|CSCO Overview
CSCO

CISCO SYSTEMS, INC.

Technology • CIK: 0000858877

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Market Cap
$280.22B
P/E (TTM)
27.2x
Rev Growth (TTM)
Net Margin (TTM)
17.9%
FCF Yield (TTM)
4.5%
FCF Margin (TTM)
22.1%

LATEST EARNINGS

Q2 FY2026
16 days ago
View source
Revenue
$15.35B
Net Income
$3.17B
+31.0%
EPS
$0.80
+31.0%
Gross
65.0% -0.1%
Operating
24.6% +2.3%
Net
20.7% +3.3%
  • Revenue of $15.3 billion, up 10% year over year, exceeding guidance.
  • GAAP EPS of $0.80, up 31% year over year; Non-GAAP EPS of $1.04, up 11% year over year, both exceeding guidance.
  • Product orders up 18% year over year, with networking product orders accelerating to over 20% year over year.
  • AI Infrastructure orders from hyperscalers totaled $2.1 billion, reflecting significant acceleration in growth.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$12.7B
Q1 '26
$2.9B-28%
Q4 '26
$4.0B+6%
FCF Margin
TTM22.1%
Q1 '2619.4%-29%
Sector: 14.5%Above Avg
OCF Margin23.8%
OCF/NI1.33x
CapEx Coverage13.6x
FCF Yield4.5%
FCF Growth (2Y)
Cash Conversion Cycle
50 days
DSO: 35+DIO: 55DPO: 40

Capital Allocation & Returns

Shareholder Friendly
Total Shareholder YieldTTM
TTM4.4%
Div Yield2.3%
+
Buyback (TTM)2.1%

Strong capital returns to shareholders

Dividend & Payout Metrics
Dividend Yield (TTM)2.3%
FCF Payout Ratio50.8%
Free Cash Flow (TTM)$12.7B
Stock Repurchases (TTM)$6.0B
Capital Return / FCF97.8%
Est. Dividends Paid (TTM)$6.5B
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
15.6%
P25MedianP75
75th pctl (med: 0.1%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
18.7%
Asset Turnover
0.48x
Leverage (1+D/E)
1.60x
D/E: 0.60x
DuPont: 14.2%15.6% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
27.65x
8Q:
Invested Cap Turn
0.83x
8Q:
CapEx Intensity
1.5%
8Q:
CapEx/Depreciation
0.38x
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ1 2026Q4 2026Q3 2025Q2 2025Q1 2025Q4 2025Q3 2024Q2 2024
Revenue
$57.7B
$14.9B1.4%
$14.7B3.7%
$14.1B1.1%
$14.0B1.1%
$13.8B1.5%
$13.6B7.4%
$12.7B0.7%
$12.8B
Operating Income
$12.8B
$3.4B8.9%
$3.1B3.6%
$3.2B2.9%
$3.1B32.0%
$2.4B9.9%
$2.6B19.5%
$2.2B29.2%
$3.1B
Net Income
$10.3B
$2.9B12.2%
$2.5B2.4%
$2.5B2.6%
$2.4B10.4%
$2.7B25.4%
$2.2B14.6%
$1.9B28.4%
$2.6B
Operating Cash Flow
$13.7B
$3.2B24.1%
$4.2B4.4%
$4.1B81.0%
$2.2B38.8%
$3.7B1.8%
$3.7B6.1%
$4.0B391.5%
$808.0M
Free Cash Flow
$12.7B
$2.9B28.1%
$4.0B5.8%
$3.8B86.9%
$2.0B41.0%
$3.4B2.5%
$3.5B7.1%
$3.8B496.1%
$638.0M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
27.2x
Valuation Lenses
Earnings
27.2x
vs sector
Cash Flow
20.5x
EV/FCF vs
Growth-Adj
PEG
N/A
Quality-Adj
1.7P/E per %ROIC
ROIC: 15.6%
Shareholder Returns
Dividend
2.3%
Buyback
2.1%
Total Yield
4.4%
Market Cap$280.22B
EV
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
97/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Above Avg
22.4%
8Q:
Return on Invested Capital (ROIC)Top 25%
15.6%
8Q:
vs Sector:0.1%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 18.7%
Asset Turnover: 0.48x

Earnings Quality

Cash Conversion

1.33x

OCF / Net Income

FCF Consistency

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin64.8%

Capital Efficiency

Invested Capital Turnover0.83x

Working Capital

Cash Conversion Cycle50 days

Growth Quality & Momentum

Growth Rates

Revenue Growth YoY
N/A
OpInc Growth YoY
42.6%
EPS Growth YoY
N/A
FCF 3Y CAGR
N/A

Margin Quality & Sustainability

Moderate
Profitability Cascade
Gross
64.8%
Operating
22.1%
Above Avg in sector
Net
17.9%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
FCF vs Net Gap
+4.2 pts
FCF: 22.1% | Net: 17.9%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Adequate
Net Debt / EBITDA
Net Debt: $12.35B
Interest Coverage
Leverage Metrics
Debt-to-Equity
0.60x
Balance sheet risk & solvency analysis