CISCO SYSTEMS, INC.CSCO
CISCO SYSTEMS, INC. Financial Overview 2021–2025
Cisco’s 14% surge in product revenue during Q2 2026 signals that its aggressive pivot toward AI infrastructure is finally materializing. The company is successfully leveraging the massive Splunk acquisition to anchor a recurring-revenue model while capitalizing on data center demand, effectively shedding its reputation as a stagnant hardware incumbent. This strategic shift drove total revenue from $49.8 billion in FY2021 to $56.7 billion in FY2025, navigating a volatile post-pandemic supply chain.
Operational execution has sharpened significantly, with operating margins expanding to 24.6% in Q2 2026 and diluted EPS jumping 31% to $0.80. The integration of Splunk fueled a massive 59% spike in Security revenue for FY2025, offsetting earlier legacy weakness, while Networking revenue rebounded with double-digit growth in the first half of FY2026. Management backed this performance by returning $12.4 billion to shareholders in FY2025. Investors valued this renewed growth trajectory at 26.9x earnings at the close of FY2025, with the stock trading at $68.69.
Recent Developments (Q1 and Q2 2026)
Momentum accelerated through the first half of fiscal 2026, with total revenue reaching $30.2 billion, a 9% increase year-over-year. While the Networking segment anchored this performance with double-digit gains in AI Infrastructure and Campus Networking, the Security division faced a 4% revenue decline in Q2 2026 as the unit shifted consumption toward cloud subscriptions. Demand visibility remains robust, supported by remaining performance obligations of $42.9 billion recorded in Q1 2026.
Management returned $6.6 billion to shareholders through dividends and repurchases during the first six months, while shareholders approved an expansion of the stock incentive plan by 57.5 million shares. Bull case: Deep integration of AI infrastructure and robust backlogs provide a clear path to sustained double-digit growth in Networking. Bear case: The stock traded at a premium 30.1x earnings in February 2026, posing valuation risks if the cloud transition in Security further pressures short-term revenues.
What to watch: Security segment revenue stabilization; AI Infrastructure order velocity.
Rev
$56.65B
FY2025
NI
$10.18B
FY2025
EPS
$2.56
FY2025
OCF
$14.19B
FY2025
Year-over-year comparison from 10-K annual reports
Data from SEC Company Facts
Recent SEC Filings
CISCO SYSTEMS, INC. 8-K Report, Financial Results (Feb 11, 2026)
Cisco Systems, Inc. (CSCO) has filed an 8-K report on February 11, 2026, announcing its financial results for the fiscal second quarter 2026, which ended on January 24, 2026. The filing includes a press release detailing these results, which provides both GAAP and non-GAAP financial metrics. Investors should note that Cisco's non-GAAP figures exclude items such as share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related/divestiture costs, significant asset impairments and restructurings, litigation settlements, gains and losses on investments, and related tax effects, among others. The company emphasizes that these non-GAAP measures are used to provide useful information regarding financial and business trends alongside GAAP measures. Management utilizes these non-GAAP figures, which exclude certain non-cash or irregular items, for internal budgeting and review. The press release (Exhibit 99.1) is expected to contain forward-looking estimates for gross margin, operating margin, tax provision rate, and EPS on a non-GAAP basis, offering investors insight into management's future expectations.
CISCO SYSTEMS, INC. 8-K Report, Executive Changes (Dec 17, 2025)
Cisco Systems, Inc. (CSCO) filed an 8-K report on December 16, 2025, detailing the outcomes of its Annual Meeting of Stockholders held on December 15, 2025. The most significant event for investors is the approval of the amendment and restatement of the Cisco Systems, Inc. 2005 Stock Incentive Plan. This amendment, effective upon stockholder approval, increases the number of shares authorized for issuance under the plan by 57,490,000 shares. The plan will now terminate on the date of the 2030 Annual Meeting unless re-adopted or extended. The report also provides the voting results for five proposals presented at the meeting. All nine nominated directors were elected, and executive compensation was approved on an advisory basis. Furthermore, the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for fiscal year 2026 was ratified with overwhelming support. A stockholder proposal requesting a report on the financial value of Cisco's inclusion programs, however, received substantial opposition.
CISCO SYSTEMS, INC. 8-K Report, Financial Results (Nov 12, 2025)
Cisco Systems, Inc. (CSCO) has filed an 8-K report detailing its financial results for the fiscal first quarter of 2026, which ended on October 25, 2025. The report primarily serves to furnish a press release with these results, which includes a significant focus on non-GAAP financial measures. Investors should note that Cisco uses these non-GAAP figures, which exclude items such as share-based compensation, acquisition-related costs, amortization of intangibles, and investment gains/losses, to provide a view of its ongoing business trends and operational performance. The press release also provides forward-looking guidance on key financial metrics including gross margin, operating margin, tax provision rate, and earnings per share (EPS) on a non-GAAP basis. While Cisco believes these non-GAAP measures offer useful insights when viewed alongside GAAP results, investors are reminded that they are not prepared in accordance with GAAP and may differ from measures used by other companies. The filing does not include specific GAAP numbers but directs investors to the furnished press release for the full details.
CISCO SYSTEMS, INC. 8-K Report, Executive Changes (Oct 17, 2025)
Cisco Systems, Inc. (CSCO) has filed an 8-K reporting that Wesley G. Bush has decided not to stand for re-election at the upcoming 2025 annual meeting of stockholders. Mr. Bush will continue to serve as a director until that meeting concludes. This filing is primarily informational, indicating a change in board composition that will occur following the annual meeting.
CISCO SYSTEMS, INC. 8-K Report, Bylaw Amendment (Aug 25, 2025)
Cisco Systems, Inc. (CSCO) has filed an 8-K report detailing an amendment to its Amended and Restated Bylaws, effective August 21, 2025. The primary change introduces a 'cure period' for stockholders submitting director nomination notices. This amendment allows stockholders an opportunity to correct deficiencies in their nomination submissions, provided they are submitted within the designated timeframe outlined in the bylaws. The company also made minor ministerial adjustments for clarity and consistency within the bylaws. This change is primarily procedural and aims to enhance the shareholder engagement process for director nominations. Investors should note that while this amendment facilitates a smoother nomination process, it does not fundamentally alter Cisco's corporate governance structure or its strategic direction. The full text of the Amended and Restated Bylaws and a version highlighting the changes are available as exhibits to this filing.
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