Short answer
Cisco (CSCO) filed its fiscal 2026 10-K annual report with the SEC on Sep 2, 2026. It reported revenue of $63.3B (+11.8% year over year) and net income of $13.3B.
- Top risk flagged: Regulatory risk: EU AI Act and evolving data protection regulations (GDPR, California Privacy Rights Act) increasing compliance cost and limiting AI solution deployment
FY2026 key financial metrics · XBRL
- Revenue
- $63.3B
- +11.8% YoY
- Net income
- $13.3B
- +30.3% YoY
- Operating margin
- 24.3%
- +3.5 pp YoY
- Gross margin
- 64.5%
- −0.4 pp YoY
- EPS (diluted)
- $3.33
- +30.6% YoY
- ROE
- 26.4%
- +4.7 pp YoY
- Operating cash flow
- $14.2B
- −0.1% YoY
Source: XBRL data from the Cisco (CSCO) FY2026 10-K on SEC EDGAR. USD.
Cisco FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Global provider of integrated hardware, software, and AI-powered digital infrastructure across Networking, Security, Collaboration, and Observability
- New emphasized products: Cisco 9550 AI-ready Smart Switch, Cisco 800G optics, Cisco N9300 Series with embedded Data Processing Units, Cisco Hypershield AI-powered distributed security
- Strategic shift: Strong AI integration across portfolios, converging networking and security into unified platforms, focus on AI-ready data centers and future-proofed workplaces
- Employee count increased to approximately 82,400 as of July 25, 2026, with 25,400 in worldwide sales and marketing functions
- Noteworthy fact: Recognized #3 on Fortune 100 Best Companies to Work For® 2026, top three workplace ranking in 24 countries with 8 #1 country wins
Management Discussion & Analysis
- Revenue $63.3B, up 12% YoY ($6.7B increase); product revenue +16%, services flat
- Operating margin 24.3% vs 20.8%, gross margin slightly down 64.5% vs 64.9%, net income margin 21.0% vs 18.0%
- Best performing segment: Americas revenue $37.8B (+$4.1B, 12%+ YoY), worst: Services revenue flat/down slightly
- Cash provided by operations $14.2B, free cash flow $12.8B; capital allocation: stock repurchases $6.1B, dividends $6.6B, capex $1.4B
- Forward outlook highlights growth driven by AI infrastructure demand, supply chain risks from inventory commitments and memory costs, and restructuring plan with up to $1B charges through FY27
Risk Factors
- Regulatory risk: EU AI Act and evolving data protection regulations (GDPR, California Privacy Rights Act) increasing compliance cost and limiting AI solution deployment
- Geopolitical threat: Ongoing Russia-Ukraine war, Middle East conflicts, and China-Taiwan tensions disrupting supply chains and customer demand
- Operational risk: Fiscal 2026 memory component shortages and rising costs impairing gross margins, with increased purchase commitments and inventory exposure planned into fiscal 2027
- Competitive risk: Price-focused competition from Asian companies, especially China, plus cloud providers and hyperscalers designing own networking equipment
- Financial risk: $23B senior unsecured notes maturing through 2064 plus $6.7B commercial paper outstanding increasing leverage and interest expense pressures
Generated from the filing text; verify against the original. How to read a 10-K
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