Cisco (CSCO)
Information Technology · $386B market cap · SEC CIK 0000858877
ahead of 41% of the S&P 500 · #47 of 73 in Information Technology
Next reports on Nov 12, 2026, after the close, with analysts expecting $1.35 in earnings per share.
52-week range $70.54 to $130.37. 25% below its 52-week high and 39% above its low.
The case for CSCO
- Earns 27% back on shareholder equity.
- Generated $12.8B of free cash flow in FY2026, 20% of revenue.
- 21% of revenue drops through to net profit.
- Revenue growing 11.8% year over year.
- Earnings per share up 30.8%.
- Pays a 3.2% dividend while you wait.
The case against
- Current liabilities exceed current assets (ratio 0.93).
- Growth is weak (40/100): revenue +11.8%, EPS +30.8%, +4.9% a year over five years.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 45 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 40 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 61 |
| Momentumhow the price has behaved lately | 47 |
| Stabilityhow violently it moves, what it owes and what it pays you | 82 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +11.8% |
|---|---|
| Over 5 years | +4.9% a year |
| FY2026 revenue | $63.3B (+12%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2026 free cash flow | $12.8B |
|---|---|
| Of revenue | 20% |
| Of profit | 96% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 65% |
|---|---|
| Operating margin | 24% |
| Net margin, FY25 → FY26 → now | 18.0% → 21.0% → 20.9% |
Debt vs. cash
Is the balance sheet healthy? Yes, the debt is manageable
| Cash | $7.2B |
|---|---|
| Long-term debt | $19.4B |
| Net debt | $12.2B |
| Years to repay | 1.4 yrs |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 29.1× |
|---|---|
| Fair P/E for its growth | 24× |
| P/FCF | 30.3× |
| Forward P/E | 20.0× |
| EV / EBITDA | 25.1× |
At 29.1× earnings it trades above the 24× that 8% a year of growth plus a 3.2% dividend would justify. At 30.3× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Cisco's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2026 | FY2025 | FY2024 | FY2023 | FY2022 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $63.3B | $56.7B | $53.8B | $57.0B | $51.6B |
| Change on the year | +12% | +5% | −6% | +11% | — |
| Free cash flow | |||||
| Free cash flow | $12.8B | $13.3B | $10.2B | $19.0B | $12.7B |
| Of revenue | 20% | 23% | 19% | 33% | 25% |
| Profit margins | |||||
| Gross margin | 64.5% | 64.9% | 64.7% | 62.7% | 62.5% |
| Operating margin | 24.3% | 20.8% | 22.6% | 26.4% | 27.1% |
| Net margin | 21.0% | 18.0% | 19.2% | 22.1% | 22.9% |
| Debt vs. cash | |||||
| Cash | $7.2B | $8.3B | $7.5B | $10.1B | $7.1B |
| Long-term debt | $19.4B | $22.9B | $19.6B | $6.7B | $8.4B |
| Net cash (debt) | −$12.2B | −$14.5B | −$12.1B | $3.5B | −$1.3B |
What Cisco says it does
Cisco designs and sells a broad range of technologies including hardware, software, and artificial intelligence (AI) powered digital infrastructure to power, help secure, and draw insights from the Internet. We are incorporating AI into our product portfolios across networking, security, collaboration and observability, as well as integrating our products more tightly together into a platform. We are simplifying how our technology is delivered, managed and optimized and helping customers maximize the business value of their technology investments. We conduct our business globally and manage our business by geography. Our business is organized into the following three geographic segments: Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific, Japan, and China (APJC). Our products and technologies are grouped into the following categories: Networking, Security, Collaboration and Observability. In addition to our product…