CSCO · 10-K · 2026A · Full report

R&D Investment in AI

CISCO SYSTEMS, INC. · 2026-09-02 · Importance 63 · Surprise 50

Fiscal 2026 R&D expense increased to $9.563 billion, primarily because of higher headcount-related expenses reflecting investments in AI. Cisco also increased discretionary spending and share-based compensation in R&D, partly offset by lower acquisition-related and contracted-services costs. The company continues to invest in silicon, optics, security, and AI as priority growth areas. These investments are intended to support profitable long-term growth and customer digital transformation.