CSCO · News · 20260916N

Gross Margin Drivers

CISCO SYSTEMS, INC. · 2026-09-16 · Importance 17 · Surprise 24 · In source text

Cisco’s fourth-quarter gross margin contracted to 66.3%. Higher memory costs reduced gross margin, while competition created additional margin pressure. Operating margin nevertheless expanded as expense controls offset the gross-margin headwinds.

Key facts

Impact estimates

metricdirectionstageexpectedbasis
marginnegativerealized—Cisco's gross margin contracted to 66.3% in the period reported due to memory costs and competition.