AI Earnings Predictions for Cisco Systems Inc. (DE) (CSCO)

EX-99.1

2 exhibit991pressrelease-q4f.htm

EX-99.1

Document

Press Contact:Investor Relations Contact:

Robyn BlumSami Badri

CiscoCisco

1 (408) 930-85481 (469) 420-4834

rojenkin@cisco.comsambadri@cisco.com

CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2026 EARNINGS

News Summary:

•Record top and bottom-line performance with double-digit growth in Q4 and FY 2026, exceeding the high end of guidance ranges

•Exceptional FY 2026 operating margin results, demonstrating strong execution and operating efficiency

•Broad-based, record high demand for Cisco technology with a networking supercycle underway

◦Q4 total product orders up 35% year over year; up 25% excluding hyperscalers, with double-digit growth across every geography and customer market

◦Networking product orders grew 40% year over year in Q4, marking the eighth consecutive quarter of double-digit growth

•Significant momentum and raised expectations for AI infrastructure from hyperscalers

◦$4 billion of orders taken in Q4, bringing the total for FY 2026 to $9.3 billion

◦Delivered approximately $4 billion of revenue in FY 2026; $7.5 billion expected in FY 2027

•Q4 FY 2026 Results:

◦Revenue: $17.3 billion

▪Increase of 18% year over year

◦Operating Margin: GAAP: 24.7%; Non-GAAP: 35.9%

◦Earnings per Share: GAAP: $0.97; Non-GAAP: $1.22

▪GAAP EPS increased 52% year over year

▪Non-GAAP EPS increased 23% year over year

•FY 2026 Results:

◦Revenue: $63.3 billion

▪Increase of 12% year over year

◦Operating Margin: GAAP: 24.3%; Non-GAAP: 34.8%

◦Earnings per Share: GAAP: $3.33; Non-GAAP: $4.33

▪GAAP EPS increased 31% year over year

▪Non-GAAP EPS increased 14% year over year

•Q1 FY 2027 Guidance:

◦Revenue: $18.0 billion to $18.2 billion

◦Earnings per Share: GAAP: $1.08 to $1.10; Non-GAAP: $1.32 to $1.34

•FY 2027 Guidance:

◦Revenue: $72.2 billion to $73.4 billion

◦Earnings per Share: GAAP: $4.00 to $4.06; Non-GAAP: $5.05 to $5.11

1

SAN JOSE, Calif. -- August 12, 2026 -- Cisco (NASDAQ: CSCO) today reported fourth quarter and fiscal year results for the period ended July 25, 2026. Cisco reported fourth quarter revenue of $17.3 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.9 billion or $0.97 per share, and non-GAAP net income of $4.9 billion or $1.22 per share.

“We delivered a very strong close to fiscal 2026, marking another record year for Cisco. Our record performance is a testament to the accelerated pace of innovation and the excellent execution by our teams,” said Chuck Robbins, Chair and CEO of Cisco. “With the breadth and depth of our portfolio and our competitive differentiation in secure networking, Cisco is well positioned to support our customers however or wherever they decide to deploy AI.”

“In Q4, we delivered record revenue, non-GAAP operating income and EPS, all exceeding the high end of our guidance ranges and demonstrating strong financial discipline and operating leverage,” said Mark Patterson, CFO of Cisco. “In fiscal 2026, Cisco achieved its highest productivity metrics in 30 years measured by revenue, non-GAAP operating margin, and earnings per employee. As we enter fiscal 2027, we remain focused on delivering durable growth, consistent profitability and continued capital returns as we make the strategic investments to capitalize on the significant growth opportunities we see ahead.”

Q4 GAAP Results

Q4 FY 2026Q4 FY 2025Vs. Q4 FY 2025

Revenue$17.3   billion$14.7   billion18%

Net Income$3.9   billion$2.6   billion51%

Diluted Earnings per Share (EPS)$0.97 $0.64 52%

Q4 Non-GAAP Results

Q4 FY 2026Q4 FY 2025Vs. Q4 FY 2025

Net Income$4.9   billion$4.0   billion23%

EPS$1.22 $0.99 23%

Fiscal Year GAAP Results

FY 2026FY 2025Vs. FY 2025

Revenue$63.3   billion$56.7   billion12%

Net Income$13.3   billion$10.2   billion30%

EPS$3.33 $2.55 31%

Fiscal Year Non-GAAP Results

FY 2026FY 2025Vs. FY 2025

Net Income$17.2   billion$15.2   billion13%

EPS$4.33 $3.81 14%

Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled "Reconciliations of GAAP to non-GAAP Measures."

Cisco Declares Quarterly Dividend

Cisco has declared a quarterly dividend of $0.42 per common share to be paid on October 21, 2026, to all stockholders of record as of the close of business on October 2, 2026. Future dividends will be subject to Board approval.

2

Financial Summary

All comparative percentages are on a year-over-year basis unless otherwise noted.

Q4 FY 2026 Highlights

Revenue -- Total revenue was $17.3 billion, up 18%, with product revenue up 24% and services revenue was flat.

Revenue by geographic segment was: Americas up 18%, EMEA up 19%, and APJC up 14%. Product revenue performance reflected growth in Networking up 28%, Security up 14%, Collaboration up 12%, and Observability up 6%.

Gross Margin -- On a GAAP basis, total gross margin, product gross margin, and services gross margin were 64.1%, 62.6%, an

SEC.gov | Request Rate Threshold Exceeded

U.S. Securities and Exchange Commission

You’ve Exceeded the SEC’s Traffic Limit

Your request rate has exceeded the SEC’s maximum allowable requests per second. Your access to SEC.gov will be limited for 10 minutes.

Current guidelines limit each user to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests. To ensure that SEC.gov remains available to all users, we reserve the right to block IP addresses that submit excessive requests.

The block will be lifted automatically by waiting 10 minutes. Continuing to exceed the SEC’s maximum allowable request rate during the time-out period will extend the duration of the time-out period. To ensure fair access for all users, please reduce the rate of your requests and visit SEC.gov again after the 10 minute time-out period has passed.

For best practices on efficiently downloading information from SEC.gov, including the latest EDGAR filings, visit sec.gov/developer. You can also sign up for email updates on the SEC open data program, including best practices that make it more efficient to download data, and SEC.gov enhancements that may impact scripted downloading processes. For more information, contact opendata@sec.gov.

For more information, please see the SEC’s Web Site Privacy and Security Policy. Thank you for your interest in the U.S. Securities and Exchange Commission.

Reference ID: 0.e618d017.1784727398.8359205

More Information

Internet Security Policy

By using this site, you are agreeing to security monitoring and auditing. For security purposes, and to ensure that the public service remains available to users, this government computer system employs programs to monitor network traffic to identify unauthorized attempts to upload or change information or to otherwise cause damage, including attempts to deny service to users.

Unauthorized attempts to upload information and/or change information on any portion of this site are strictly prohibited and are subject to prosecution under the Computer Fraud and Abuse Act of 1986 and the National Information Infrastructure Protection Act of 1996 (see Title 18 U.S.C. §§ 1001 and 1030).

To ensure our website performs well for all users, the SEC monitors the frequency of requests for SEC.gov content to ensure automated searches do not impact the ability of others to access SEC.gov content. We reserve the right to block IP addresses that submit excessive requests. Current guidelines limit users to a total of no more than 10 requests per second, regardless of the number of machines used to submit requests.

If a user or application submits more than 10 requests per second, further requests from the IP address(es) may be limited for a brief period. Once the rate of requests has dropped below the threshold for 10 minutes, the user may resume accessing content on SEC.gov. This SEC practice is designed to limit excessive automated searches on SEC.gov and is not intended or expected to impact individuals browsing the SEC.gov website.

Note that this policy may change as the SEC manages SEC.gov to ensure that the website performs efficiently and remains available to all users.

Note: We do not offer technical support for developing or debugging scripted downloading processes.

csco-20260211false000085887700008588772026-02-112026-02-11

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): February 11, 2026

CISCO SYSTEMS, INC.

(Exact name of registrant as specified in its charter)

Delaware (State or other jurisdiction of incorporation) 001-39940 (Commission File Number) 77-0059951 (IRS Employer Identification No.)

170 West Tasman Drive, San Jose, California 95134-1706

(Address of principal executive offices) (Zip Code) (408) 526-4000

(Registrant's telephone number, including area code)

Not Applicable (Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common Stock, par value $0.001 per share

CSCO

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter). Emerging growth company    ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐

Item 2.02 Results of Operations and Financial Condition.

On February 11, 2026, Cisco Systems, Inc. (“Cisco”) reported its results of operations for its fiscal second quarter 2026 ended January 24, 2026. A copy of the press release issued by Cisco concerning the foregoing results is furnished herewith as Exhibit 99.1.

The information contained herein and in the accompanying exhibit shall not be incorporated by reference into any filing of Cisco, whether made before or after the date hereof, regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference to such filing. The information in this report, including the exhibit hereto, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section or Sections 11 and 12(a)(2) of the Securities Act of 1933, as amended.

The attached exhibit includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco's results of operations in conjunction with the corresponding GAAP measures.

Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition-related/divestiture costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies (such as legal and indemnification set