Cisco Systems delivered a solid start to calendar 2026 with revenue of $14.883 billion in Q1, up 9.1% year over year and 5.19% quarter over quarter. The company maintained a strong gross margin of approximately 65.48%, translating into an operating margin of about 22.60% and a net margin near 19.22%. Operating income rose 28.46% year over year, signaling meaningful operating leverage as the company scales software, security, and services alongside its core hardware platforms. Free cash flow generation remained robust, with $3.212 billion of cash from operating activities and an identical level of free cash flow, underscoring Cisco’s ability to convert earnings into cash, while capital returns via share repurchases (~$2.276B) and dividends (~$1.617B) continued to support shareholder value. Net debt stood at about $19.69B with a total debt of $28.09B, reflecting disciplined balance sheet management even as Cisco funds investments and returns capital to shareholders.
Key Performance Indicators
Revenue
Increasing
14.88B
QoQ: 5.19% | YoY: 9.10%
Gross Profit
Increasing
9.75B
65.48% margin
QoQ: 5.03% | YoY: 10.98%
Operating Income
Increasing
3.36B
QoQ: 5.03% | YoY: 28.46%
Net Income
Increasing
2.86B
QoQ: 14.81% | YoY: 32.28%
EPS
Increasing
0.72
QoQ: 14.29% | YoY: 33.33%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: $14.883B (YoY +9.10%, QoQ +5.19%); Gross Profit: $9.745B (YoY +10.98%, QoQ +5.03%), Gross Margin: 65.48%; Operating Income: $3.363B (YoY +28.46%, QoQ +5.03%), Operating Margin: 22.60%; Net Income: $2.860B (YoY +32.28%, QoQ +14.81%), Net Margin: 19.22%; EPS: $0.72 (YoY +33.33%, QoQ +14.29%); EBITDA: $4.347B; EBITDARatio: 29.21%; Cash from Operations: $3.212B; Free Cash Flow: $3.212B; Cash at End of Period: $8.401B; Dividends Paid: $1.617B; Shares Repurchased: $2.276B; Net Change in Cash: -$0.509B; Total Assets: $121.102B; Total Liabilities: $74.229B; Stockholders’ Equity: $46.873B; Cash and Cash Equivalents: $8.400B; Net Debt: ~$19.689B; Deferred Revenue: $15.801B (current)
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
14.88B
9.10%
5.19%
Gross Profit
9.75B
10.98%
5.03%
Operating Income
3.36B
28.46%
5.03%
Net Income
2.86B
32.28%
14.81%
EPS
0.72
33.33%
14.29%
Key Financial Ratios
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