Cisco delivered a solid QQ1 2026 performance with durable profitability and robust free cash flow generation. Revenue reached $14.883 billion, up 6.38% year over year and 1.43% quarter over quarter, supported by strength across core networking offerings and an expanding software/services mix. Gross margin remained elevated at approximately 65.5%, underpinning an operating margin near 22.6% and net margin around 19.2%, yielding earnings per share of $0.72. The company continued to deploy capital toward repurchases and dividends, resulting in a net cash outflow from financing activities despite strong operating cash flow and an overall liquidity position that includes roughly $15.736 billion in cash and short-term investments.
From a balance sheet perspective, Cisco retains substantial scale with total assets of $121.102 billion and total liabilities of $74.229 billion, leaving stockholders’ equity of $46.873 billion. The firm exhibits a healthy, yet leverage-forward, structure with total debt of $28.089 billion and net debt of $19.689 billion. Deferred revenue sits at $15.801 billion, reflecting a strong software and services backlog that supports near-term revenue visibility. Management commentary on QQ1 2026 commentary emphasized continued demand for core networking platforms, data center expansion, collaboration and security solutions, and a disciplined approach to cost control and capital allocation. Investors should monitor software revenue growth, the pace of deferred revenue conversion, cash flow trajectory, and the evolution of the company’s balance sheet as Cisco navigates a competitive and cyclical IT environment.