CSCO · 10-K · 2026A · Full report

Interest Rate and Refinancing Exposure

CISCO SYSTEMS, INC. · 2026-09-02 · Importance 18 · Surprise 14

Interest income declined by $135 million in fiscal 2026 because Cisco held lower average cash and available-for-sale debt investments and experienced lower interest rates. Interest expense decreased by $123 million, driven by lower average debt outstanding and lower effective rates on commercial paper. Total debt was $29.533 billion at July 25, 2026, compared with $28.093 billion a year earlier. Cisco also issued $3.2 billion of commercial paper during fiscal 2026, partially offsetting debt repayments.

Key facts

• The credit agreement requires maintaining an interest coverage ratio of not less than 3.0 to 1.0. source
• Interest on each class of the senior fixed-rate notes is payable semiannually and each note is redeemable by Cisco at any time, subject to a make-whole premium. source
• Interest income in fiscal 2025 was $1,365 million and interest expense in fiscal 2026 was $1,470 million; interest income (expense), net was $(604) million in fiscal 2026. source
• Cisco was in compliance with all debt covenants as of July 25, 2026. source