CSCO · 10-Q · 2026Q2 · Full report
Inventory and Purchase Commitments
CISCO SYSTEMS, INC. · 2026-05-19 · Importance 89 · Surprise 82 · In source text
Cisco increased inventory 49% year over year from the end of fiscal 2025 to $4.708 billion, while inventory purchase commitments rose 111% to $16.033 billion. The combined 93% increase was primarily tied to Cisco Silicon One and other products being manufactured to meet demand from hyperscalers and other customers. Cisco increased commitments with a supplier to secure memory components and entered arrangements to secure component supply, pricing, and contract-manufacturing capacity, reflecting efforts to manage lead times amid supply constraints. The company expects inventory balances may increase in future quarters as it works to fulfill customer demand, while balancing supply-chain flexibility against potential obsolescence from rapidly changing technology and customer requirements.
Key facts
- Inventory purchase commitments increased by 111% as of April 25, 2026 compared to end of fiscal 2025. source
- Combined increase of inventory and inventory purchase commitments as of April 25, 2026 compared with end of fiscal 2025: 93%. source
- Inventory purchase commitments as of April 25, 2026: $16,033 million. source
- Inventory purchase commitments less than 1 year as of April 25, 2026: $14,149 million. source
- Inventories increased by 49% as of April 25, 2026 compared to end of fiscal 2025. source
- Cisco increased purchase commitments with a certain supplier in the third quarter of fiscal 2026 to help secure memory components. source
- We regularly enter into purchase commitments to manufacture Cisco Silicon One and other products and expect to continue entering additional purchase commitments in fiscal 2026, including to help secure memory. source
- Inventory purchase commitments less than 1 year as of July 26, 2025: $7,202 million. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| liability | negative | realized | — | Inventory purchase commitments increased by 111% as of April 25, 2026 compared to end of fiscal 2025. |
| assets | positive | realized | — | Inventories increased by 49% as of April 25, 2026 compared to end of fiscal 2025. |
| liability | negative | committed | — | Cisco increased purchase commitments with a certain supplier in the third quarter of fiscal 2026 to help secure memory components. |
| liability | negative | probable | — | We regularly enter into purchase commitments to manufacture Cisco Silicon One and other products and expect to continue entering… |