10-KPeriod: FY2026

CISCO SYSTEMS, INC. Annual Report, Year Ended Jul 25, 2026

Filed September 2, 2026For Securities:CSCO

Summary

Cisco Systems, Inc. reported a strong fiscal year 2026, demonstrating robust revenue growth and improved profitability. Total revenue increased by 12% to $63.3 billion, driven by a significant 16% rise in product revenue, with services revenue remaining flat. The company highlighted strong demand for AI infrastructure solutions from hyperscale customers, which contributed approximately 6% of total revenue, a substantial increase from less than 2% in the prior year. This demand is expected to remain a key growth driver in fiscal 2027. Despite a slight decrease in gross margin percentage due to product mix and higher memory costs, Cisco's operating income as a percentage of revenue saw a notable increase of 3.5 percentage points, largely attributed to revenue growth and disciplined expense management. The company continued to invest in key priority areas like AI, silicon, optics, and security, reflecting its strategic focus on securely connecting everything to enable customer outcomes. Cisco also returned significant capital to shareholders through dividends and stock repurchases, underscoring its commitment to shareholder value.

Key Highlights

  • 1Total revenue grew 12% to $63.3 billion in fiscal 2026, with product revenue up 16%.
  • 2AI infrastructure solutions for hyperscalers emerged as a significant growth driver, contributing 6% of total revenue in fiscal 2026.
  • 3Operating income as a percentage of revenue improved to 24.3%, up from 20.8% in fiscal 2025, reflecting operational leverage.
  • 4The company returned $12.7 billion to shareholders through dividends and stock repurchases.
  • 5Networking product revenue saw a substantial 22% increase, driven by AI infrastructure and campus networking solutions.
  • 6Despite a slight dip in overall gross margin percentage, product gross margin benefited from productivity improvements and pricing actions, partially offset by product mix and memory costs.
  • 7Cisco continues to invest in key growth areas including AI, silicon, optics, and security, reinforcing its strategic priorities.

Frequently Asked Questions

Cisco reported a 12% increase in total revenue, reaching $63.3 billion in fiscal year 2026. Product revenue was particularly strong, growing by 16%, while services revenue remained flat.

AI infrastructure solutions, primarily driven by demand from hyperscaler customers, accounted for approximately 6% of Cisco's total revenue in fiscal year 2026, a significant jump from less than 2% in fiscal year 2025. This segment is expected to continue as a key growth driver.

Cisco's core strategy is to securely connect everything to enable customer outcomes. They are heavily investing in and incorporating AI across their product portfolios in networking, security, collaboration, and observability. Key priority areas include AI-ready data centers, future-proofed workplaces, and digital resilience.

Cisco's operating income as a percentage of revenue increased by 3.5 percentage points to 24.3% in fiscal 2026, driven by revenue growth and disciplined expense management, which offset a slight decline in gross margin percentage. The company also actively repurchased shares and paid dividends, returning significant capital to shareholders.