CSCO · 10-K · 2026A · Full report

Financing Receivables and Guarantees

CISCO SYSTEMS, INC. · 2026-09-02 · Importance 59 · Surprise 48 · In source text

Cisco provides customer financing for purchases of hardware, software, technical support, professional services, and network installation and integration. Financing receivables increased 28% year over year to $8.332 billion, primarily because customers had higher demand for financing hardware, software, and services. Channel partner financing volume increased to $29.9 billion from $24.9 billion, supporting partners’ working-capital requirements through third-party revolving financing generally carrying 60- to 90-day terms. Cisco’s guarantees covered $1.2 billion of channel partner financing, while historical payments under these guarantees have been immaterial.

Key facts

• Total maximum potential future payments related to financing guarantees as of July 25, 2026 was approximately $127 million, of which approximately $12 million was recorded as deferred revenue. source
• Loan receivables, net as of July 25, 2026: $7,417 million. source
• Total financing receivables, net as of July 25, 2026: $8,332 million. source
• Financing receivables increased by 28% compared with the end of fiscal 2025. source
• Cisco provides financing guarantees generally for various third-party financing arrangements extended to channel partners and could be called upon to make payments under these guarantees in the event of nonpayment by channel partners. source
• Balance of channel partner financing subject to guarantees was $1.2 billion as of July 25, 2026 and $1.3 billion as of July 26, 2025. source
• Cisco's financing arrangements to channel partners consisted of revolving short-term financing provided by third parties with payment terms generally ranging from 60 to 90 days. source
• Volume of channel partner financing was $29.9 billion in fiscal 2026, $24.9 billion in fiscal 2025, and $27.1 billion in fiscal 2024. source

Impact estimates