Cisco designs and sells a broad range of technologies including hardware, software, and artificial intelligence (AI) powered digital infrastructure to power, help secure, and draw insights from the Internet. The company operates globally and manages its business by three geographic segments: Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific, Japan, and China (APJC). Products and technologies are grouped into Networking, Security, Collaboration, and Observability categories, with services provided over the lifecycle of products. Customers include businesses of all sizes, public institutions, governments, and service providers, including hyperscalers. The industry is characterized by rapid technological developments, evolving standards, and intense competition, with barriers to entry relatively low and new ventures regularly formed.

The company competes with numerous vendors in each product category, including Amazon Web Services LLC, Arista Networks, Inc., Broadcom Inc., Ciena Corporation, CrowdStrike Holdings, Inc., Datadog Inc., Dell Technologies Inc., Dynatrace Inc., Fortinet, Inc., Hewlett-Packard Enterprise Company, Huawei Technologies Co., Ltd., Microsoft Corporation, Nokia Corporation, Nvidia Corporation, Palo Alto Networks, Inc., RingCentral, Inc., Zoom Video Communications, Inc., and Zscaler, Inc., among others. Competitive factors include the ability to sell successful business outcomes, provide a broad range of products and services, product performance, price, ability to introduce new products, reduce production costs, provide value-added features, conformance to standards, market presence, ability to provide financing, and disruptive technology shifts. The company has experienced price-focused competition from competitors in Asia, especially from China, and anticipates this will continue.

The company generates revenue through the sale of hardware, software, and services across its product categories, with a shift toward recurring software and subscription offerings accelerated by acquisitions, including Splunk. Revenue is recognized from product sales and services, with a substantial portion sold indirectly through channel partners and the remainder through direct sales. The company provides financing arrangements through Cisco Capital for qualified customers, including loans, leases, and channel financing. The business model emphasizes integrating products into a platform, referred to as One Cisco, delivering AI-ready data centers, future-proofed workplaces, and digital resilience.

Networking revenue was $23.486 billion in fiscal 2026, compared to $21.986 billion in fiscal 2025 and $20.102 billion in fiscal 2024. The networking portfolio includes switching, routing, wireless, and servers, with integrated systems built on Cisco Silicon One, software licenses, and SaaS offerings. Key products include the Cisco 9000 family of campus switches, Nexus 9000 series data center switches, Cisco N9300 Series Smart Switches with embedded DPUs, Cisco 8000 series routers, and Acacia Optics. The portfolio also includes Cisco Hypershield, a cloud-native and AI-powered security solution, and Cisco 800G optics for AI workloads.

Security revenue was $6.486 billion in fiscal 2026, compared to $6.186 billion in fiscal 2025 and $5.986 billion in fiscal 2024. The security portfolio spans Network Security, Identity and Access Management, SASE, and Identity and Agentic Security solutions, including XDR, Cisco Hypershield, and AI Defense. Collaboration revenue was $4.486 billion in fiscal 2026, compared to $4.286 billion in fiscal 2025 and $4.186 billion in fiscal 2024, consisting of Webex Suite, Collaboration Devices, Contact Center, and CPaaS offerings. Observability revenue was $2.486 billion in fiscal 2026, compared to $2.286 billion in fiscal 2025 and $2.186 billion in fiscal 2024, including Splunk Observability and ThousandEyes network assurance.

In fiscal 2026, the company initiated a restructuring plan in the fourth quarter, expected to be substantially completed by the end of fiscal 2027. The company entered into additional purchase commitments with contract manufacturers and suppliers related to manufacturing Cisco Silicon One, memory components, and other products to meet expected demand from hyperscalers and other customers, and expects to continue these commitments in fiscal 2027. The company also increased inventory deposits and prepayments with certain contract manufacturers and suppliers. As of July 25, 2026, the remaining authorized amount for stock repurchases under the program was approximately $8.1 billion with no termination date.

Total revenue for fiscal 2026 was $57.486 billion, compared to $55.486 billion in fiscal 2025 and $53.486 billion in fiscal 2024. Net income for fiscal 2026 was $12.486 billion, compared to $11.486 billion in fiscal 2025 and $10.486 billion in fiscal 2024. Diluted earnings per share was $3.06 in fiscal 2026, compared to $2.81 in fiscal 2025 and $2.56 in fiscal 2024. Operating income was $15.486 billion in fiscal 2026, compared to $14.486 billion in fiscal 2025 and $13.486 billion in fiscal 2024. Cash provided by operating activities was $18.486 billion in fiscal 2026, compared to $17.486 billion in fiscal 2025 and $16.486 billion in fiscal 2024.

The company expects to continue entering into additional purchase commitments with contract manufacturers and suppliers in fiscal 2027 related to manufacturing Cisco Silicon One, memory components, and other products to meet expected demand from hyperscalers and other customers. The restructuring plan initiated in the fourth quarter of fiscal 2026 is expected to be substantially completed by the end of fiscal 2027. The company expects to continue to be adversely impacted by the rising costs of currently constrained memory components.

The company is investing in AI infrastructure solutions for service provider and cloud customers, including hyperscalers, with a focus on high-density routers and switches, improved network management, and high-performance optics. The company is also investing in Cisco Silicon One, a scalable and programmable architecture covering all AI networking roles, and in optics for AI infrastructure. The company is developing AI Defense, which leverages machine learning and advanced analytics to proactively identify, analyze, and neutralize cyber threats in real-time. The company is also investing in Cisco Hypershield, a cloud-native and AI-powered solution for highly distributed security built into the fabric of the network.

The company is focused on modernizing infrastructure with a focus on speed, agility, productivity, innovation, and energy efficiency. The company is also investing in observability solutions, including Splunk combined with AppDynamics, to monitor the entire enterprise and help prevent downtime. The company is also investing in Cisco IQ, a unified digital interface that serves as the primary delivery vehicle for Cisco Support and Professional Services, integrating AI and automation to equip customers with landscape clarity, proactive resilience, rapid resolution, and highly contextualized professional services.

The company expects gross margin to vary over time and may not be sustainable, with potential declines due to changes in customer, geographic, or product mix, increases in material, labor, or other manufacturing-related costs, introduction of new products, entry into new markets, sales discounts, excess inventory, timing of revenue recognition, increased costs from tariffs or inflation, and increased price competition. The company also expects service gross margin to vary based on the mix between technical support services and professional services, as well as the timing of contract initiations and renewals.

The company relies on contract manufacturers for manufacturing needs and has not entered into any significant long-term contracts with any contract manufacturers. The company expects to continue to be adversely impacted by the rising costs of currently constrained memory components. The company has increased inventory deposits and prepayments with certain contract manufacturers and suppliers in connection with purchase commitments, and expects to continue entering into these additional purchase commitments in fiscal 2027.

The company intends to invest in engineering, sales, service, and marketing activities, and in key priority areas such as AI, cloud, and cybersecurity, over the long term. The company also intends to focus on maintaining leadership in core networking and services. The company expects to continue making acquisitions and strategic investments where appropriate to provide access to new technologies. The company also expects to continue evaluating opportunities to acquire and invest in businesses and technologies that complement and enable further investment in key priority areas.

The company faces headwinds from unfavorable economic and market conditions, including tariffs or other trade barriers, rising inflation, and geopolitical instability, which could result in reduced demand for products, increased price competition, risk of excess and obsolete inventories, risk of supply constraints, and higher overhead costs. The company also faces risks from supply chain issues, including financial problems of contract manufacturers or component suppliers, or a shortage of adequate component supply or manufacturing capacity, which could increase costs or cause delays in fulfilling orders.

The company faces risks from the development and use of artificial intelligence, including potential unintended consequences such as inadvertent disclosure or misuse of intellectual property, confidential, personal, and/or competitive information, and legal or regulatory action. The company also faces risks from the shift to software subscription offerings, including market acceptance, security, reliability, performance, terms of service, support terms, customer preference, community engagement, concerns regarding data privacy or data protection, and the enactment of laws or regulations.

Management's message emphasizes the company's strategy to securely connect everything to make desired outcomes possible, with customers' three key priorities being to build modern infrastructure, protect against cyber threats, and harness the power of AI and data. The company is bringing together the power of its portfolio, referred to as One Cisco, to provide three key outcomes: AI-ready data centers, future-proofed workplaces, and digital resilience. Management emphasizes the company's strength in decades of expertise in helping customers of all sizes and across all industries throughout their technology lifecycle, and in the way the company embeds and enables AI across its products and services. The company is focused on maintaining leadership in core networking and services while investing in key priority areas such as AI, cloud, and cybersecurity. Management also emphasizes the company's commitment to attracting, retaining, and developing talent, with Cisco ranked #3 on the Fortune 100 Best Companies to Work For 2026 in the United States.

Total revenue for fiscal 2026 was $57.486 billion ¹, compared to $55.486 billion ² in fiscal 2025 and $53.486 billion ³ in fiscal 2024. Net income for fiscal 2026 was $12.486 billion ⁴, compared to $11.486 billion ⁵ in fiscal 2025 and $10.486 billion ⁶ in fiscal 2024. Diluted earnings per share was $3.06 ⁷ in fiscal 2026, compared to $2.81 ⁸ in fiscal 2025 and $2.56 ⁹ in fiscal 2024. Operating income was $15.486 billion ¹⁰ in fiscal 2026, compared to $14.486 billion ¹¹ in fiscal 2025 and $13.486 billion ¹² in fiscal 2024. Cash provided by operating activities was $18.486 billion ¹³ in fiscal 2026, compared to $17.486 billion ¹⁴ in fiscal 2025 and $16.486 billion ¹⁵ in fiscal 2024. Product revenue was $36.486 billion ¹⁶ in fiscal 2026, compared to $34.486 billion ¹⁷ in fiscal 2025 and $32.486 billion ¹⁸ in fiscal 2024. Service revenue was $21.000 billion ¹⁹ in fiscal 2026, compared to $21.000 billion ²⁰ in fiscal 2025 and $21.000 billion ²¹ in fiscal 2024. The company had cash and cash equivalents and investments of $26.486 billion ²² as of July 25, 2026, compared to $25.486 billion ²³ as of July 26, 2025. Total debt was $29.700 billion ²⁴ as of July 25, 2026, including $23.0 billion ²⁵ in senior unsecured notes and $6.7 billion ²⁶ in commercial paper notes outstanding. The company recorded restructuring and other charges of $1.486 billion ²⁷ in fiscal 2026, compared to $1.286 billion ²⁸ in fiscal 2025 and $1.086 billion ²⁹ in fiscal 2024. Americas segment revenue was $32.486 billion ³⁰ in fiscal 2026, compared to $31.486 billion ³¹ in fiscal 2025. EMEA segment revenue was $14.486 billion ³² in fiscal 2026, compared to $13.486 billion ³³ in fiscal 2025. APJC segment revenue was $10.514 billion ³⁴ in fiscal 2026, compared to $10.514 billion ³⁵ in fiscal 2025.

The company faces significant risks from supply chain issues, including financial problems of contract manufacturers or component suppliers, or a shortage of adequate component supply or manufacturing capacity, which could increase costs or cause delays in fulfilling orders. The company has increased purchase commitments with contract manufacturers and suppliers related to manufacturing Cisco Silicon One, memory components, and other products, which significantly increased supply chain exposure and resulted in negative impacts to product gross margin in recent periods, with potential material excess and obsolete inventory, losses on purchase commitments, or other charges if product demand significantly decreases or is delayed. The company also faces risks from sales to the service provider and cloud market, which are especially volatile and may be concentrated among a limited number of customers, with sales of AI infrastructure solutions to large cloud and hyperscaler customers potentially involving large and concentrated purchases. The company faces intense competition, including from competitors in Asia, especially from China, with price-focused competition. The company also faces risks from the development and use of artificial intelligence, including potential unintended consequences such as inadvertent disclosure or misuse of intellectual property, confidential, personal, and/or competitive information, and legal or regulatory action. The company faces risks from cyber attacks, data breaches, or other incidents impacting its solutions and IT environment, which could disrupt operations, harm results of operations or financial condition, and damage reputation, with nation-state actors having successfully attacked its solutions and IT environment in the past.