Cisco delivered a solid QQ1 2026 performance characterized by healthy revenue growth, robust gross margins, and meaningful operating leverage. Revenue reached $14.883 billion, up 7.53% year over year and 5.19% quarter over quarter, with gross profit of $9.745 billion and a gross margin of roughly 65.5%. Operating income was $3.363 billion, yielding an operating margin of about 22.6%, while net income stood at $2.86 billion and EPS at $0.72, signaling durable profitability amid a competitive and evolving networking market. Cash flow remains a strength, with $3.212 billion from operating activities and $2.012 billion in free cash flow contributing to a strong liquidity position and conservative capital allocation.
Balance sheet health remains robust, with total cash and short-term investments of $15.736 billion and cash at period end of $8.401 billion. Total debt stands at $28.089 billion, resulting in a net debt position of approximately $19.689 billion. The company returned capital to shareholders via $2.276 billion of share repurchases and $1.617 billion in dividends, while maintaining a disciplined approach to investing in R&D and go-to-market activities. Management did not publish explicit numeric forward guidance in the data provided, but highlighted ongoing focus on core networking platforms, security, collaboration, and related software offerings as key long-term growth drivers.
Overall, the QQ1 2026 results reflect Cisco’s ability to grow revenue while expanding margins, sustain strong cash generation, and pursue a strategic mix shift toward higher-value software and security solutions, supported by a solid balance sheet and resilient capital allocation framework.