CSCO · 10-Q · 2026Q2

CISCO SYSTEMS, INC.

Filed 2026-05-19 · Technology · View original filing on EDGAR

Everything CSCO's SEC filings said, ranked

Ranked Events

• Commercial Paper TrendsImportance 89 · Surprise 82
  Cisco had $8.4 billion of commercial paper outstanding as of April 25, 2026, compared with $3.5 billion at July 26, 2025. The $4.9 billion increase represented the principal source of net financing cash during the…
• Inventory and Purchase CommitmentsImportance 89 · Surprise 82
  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…
• AI Infrastructure DemandImportance 65 · Surprise 48
  Networking product revenue increased 25% in the third quarter and 20% over the first nine months, primarily driven by AI Infrastructure and Campus Networking solutions. Growth was led by double-digit increases in…
• R&D Investment in AIImportance 63 · Surprise 50
  Third-quarter R&D expense increased to $2.377 billion from $2.335 billion, despite falling to 15.0% of revenue from 16.5%. Nine-month R&D expense increased to $7.132 billion from $6.920 billion while declining to 15.5%…
• Operating Cash Flow TrendsImportance 62 · Surprise 58
  Net cash provided by operating activities was $8.8 billion for the first nine months of fiscal 2026, compared with $10.0 billion in the prior-year period. Fiscal 2026 operating cash flow included Cisco’s final U.S.…
• Remaining Performance ObligationsImportance 61 · Surprise 32
  Cisco reported $43.5 billion of remaining performance obligations as of April 25, 2026, essentially unchanged from $43.5 billion at July 26, 2025. Product RPO increased 2% to $22.1 billion, including $11.7 billion of…
• Geographic Revenue PerformanceImportance 59 · Surprise 48
  Revenue increased across Cisco’s Americas, EMEA, and APJC geographic segments in the third quarter, with the Americas contributing the largest dollar increase. Americas product revenue rose 20%, led by Service Provider…
• Income Tax Rate ChangesImportance 59 · Surprise 82
  Cisco’s third-quarter effective tax rate increased to 16.5% from 15.5%, primarily because of a lower foreign-derived intangible income deduction, partly offset by a higher research tax credit benefit. The nine-month…
• Capital Return ProgramImportance 59 · Surprise 22
  Cisco targets returning at least 50% of annual free cash flow to stockholders through dividends and common-stock repurchases. Free cash flow was $7.8 billion in the first nine months of fiscal 2026, down from $9.3…
• Restructuring and HeadcountImportance 58 · Surprise 42
  Cisco announced a fiscal 2026 restructuring plan focused on investments in silicon, optics, security, and AI. The company expects approximately $450 million of pretax charges in the fourth quarter of fiscal 2026 and…
• Product Launch and TransitionImportance 57 · Surprise 50
  Security revenue was flat in the third quarter because declines in prior-generation products and Splunk offerings offset growth in new and refreshed products. Cisco said customers continued shifting Splunk consumption…
• Outstanding IndebtednessImportance 54 · Surprise 14
  Cisco’s senior fixed-rate notes had $23.0 billion of principal outstanding as of April 25, 2026, down from $24.8 billion at July 26, 2025, following repayment of $1.8 billion of debt during the first nine months of…
• Revenue Performance and MixImportance 54 · Surprise 40
  Third-quarter fiscal 2026 revenue increased 12% year over year to $15.841 billion, while nine-month revenue increased 10% to $46.073 billion. Product revenue grew 17% to $12.117 billion in the quarter and 13% to…
• Deferred RevenueImportance 49 · Surprise 32
  Cisco’s deferred revenue totaled $28.6 billion as of April 25, 2026, down 1% from $28.8 billion at July 26, 2025. Deferred product revenue was $13.5 billion and was essentially flat, while deferred services revenue…
• Trade Policy and TariffsImportance 44 · Surprise 60
  Cisco is exposed to new and proposed tariffs and other trade policies, with the potential impact described as uncertain but potentially significant if the exposure persists and cannot be mitigated. On February 20,…
• Financing Guarantees and Channel FinancingImportance 42 · Surprise 40
  Channel partner financing volume increased to $21.7 billion in the first nine months of fiscal 2026 from $18.1 billion in the prior-year period. The balance subject to Cisco guarantees declined to $1.2 billion at April…
• Operating Expense TrendsImportance 42 · Surprise 14
  Combined R&D, sales and marketing, and G&A expenses declined to 37.2% of quarterly revenue from 41.0% and to 38.7% for nine months from 41.3%. Quarterly R&D increased primarily from discretionary spending and…
• Liquidity and Cash PositionImportance 37 · Surprise 6
  As of April 25, 2026, Cisco held $7.1 billion of cash and cash equivalents, $9.2 billion of available-for-sale debt investments, and total cash and investments of $16.6 billion. During the first nine months of fiscal…
• Gross Margin DriversImportance 31 · Surprise 32
  Third-quarter gross margin declined 2.0 percentage points to 63.6%, while nine-month gross margin declined 0.8 percentage points to 64.7%. Quarterly product gross margin fell 2.5 percentage points to 61.9%, primarily…
• Quarterly Dividend DeclarationImportance 20 · Surprise 6
  On May 13, 2026, Cisco’s Board declared a quarterly dividend of $0.42 per common share. The dividend is payable July 22, 2026, to stockholders of record at the close of business on July 6, 2026. Future dividend…

Revenue by Product (in millions)

Revenue by Geography (in millions)