Cisco Systems, Inc.
- Open
- 109.05
- Day high
- 113.23
- Day low
- 108.91
- Prev close
- 109.66
- Volume
- 24.1M
- Mkt cap
- $442.2B
- P/E (TTM)
- 37.1
- EPS (TTM)
- $3.02
- P/B
- 9.0
- P/S
- 7.3
- Yield
- 1.48%
- Per share
- $1.66
- ▼Insiders net selling -$7.1M over the last 3 months (0 open-market buys, 27 sales)
- 🏛Institutions mixed (13F)
Cisco Systems, Inc. (CSCO) is a Technology company listed on NASDAQ. The stock is up 64% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 27 sales (SEC Form 4). Drillr has 1 published research article covering CSCO.
Cisco Systems, Inc. (CSCO) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 13 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CSCO earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 13, 2026 | $1.03 | $1.06 | +2.9% | $15.8B | +1.8% |
| Feb 11, 2026 | $1.02 | $1.04 | +2.0% | $15.3B | +1.6% |
| Nov 12, 2025 | $0.98 | $1.00 | +1.8% | $14.9B | +0.7% |
| Aug 13, 2025 | $0.98 | $0.99 | +1.3% | $14.7B | +0.4% |
| May 14, 2025 | $0.92 | $0.96 | +4.7% | $14.1B | +0.7% |
| Feb 12, 2025 | $0.91 | $0.94 | +3.3% | $14.0B | +0.9% |
| Aug 14, 2024 | $0.85 | $0.87 | +2.5% | $13.6B | +0.8% |
| May 15, 2024 | $0.83 | $0.88 | +6.3% | $12.7B | +1.3% |
| Feb 14, 2024 | $0.84 | $0.87 | +3.7% | $12.8B | +0.7% |
| Nov 15, 2023 | $1.03 | $1.11 | +7.8% | $14.7B | +6.4% |
| Aug 16, 2023 | $1.06 | $1.14 | +7.5% | $15.2B | +1.0% |
| May 17, 2023 | $0.97 | $1.00 | +3.1% | $14.6B | +1.2% |
CSCO insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 17, 2026 | Subaiya Thimaya K.officer: EVP, Operations | Sell | 1,908 | $120.51 |
| Jun 17, 2026 | Subaiya Thimaya K.officer: EVP, Operations | Sell | 5,219 | $119.69 |
| Jun 16, 2026 | JOHNSON KRISTINA Mdirector | Grant | 351 | $120.17 |
| Jun 16, 2026 | Tessel Mariannadirector | Grant | 251 | $120.17 |
| Jun 16, 2026 | Weil Kevindirector | Grant | 251 | $120.17 |
| Jun 11, 2026 | Tuszik Oliverofficer: EVP, Global Sales | Tax | 5,543 | $120.36 |
| Jun 11, 2026 | Subaiya Thimaya K.officer: EVP, Operations | Tax | 1,715 | $120.36 |
| Jun 11, 2026 | Tuszik Oliverofficer: EVP, Global Sales | Sell | 700 | $120.51 |
| Jun 11, 2026 | Patterson Markofficer: EVP and CFO | Sell | 1,600 | $118.36 |
| Jun 11, 2026 | Tuszik Oliverofficer: EVP, Global Sales | Sell | 400 | $119.59 |
| Jun 11, 2026 | Patterson Markofficer: EVP and CFO | Sell | 851 | $119.44 |
| Jun 11, 2026 | Patterson Markofficer: EVP and CFO | Tax | 6,399 | $120.36 |
| Jun 11, 2026 | Tuszik Oliverofficer: EVP, Global Sales | Sell | 1,407 | $121.77 |
| Jun 11, 2026 | Patterson Markofficer: EVP and CFO | Sell | 2,546 | $121.75 |
| Jun 11, 2026 | Tuszik Oliverofficer: EVP, Global Sales | Sell | 100 | $122.44 |
Source: CSCO SEC Form 4 filings, latest Jun 17, 2026. For informational purposes only — not investment advice.
See the full CSCO insider & 13F page →Cisco Systems, Inc. company profile
Overview
Cisco Systems, Inc. (NASDAQ:CSCO) is a multinational technology corporation founded in 1984 and headquartered in San Jose, California. The company went public in 1990 and has established itself as a dominant force in networking infrastructure and communications technology. Originally focused on routing equipment that enabled the growth of the internet, Cisco has evolved into a comprehensive technology platform provider serving businesses, governments, and service providers globally. Through strategic acquisitions and organic innovation, the company has expanded beyond its networking roots into security, collaboration, cloud services, and artificial intelligence infrastructure.
Business
Cisco operates as a comprehensive technology infrastructure provider, designing and manufacturing internet protocol-based networking equipment and related communications technology products. The company's core business revolves around enabling digital connectivity and secure communications for organizations of all sizes. Networking Infrastructure represents Cisco's largest business segment, encompassing switching and routing equipment that forms the backbone of modern digital networks. Campus switching products connect devices within office buildings and corporate campuses, while data center switching handles the massive data flows within cloud computing facilities. Enterprise routing products interconnect different networks, enabling secure communication between offices, data centers, and cloud services. This segment also includes wireless access points and controllers that provide Wi-Fi connectivity. The networking segment typically accounts for approximately 50-60% of total revenue. Security Solutions have become increasingly important, especially following Cisco's $28 billion acquisition of Splunk in 2024. This segment includes network security appliances, identity and access management systems, secure access service edge (SASE) solutions, and threat intelligence platforms. Splunk's data analytics and observability capabilities significantly expanded Cisco's security portfolio. The security segment now represents roughly 25-30% of total revenue. Collaboration Products center around the Webex suite of video conferencing and communication tools, collaboration devices for meeting rooms, contact center solutions, and communication platform services. These products enable remote work and digital collaboration, competing with platforms like Microsoft Teams and Zoom. This segment accounts for approximately 15-20% of revenue. Observability and Analytics solutions help organizations monitor, analyze, and optimize their network and application performance. This includes network assurance tools, monitoring systems, and analytics platforms that provide insights into network health and user experience. This segment represents roughly 5-10% of total revenue.
Revenue model
Cisco generates revenue through multiple complementary business models that have evolved toward recurring revenue streams. Product sales constitute the traditional foundation, where customers purchase networking hardware, security appliances, and collaboration devices. However, the company has strategically shifted toward subscription-based services, which now represent approximately 56-57% of total revenue as of recent quarters. The subscription model includes software licenses, cloud-based services, ongoing security updates, and managed services. This recurring revenue approach provides more predictable cash flows and deeper customer relationships. Professional services generate additional revenue through implementation, consulting, and technical support offerings that help customers deploy and optimize their technology investments. Cisco's customer base spans multiple segments with different purchasing patterns. Enterprise customers typically make large, planned infrastructure investments with multi-year contracts. Service providers and telecommunications companies purchase equipment for their network infrastructure. Web-scale cloud providers like Amazon, Google, and Microsoft represent a growing segment, particularly for AI infrastructure and data center networking equipment. Government and public sector customers provide steady demand with longer procurement cycles. Several factors influence Cisco's profitability margins. Positive factors include the shift to higher-margin software and services, the ability to command premium pricing due to market leadership, economies of scale in manufacturing, and strong customer switching costs due to network complexity. Negative pressures include component cost inflation, supply chain disruptions, competitive pricing pressure from vendors like Arista and Juniper, tariff impacts on manufacturing costs, and the need for continuous research and development investment to maintain technological leadership. The company's gross margins have improved significantly, reaching nearly 70% in recent quarters, reflecting the successful transition toward software and services.
Competitive moat
Cisco maintains a substantial competitive moat built on several interconnected advantages, though this moat faces increasing challenges in certain market segments. The company's primary moat stems from network effects and switching costs. Once organizations deploy Cisco networking infrastructure, replacing it requires significant time, expertise, and capital investment. Network administrators develop deep familiarity with Cisco's operating systems and management tools, creating human capital lock-in. Ecosystem integration strengthens this moat, as Cisco's products are designed to work seamlessly together across networking, security, and collaboration functions. This integration complexity makes it difficult for customers to adopt point solutions from competitors without sacrificing operational efficiency. The company's extensive partner ecosystem of system integrators, resellers, and service providers further reinforces customer relationships. Scale advantages in research and development allow Cisco to invest heavily in emerging technologies like AI infrastructure and advanced silicon development. The company's Silicon One chip architecture exemplifies this advantage, providing performance capabilities that smaller competitors struggle to match. Additionally, Cisco's global manufacturing and supply chain scale enables competitive pricing despite premium positioning. However, this moat faces meaningful challenges. In cloud networking, companies like Arista have gained market share by offering more specialized, software-defined solutions. Software-defined networking and cloud-native architectures reduce the importance of proprietary hardware, potentially commoditizing portions of Cisco's traditional business. Hyperscale cloud providers increasingly develop their own networking solutions, reducing dependence on external vendors. The security segment presents both opportunities and risks for Cisco's moat. While the Splunk acquisition significantly expanded capabilities, the security market remains highly fragmented with numerous specialized competitors. The collaboration market faces intense competition from Microsoft Teams, which benefits from Office 365 integration, and other focused providers. Overall, Cisco's moat remains strong but is gradually weakening in certain segments as the industry shifts toward software-defined, cloud-native architectures that reduce switching costs and enable more competitive dynamics.
Risks & safety
Overall Assessment: Cisco demonstrates strong financial stability with solid cash generation and manageable debt levels, though current valuation metrics suggest limited margin of safety. Liquidity and Solvency: • Cash and short-term investments: $8.2 billion as of Q3 2025 • Strong free cash flow generation: $4.5 billion in Q3 2025, $10.2 billion annually in FY2024 • Current ratio of 0.95 indicates tight but manageable short-term liquidity • Debt-to-equity ratio of 0.64 represents moderate leverage levels • No immediate solvency concerns given consistent cash generation Valuation Metrics: • Price-to-earnings ratio: 22.7x based on recent quarters • Price-to-book ratio: 4.9x suggests premium valuation • EV/EBITDA: Negative in Q3 2025 due to acquisition-related charges, normalized around 14-17x historically • Trading above Graham number of $12.75, indicating limited value opportunity Other Considerations: • Consistent dividend payments and share repurchases demonstrate capital allocation discipline • Strong recurring revenue base (56-57% of total) provides earnings stability • Exposure to cyclical enterprise spending and technology refresh cycles • Integration risks from large Splunk acquisition may impact near-term performance
Recent development
Over the past few years, Cisco has undergone significant strategic transformation centered around three key initiatives. The most substantial development was the $28 billion acquisition of Splunk completed in 2024, dramatically expanding Cisco's security and observability capabilities. This acquisition transformed Cisco's security segment, driving over 100% growth and establishing the company as a major player in data analytics and cybersecurity. The company has aggressively pivoted toward artificial intelligence infrastructure, recognizing AI as a transformational opportunity. Cisco exceeded $1 billion in AI infrastructure orders ahead of schedule, primarily from web-scale cloud providers deploying AI training and inference systems. The company developed specialized Silicon One chips optimized for AI workloads and partnered with NVIDIA to create unified AI architectures. Strategic partnerships in the Middle East with companies like HUMAIN and G42 further expanded AI infrastructure opportunities. Organizational restructuring has been another major theme, with Cisco consolidating its networking, security, and collaboration teams to accelerate innovation and create more integrated solutions. The company announced a 7% workforce reduction in 2024 to reallocate resources toward high-growth areas. Leadership changes included promoting Jeetu Patel to President and Chief Product Officer, and appointing Mark Patterson as the new CFO to replace retiring Scott Herren. Product innovation has focused on AI-native solutions, including the launch of Hypershield, described as the first distributed AI-native cybersecurity platform. The company introduced AI Defense for enterprise AI application security and developed new data center switches with embedded programmable data processing units. Cisco also launched Wi-Fi 7 platforms and advanced its Agile Services Networking architecture. The strategic shift toward recurring revenue has accelerated, with subscription revenue now representing 56-57% of total revenue. This transformation includes expanding software offerings, cloud-based services, and managed solutions that provide more predictable revenue streams and stronger customer relationships.
CSCO company profile · for informational purposes only — not investment advice.
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