Cisco delivered a solid QQ1 2026 with revenue of $14.883 billion, up 7.5% year over year and 5.2% versus the prior quarter, underpinned by strength across core networking and related software offerings. Gross margin stood at 65.5%, supporting an operating income of $3.363 billion and a net income of $2.86 billion (EPS $0.72). The quarter showcased meaningful free cash flow generation of $3.212 billion, driving a durable cash position despite ongoing selective share repurchases and a sizable debt load. Deferred revenue remained robust at $15.801 billion, signaling revenue visibility and customer adoption of software and subscription-based offerings. Cisco also continued to allocate capital toward stock repurchases ($2.276 billion) and dividends ($1.617 billion), while capital expenditure remained moderate at $0.323 billion, leaving free cash flow well above debt service needs.