Cisco SystemsNarrow moat

CSCO — overall economic moat

Investment snapshot
Narrow moat→ Holding steadyConfidenceMediumValuationExpensive
Strongest advantageAn enterprise installed base paying $15.0bn a year for support at a 68.8% margin, with 29.3% of Ethernet switching and 35.1% of routers
Greatest threatThird in data-centre Ethernet behind Nvidia and Arista, while software bought with Splunk grows 2-4% and the valuation assumes the hardware cycle lasts
Key metricServices gross margin (68.8% in FY2026) and networking growth excluding hyperscalers
Verdict: Cisco has a real but narrow moat: customers who built their networks on Cisco keep paying for support and replace Cisco with Cisco, which is why returns have beaten an 8% cost of capital every year since 2015. What it does not have is a hold on growth. In the AI data centre it is third, behind a GPU maker and Arista; the $27 billion Splunk purchase added software that grows in low single digits. Fiscal 2026 was a strong hardware year, and at about 32 times trailing earnings the shares price it as a new trend rather than a cycle.
📈 CSCO valuation, revenue & earnings — P/E, P/S, revenue, EPS →

Cisco makes the equipment that connects computers to each other, and sells the software and support that keep it running. It was founded in December 1984 by a group of scientists from Stanford University1, went public in February 19902 and is based in San Jose, California3. It employs about 82,400 people4.

Revenue ($bn)49.2FY1548.0FY1751.9FY1949.8FY2157.0FY2353.8FY2456.7FY2563.3FY26Cisco Forms 10-K FY2016, FY2020, FY2023 and FY2026
Flat for most of a decade, then a jump.

Revenue was $63,325 million in fiscal 2026, the year to 25 July 2026, up about 11.8%56. Networking, the switches, routers and wireless equipment Cisco has always sold, was $34,668 million, about 55% of the total78. Services, mostly support contracts, were $15,030 million; security $8,232 million; collaboration $4,300 million; and observability $1,095 million9. The Americas produced about 60% of revenue10.

How it makes money is a two-part model. Products, $48,295 million, are sold in substantial part through channel partners at a 63.2% gross margin; services and subscriptions follow them, at 68.8% for services11. About half of revenue, $31,977 million, is subscription1213.

It is profitable and returns almost everything. Operating income was $15,368 million, a 24.3% margin1415; net income $13,267 million, or $3.33 a share16. Free cash flow was $12,767 million, and Cisco returned $12,659 million through dividends and buybacks17.

The balance sheet carries its largest purchase. Splunk, bought for about $27 billion in March 202418, left goodwill at 46% of assets and net debt of about $13.6 billion19.

The year's story was a return to hardware growth. Hyperscaler AI orders reached $9.3 billion20, and fiscal 2027 revenue is guided to $72.2 billion to $73.4 billion21. The shares were $106.97 on 24 September 2026, a market value of $421.74 billion and 32.12 times trailing earnings22.

Cisco is run by a long-serving team. Charles Robbins has been chief executive since July 2015 and chair since December 2017, and joined the company in December 199723. No shareholder controls it: the largest holders at the 2025 proxy date were The Vanguard Group with 9.7% and BlackRock with 8.9%24. Its stated strategy is short: "Our strategy is to securely connect everything"25.

The fiscal year ended strongly and the shares have since cooled. Revenue grew 8% in the first quarter, 10% in the second, 12% in the third and 18% in the fourth26272829. The share price reached $130.37 within the last year and was $106.97 in late September30, about 18% lower31, which is a reminder that the market has already paid for much of the good news.

The moat is narrow and stable: an installed base that pays for support every year, and a data-centre franchise Cisco is rebuilding against faster rivals. The number that would falsify that verdict is the services gross margin, 68.8% in fiscal 202632; if it slides toward the product margin, customers will have stopped paying a premium to stay with Cisco.

The number that tests this moat
Reported
Revenue, and where it comes from
$63.3bn in FY2026: networking $34.7bn (55%), services $15.0bn, security $8.2bn, collaboration $4.3bn, observability $1.1bn

Networking supplied 95% of the year's growth. Watch services and subscription, the recurring half, which barely grew.

Source: Cisco Form 10-K, FY2026 ↗
Moat scorecardHow ratings work →
Switching costs7/10
Network effects3/10
Pricing power5/10
Hard to replicate6/10
Disruption resistance5/10
Overall durability6/10

Switching costs are the core of the moat: staff trained on Cisco systems, security policies built in Cisco tools and multi-year support contracts make replacing Cisco in the campus expensive. Network effects are modest, limited to the partners and engineers certified on Cisco. Pricing power is middling: support carries a 68.8% margin and Cisco passed on memory costs, but hyperscaler buyers negotiate hard and the Americas margin fell three points. Replication is hard for the installed base but not for the data centre, where Arista and Nvidia already lead. Disruption resistance is moderate: Cisco's own filing says barriers to entry are relatively low. Durability sits in the narrow band.

Dig deeper
DIG DEEPER 01
The Revenue Lines
More than half of Cisco's revenue is networking, and in fiscal 2026 networking supplied almost all of its growth.
DIG DEEPER 02
The Moat
Cisco's installed base still earns more than its cost of capital every year, but the businesses meant to grow it are either rented from hyperscalers…
DIG DEEPER 03
Competitors
Cisco holds almost 30% of Ethernet switching overall and is third in the data centre, behind a GPU maker and the rival that already passed it.
DIG DEEPER 04
Major Clients
Cisco disclosed a customer above 10% of revenue for the first time in fiscal 2026, a distributor, while its hyperscaler sales tripled as a share of…
✦ Future bets — beyond today's moat
✦ FUTURE BET 01
The Future Bets
Cisco has guided to 15% growth in fiscal 2027, and about a third of it is price increases passed on from memory costs.
⚠ Threats to the moat
⚠ THREAT 01
An AI Cycle Priced as a Trend
Cisco's price-to-earnings ratio doubled from about 17 to 32 on a year of networking growth that follows two years of networking decline.
⚠ THREAT 02
Tariffs, China and an American Supplier
Cisco's own filing warns that customers abroad may become less willing to buy American products, and 46% of its revenue comes from outside the United…
◆ What the market may be missing
◆ THE VARIANT VIEW
What the Market Isn't Pricing In
Cisco's multiple doubled while it became more of a hardware company, and about a third of next year's guided growth is price increases.
◆ THE VARIANT VIEW
Inside the Latest Quarter (Q4 FY2026)
Cisco grew 18% in its latest quarter with every product line up, while its non-GAAP gross margin fell more than two points.
References
  1. ReportedIt was founded in December 1984 by a group of scientists from Stanford University, went public in February 1990 and is based in San Jose, California.
    Companiesmarketcap, Cisco profile - founded in December 1984 by scientists from Stanford University. — September 2026 · publ. September 2026 · source ↗
  2. ReportedIt was founded in December 1984 by a group of scientists from Stanford University, went public in February 1990 and is based in San Jose, California.
    Cisco (CSCO) market data - $106.97 at the close on 24 September 2026, market cap $421.74B, 52-week range $66.81-$130.37, dividend $1.68 (1.57%), trailing P/E 32.12. — September 2026 · publ. 24 September 2026 · source ↗
  3. ReportedIt was founded in December 1984 by a group of scientists from Stanford University, went public in February 1990 and is based in San Jose, California.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 1 business: products, strategy, employees and sales. — FY2026 · publ. 2 September 2026 · source ↗
  4. ReportedIt employs about 82,400 people.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - financial statements and notes: balance sheet, cash flow, commitments, customers and acquisitions. — FY2026 · publ. 2 September 2026 · source ↗
  5. ReportedRevenue was $63,325 million in fiscal 2026, the year to 25 July 2026, up about 11.8%.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 1 business: products, strategy, employees and sales. — FY2026 · publ. 2 September 2026 · source ↗
  6. Moat Explorer calcRevenue was $63,325 million in fiscal 2026, the year to 25 July 2026, up about 11.8%.
    Moat Explorer calculation from Cisco's reported revenue, margins and financial statements ($ millions unless stated). Revenue growth FY2026 63,325 / 56,654 - 1 = 11.8%; increase 63,325 - 56,654 = 6,671. Networking share 34,668 / 63,325 = 54.7%; of product revenue 34,668 / 48,295 = 71.8%; networking increase 34,668 - 28,304 = 6,364, 6,364 / 6,671 = 95.4% of the revenue increase. Networking against FY2023 34,668 / 34,570 - 1 = 0.3%; FY2024 29,229 / 34,570 - 1 = -15.4% (a fall of 5,341); FY2025 28,304 / 29,229 - 1 = -3.2% (a fall of 925); FY2023 34,570 - 29,265 = +5,305. Other lines FY2026 changes: security 8,232 - 8,094 = +138 (+1.7%); collaboration 4,300 - 4,154 = +146 (+3.5%); observability 1,095 - 1,055 = +40 (+3.8%); services 15,030 - 15,046 = -16 (-0.1%). Product revenue 48,295 / 41,608 - 1 = 16.1%. Shares of FY2026 revenue: services 15,030 / 63,325 = 23.7%; security 8,232 / 63,325 = 13.0%; collaboration 4,300 / 63,325 = 6.8%; observability 1,095 / 63,325 = 1.7%. Observability shares: 581 / 51,557 = 1.1% (FY2022); 661 / 56,998 = 1.2%; 837 / 53,803 = 1.6%; 1,055 / 56,654 = 1.9%. Observability growth 661 / 581 - 1 = 13.8%; 837 / 661 - 1 = 26.6%; 1,055 / 837 - 1 = 26.0%; 1,095 / 1,055 - 1 = 3.8%; 1,095 / 581 = 1.88 times. Services growth 13,856 / 13,539 - 1 = 2.3% (FY2023); 14,550 / 13,856 - 1 = 5.0%; 15,046 / 14,550 - 1 = 3.4%; FY2016 to FY2026 15,030 / 11,993 - 1 = 25.3%. Services gross profit 10,346 / 40,860 = 25.3% of gross margin. Subscription services 13,663 / 15,030 = 90.9% of services. Non-subscription product 48,295 - 18,314 = 29,981; non-subscription services 15,030 - 13,663 = 1,367. Subscription share 31,977 / 63,325 = 50.5% (FY2026); 31,526 / 56,654 = 55.6% (FY2025); 27,380 / 53,803 = 50.9% (FY2024); subscription growth 31,977 / 31,526 - 1 = 1.4%. Security: 3,382 / 1,969 - 1 = 71.8% (FY2016 to FY2021, older basis); 8,094 / 3,859 = 2.1 times (FY2023 to FY2025); 8,232 / 3,699 = 2.2 times (FY2022 to FY2026). Collaboration 4,300 / 4,823 - 1 = -10.8% against FY2020. Segments: Americas revenue 37,799 / 33,656 - 1 = 12.3%; Americas gross margin 68.2% - 65.1% = 3.1 points (310 basis points); EMEA 16,613 / 14,824 - 1 = 12.1%; APJC 8,914 / 8,174 - 1 = 9.1%. United States revenue 34.4 / 63.3 = 54.3%; outside the United States 63.3 - 34.4 = 28.9 bn; United States growth 34.4 / 30.4 - 1 = 13.2%. AI and orders: Q3 FY2026 hyperscaler orders 5.3 - 1.3 - 2.1 = 1.9 bn; Acacia about 1,000 / 9,791 networking = 10.2%; FY2027 revenue guidance midpoint (72.2 + 73.4) / 2 = 72.8 bn, 72.8 / 63.325 - 1 = 15.0%; AI revenue target 7.5 / 72.8 = 10.3%; price increases 4.5 points / 15 = about a third; Q1 FY2027 gross margin guidance midpoint (65 + 66) / 2 = 65.5%; Q1 FY2027 operating margin guidance midpoint (35.5 + 36.5) / 2 = 36.0%. Security plus observability Q4 FY2026 2,226 + 275 = 2,501. Backlog: remaining performance obligations 46,734 / 63,325 = 73.8% of revenue; short-term 22,776 / 21,723 - 1 = 4.8%; long-term 23,958 / 21,810 - 1 = 9.8%. Purchase commitments 17,165 / 7,599 - 1 = 125.9%; 17,165 / 63,325 = 27.1% of revenue. Inventory 5,694 / 3,164 - 1 = 80.0%. Competitors named in the FY2026 10-K: 18 (Amazon Web Services, Arista, Broadcom, Ciena, CrowdStrike, Datadog, Dell, Dynatrace, Fortinet, Hewlett Packard Enterprise, Huawei, Microsoft, Nokia, Nvidia, Palo Alto Networks, RingCentral, Zoom, Zscaler). Balance sheet, cash flow and market data: Net income 13,267 / 10,180 - 1 = 30.3%; free cash flow 12,767 / 13,288 - 1 = -3.9%; capital spending 1,410 / 905 - 1 = 55.8%; capital spending 1,410 / 63,325 = 2.2% of revenue; free cash flow margin 12,767 / 63,325 = 20.2%; returned 12,659 / 12,767 = 99.2% of free cash flow. Dividends / free cash flow: 6,384 / 10,210 = 62.5% (FY2024); 6,437 / 13,288 = 48.4% (FY2025); 6,553 / 12,767 = 51.3% (FY2026). Dividends per share 1.66 / 0.72 = 2.3 times (FY2014 to FY2026). Buybacks: 117 - 76 = 41 million fewer shares than FY2024; average price 80.26 / 49.45 - 1 = 62.3%; FY2018-FY2026 17,661 + 20,577 + 2,619 + 2,902 + 7,734 + 4,271 + 5,764 + 5,995 + 6,106 = 73,629. Diluted shares 3,987 / 5,146 - 1 = -22.5%. Net income 13,267 / 8,981 - 1 = 47.7%; diluted EPS 3.33 / 1.75 - 1 = 90.3% (FY2015 to FY2026). Net debt 29,533 - 15,918 (cash and investments, about 15.9 bn) = 13,615, about 13.6 bn. Net interest 1,365 - 1,006 = +359 (FY2024); 1,001 - 1,593 = -592 (FY2025); 866 - 1,470 = -604 (FY2026). Goodwill 59,477 / 129,637 = 45.9% of total assets; Splunk goodwill 19,301 / 27,090 = 71.2% of consideration. Employees 82,400 / 90,400 - 1 = -8.8%; R&D 9,563 - 9,300 = +263; sales and marketing 11,559 - 10,966 = +593; R&D 9,563 / 63,325 = 15.1% of revenue; restructuring 693 / 63,325 = 1.1% of revenue. FY2025 net income as released about 10,500 - 10,180 as filed = about 320 (about 0.3 bn); EPS 2.61 - 2.55 = 0.06. Free cash flow yield 12,767 / 421,740 = 3.0%. Price against the 52-week high 106.97 / 130.37 - 1 = -17.9%. P/E 421,740 / 13,267 = 31.8; P/S 421,740 / 63,325 = 6.66. Further: revenue FY2023 to FY2026 63,325 / 56,998 - 1 = 11.1%; HPE and Juniper Ethernet 1.15 / 5.43 = 21.2% of Cisco Ethernet; non-GAAP EPS 4.33 / 3.81 - 1 = 13.6%; FY2026 order forecast 9 / 5 - 1 = 80%; FY2025 AI orders 2.0 / 56.654 = 3.5% of revenue; FY2026 9.3 / 63.325 = 14.7%; product subscription 18,314 / 17,783 - 1 = 3.0%; FY2018 buyback 17,661 / 80.26 = 220 million shares; 76 / 3,946 = 1.9% of shares; revenue FY2024 to FY2026 63,325 / 53,803 - 1 = 17.7%; Arista 2.30 - 2.24 = 0.06 bn; R&D 9,300 / 7,983 - 1 = 16.5% and revenue 56,654 / 53,803 - 1 = 5.3% (FY2025); R&D 9,563 / 9,300 - 1 = 2.8% (FY2026); Q1 FY2027 guidance midpoint 18.1 / 14.883 - 1 = 21.6%; FY2028 consensus P/E 106.97 / 5.62 = 19.0; cash 15.9 / 6.553 = 2.4 years of dividends; services obligations 23,298 / 46,734 = 49.9% and 23,298 / 15,030 = 1.55 years; short-term debt 10,161 / 29,533 = 34.4%; authorisation 8.1 / 6.1 = 1.3 years; product-services margin spread 68.8 - 63.2 = 5.6 points; FY2024 returns (6,384 + 5,764) / 10,210 = 119%; diluted shares 4,254 / 4,881 - 1 = -12.8% (FY2018 to FY2020); buybacks FY2018 and FY2019 17,661 + 20,577 = 38,238; AI revenue 7.5 / 3.8 = 1.97 times; FY2027 GAAP EPS guidance midpoint (4.00 + 4.06) / 2 = 4.03, 4.03 / 3.33 - 1 = 21.0%; G&A 2,761 / 2,992 - 1 = -7.7%; Q4 security 2,226 / 8,232 = 27.0% of the year - revenue-line totals, growth and orders. — FY2015-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Cisco's Forms 10-K, quarterly results releases, the Q4 FY2026 call and market data; operands shown in the source line.
  7. ReportedNetworking, the switches, routers and wireless equipment Cisco has always sold, was $34,668 million, about 55% of the total.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 7 MD&A: revenue by product category and segment, and gross margins. — FY2026 · publ. 2 September 2026 · source ↗
  8. Moat Explorer calcNetworking, the switches, routers and wireless equipment Cisco has always sold, was $34,668 million, about 55% of the total.
    Moat Explorer calculation from Cisco's reported revenue, margins and financial statements ($ millions unless stated). Revenue growth FY2026 63,325 / 56,654 - 1 = 11.8%; increase 63,325 - 56,654 = 6,671. Networking share 34,668 / 63,325 = 54.7%; of product revenue 34,668 / 48,295 = 71.8%; networking increase 34,668 - 28,304 = 6,364, 6,364 / 6,671 = 95.4% of the revenue increase. Networking against FY2023 34,668 / 34,570 - 1 = 0.3%; FY2024 29,229 / 34,570 - 1 = -15.4% (a fall of 5,341); FY2025 28,304 / 29,229 - 1 = -3.2% (a fall of 925); FY2023 34,570 - 29,265 = +5,305. Other lines FY2026 changes: security 8,232 - 8,094 = +138 (+1.7%); collaboration 4,300 - 4,154 = +146 (+3.5%); observability 1,095 - 1,055 = +40 (+3.8%); services 15,030 - 15,046 = -16 (-0.1%). Product revenue 48,295 / 41,608 - 1 = 16.1%. Shares of FY2026 revenue: services 15,030 / 63,325 = 23.7%; security 8,232 / 63,325 = 13.0%; collaboration 4,300 / 63,325 = 6.8%; observability 1,095 / 63,325 = 1.7%. Observability shares: 581 / 51,557 = 1.1% (FY2022); 661 / 56,998 = 1.2%; 837 / 53,803 = 1.6%; 1,055 / 56,654 = 1.9%. Observability growth 661 / 581 - 1 = 13.8%; 837 / 661 - 1 = 26.6%; 1,055 / 837 - 1 = 26.0%; 1,095 / 1,055 - 1 = 3.8%; 1,095 / 581 = 1.88 times. Services growth 13,856 / 13,539 - 1 = 2.3% (FY2023); 14,550 / 13,856 - 1 = 5.0%; 15,046 / 14,550 - 1 = 3.4%; FY2016 to FY2026 15,030 / 11,993 - 1 = 25.3%. Services gross profit 10,346 / 40,860 = 25.3% of gross margin. Subscription services 13,663 / 15,030 = 90.9% of services. Non-subscription product 48,295 - 18,314 = 29,981; non-subscription services 15,030 - 13,663 = 1,367. Subscription share 31,977 / 63,325 = 50.5% (FY2026); 31,526 / 56,654 = 55.6% (FY2025); 27,380 / 53,803 = 50.9% (FY2024); subscription growth 31,977 / 31,526 - 1 = 1.4%. Security: 3,382 / 1,969 - 1 = 71.8% (FY2016 to FY2021, older basis); 8,094 / 3,859 = 2.1 times (FY2023 to FY2025); 8,232 / 3,699 = 2.2 times (FY2022 to FY2026). Collaboration 4,300 / 4,823 - 1 = -10.8% against FY2020. Segments: Americas revenue 37,799 / 33,656 - 1 = 12.3%; Americas gross margin 68.2% - 65.1% = 3.1 points (310 basis points); EMEA 16,613 / 14,824 - 1 = 12.1%; APJC 8,914 / 8,174 - 1 = 9.1%. United States revenue 34.4 / 63.3 = 54.3%; outside the United States 63.3 - 34.4 = 28.9 bn; United States growth 34.4 / 30.4 - 1 = 13.2%. AI and orders: Q3 FY2026 hyperscaler orders 5.3 - 1.3 - 2.1 = 1.9 bn; Acacia about 1,000 / 9,791 networking = 10.2%; FY2027 revenue guidance midpoint (72.2 + 73.4) / 2 = 72.8 bn, 72.8 / 63.325 - 1 = 15.0%; AI revenue target 7.5 / 72.8 = 10.3%; price increases 4.5 points / 15 = about a third; Q1 FY2027 gross margin guidance midpoint (65 + 66) / 2 = 65.5%; Q1 FY2027 operating margin guidance midpoint (35.5 + 36.5) / 2 = 36.0%. Security plus observability Q4 FY2026 2,226 + 275 = 2,501. Backlog: remaining performance obligations 46,734 / 63,325 = 73.8% of revenue; short-term 22,776 / 21,723 - 1 = 4.8%; long-term 23,958 / 21,810 - 1 = 9.8%. Purchase commitments 17,165 / 7,599 - 1 = 125.9%; 17,165 / 63,325 = 27.1% of revenue. Inventory 5,694 / 3,164 - 1 = 80.0%. Competitors named in the FY2026 10-K: 18 (Amazon Web Services, Arista, Broadcom, Ciena, CrowdStrike, Datadog, Dell, Dynatrace, Fortinet, Hewlett Packard Enterprise, Huawei, Microsoft, Nokia, Nvidia, Palo Alto Networks, RingCentral, Zoom, Zscaler). Balance sheet, cash flow and market data: Net income 13,267 / 10,180 - 1 = 30.3%; free cash flow 12,767 / 13,288 - 1 = -3.9%; capital spending 1,410 / 905 - 1 = 55.8%; capital spending 1,410 / 63,325 = 2.2% of revenue; free cash flow margin 12,767 / 63,325 = 20.2%; returned 12,659 / 12,767 = 99.2% of free cash flow. Dividends / free cash flow: 6,384 / 10,210 = 62.5% (FY2024); 6,437 / 13,288 = 48.4% (FY2025); 6,553 / 12,767 = 51.3% (FY2026). Dividends per share 1.66 / 0.72 = 2.3 times (FY2014 to FY2026). Buybacks: 117 - 76 = 41 million fewer shares than FY2024; average price 80.26 / 49.45 - 1 = 62.3%; FY2018-FY2026 17,661 + 20,577 + 2,619 + 2,902 + 7,734 + 4,271 + 5,764 + 5,995 + 6,106 = 73,629. Diluted shares 3,987 / 5,146 - 1 = -22.5%. Net income 13,267 / 8,981 - 1 = 47.7%; diluted EPS 3.33 / 1.75 - 1 = 90.3% (FY2015 to FY2026). Net debt 29,533 - 15,918 (cash and investments, about 15.9 bn) = 13,615, about 13.6 bn. Net interest 1,365 - 1,006 = +359 (FY2024); 1,001 - 1,593 = -592 (FY2025); 866 - 1,470 = -604 (FY2026). Goodwill 59,477 / 129,637 = 45.9% of total assets; Splunk goodwill 19,301 / 27,090 = 71.2% of consideration. Employees 82,400 / 90,400 - 1 = -8.8%; R&D 9,563 - 9,300 = +263; sales and marketing 11,559 - 10,966 = +593; R&D 9,563 / 63,325 = 15.1% of revenue; restructuring 693 / 63,325 = 1.1% of revenue. FY2025 net income as released about 10,500 - 10,180 as filed = about 320 (about 0.3 bn); EPS 2.61 - 2.55 = 0.06. Free cash flow yield 12,767 / 421,740 = 3.0%. Price against the 52-week high 106.97 / 130.37 - 1 = -17.9%. P/E 421,740 / 13,267 = 31.8; P/S 421,740 / 63,325 = 6.66. Further: revenue FY2023 to FY2026 63,325 / 56,998 - 1 = 11.1%; HPE and Juniper Ethernet 1.15 / 5.43 = 21.2% of Cisco Ethernet; non-GAAP EPS 4.33 / 3.81 - 1 = 13.6%; FY2026 order forecast 9 / 5 - 1 = 80%; FY2025 AI orders 2.0 / 56.654 = 3.5% of revenue; FY2026 9.3 / 63.325 = 14.7%; product subscription 18,314 / 17,783 - 1 = 3.0%; FY2018 buyback 17,661 / 80.26 = 220 million shares; 76 / 3,946 = 1.9% of shares; revenue FY2024 to FY2026 63,325 / 53,803 - 1 = 17.7%; Arista 2.30 - 2.24 = 0.06 bn; R&D 9,300 / 7,983 - 1 = 16.5% and revenue 56,654 / 53,803 - 1 = 5.3% (FY2025); R&D 9,563 / 9,300 - 1 = 2.8% (FY2026); Q1 FY2027 guidance midpoint 18.1 / 14.883 - 1 = 21.6%; FY2028 consensus P/E 106.97 / 5.62 = 19.0; cash 15.9 / 6.553 = 2.4 years of dividends; services obligations 23,298 / 46,734 = 49.9% and 23,298 / 15,030 = 1.55 years; short-term debt 10,161 / 29,533 = 34.4%; authorisation 8.1 / 6.1 = 1.3 years; product-services margin spread 68.8 - 63.2 = 5.6 points; FY2024 returns (6,384 + 5,764) / 10,210 = 119%; diluted shares 4,254 / 4,881 - 1 = -12.8% (FY2018 to FY2020); buybacks FY2018 and FY2019 17,661 + 20,577 = 38,238; AI revenue 7.5 / 3.8 = 1.97 times; FY2027 GAAP EPS guidance midpoint (4.00 + 4.06) / 2 = 4.03, 4.03 / 3.33 - 1 = 21.0%; G&A 2,761 / 2,992 - 1 = -7.7%; Q4 security 2,226 / 8,232 = 27.0% of the year - revenue mix, shares and concentration. — FY2015-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Cisco's Forms 10-K, quarterly results releases, the Q4 FY2026 call and market data; operands shown in the source line.
  9. ReportedServices, mostly support contracts, were $15,030 million; security $8,232 million; collaboration $4,300 million; and observability $1,095 million.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 7 MD&A: revenue by product category and segment, and gross margins. — FY2026 · publ. 2 September 2026 · source ↗
  10. ReportedThe Americas produced about 60% of revenue.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 7 MD&A: revenue by product category and segment, and gross margins. — FY2026 · publ. 2 September 2026 · source ↗
  11. ReportedProducts, $48,295 million, are sold in substantial part through channel partners at a 63.2% gross margin; services and subscriptions follow them, at 68.8% for services.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - financial statements and notes: balance sheet, cash flow, commitments, customers and acquisitions. — FY2026 · publ. 2 September 2026 · source ↗
  12. ReportedAbout half of revenue, $31,977 million, is subscription.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 7 MD&A: revenue by product category and segment, and gross margins. — FY2026 · publ. 2 September 2026 · source ↗
  13. Moat Explorer calcAbout half of revenue, $31,977 million, is subscription.
    Moat Explorer calculation from Cisco's reported revenue, margins and financial statements ($ millions unless stated). Revenue growth FY2026 63,325 / 56,654 - 1 = 11.8%; increase 63,325 - 56,654 = 6,671. Networking share 34,668 / 63,325 = 54.7%; of product revenue 34,668 / 48,295 = 71.8%; networking increase 34,668 - 28,304 = 6,364, 6,364 / 6,671 = 95.4% of the revenue increase. Networking against FY2023 34,668 / 34,570 - 1 = 0.3%; FY2024 29,229 / 34,570 - 1 = -15.4% (a fall of 5,341); FY2025 28,304 / 29,229 - 1 = -3.2% (a fall of 925); FY2023 34,570 - 29,265 = +5,305. Other lines FY2026 changes: security 8,232 - 8,094 = +138 (+1.7%); collaboration 4,300 - 4,154 = +146 (+3.5%); observability 1,095 - 1,055 = +40 (+3.8%); services 15,030 - 15,046 = -16 (-0.1%). Product revenue 48,295 / 41,608 - 1 = 16.1%. Shares of FY2026 revenue: services 15,030 / 63,325 = 23.7%; security 8,232 / 63,325 = 13.0%; collaboration 4,300 / 63,325 = 6.8%; observability 1,095 / 63,325 = 1.7%. Observability shares: 581 / 51,557 = 1.1% (FY2022); 661 / 56,998 = 1.2%; 837 / 53,803 = 1.6%; 1,055 / 56,654 = 1.9%. Observability growth 661 / 581 - 1 = 13.8%; 837 / 661 - 1 = 26.6%; 1,055 / 837 - 1 = 26.0%; 1,095 / 1,055 - 1 = 3.8%; 1,095 / 581 = 1.88 times. Services growth 13,856 / 13,539 - 1 = 2.3% (FY2023); 14,550 / 13,856 - 1 = 5.0%; 15,046 / 14,550 - 1 = 3.4%; FY2016 to FY2026 15,030 / 11,993 - 1 = 25.3%. Services gross profit 10,346 / 40,860 = 25.3% of gross margin. Subscription services 13,663 / 15,030 = 90.9% of services. Non-subscription product 48,295 - 18,314 = 29,981; non-subscription services 15,030 - 13,663 = 1,367. Subscription share 31,977 / 63,325 = 50.5% (FY2026); 31,526 / 56,654 = 55.6% (FY2025); 27,380 / 53,803 = 50.9% (FY2024); subscription growth 31,977 / 31,526 - 1 = 1.4%. Security: 3,382 / 1,969 - 1 = 71.8% (FY2016 to FY2021, older basis); 8,094 / 3,859 = 2.1 times (FY2023 to FY2025); 8,232 / 3,699 = 2.2 times (FY2022 to FY2026). Collaboration 4,300 / 4,823 - 1 = -10.8% against FY2020. Segments: Americas revenue 37,799 / 33,656 - 1 = 12.3%; Americas gross margin 68.2% - 65.1% = 3.1 points (310 basis points); EMEA 16,613 / 14,824 - 1 = 12.1%; APJC 8,914 / 8,174 - 1 = 9.1%. United States revenue 34.4 / 63.3 = 54.3%; outside the United States 63.3 - 34.4 = 28.9 bn; United States growth 34.4 / 30.4 - 1 = 13.2%. AI and orders: Q3 FY2026 hyperscaler orders 5.3 - 1.3 - 2.1 = 1.9 bn; Acacia about 1,000 / 9,791 networking = 10.2%; FY2027 revenue guidance midpoint (72.2 + 73.4) / 2 = 72.8 bn, 72.8 / 63.325 - 1 = 15.0%; AI revenue target 7.5 / 72.8 = 10.3%; price increases 4.5 points / 15 = about a third; Q1 FY2027 gross margin guidance midpoint (65 + 66) / 2 = 65.5%; Q1 FY2027 operating margin guidance midpoint (35.5 + 36.5) / 2 = 36.0%. Security plus observability Q4 FY2026 2,226 + 275 = 2,501. Backlog: remaining performance obligations 46,734 / 63,325 = 73.8% of revenue; short-term 22,776 / 21,723 - 1 = 4.8%; long-term 23,958 / 21,810 - 1 = 9.8%. Purchase commitments 17,165 / 7,599 - 1 = 125.9%; 17,165 / 63,325 = 27.1% of revenue. Inventory 5,694 / 3,164 - 1 = 80.0%. Competitors named in the FY2026 10-K: 18 (Amazon Web Services, Arista, Broadcom, Ciena, CrowdStrike, Datadog, Dell, Dynatrace, Fortinet, Hewlett Packard Enterprise, Huawei, Microsoft, Nokia, Nvidia, Palo Alto Networks, RingCentral, Zoom, Zscaler). Balance sheet, cash flow and market data: Net income 13,267 / 10,180 - 1 = 30.3%; free cash flow 12,767 / 13,288 - 1 = -3.9%; capital spending 1,410 / 905 - 1 = 55.8%; capital spending 1,410 / 63,325 = 2.2% of revenue; free cash flow margin 12,767 / 63,325 = 20.2%; returned 12,659 / 12,767 = 99.2% of free cash flow. Dividends / free cash flow: 6,384 / 10,210 = 62.5% (FY2024); 6,437 / 13,288 = 48.4% (FY2025); 6,553 / 12,767 = 51.3% (FY2026). Dividends per share 1.66 / 0.72 = 2.3 times (FY2014 to FY2026). Buybacks: 117 - 76 = 41 million fewer shares than FY2024; average price 80.26 / 49.45 - 1 = 62.3%; FY2018-FY2026 17,661 + 20,577 + 2,619 + 2,902 + 7,734 + 4,271 + 5,764 + 5,995 + 6,106 = 73,629. Diluted shares 3,987 / 5,146 - 1 = -22.5%. Net income 13,267 / 8,981 - 1 = 47.7%; diluted EPS 3.33 / 1.75 - 1 = 90.3% (FY2015 to FY2026). Net debt 29,533 - 15,918 (cash and investments, about 15.9 bn) = 13,615, about 13.6 bn. Net interest 1,365 - 1,006 = +359 (FY2024); 1,001 - 1,593 = -592 (FY2025); 866 - 1,470 = -604 (FY2026). Goodwill 59,477 / 129,637 = 45.9% of total assets; Splunk goodwill 19,301 / 27,090 = 71.2% of consideration. Employees 82,400 / 90,400 - 1 = -8.8%; R&D 9,563 - 9,300 = +263; sales and marketing 11,559 - 10,966 = +593; R&D 9,563 / 63,325 = 15.1% of revenue; restructuring 693 / 63,325 = 1.1% of revenue. FY2025 net income as released about 10,500 - 10,180 as filed = about 320 (about 0.3 bn); EPS 2.61 - 2.55 = 0.06. Free cash flow yield 12,767 / 421,740 = 3.0%. Price against the 52-week high 106.97 / 130.37 - 1 = -17.9%. P/E 421,740 / 13,267 = 31.8; P/S 421,740 / 63,325 = 6.66. Further: revenue FY2023 to FY2026 63,325 / 56,998 - 1 = 11.1%; HPE and Juniper Ethernet 1.15 / 5.43 = 21.2% of Cisco Ethernet; non-GAAP EPS 4.33 / 3.81 - 1 = 13.6%; FY2026 order forecast 9 / 5 - 1 = 80%; FY2025 AI orders 2.0 / 56.654 = 3.5% of revenue; FY2026 9.3 / 63.325 = 14.7%; product subscription 18,314 / 17,783 - 1 = 3.0%; FY2018 buyback 17,661 / 80.26 = 220 million shares; 76 / 3,946 = 1.9% of shares; revenue FY2024 to FY2026 63,325 / 53,803 - 1 = 17.7%; Arista 2.30 - 2.24 = 0.06 bn; R&D 9,300 / 7,983 - 1 = 16.5% and revenue 56,654 / 53,803 - 1 = 5.3% (FY2025); R&D 9,563 / 9,300 - 1 = 2.8% (FY2026); Q1 FY2027 guidance midpoint 18.1 / 14.883 - 1 = 21.6%; FY2028 consensus P/E 106.97 / 5.62 = 19.0; cash 15.9 / 6.553 = 2.4 years of dividends; services obligations 23,298 / 46,734 = 49.9% and 23,298 / 15,030 = 1.55 years; short-term debt 10,161 / 29,533 = 34.4%; authorisation 8.1 / 6.1 = 1.3 years; product-services margin spread 68.8 - 63.2 = 5.6 points; FY2024 returns (6,384 + 5,764) / 10,210 = 119%; diluted shares 4,254 / 4,881 - 1 = -12.8% (FY2018 to FY2020); buybacks FY2018 and FY2019 17,661 + 20,577 = 38,238; AI revenue 7.5 / 3.8 = 1.97 times; FY2027 GAAP EPS guidance midpoint (4.00 + 4.06) / 2 = 4.03, 4.03 / 3.33 - 1 = 21.0%; G&A 2,761 / 2,992 - 1 = -7.7%; Q4 security 2,226 / 8,232 = 27.0% of the year - revenue-line totals, growth and orders. — FY2015-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Cisco's Forms 10-K, quarterly results releases, the Q4 FY2026 call and market data; operands shown in the source line.
  14. ReportedOperating income was $15,368 million, a 24.3% margin; net income $13,267 million, or $3.33 a share.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 7 MD&A: revenue by product category and segment, and gross margins. — FY2026 · publ. 2 September 2026 · source ↗
  15. ReportedOperating income was $15,368 million, a 24.3% margin; net income $13,267 million, or $3.33 a share.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  16. ReportedOperating income was $15,368 million, a 24.3% margin; net income $13,267 million, or $3.33 a share.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 7 MD&A: revenue by product category and segment, and gross margins. — FY2026 · publ. 2 September 2026 · source ↗
  17. ReportedFree cash flow was $12,767 million, and Cisco returned $12,659 million through dividends and buybacks.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - capital returns, share count, debt and equity. — FY2026 · publ. 2 September 2026 · source ↗
  18. ReportedSplunk, bought for about $27 billion in March 2024, left goodwill at 46% of assets and net debt of about $13.6 billion.
    Cisco Systems Form 10-K for fiscal 2024 - the new product categories with fiscal 2022-2023 restated, segment revenue and margins, and the Splunk acquisition. — FY2024 · publ. September 2024 · source ↗
  19. Moat Explorer calcSplunk, bought for about $27 billion in March 2024, left goodwill at 46% of assets and net debt of about $13.6 billion.
    Moat Explorer calculation from Cisco's reported revenue, margins and financial statements ($ millions unless stated). Revenue growth FY2026 63,325 / 56,654 - 1 = 11.8%; increase 63,325 - 56,654 = 6,671. Networking share 34,668 / 63,325 = 54.7%; of product revenue 34,668 / 48,295 = 71.8%; networking increase 34,668 - 28,304 = 6,364, 6,364 / 6,671 = 95.4% of the revenue increase. Networking against FY2023 34,668 / 34,570 - 1 = 0.3%; FY2024 29,229 / 34,570 - 1 = -15.4% (a fall of 5,341); FY2025 28,304 / 29,229 - 1 = -3.2% (a fall of 925); FY2023 34,570 - 29,265 = +5,305. Other lines FY2026 changes: security 8,232 - 8,094 = +138 (+1.7%); collaboration 4,300 - 4,154 = +146 (+3.5%); observability 1,095 - 1,055 = +40 (+3.8%); services 15,030 - 15,046 = -16 (-0.1%). Product revenue 48,295 / 41,608 - 1 = 16.1%. Shares of FY2026 revenue: services 15,030 / 63,325 = 23.7%; security 8,232 / 63,325 = 13.0%; collaboration 4,300 / 63,325 = 6.8%; observability 1,095 / 63,325 = 1.7%. Observability shares: 581 / 51,557 = 1.1% (FY2022); 661 / 56,998 = 1.2%; 837 / 53,803 = 1.6%; 1,055 / 56,654 = 1.9%. Observability growth 661 / 581 - 1 = 13.8%; 837 / 661 - 1 = 26.6%; 1,055 / 837 - 1 = 26.0%; 1,095 / 1,055 - 1 = 3.8%; 1,095 / 581 = 1.88 times. Services growth 13,856 / 13,539 - 1 = 2.3% (FY2023); 14,550 / 13,856 - 1 = 5.0%; 15,046 / 14,550 - 1 = 3.4%; FY2016 to FY2026 15,030 / 11,993 - 1 = 25.3%. Services gross profit 10,346 / 40,860 = 25.3% of gross margin. Subscription services 13,663 / 15,030 = 90.9% of services. Non-subscription product 48,295 - 18,314 = 29,981; non-subscription services 15,030 - 13,663 = 1,367. Subscription share 31,977 / 63,325 = 50.5% (FY2026); 31,526 / 56,654 = 55.6% (FY2025); 27,380 / 53,803 = 50.9% (FY2024); subscription growth 31,977 / 31,526 - 1 = 1.4%. Security: 3,382 / 1,969 - 1 = 71.8% (FY2016 to FY2021, older basis); 8,094 / 3,859 = 2.1 times (FY2023 to FY2025); 8,232 / 3,699 = 2.2 times (FY2022 to FY2026). Collaboration 4,300 / 4,823 - 1 = -10.8% against FY2020. Segments: Americas revenue 37,799 / 33,656 - 1 = 12.3%; Americas gross margin 68.2% - 65.1% = 3.1 points (310 basis points); EMEA 16,613 / 14,824 - 1 = 12.1%; APJC 8,914 / 8,174 - 1 = 9.1%. United States revenue 34.4 / 63.3 = 54.3%; outside the United States 63.3 - 34.4 = 28.9 bn; United States growth 34.4 / 30.4 - 1 = 13.2%. AI and orders: Q3 FY2026 hyperscaler orders 5.3 - 1.3 - 2.1 = 1.9 bn; Acacia about 1,000 / 9,791 networking = 10.2%; FY2027 revenue guidance midpoint (72.2 + 73.4) / 2 = 72.8 bn, 72.8 / 63.325 - 1 = 15.0%; AI revenue target 7.5 / 72.8 = 10.3%; price increases 4.5 points / 15 = about a third; Q1 FY2027 gross margin guidance midpoint (65 + 66) / 2 = 65.5%; Q1 FY2027 operating margin guidance midpoint (35.5 + 36.5) / 2 = 36.0%. Security plus observability Q4 FY2026 2,226 + 275 = 2,501. Backlog: remaining performance obligations 46,734 / 63,325 = 73.8% of revenue; short-term 22,776 / 21,723 - 1 = 4.8%; long-term 23,958 / 21,810 - 1 = 9.8%. Purchase commitments 17,165 / 7,599 - 1 = 125.9%; 17,165 / 63,325 = 27.1% of revenue. Inventory 5,694 / 3,164 - 1 = 80.0%. Competitors named in the FY2026 10-K: 18 (Amazon Web Services, Arista, Broadcom, Ciena, CrowdStrike, Datadog, Dell, Dynatrace, Fortinet, Hewlett Packard Enterprise, Huawei, Microsoft, Nokia, Nvidia, Palo Alto Networks, RingCentral, Zoom, Zscaler). Balance sheet, cash flow and market data: Net income 13,267 / 10,180 - 1 = 30.3%; free cash flow 12,767 / 13,288 - 1 = -3.9%; capital spending 1,410 / 905 - 1 = 55.8%; capital spending 1,410 / 63,325 = 2.2% of revenue; free cash flow margin 12,767 / 63,325 = 20.2%; returned 12,659 / 12,767 = 99.2% of free cash flow. Dividends / free cash flow: 6,384 / 10,210 = 62.5% (FY2024); 6,437 / 13,288 = 48.4% (FY2025); 6,553 / 12,767 = 51.3% (FY2026). Dividends per share 1.66 / 0.72 = 2.3 times (FY2014 to FY2026). Buybacks: 117 - 76 = 41 million fewer shares than FY2024; average price 80.26 / 49.45 - 1 = 62.3%; FY2018-FY2026 17,661 + 20,577 + 2,619 + 2,902 + 7,734 + 4,271 + 5,764 + 5,995 + 6,106 = 73,629. Diluted shares 3,987 / 5,146 - 1 = -22.5%. Net income 13,267 / 8,981 - 1 = 47.7%; diluted EPS 3.33 / 1.75 - 1 = 90.3% (FY2015 to FY2026). Net debt 29,533 - 15,918 (cash and investments, about 15.9 bn) = 13,615, about 13.6 bn. Net interest 1,365 - 1,006 = +359 (FY2024); 1,001 - 1,593 = -592 (FY2025); 866 - 1,470 = -604 (FY2026). Goodwill 59,477 / 129,637 = 45.9% of total assets; Splunk goodwill 19,301 / 27,090 = 71.2% of consideration. Employees 82,400 / 90,400 - 1 = -8.8%; R&D 9,563 - 9,300 = +263; sales and marketing 11,559 - 10,966 = +593; R&D 9,563 / 63,325 = 15.1% of revenue; restructuring 693 / 63,325 = 1.1% of revenue. FY2025 net income as released about 10,500 - 10,180 as filed = about 320 (about 0.3 bn); EPS 2.61 - 2.55 = 0.06. Free cash flow yield 12,767 / 421,740 = 3.0%. Price against the 52-week high 106.97 / 130.37 - 1 = -17.9%. P/E 421,740 / 13,267 = 31.8; P/S 421,740 / 63,325 = 6.66. Further: revenue FY2023 to FY2026 63,325 / 56,998 - 1 = 11.1%; HPE and Juniper Ethernet 1.15 / 5.43 = 21.2% of Cisco Ethernet; non-GAAP EPS 4.33 / 3.81 - 1 = 13.6%; FY2026 order forecast 9 / 5 - 1 = 80%; FY2025 AI orders 2.0 / 56.654 = 3.5% of revenue; FY2026 9.3 / 63.325 = 14.7%; product subscription 18,314 / 17,783 - 1 = 3.0%; FY2018 buyback 17,661 / 80.26 = 220 million shares; 76 / 3,946 = 1.9% of shares; revenue FY2024 to FY2026 63,325 / 53,803 - 1 = 17.7%; Arista 2.30 - 2.24 = 0.06 bn; R&D 9,300 / 7,983 - 1 = 16.5% and revenue 56,654 / 53,803 - 1 = 5.3% (FY2025); R&D 9,563 / 9,300 - 1 = 2.8% (FY2026); Q1 FY2027 guidance midpoint 18.1 / 14.883 - 1 = 21.6%; FY2028 consensus P/E 106.97 / 5.62 = 19.0; cash 15.9 / 6.553 = 2.4 years of dividends; services obligations 23,298 / 46,734 = 49.9% and 23,298 / 15,030 = 1.55 years; short-term debt 10,161 / 29,533 = 34.4%; authorisation 8.1 / 6.1 = 1.3 years; product-services margin spread 68.8 - 63.2 = 5.6 points; FY2024 returns (6,384 + 5,764) / 10,210 = 119%; diluted shares 4,254 / 4,881 - 1 = -12.8% (FY2018 to FY2020); buybacks FY2018 and FY2019 17,661 + 20,577 = 38,238; AI revenue 7.5 / 3.8 = 1.97 times; FY2027 GAAP EPS guidance midpoint (4.00 + 4.06) / 2 = 4.03, 4.03 / 3.33 - 1 = 21.0%; G&A 2,761 / 2,992 - 1 = -7.7%; Q4 security 2,226 / 8,232 = 27.0% of the year - balance sheet, cash flow, capital returns and valuation. — FY2015-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Cisco's Forms 10-K, quarterly results releases, the Q4 FY2026 call and market data; operands shown in the source line.
  20. ReportedHyperscaler AI orders reached $9.3 billion, and fiscal 2027 revenue is guided to $72.2 billion to $73.4 billion.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - orders, acquisitions, dividend and fiscal 2027 guidance. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  21. ReportedHyperscaler AI orders reached $9.3 billion, and fiscal 2027 revenue is guided to $72.2 billion to $73.4 billion.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - orders, acquisitions, dividend and fiscal 2027 guidance. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  22. ReportedThe shares were $106.97 on 24 September 2026, a market value of $421.74 billion and 32.12 times trailing earnings.
    Cisco (CSCO) market data - $106.97 at the close on 24 September 2026, market cap $421.74B, 52-week range $66.81-$130.37, dividend $1.68 (1.57%), trailing P/E 32.12. — September 2026 · publ. 24 September 2026 · source ↗
  23. ReportedCharles Robbins has been chief executive since July 2015 and chair since December 2017, and joined the company in December 1997.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 1 business: products, strategy, employees and sales. — FY2026 · publ. 2 September 2026 · source ↗
  24. ReportedNo shareholder controls it: the largest holders at the 2025 proxy date were The Vanguard Group with 9.7% and BlackRock with 8.9%.
    Cisco Systems 2025 proxy statement (DEF 14A) - principal shareholders and director biographies. — 2025 · publ. 28 October 2025 · source ↗
  25. ReportedIts stated strategy is short: "Our strategy is to securely connect everything".
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 1 business: products, strategy, employees and sales. — FY2026 · publ. 2 September 2026 · source ↗
  26. ReportedRevenue grew 8% in the first quarter, 10% in the second, 12% in the third and 18% in the fourth.
    Cisco first-quarter fiscal 2026 results release, Form 8-K exhibit 99.1. — Q1 FY2026 · publ. 12 November 2025 · source ↗
  27. ReportedRevenue grew 8% in the first quarter, 10% in the second, 12% in the third and 18% in the fourth.
    Cisco second-quarter fiscal 2026 results release, Form 8-K exhibit 99.1. — Q2 FY2026 · publ. 11 February 2026 · source ↗
  28. ReportedRevenue grew 8% in the first quarter, 10% in the second, 12% in the third and 18% in the fourth.
    Cisco third-quarter fiscal 2026 results release, Form 8-K exhibit 99.1. — Q3 FY2026 · publ. 13 May 2026 · source ↗
  29. ReportedRevenue grew 8% in the first quarter, 10% in the second, 12% in the third and 18% in the fourth.
    Cisco fourth-quarter and fiscal 2026 results release, Form 8-K exhibit 99.1 - quarterly revenue by line and segment, margins, AI infrastructure orders and fiscal 2027 guidance - fourth-quarter and full-year results by line, segment and margin. — Q4 FY2026 · publ. 12 August 2026 · source ↗
  30. ReportedThe share price reached $130.37 within the last year and was $106.97 in late September, about 18% lower, which is a reminder that the market has already paid for much of the good news.
    Cisco (CSCO) market data - $106.97 at the close on 24 September 2026, market cap $421.74B, 52-week range $66.81-$130.37, dividend $1.68 (1.57%), trailing P/E 32.12. — September 2026 · publ. 24 September 2026 · source ↗
  31. Moat Explorer calcThe share price reached $130.37 within the last year and was $106.97 in late September, about 18% lower, which is a reminder that the market has already paid for much of the good news.
    Moat Explorer calculation from Cisco's reported revenue, margins and financial statements ($ millions unless stated). Revenue growth FY2026 63,325 / 56,654 - 1 = 11.8%; increase 63,325 - 56,654 = 6,671. Networking share 34,668 / 63,325 = 54.7%; of product revenue 34,668 / 48,295 = 71.8%; networking increase 34,668 - 28,304 = 6,364, 6,364 / 6,671 = 95.4% of the revenue increase. Networking against FY2023 34,668 / 34,570 - 1 = 0.3%; FY2024 29,229 / 34,570 - 1 = -15.4% (a fall of 5,341); FY2025 28,304 / 29,229 - 1 = -3.2% (a fall of 925); FY2023 34,570 - 29,265 = +5,305. Other lines FY2026 changes: security 8,232 - 8,094 = +138 (+1.7%); collaboration 4,300 - 4,154 = +146 (+3.5%); observability 1,095 - 1,055 = +40 (+3.8%); services 15,030 - 15,046 = -16 (-0.1%). Product revenue 48,295 / 41,608 - 1 = 16.1%. Shares of FY2026 revenue: services 15,030 / 63,325 = 23.7%; security 8,232 / 63,325 = 13.0%; collaboration 4,300 / 63,325 = 6.8%; observability 1,095 / 63,325 = 1.7%. Observability shares: 581 / 51,557 = 1.1% (FY2022); 661 / 56,998 = 1.2%; 837 / 53,803 = 1.6%; 1,055 / 56,654 = 1.9%. Observability growth 661 / 581 - 1 = 13.8%; 837 / 661 - 1 = 26.6%; 1,055 / 837 - 1 = 26.0%; 1,095 / 1,055 - 1 = 3.8%; 1,095 / 581 = 1.88 times. Services growth 13,856 / 13,539 - 1 = 2.3% (FY2023); 14,550 / 13,856 - 1 = 5.0%; 15,046 / 14,550 - 1 = 3.4%; FY2016 to FY2026 15,030 / 11,993 - 1 = 25.3%. Services gross profit 10,346 / 40,860 = 25.3% of gross margin. Subscription services 13,663 / 15,030 = 90.9% of services. Non-subscription product 48,295 - 18,314 = 29,981; non-subscription services 15,030 - 13,663 = 1,367. Subscription share 31,977 / 63,325 = 50.5% (FY2026); 31,526 / 56,654 = 55.6% (FY2025); 27,380 / 53,803 = 50.9% (FY2024); subscription growth 31,977 / 31,526 - 1 = 1.4%. Security: 3,382 / 1,969 - 1 = 71.8% (FY2016 to FY2021, older basis); 8,094 / 3,859 = 2.1 times (FY2023 to FY2025); 8,232 / 3,699 = 2.2 times (FY2022 to FY2026). Collaboration 4,300 / 4,823 - 1 = -10.8% against FY2020. Segments: Americas revenue 37,799 / 33,656 - 1 = 12.3%; Americas gross margin 68.2% - 65.1% = 3.1 points (310 basis points); EMEA 16,613 / 14,824 - 1 = 12.1%; APJC 8,914 / 8,174 - 1 = 9.1%. United States revenue 34.4 / 63.3 = 54.3%; outside the United States 63.3 - 34.4 = 28.9 bn; United States growth 34.4 / 30.4 - 1 = 13.2%. AI and orders: Q3 FY2026 hyperscaler orders 5.3 - 1.3 - 2.1 = 1.9 bn; Acacia about 1,000 / 9,791 networking = 10.2%; FY2027 revenue guidance midpoint (72.2 + 73.4) / 2 = 72.8 bn, 72.8 / 63.325 - 1 = 15.0%; AI revenue target 7.5 / 72.8 = 10.3%; price increases 4.5 points / 15 = about a third; Q1 FY2027 gross margin guidance midpoint (65 + 66) / 2 = 65.5%; Q1 FY2027 operating margin guidance midpoint (35.5 + 36.5) / 2 = 36.0%. Security plus observability Q4 FY2026 2,226 + 275 = 2,501. Backlog: remaining performance obligations 46,734 / 63,325 = 73.8% of revenue; short-term 22,776 / 21,723 - 1 = 4.8%; long-term 23,958 / 21,810 - 1 = 9.8%. Purchase commitments 17,165 / 7,599 - 1 = 125.9%; 17,165 / 63,325 = 27.1% of revenue. Inventory 5,694 / 3,164 - 1 = 80.0%. Competitors named in the FY2026 10-K: 18 (Amazon Web Services, Arista, Broadcom, Ciena, CrowdStrike, Datadog, Dell, Dynatrace, Fortinet, Hewlett Packard Enterprise, Huawei, Microsoft, Nokia, Nvidia, Palo Alto Networks, RingCentral, Zoom, Zscaler). Balance sheet, cash flow and market data: Net income 13,267 / 10,180 - 1 = 30.3%; free cash flow 12,767 / 13,288 - 1 = -3.9%; capital spending 1,410 / 905 - 1 = 55.8%; capital spending 1,410 / 63,325 = 2.2% of revenue; free cash flow margin 12,767 / 63,325 = 20.2%; returned 12,659 / 12,767 = 99.2% of free cash flow. Dividends / free cash flow: 6,384 / 10,210 = 62.5% (FY2024); 6,437 / 13,288 = 48.4% (FY2025); 6,553 / 12,767 = 51.3% (FY2026). Dividends per share 1.66 / 0.72 = 2.3 times (FY2014 to FY2026). Buybacks: 117 - 76 = 41 million fewer shares than FY2024; average price 80.26 / 49.45 - 1 = 62.3%; FY2018-FY2026 17,661 + 20,577 + 2,619 + 2,902 + 7,734 + 4,271 + 5,764 + 5,995 + 6,106 = 73,629. Diluted shares 3,987 / 5,146 - 1 = -22.5%. Net income 13,267 / 8,981 - 1 = 47.7%; diluted EPS 3.33 / 1.75 - 1 = 90.3% (FY2015 to FY2026). Net debt 29,533 - 15,918 (cash and investments, about 15.9 bn) = 13,615, about 13.6 bn. Net interest 1,365 - 1,006 = +359 (FY2024); 1,001 - 1,593 = -592 (FY2025); 866 - 1,470 = -604 (FY2026). Goodwill 59,477 / 129,637 = 45.9% of total assets; Splunk goodwill 19,301 / 27,090 = 71.2% of consideration. Employees 82,400 / 90,400 - 1 = -8.8%; R&D 9,563 - 9,300 = +263; sales and marketing 11,559 - 10,966 = +593; R&D 9,563 / 63,325 = 15.1% of revenue; restructuring 693 / 63,325 = 1.1% of revenue. FY2025 net income as released about 10,500 - 10,180 as filed = about 320 (about 0.3 bn); EPS 2.61 - 2.55 = 0.06. Free cash flow yield 12,767 / 421,740 = 3.0%. Price against the 52-week high 106.97 / 130.37 - 1 = -17.9%. P/E 421,740 / 13,267 = 31.8; P/S 421,740 / 63,325 = 6.66. Further: revenue FY2023 to FY2026 63,325 / 56,998 - 1 = 11.1%; HPE and Juniper Ethernet 1.15 / 5.43 = 21.2% of Cisco Ethernet; non-GAAP EPS 4.33 / 3.81 - 1 = 13.6%; FY2026 order forecast 9 / 5 - 1 = 80%; FY2025 AI orders 2.0 / 56.654 = 3.5% of revenue; FY2026 9.3 / 63.325 = 14.7%; product subscription 18,314 / 17,783 - 1 = 3.0%; FY2018 buyback 17,661 / 80.26 = 220 million shares; 76 / 3,946 = 1.9% of shares; revenue FY2024 to FY2026 63,325 / 53,803 - 1 = 17.7%; Arista 2.30 - 2.24 = 0.06 bn; R&D 9,300 / 7,983 - 1 = 16.5% and revenue 56,654 / 53,803 - 1 = 5.3% (FY2025); R&D 9,563 / 9,300 - 1 = 2.8% (FY2026); Q1 FY2027 guidance midpoint 18.1 / 14.883 - 1 = 21.6%; FY2028 consensus P/E 106.97 / 5.62 = 19.0; cash 15.9 / 6.553 = 2.4 years of dividends; services obligations 23,298 / 46,734 = 49.9% and 23,298 / 15,030 = 1.55 years; short-term debt 10,161 / 29,533 = 34.4%; authorisation 8.1 / 6.1 = 1.3 years; product-services margin spread 68.8 - 63.2 = 5.6 points; FY2024 returns (6,384 + 5,764) / 10,210 = 119%; diluted shares 4,254 / 4,881 - 1 = -12.8% (FY2018 to FY2020); buybacks FY2018 and FY2019 17,661 + 20,577 = 38,238; AI revenue 7.5 / 3.8 = 1.97 times; FY2027 GAAP EPS guidance midpoint (4.00 + 4.06) / 2 = 4.03, 4.03 / 3.33 - 1 = 21.0%; G&A 2,761 / 2,992 - 1 = -7.7%; Q4 security 2,226 / 8,232 = 27.0% of the year - revenue mix, shares and concentration. — FY2015-FY2027 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in Cisco's Forms 10-K, quarterly results releases, the Q4 FY2026 call and market data; operands shown in the source line.
  32. ReportedThe number that would falsify that verdict is the services gross margin, 68.8% in fiscal 2026; if it slides toward the product margin, customers will have stopped paying a premium to stay with Cisco.
    Cisco Systems Form 10-K for fiscal 2026 (year ended 25 July 2026) - Item 7 MD&A: revenue by product category and segment, and gross margins. — FY2026 · publ. 2 September 2026 · source ↗
Sources
Generated September 25, 2026