Press Contact: Investor Relations Contact:
Press Contact: Investor Relations Contact: Robyn Blum Sami Badri Cisco Cisco 1 (408) 930-8548 1 (469) 420-4834 rojenkin@cisco.com sambadri@cisco.com
• Record top and bottom-line performance with double-digit growth in Q4 and FY 2026, exceeding the high end of guidance ranges
• Exceptional FY 2026 operating margin results, demonstrating strong execution and operating efficiency
• Broad-based, record high demand for Cisco technology with a networking supercycle underway
◦ Q4 total product orders up 35% year over year; up 25% excluding hyperscalers, with double-digit growth across every geography and customer market
◦ Networking product orders grew 40% year over year in Q4, marking the eighth consecutive quarter of double-digit growth
• Significant momentum and raised expectations for AI infrastructure from hyperscalers
◦ $4 billion of orders taken in Q4, bringing the total for FY 2026 to $9.3 billion
◦ Delivered approximately $4 billion of revenue in FY 2026; $7.5 billion expected in FY 2027
Earnings per Share: GAAP: $4.00 to $4.06; Non-GAAP: $5.05 to $5.11 1 SAN JOSE, Calif. -- August 12, 2026 -- Cisco (NASDAQ: CSCO) today reported fourth quarter and fiscal year results for the period ended July 25, 2026. Cisco reported fourth quarter revenue of $17.3 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.9 billion or $0.97 per share, and non-GAAP net income of $4.9 billion or $1.22 per share.
“We delivered a very strong close to fiscal 2026, marking another record year for Cisco. Our record performance is a testament to the accelerated pace of innovation and the excellent execution by our teams,” said Chuck Robbins, Chair and CEO of Cisco. “With the breadth and depth of our portfolio and our competitive differentiation in secure networking, Cisco is well positioned to support our customers however or wherever they decide to deploy AI.”
“In Q4, we delivered record revenue, non-GAAP operating income and EPS, all exceeding the high end of our guidance ranges and demonstrating strong financial discipline and operating leverage,” said Mark Patterson, CFO of Cisco. “In fiscal 2026, Cisco achieved its highest productivity metrics in 30 years measured by revenue, non-GAAP operating margin, and earnings per employee. As we enter fiscal 2027, we remain focused on delivering durable growth, consistent profitability and continued capital returns as we make the strategic investments to capitalize on the significant growth opportunities we see ahead.”
Reconciliations between net income, EPS, and other measures on a GAAP and non- GAAP basis are provided in the tables located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."
Cisco has declared a quarterly dividend of $0.42 per common share to be paid on October 21, 2026, to all stockholders of record as of the close of business on October 2, 2026. Future dividends will be subject to Board approval. 2
All comparative percentages are on a year-over-year basis unless otherwise noted.
Total revenue was $17.3 billion, up 18%, with product revenue up 24% and services revenue was flat.
Revenue by geographic segment was: Americas up 18%, EMEA up 19%, and APJC up 14%. Product revenue performance reflected growth in Networking up 28%, Security up 14%, Collaboration up 12%, and Observability up 6%.
On a GAAP basis, total gross margin, product gross margin, and services gross margin were 64.1%, 62.6%, and 69.4%, respectively, as compared with 63.2%, 61.5%, and 68.3%, respectively, in the fourth quarter of fiscal 2025.
Total gross margins by geographic segment were: 64.5% for the Americas, 70.1% for EMEA and 67.3% for APJC.
On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 66.3%, 64.8%, and 71.6%, respectively, as compared with 68.4%, 67.5%, and 70.8%, respectively, in the fourth quarter of fiscal 2025.
On a GAAP basis, operating expenses were $6.8 billion, up 10% year over year, and were 39.4% of revenue. Non-GAAP operating expenses were $5.2 billion, up 5%, and were 30.4% of revenue.
GAAP operating income was $4.3 billion, up 38%, with GAAP operating margin of 24.7%. Non-GAAP operating income was $6.2 billion, up 23%, with non-GAAP operating margin at 35.9%.
The GAAP tax provision rate was 21.8%. The non-GAAP tax provision rate was 18.8%.
On a GAAP basis, net income was $3.9 billion, an increase of 51%, and EPS was $0.97, an increase of 52%. On a non-GAAP basis, net income was $4.9 billion, an increase of 23%, and EPS was $1.22, an increase of 23%.
$5.4 billion for the fourth quarter of fiscal 2026, an increase of 27% compared with $4.2 billion for the fourth quarter of fiscal 2025.
GAAP operating income was $15.4 billion, up 31%, with GAAP operating margin of 24.3%. Non-GAAP operating income was $22.0 billion, up 13%, with non-GAAP operating margin at 34.8%.
On a GAAP basis, net income was $13.3 billion, an increase of 30%, and EPS was $3.33, an increase of 31%. On a non-GAAP basis, net income was $17.2 billion, an increase of 13%, and EPS was $4.33, an increase of 14%.
$15.9 billion at the end of the fourth quarter of fiscal 2026, compared with $16.6 billion at the end of the third quarter of fiscal 2026, and compared with $16.1 billion at the end of fiscal 2025.
$46.7 billion, up 7% in total. Product RPO was up 9% and services RPO was up 6%.
$29.8 billion, up 3% in total, with deferred product revenue up 2%. Deferred services revenue up 4%.
In the fourth quarter of fiscal 2026, we returned $3.2 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.42 per common share, or $1.7 billion, and repurchased approximately 13 million shares of common stock under our stock repurchase program at an average price of $111.53 per share for an aggregate purchase price of $1.5 billion. The remaining authorized amount for stock repurchases under the program is $8.1 billion with no termination date.
, a privately held security company focused on Non-Human Identity (NHI) Security 3
Cisco expects to achieve the following results for the first quarter of fiscal 2027:
Q1 FY 2027 Revenue $18.0 billion - $18.2 billion Non-GAAP gross margin 65% - 66% Non-GAAP operating margin 35.5% - 36.5% Non-GAAP EPS $1.32 - $1.34
Cisco estimates that GAAP EPS will be $1.08 to $1.10 for the first quarter of fiscal 2027.
Our Q1 FY 2027 guidance assumes an effective tax provision rate of approximately 15% for GAAP and approximately 18.5% for non-GAAP results. Our FY 2027 guidance assumes an effective tax provision rate of approximately 14.5% for GAAP and approximately 18.5% for non-GAAP results.
A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled "GAAP to non-GAAP Guidance" located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."
• Q4 fiscal year 2026 conference call to discuss Cisco's results along with its guidance will be held on Wednesday, August 12, 2026 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).
• Conference call replay will be available from 4:00 p.m. Pacific Time, August 12, 2026 to 10:00 p.m. Pacific Time, August 18, 2026 at 1-800-839-2232 (United States) or 1-203-369-3662 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.
• Additional information regarding Cisco's financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August 12, 2026. The conference call will also be livestreamed on YouTube at https://www.youtube.com/live/yYJFmYwIPeM, LinkedIn at https://www.linkedin.com/events/7490076339694387200 & X at https://x.com/i/broadcasts/1AxRnnDawDgxl. Text of the conference call's prepared remarks will be available within 24 hours of completion of the call. The webcast and livestreaming will include both the prepared remarks and the question-and- answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com. 4
GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME
GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME
Q1 FY 2027 Gross Margin Operating Margin Earnings per Share(1) GAAP 63% - 64% 28% - 29% $1.08 - $1.10 Estimated adjustments for: Share-based compensation 1.0% 4.5% $0.14 expense Amortization of acquisition-relat… intangible assets 1.0% 2.5% $0.09 and acquisition/dives… costs Significant asset impairments and — 0.5% $0.01 restructurings(2) Non-GAAP 65% - 66% 35.5% - 36.5% $1.32 - $1.34
FY 2027 Earnings per Share(1) GAAP $4.00 - $4.06 Estimated adjustments for: Share-based compensation expense $0.60 Amortization of acquisition-related intangible $0.34 assets and acquisition/divestiture-related costs Significant asset impairments and $0.11 restructurings(2) Non-GAAP $5.05 - $5.11
(1) Estimated adjustments to GAAP earnings per share are shown after income tax effects.
Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, significant tax matters, or other items, which may or may not be significant. 14 Forward Looking Statements, Non-GAAP Information and Additional Information
This release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as being well positioned to support our customers however or wherever they decide to deploy AI, the significant momentum and raised expectations of AI infrastructure from hyperscalers, the broad-based high demand for Cisco technology, and the significant growth opportunities ahead) and the future financial performance of Cisco (including the guidance for Q1 FY 2027 and full year FY 2027) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q1 FY 2027 and full year FY 2027. Readers are cautioned that these forward- looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market, cloud, enterprise and other customer markets; the return on our investments in certain key priority areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and services markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in results of operations; and other factors listed in Cisco's most recent reports on Forms 10-Q and 10-K filed on May 19, 2026 and September 3, 2025, respectively. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco's most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco's results of operations for the three months and the year ended July 25, 2026 are not necessarily indicative of Cisco's results of operations for any future periods. Any projections in this release are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of this release.
This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non- GAAP basis.
These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco's results of operations in conjunction with the corresponding GAAP measures.
Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.
For its internal budgeting process, Cisco's management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture- related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco's management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future 15 there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.
Copyright © 2026 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.
Full text with the tables
Press Contact: Investor Relations Contact:
Robyn Blum Sami Badri
Cisco Cisco
1 (408) 930-8548 1 (469) 420-4834
rojenkin@cisco.com sambadri@cisco.com
CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2026 EARNINGS
News Summary
:
• Record top and bottom-line performance with double-digit growth in Q4 and FY
2026, exceeding the high end of guidance ranges
• Exceptional FY 2026 operating margin results, demonstrating strong execution
and operating efficiency
• Broad-based, record high demand for Cisco technology with a networking
supercycle underway
◦ Q4 total product orders up 35% year over year; up 25% excluding hyperscalers,
with double-digit growth across every geography and customer market
◦ Networking product orders grew 40% year over year in Q4, marking the eighth
consecutive quarter of double-digit growth
• Significant momentum and raised expectations for AI infrastructure from
hyperscalers
◦ $4 billion of orders taken in Q4, bringing the total for FY 2026 to $9.3
billion
◦ Delivered approximately $4 billion of revenue in FY 2026; $7.5 billion
expected in FY 2027
•
Q4 FY 2026 Results:
◦
Revenue: $17.3 billion
▪ Increase of 18% year over year
◦ Operating Margin: GAAP: 24.7%; Non-GAAP: 35.9%
◦
Earnings per Share: GAAP: $0.97; Non-GAAP: $1.22
▪ GAAP EPS increased 52% year over year
▪ Non-GAAP EPS increased 23% year over year
•
FY 2026 Results:
◦ Revenue: $63.3 billion
▪ Increase of 12% year over year
◦
Operating Margin: GAAP: 24.3%; Non-GAAP: 34.8%
◦
Earnings per Share: GAAP: $3.33; Non-GAAP: $4.33
▪ GAAP EPS increased 31% year over year
▪ Non-GAAP EPS increased 14% year over year
•
Q1 FY 2027 Guidance:
◦
Revenue: $18.0 billion to $18.2 billion
◦ Earnings per Share: GAAP: $1.08 to $1.10; Non-GAAP: $1.32 to $1.34
•
FY 2027 Guidance:
◦
Revenue: $72.2 billion to $73.4 billion
◦
Earnings per Share: GAAP: $4.00 to $4.06; Non-GAAP: $5.05 to $5.11
1
SAN JOSE, Calif. -- August 12, 2026 -- Cisco (NASDAQ: CSCO) today reported
fourth quarter and fiscal year results for the period ended July 25, 2026. Cisco
reported fourth quarter revenue of $17.3 billion, net income on a generally
accepted accounting principles (GAAP) basis of $3.9 billion or $0.97 per share,
and non-GAAP net income of $4.9 billion or $1.22 per share.
“We delivered a very strong close to fiscal 2026, marking another record year
for Cisco. Our record performance is a testament to the accelerated pace of
innovation and the excellent execution by our teams,” said Chuck Robbins, Chair
and CEO of Cisco. “With the breadth and depth of our portfolio and our
competitive differentiation in secure networking, Cisco is well positioned to
support our customers however or wherever they decide to deploy AI.”
“In Q4, we delivered record revenue, non-GAAP operating income and EPS, all
exceeding the high end of our guidance ranges and demonstrating strong financial
discipline and operating leverage,” said Mark Patterson, CFO of Cisco. “In
fiscal 2026, Cisco achieved its highest productivity metrics in 30 years
measured by revenue, non-GAAP operating margin, and earnings per employee. As we
enter fiscal 2027, we remain focused on delivering durable growth, consistent
profitability and continued capital returns as we make the strategic investments
to capitalize on the significant growth opportunities we see ahead.”
Q4 GAAP Results
Q4 FY Q4 FY Vs. Q4 FY
2026 2025 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 17.3 billion $ 14.7 billion 18%
Net $ 3.9 billion $ 2.6 billion 51%
Income
Diluted
Earnings
per $ 0.97 $ 0.64 52%
Share
(EPS)
Q4 Non-GAAP Results
Q4 FY Q4 FY Vs. Q4 FY
2026 2025 2025
──────────────────────────────────────────────────────────────────────────────
Net $ 4.9 billion $ 4.0 billion 23%
Income
EPS $ 1.22 $ 0.99 23%
Fiscal Year GAAP Results
Vs. FY
FY 2026 FY 2025 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 63.3 billion $ 56.7 billion 12%
Net Income $ 13.3 billion $ 10.2 billion 30%
EPS $ 3.33 $ 2.55 31%
Fiscal Year Non-GAAP Results
Vs. FY
FY 2026 FY 2025 2025
──────────────────────────────────────────────────────────────────────────────
Net Income $ 17.2 billion $ 15.2 billion 13%
EPS $ 4.33 $ 3.81 14%
Reconciliations between net income, EPS, and other measures on a GAAP and non-
GAAP basis are provided in the tables located in the section entitled
"Reconciliations of GAAP to non-GAAP Measures."
Cisco Declares Quarterly Dividend
Cisco has declared a quarterly dividend of $0.42 per common share to be paid on
October 21, 2026, to all stockholders of record as of the close of business on
October 2, 2026. Future dividends will be subject to Board approval.
2
Financial Summary
All comparative percentages are on a year-over-year basis unless otherwise
noted.
Q4 FY 2026 Highlights
Revenue --
Total revenue was $17.3 billion, up 18%, with product revenue up 24% and
services revenue was flat.
Revenue by geographic segment was: Americas up 18%, EMEA up 19%, and APJC up
14%. Product revenue performance reflected growth in Networking up 28%, Security
up 14%, Collaboration up 12%, and Observability up 6%.
Gross Margin --
On a GAAP basis, total gross margin, product gross margin, and services gross
margin were 64.1%, 62.6%, and 69.4%, respectively, as compared with 63.2%,
61.5%, and 68.3%, respectively, in the fourth quarter of fiscal 2025.
Total gross margins by geographic segment were: 64.5% for the Americas, 70.1%
for EMEA and 67.3% for APJC.
On a non-GAAP basis, total gross margin, product gross margin, and services
gross margin were 66.3%, 64.8%, and 71.6%, respectively, as compared with 68.4%,
67.5%, and 70.8%, respectively, in the fourth quarter of fiscal 2025.
Operating Expenses --
On a GAAP basis, operating expenses were $6.8 billion, up 10% year over year,
and were 39.4% of revenue. Non-GAAP operating expenses were $5.2 billion, up 5%,
and were 30.4% of revenue.
Operating Income --
GAAP operating income was $4.3 billion, up 38%, with GAAP operating margin of
24.7%. Non-GAAP operating income was $6.2 billion, up 23%, with non-GAAP
operating margin at 35.9%.
Provision for Income Taxes --
The GAAP tax provision rate was 21.8%. The non-GAAP tax provision rate was
18.8%.
Net Income and EPS --
On a GAAP basis, net income was $3.9 billion, an increase of 51%, and EPS was
$0.97, an increase of 52%. On a non-GAAP basis, net income was $4.9 billion, an
increase of 23%, and EPS was $1.22, an increase of 23%.
Cash Flow from Operating Activities --
$5.4 billion for the fourth quarter of fiscal 2026, an increase of 27% compared
with $4.2 billion for the fourth quarter of fiscal 2025.
FY 2026 Highlights
Revenue --
Total revenue was $63.3 billion, an increase of 12%.
Operating Income
--
GAAP operating income was $15.4 billion, up 31%, with GAAP operating margin of
24.3%. Non-GAAP operating income was $22.0 billion, up 13%, with non-GAAP
operating margin at 34.8%.
Net Income and EPS --
On a GAAP basis, net income was $13.3 billion, an increase of 30%, and EPS was
$3.33, an increase of 31%. On a non-GAAP basis, net income was $17.2 billion, an
increase of 13%, and EPS was $4.33, an increase of 14%.
Cash Flow from Operating Activities --
$14.2 billion for fiscal 2026, flat compared with fiscal 2025.
Balance Sheet and Other Financial Highlights
Cash and Cash Equivalents and Investments --
$15.9 billion at the end of the fourth quarter of fiscal 2026, compared with
$16.6 billion at the end of the third quarter of fiscal 2026, and compared with
$16.1 billion at the end of fiscal 2025.
Remaining Performance Obligations (RPO)
--
$46.7 billion, up 7% in total. Product RPO was up 9% and services RPO was up 6%.
Deferred Revenue --
$29.8 billion, up 3% in total, with deferred product revenue up 2%. Deferred
services revenue up 4%.
Capital Allocation --
In the fourth quarter of fiscal 2026, we returned $3.2 billion to stockholders
through share buybacks and dividends. We declared and paid a cash dividend of
$0.42 per common share, or $1.7 billion, and repurchased approximately 13
million shares of common stock under our stock repurchase program at an average
price of $111.53 per share for an aggregate purchase price of $1.5 billion. The
remaining authorized amount for stock repurchases under the program is $8.1
billion with no termination date.
Acquisitions
In the fourth quarter of fiscal 2026, we closed the following acquisitions:
•
Galileo Technologies, Inc.
, a privately held observability company
•
Astrix Securities Ltd.
, a privately held security company focused on Non-Human Identity (NHI) Security
3
Guidance
Cisco expects to achieve the following results for the first quarter of fiscal
2027:
Q1 FY 2027
Revenue $18.0 billion - $18.2 billion
Non-GAAP gross margin 65% - 66%
Non-GAAP operating margin 35.5% - 36.5%
Non-GAAP EPS $1.32 - $1.34
Cisco estimates that GAAP EPS will be $1.08 to $1.10 for the first quarter of
fiscal 2027.
Cisco expects to achieve the following results for fiscal 2027:
FY 2027
Revenue $72.2 billion - $73.4 billion
Non-GAAP EPS $5.05 - $5.11
Cisco estimates that GAAP EPS will be $4.00 to $4.06 for fiscal 2027.
Our Q1 FY 2027 guidance assumes an effective tax provision rate of approximately
15% for GAAP and approximately 18.5% for non-GAAP results. Our FY 2027 guidance
assumes an effective tax provision rate of approximately 14.5% for GAAP and
approximately 18.5% for non-GAAP results.
A reconciliation between the guidance on a GAAP and non-GAAP basis is provided
in the tables entitled "GAAP to non-GAAP Guidance" located in the section
entitled "Reconciliations of GAAP to non-GAAP Measures."
Editor's Notes:
• Q4 fiscal year 2026 conference call to discuss Cisco's results along with its
guidance will be held on Wednesday, August 12, 2026 at 1:30 p.m. Pacific Time.
Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847
(international).
• Conference call replay will be available from 4:00 p.m. Pacific Time, August
12, 2026 to 10:00 p.m. Pacific Time, August 18, 2026 at 1-800-839-2232 (United
States) or 1-203-369-3662 (international). The replay will also be available via
webcast on the Cisco Investor Relations website at https://investor.cisco.com.
• Additional information regarding Cisco's financials, as well as a webcast of
the conference call with visuals designed to guide participants through the
call, will be available at 1:30 p.m. Pacific Time, August 12, 2026. The
conference call will also be livestreamed on YouTube at
https://www.youtube.com/live/yYJFmYwIPeM, LinkedIn at
https://www.linkedin.com/events/7490076339694387200 & X at
https://x.com/i/broadcasts/1AxRnnDawDgxl. Text of the conference call's prepared
remarks will be available within 24 hours of completion of the call. The webcast
and livestreaming will include both the prepared remarks and the question-and-
answer session. This information, along with the GAAP to non-GAAP reconciliation
information, will be available on the Cisco Investor Relations website at
https://investor.cisco.com.
4
CISCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per-share amounts)
(Unaudited)
Three July Fiscal July
Months 25, July 26, Year July 25, 26,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
REVEN…
Produ… $ 13,459 $ 10,886 $ 48,295 $ 41,608
Servi… 3,793 3,787 15,030 15,046
Total 17,252 14,673 63,325 56,654
reven…
COST
OF
SALES:
Produ… 5,029 4,194 17,781 15,121
Servi… 1,160 1,199 4,684 4,743
Total
cost 6,189 5,393 22,465 19,864
of
sales
GROSS 11,063 9,280 40,860 36,790
MARGIN
OPERA…
EXPEN…
Resea…
and 2,431 2,380 9,563 9,300
devel…
Sales
and 2,952 2,818 11,559 10,966
marke…
Gener…
and 679 706 2,761 2,992
admin…
Amort…
of
purch… 226 254 916 1,028
intan…
assets
Restr…
and 511 35 693 744
other
charg…
Total
opera… 6,799 6,193 25,492 25,030
expen…
OPERA… 4,264 3,087 15,368 11,760
INCOME
Inter… 220 227 866 1,001
income
Inter… -373 -368 -1,470 -1,593
expen…
Other
income 822 53 1,245 -68
(loss…
net
Inter…
and
other 669 -88 641 -660
income
(loss…
net
INCOME
BEFORE
PROVI… 4,933 2,999 16,009 11,100
FOR
INCOME
TAXES
Provi…
for 1,074 449 2,742 920
income
taxes
NET $ 3,859 $ 2,550 $ 13,267 $ 10,180
INCOME
Net
income
per
share:
Basic $ 0.98 $ 0.64 $ 3.36 $ 2.56
Dilut… $ 0.97 $ 0.64 $ 3.33 $ 2.55
Shares
used
in
per-s…
calcu…
Basic 3,949 3,960 3,953 3,976
Dilut… 3,984 3,992 3,987 3,998
5
CISCO SYSTEMS, INC.
REVENUE BY SEGMENT
(In millions, except percentages)
July 25, 2026
──────────────────────────────────────────────────────────────────────────────
Three Months Fiscal Year
Ended Ended
Amount Y/Y% Amount Y/Y%
Revenue:
Americas $ 10,396 18% $ 37,799 12%
EMEA 4,350 19% 16,613 12%
APJC 2,506 14% 8,914 9%
Total $ 17,252 18% $ 63,325 12%
Amounts may not sum and percentages may not recalculate due to rounding.
CISCO SYSTEMS, INC.
GROSS MARGIN PERCENTAGE BY SEGMENT
(In percentages)
July 25, 2026
─────────────────────────────────────────────────────────────────────
Three Months Ended Fiscal Year Ended
Gross Margin Percentage:
Americas 64.5% 65.1%
EMEA 70.1% 71.2%
APJC 67.3% 66.6%
CISCO SYSTEMS, INC.
REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES
(In millions, except percentages)
July 25,
2026
──────────────────────────────────────────────────────────────────────────────
Three Months Fiscal Year
Ended Ended
Amount Y/Y % Amount Y/Y %
Revenue:
Networking $ 9,791 28% $ 34,668 22%
Security 2,226 14% 8,232 2%
Collaborat… 1,167 12% 4,300 4%
Observabil… 275 6% 1,095 4%
Total 13,459 24% 48,295 16%
Product
Services 3,793 —% 15,030 —%
Total $ 17,252 18% $ 63,325 12%
Amounts may not sum and percentages may not recalculate due to rounding.
6
CISCO SYSTEMS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
July 25, July 26,
2026 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS
Current assets:
Cash and cash equivalents $ 7,218 $ 8,346
Investments 8,700 7,764
Accounts receivable, net of allowance
of $78 at July 25, 2026 and $69 at July 26, 7,470 6,701
2025
Inventories 5,694 3,164
Financing receivables, net 3,392 3,061
Other current assets 6,191 5,950
Total current assets 38,665 34,986
Property and equipment, net 2,760 2,113
Financing receivables, net 4,940 3,466
Goodwill 59,477 59,136
Purchased intangible assets, net 7,557 9,175
Deferred tax assets 7,109 7,356
Other assets 9,129 6,059
TOTAL ASSETS $ 129,637 $ 122,291
LIABILITIES AND EQUITY
Current liabilities:
Short-term debt $ 10,161 $ 5,232
Accounts payable 3,366 2,528
Income taxes payable 190 1,857
Accrued compensation 4,057 3,611
Deferred revenue 16,988 16,416
Other current liabilities 6,763 5,420
Total current liabilities 41,525 35,064
Long-term debt 19,372 22,861
Income taxes payable 2,339 2,165
Deferred revenue 12,793 12,363
Other long-term liabilities 3,323 2,995
Total liabilities 79,352 75,448
Total equity 50,285 46,843
TOTAL LIABILITIES AND EQUITY $ 129,637 $ 122,291
7
CISCO SYSTEMS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three July Fiscal July
Months 25, July 26, Year July 25, 26,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash
flows
from
opera…
activ…
Net $ 3,859 $ 2,550 $ 13,267 $ 10,180
income
Adjus…
to
recon…
net
income
to
net
cash
provi…
by
opera…
activ…
Depre…
amort… 638 635 2,540 2,811
and
other
Share…
compe… 927 948 3,830 3,641
expen…
Provi…
for 12 7 23 24
recei…
Defer…
income 443 -341 226 -1,133
taxes
(Gain…
losses
on
dives… -858 -90 -1,358 -38
inves…
and
other,
net
Change
in
opera…
assets
and
liabi…
net of
effec…
of
acqui…
and
dives…
Accou… -1,019 -1,428 -832 -22
recei…
Inven… -992 -332 -2,541 209
Finan… -1,801 -291 -1,835 214
recei…
Other -430 17 -1,032 -499
assets
Accou… 398 267 842 257
payab…
Income
taxes, 38 163 -2,304 -1,839
net
Accru… 789 378 457 -53
compe…
Defer… 1,266 772 1,125 248
reven…
Other 2,116 979 1,769 193
liabi…
Net
cash
provi… 5,386 4,234 14,177 14,193
by
opera…
activ…
Cash
flows
from
inves…
activ…
Purch…
of -1,607 -1,523 -8,974 -4,589
inves…
Proce…
from
sales 129 415 2,013 2,643
of
inves…
Proce…
from
matur… 2,294 958 6,105 4,943
of
inves…
Acqui…
net of
cash
and
cash -470 — -516 -291
equiv…
acqui…
and
dives…
Purch…
of
non-m… -247 -118 -946 -383
equity
secur…
Return
of
inves…
in 47 198 270 306
non-m…
equity
secur…
Acqui…
of
prope… -390 -217 -1,410 -905
and
equip…
Other -20 14 -26 9
Net
cash
provi…
by -264 -273 -3,484 1,733
(used
in)
inves…
activ…
Cash
flows
from
finan…
activ…
Issua…
of 451 416 805 736
common
stock
Repur…
of
common
stock -1,501 -1,252 -6,106 -6,000
-
repur…
progr…
Shares
repur…
for
tax
withh…
on -511 -312 -1,873 -1,222
vesti…
of
restr…
stock
units
Short…
borro…
origi…
matur…
of 90 204 448 616 -31
days
or
less,
net
Issua…
of 2,408 1,904 13,048 19,292
debt
Repay…
of -4,397 -3,528 -12,251 -22,073
debt
Divid… -1,659 -1,625 -6,553 -6,437
paid
Other -1 — -33 -80
Net
cash
used -5,006 -3,949 -12,347 -15,815
in
finan…
activ…
Effect
of
forei…
curre…
excha…
rate
chang…
on
cash, 28 -20 -29 -43
cash
equiv…
restr…
cash
and
restr…
cash
equiv…
Net
incre…
(decr…
in
cash,
cash
equiv… 144 -8 -1,683 68
restr…
cash
and
restr…
cash
equiv…
Cash,
cash
equiv…
restr…
cash
and 7,083 8,918 8,910 8,842
restr…
cash
equiv…
begin…
of
period
Cash,
cash
equiv…
restr…
cash
and $ 7,227 $ 8,910 $ 7,227 $ 8,910
restr…
cash
equiv…
end of
period
Suppl…
cash
flow
infor…
Cash
paid $ 116 $ 130 $ 1,421 $ 1,500
for
inter…
Cash
paid
for $ 593 $ 627 $ 4,821 $ 3,892
income
taxes,
net
8
CISCO SYSTEMS, INC.
REMAINING PERFORMANCE OBLIGATIONS
(In millions, except percentages)
Ju… Ap… Ju…
25, 25, 26,
20… 20… 20…
──────────────────────────────────────────────────────────────────────────────
Am… Y/Y Am… Y/Y Am… Y…
% % %
P… $ 23… 9 % $ 22… 6 % $ 21… 8 %
S… 23… 6 % 21… 2 % 21… 5 %
T… $ 46… 7 % $ 43… 4 % $ 43… 6 %
CISCO SYSTEMS, INC.
DEFERRED REVENUE
(In millions)
July 25, April 25, July 26,
2026 2026 2025
─────────────────────────────────────────────────────────────────
Deferred revenue:
Product $ 13,817 $ 13,461 $ 13,490
Services 15,964 15,138 15,289
Total $ 29,781 $ 28,599 $ 28,779
Reported as:
Current $ 16,988 $ 16,446 $ 16,416
Noncurrent 12,793 12,153 12,363
Total $ 29,781 $ 28,599 $ 28,779
CISCO SYSTEMS, INC.
DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK
(In millions, except per-share amounts)
Q… ST… Wei…
E… DI… RE… Pri…
F… Per PR… per TOT…
2… Sh… Am… Sh… Sha… Amo… Amo…
──────────────────────────────────────────────────────────────────────────────
J…
2… $ 0.… $ 1,… 13 $ 11… $ 1,… $ 3,…
2…
A…
2… $ 0.… $ 1,… 16 $ 80… $ 1,… $ 2,…
2…
J…
2… $ 0.… $ 1,… 18 $ 76… $ 1,… $ 2,…
2…
O…
2… $ 0.… $ 1,… 29 $ 68… $ 2,… $ 3,…
2…
F…
2…
J…
2… $ 0.… $ 1,… 19 $ 64… $ 1,… $ 2,…
2…
A…
2… $ 0.… $ 1,… 25 $ 59… $ 1,… $ 3,…
2…
J…
2… $ 0.… $ 1,… 21 $ 58… $ 1,… $ 2,…
2…
O…
2… $ 0.… $ 1,… 40 $ 49… $ 2,… $ 3,…
2…
9
CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
GAAP TO NON-GAAP NET INCOME
(In millions)
Three July Fiscal July
Months 25, July 26, Year July 25, 26,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
net $ 3,859 $ 2,550 $ 13,267 $ 10,180
income
Adjus…
to
cost
of
sales:
Share…
compe… 138 150 589 584
expen…
Amort…
of
acqui… 236 233 918 1,150
intan…
assets
Acqui… 4 13 25 66
costs
Legal
and — 355 — 355
indem…
settl…
Suppl…
compo…
remed… — — — -7
charge
(adju…
Total
adjus…
to
GAAP 378 751 1,532 2,148
cost
of
sales
Adjus…
to
opera…
expen…
Share…
compe… 751 797 3,181 3,019
expen…
Amort…
of
acqui… 226 255 916 1,029
intan…
assets
Acqui… 68 104 350 791
costs
Signi…
asset
impai… 511 35 693 744
and
restr…
Total
adjus…
to 1,556 1,191 5,140 5,583
GAAP
opera…
expen…
Adjus…
to
inter…
and
other
income
(loss…
net:
(Gain…
and
losses -869 -115 -1,398 -187
on
inves…
Total
adjus…
to
GAAP
inter… -869 -115 -1,398 -187
and
other
income
(loss…
net
Total
adjus…
to
GAAP
income 1,065 1,827 5,274 7,544
before
provi…
for
income
taxes
Income
tax
effect -386 -426 -1,490 -1,682
of
non-G…
adjus…
Signi…
tax 330 — 198 -829
matte…
Total
adjus…
to
GAAP -56 -426 -1,292 -2,511
provi…
for
income
taxes
Non-G…
net $ 4,868 $ 3,951 $ 17,249 $ 15,213
income
10
CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
GAAP TO NON-GAAP EPS
Three July Fiscal July
Months 25, July 26, Year July 25, 26,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP $ 0.97 $ 0.64 $ 3.33 $ 2.55
EPS
Adjus…
to
GAAP:
Share…
compe… 0.22 0.24 0.95 0.90
expen…
Amort…
of
acqui… 0.12 0.12 0.46 0.55
intan…
assets
Acqui… 0.02 0.03 0.09 0.21
costs
Legal
and — 0.09 — 0.09
indem…
settl…
Signi…
asset
impai… 0.13 0.01 0.17 0.19
and
restr…
(Gain…
and
losses -0.22 -0.03 -0.35 -0.05
on
inves…
Income
tax
effect -0.10 -0.11 -0.37 -0.42
of
non-G…
adjus…
Signi…
tax 0.08 — 0.05 -0.21
matte…
Non-G… $ 1.22 $ 0.99 $ 4.33 $ 3.81
EPS
Amounts may not sum due to rounding .
11
CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME
(LOSS), NET, AND NET INCOME
(In millions, except percentages)
──────────────────────────────────────────────────────────────────────────────
… …
… … … …
…
$ … … … … … $
% … … … %
… … —
… … —
… … —
… … —
— — …
— — —
$ … … … … … $
% … … … %
…
…
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
…
… … … …
… … … … … … …
… … … … … … …
…
…
$ … $ … $ … $ … $ … $ … $ …
… % … % … % … % … % … % …
… … … … … — …
… — … … … — …
2 … … … … — …
… — … — … — …
— — — … … — …
— — — — — … …
— — — — — — …
$ … $ … $ … $ … $ … $ … $ …
… % … % … % … % … % … % …
Amounts may not sum and percentages may not recalculate due to rounding.
12
CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME
(LOSS), NET, AND NET INCOME
(In millions, except percentages)
──────────────────────────────────────────────────────────────────────────────
… …
… … … …
…
$ … … … … … $
% … … … %
… … —
… … —
… … —
… … —
— — …
— — —
$ … … … … … $
% … … … %
…
…
…
…
…
…
──────────────────────────────────────────────────────────────────────────────
…
… … … …
… … … … … … …
… … … … … … …
…
…
$ … $ … $ … $ … $ … $ … $ …
… % … % … % … % … % … % …
… … … … … — …
… — … … … — …
… … … … … — …
… — … — … — …
… — … — … — …
— — — … … — …
— — — — — … …
— — — — — — …
$ … $ … $ … $ … $ … $ … $ …
… % … % … % … % … % … % …
Amounts may not sum and percentages may not recalculate due to rounding.
13
CISCO SYSTEMS, INC.
RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES
EFFECTIVE TAX RATE
(In percentages)
Three July July Fiscal July July
Months 25, 26, Year 25, 26,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
effe… 21.8 % 15.0 % 17.1 % 8.3 %
tax
rate
Total
adju…
to
GAAP -3.0 % 3.1 % 1.9 % 10.1 %
prov…
for
inco…
taxes
Non-…
effe… 18.8 % 18.1 % 19.0 % 18.4 %
tax
rate
GAAP TO NON-GAAP GUIDANCE
Q1 FY 2027 Gross Margin Operating Margin Earnings per
Share(1)
GAAP 63% - 64% 28% - 29% $1.08 - $1.10
Estimated
adjustments for:
Share-based
compensation 1.0% 4.5% $0.14
expense
Amortization of
acquisition-relat…
intangible assets 1.0% 2.5% $0.09
and
acquisition/dives…
costs
Significant asset
impairments and — 0.5% $0.01
restructurings(2)
Non-GAAP 65% - 66% 35.5% - 36.5% $1.32 - $1.34
FY 2027 Earnings per Share(1)
GAAP $4.00 - $4.06
Estimated adjustments for:
Share-based compensation expense $0.60
Amortization of acquisition-related intangible $0.34
assets and acquisition/divestiture-related costs
Significant asset impairments and $0.11
restructurings(2)
Non-GAAP $5.05 - $5.11
(1) Estimated adjustments to GAAP earnings per share are shown after income tax
effects.
(2) Reflects charges related to a restructuring plan announced on May 13, 2026.
We expect this plan to be substantially completed by the end of fiscal 2027.
Except as noted above, this guidance does not include the effects of any future
acquisitions/divestitures, significant asset impairments and restructurings,
significant litigation settlements and other contingencies, gains and losses on
investments, significant tax matters, or other items, which may or may not be
significant.
14
Forward Looking Statements, Non-GAAP Information and Additional Information
This release may be deemed to contain forward-looking statements, which are
subject to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements include, among other
things, statements regarding future events (such as being well positioned to
support our customers however or wherever they decide to deploy AI, the
significant momentum and raised expectations of AI infrastructure from
hyperscalers, the broad-based high demand for Cisco technology, and the
significant growth opportunities ahead) and the future financial performance of
Cisco (including the guidance for Q1 FY 2027 and full year FY 2027) that involve
risks and uncertainties, such as the actual impact of tariffs on our guidance
for Q1 FY 2027 and full year FY 2027. Readers are cautioned that these forward-
looking statements are only predictions and may differ materially from actual
future events or results due to a variety of factors, including: business and
economic conditions and growth trends in the networking industry, our customer
markets and various geographic regions; global economic conditions and
uncertainties in the geopolitical environment; our development and use of
artificial intelligence; overall information technology spending; the growth and
evolution of the Internet and levels of capital spending on Internet-based
systems; variations in customer demand for products and services, including
sales to the service provider market, cloud, enterprise and other customer
markets; the return on our investments in certain key priority areas, and in
certain geographical locations, as well as maintaining leadership in Networking
and services; the timing of orders and manufacturing and customer lead times;
supply constraints; changes in customer order patterns or customer mix;
insufficient, excess or obsolete inventory; variability of component costs;
variations in sales channels, product costs or mix of products sold; our ability
to successfully acquire businesses and technologies and to successfully
integrate and operate these acquired businesses and technologies; our ability to
achieve expected benefits of our partnerships; increased competition in our
product and services markets, including the data center market; dependence on
the introduction and market acceptance of new product offerings and standards;
rapid technological and market change; manufacturing and sourcing risks; product
defects and returns; litigation involving patents, other intellectual property,
antitrust, stockholder and other matters, and governmental investigations; our
ability to achieve the benefits of restructurings and possible changes in the
size and timing of related charges; cyber attacks, data breaches or other
incidents; vulnerabilities and critical security defects; our ability to protect
personal data; evolving regulatory uncertainty; terrorism; natural catastrophic
events (including as a result of global climate change); any pandemic or
epidemic; our ability to achieve the benefits anticipated from our investments
in sales, engineering, service, marketing and manufacturing activities; our
ability to recruit and retain key personnel; our ability to manage financial
risk, and to manage expenses during economic downturns; risks related to the
global nature of our operations, including our operations in emerging markets;
currency fluctuations and other international factors; changes in provision for
income taxes, including changes in tax laws and regulations or adverse outcomes
resulting from examinations of our income tax returns; potential volatility in
results of operations; and other factors listed in Cisco's most recent reports
on Forms 10-Q and 10-K filed on May 19, 2026 and September 3, 2025,
respectively. The financial information contained in this release should be read
in conjunction with the consolidated financial statements and notes thereto
included in Cisco's most recent reports on Forms 10-Q and 10-K as each may be
amended from time to time. Cisco's results of operations for the three months
and the year ended July 25, 2026 are not necessarily indicative of Cisco's
results of operations for any future periods. Any projections in this release
are based on limited information currently available to Cisco, which is subject
to change. Although any such projections and the factors influencing them will
likely change, Cisco will not necessarily update the information, since Cisco
will only provide guidance at certain points during the year. Such information
speaks only as of the date of this release.
This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP
operating expenses, non-GAAP operating income and margin, non-GAAP effective tax
rates, non-GAAP interest and other income (loss), net, and non-GAAP net income
per share data for the periods presented. It also includes future estimated
ranges for gross margin, operating margin, tax provision rate and EPS on a non-
GAAP basis.
These non-GAAP measures are not in accordance with, or an alternative for,
measures prepared in accordance with generally accepted accounting principles
(GAAP) and may be different from non-GAAP measures used by other companies. In
addition, these non-GAAP measures are not based on any comprehensive set of
accounting rules or principles. Cisco believes that non-GAAP measures have
limitations in that they do not reflect all of the amounts associated with
Cisco's results of operations as determined in accordance with GAAP and that
these measures should only be used to evaluate Cisco's results of operations in
conjunction with the corresponding GAAP measures.
Cisco believes that the presentation of non-GAAP measures when shown in
conjunction with the corresponding GAAP measures, provides useful information to
investors and management regarding financial and business trends relating to its
financial condition and its historical and projected results of operations.
For its internal budgeting process, Cisco's management uses financial statements
that do not include, when applicable, share-based compensation expense,
amortization of acquisition-related intangible assets, acquisition/divestiture-
related costs, significant asset impairments and restructurings, significant
litigation settlements and other contingencies, gains and losses on investments,
the income tax effects of the foregoing and significant tax matters. Cisco's
management also uses the foregoing non-GAAP measures, in addition to the
corresponding GAAP measures, in reviewing the financial results of Cisco. In
prior periods, Cisco has excluded other items that it no longer excludes for
purposes of its non-GAAP financial measures. From time to time in the future
15
there may be other items that Cisco may exclude for purposes of its internal
budgeting process and in reviewing its financial results. For additional
information on the items excluded by Cisco from one or more of its non-GAAP
financial measures, refer to the Form 8-K regarding this release furnished today
to the Securities and Exchange Commission.
About Cisco
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Cisco has securely connected the world. With its industry leading AI-powered
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unlock innovation, enhance productivity and strengthen digital resilience. With
purpose at its core, Cisco remains committed to creating a more connected and
inclusive future for all. Discover more on The Newsroom and follow us on X at
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16