment terms. The data in the preceding tables is presented by contract, and the aging classification of each contract is based on the oldest outstanding receivable, and therefore past due amounts also include unbilled and current receivables within the same contract. (c)Allowance for Credit Loss Rollforward The allowances for credit loss and the related financing receivables are summarized as follows (in millions): | | | | | | | | | | | | | | | | | | | CREDIT LOSS ALLOWANCES | | Loan
Receivables | | Lease
Receivables | | Total | | Allowance for credit loss as of July 26, 2025 | $ | 37 | | | $ | 13 | | | $ | 50 | | | Provisions (benefits) | 3 | | | (4) | | | (1) | | | Foreign exchange and other | — | | | 1 | | | 1 | | | Allowance for credit loss as of July 25, 2026 | $ | 40 | | | $ | 10 | | | $ | 50 | |
| | | | | | | | | | | | | | | | | | | CREDIT LOSS ALLOWANCES | | Loan
Receivables | | Lease
Receivables | | Total | | Allowance for credit loss as of July 27, 2024 | $ | 50 | | | $ | 15 | | | $ | 65 | | | Provisions (benefits) | (6) | | | (3) | | | (9) | | | Recoveries (write-offs), net | (9) | | | — | | | (9) | | | Foreign exchange and other | 2 | | | 1 | | | 3 | | | Allowance for credit loss as of July 26, 2025 | $ | 37 | | | $ | 13 | | | $ | 50 | |
| | | | | | | | | | | | | | | | | | | CREDIT LOSS ALLOWANCES | | Loan
Receivables | | Lease
Receivables | | Total | | Allowance for credit loss as of July 29, 2023 | $ | 53 | | | $ | 19 | | | $ | 72 | | | Provisions (benefits) | 1 | | | (3) | | | (2) | | | Recoveries (write-offs), net | (4) | | | (1) | | | (5) | | | Allowance for credit loss as of July 27, 2024 | $ | 50 | | | $ | 15 | | | $ | 65 | |
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