Cisco Systems (CSCO) Q1 FY2026 earnings: revenue $14.9 billion, up 7.5% on the year

Cisco Systems, Inc. (CSCO) reported revenue of $14.9 billion for Q1 FY2026, the quarter ended 25 October 2025, up 7.5% on the same quarter a year earlier. Net income was $2.9 billion, up 5.5% on the year, and diluted earnings per share $0.72. The figures are the company's own, from the 10-Q it filed with the SEC on 18 November 2025.

Revenue

$14.9 billion

+7.5% on the year · +1.4% on the quarter

Q2 FY2024Q1 FY2026

Operating margin

22.6%

17.0% a year earlier

Q2 FY2024Q1 FY2026

Net income

$2.9 billion

+5.5% on the year · +12.2% on the quarter

Q2 FY2024Q1 FY2026

Diluted EPS

$0.72

+5.9% on the year · +12.5% on the quarter

Q2 FY2024Q1 FY2026

this quarterthe same quarter a year earlierHover a bar for its figure.

What management said

Guidance figures: 3 raised, 1 lowered, 8 new, 1 kept.

Revenue rose 8% to $14.9 billion: Revenue was $14.9 billion, up 8% from $13.8 billion, with product revenue up 10% and services revenue up 2%.
Non-GAAP EPS above guidance range: Non-GAAP EPS was $1.00, up 10%, and GAAP EPS was $0.72, up 6%. Non-GAAP EPS was above the high end of the guidance ranges.
Networking grew, security and collaboration fell: Networking rose 15% and Observability rose 6%. Security fell 2% and Collaboration fell 3%.

Read the earnings call summary

Income statement (profit and loss)

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Revenue	14,883	14,673	13,841	+1.4%	+7.5%
Cost of revenue	5,138	5,393	4,720	-4.7%	+8.9%
Gross profit	9,745	9,280	9,121	+5.0%	+6.8%
Gross margin	65.5%	63.2%	65.9%
Research and development	2,400	2,380	2,286	+0.8%	+5.0%
Operating income	3,363	3,087	2,358	+8.9%	+42.6%
Operating margin	22.6%	21.0%	17.0%
Interest expense	350	368	418	-4.9%	-16.3%
Pre-tax income	3,391	2,999	2,267	+13.1%	+49.6%
Income tax	531	449	-444	+18.3%
Effective tax rate	15.7%	15.0%	-19.6%
Net income	2,860	2,550	2,711	+12.2%	+5.5%
Net margin	19.2%	17.4%	19.6%
Diluted EPS	$0.72	$0.64	$0.68	+12.5%	+5.9%

$ million except per share.

Fourth quarters are the year less the first three quarters. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.

Cash flow

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Operating cash flow	3,212	4,234	3,661	-24.1%	-12.3%
Capital expenditure	323	217	217	+48.8%	+48.8%
Free cash flow	2,889	4,017	3,444	-28.1%	-16.1%
Free cash flow margin	19.4%	27.4%	24.9%
Cash from investing	156	-273	479		-67.4%
Cash from financing	-3,863	-3,949	-2,784
Share-based compensation	1,055	948	827	+11.3%	+27.6%
Buybacks	1,992	1,252	2,003	+59.1%	-0.5%
Dividends paid	1,617	1,625	1,592	-0.5%	+1.6%
Dividend per share	$0.41	n/a	$0.40		+2.5%
Diluted shares, weighted	3,993m	3,998m	4,013m	-0.1%	-0.5%
Shares outstanding at period end	3,938m	3,960m	3,974m	-0.6%	-0.9%

Cash flow lines for the quarter; where the company files them year to date, the quarter is the difference between two filings.

Balance sheet

$ million	Q1 FY2026	Q4 FY2025	Q1 FY2025	On the quarter	On the year
Shareholders' equity	46,873	46,843	45,277	+0.1%	+3.5%
Debt	28,089	28,093	31,987	-0.0%	-12.2%
Operating lease liabilities	1,145	1,175	938	-2.6%	+22.1%
Other liabilities	44,995	46,180	45,131	-2.6%	-0.3%
Total liabilities and equity	121,102	122,291	123,333	-1.0%	-1.8%
Fixed assets	2,248	2,113	2,082	+6.4%	+8.0%
Goodwill	59,119	59,136	58,774	-0.0%	+0.6%
Intangible assets	8,713	9,175	10,744	-5.0%	-18.9%
Investments	7,336	7,764	9,606	-5.5%	-23.6%
Cash and equivalents	8,400	8,346	9,065	+0.6%	-7.3%
Receivables	4,827	6,701	4,457	-28.0%	+8.3%
Inventory	3,395	3,164	3,143	+7.3%	+8.0%
Other assets	27,064	25,892	25,462	+4.5%	+6.3%
Total assets	121,102	122,291	123,333	-1.0%	-1.8%

Questions

What was Cisco Systems' revenue in Q1 FY2026?

Cisco Systems (CSCO) reported revenue of $14.9 billion for Q1 FY2026, the quarter ended 25 October 2025, up 7.5% on the same quarter a year earlier.

How much did Cisco Systems earn in Q1 FY2026?

Net income for Q1 FY2026 was $2.9 billion, up 5.5% on the year, and diluted earnings per share $0.72.

When did Cisco Systems report Q1 FY2026 results?

Cisco Systems filed its 10-Q for the quarter ended 25 October 2025 with the SEC on 18 November 2025.

Quarterly results, the last 20 quarters

	Q1 FY2022	Q2 FY2022	Q3 FY2022	Q4 FY2022 *	Q1 FY2023	Q2 FY2023	Q3 FY2023	Q4 FY2023 *	Q1 FY2024	Q2 FY2024	Q3 FY2024	Q4 FY2024 *	Q1 FY2025	Q2 FY2025	Q3 FY2025	Q4 FY2025 *	Q1 FY2026	Q2 FY2026	Q3 FY2026	Q4 FY2026 *
Revenue	12,900	12,720	12,835	13,102	13,632	13,592	14,571	15,203	14,668	12,791	12,702	13,642	13,841	13,991	14,149	14,673	14,883	15,349	15,841	17,252
Cost of revenue	4,847	4,671	4,714	5,077	5,286	5,165	5,339	5,455	5,111	4,574	4,429	4,861	4,720	4,880	4,871	5,393	5,138	5,377	5,761	6,189
Gross profit	8,053	8,049	8,121	8,025	8,346	8,427	9,232	9,748	9,557	8,217	8,273	8,781	9,121	9,111	9,278	9,280	9,745	9,972	10,080	11,063
Gross margin	62%	63%	63%	61%	61%	62%	63%	64%	65%	64%	65%	64%	66%	65%	66%	63%	65%	65%	64%	64%
R&D	1,714	1,670	1,708	1,682	1,781	1,855	1,962	1,953	1,913	1,943	1,948	2,179	2,286	2,299	2,335	2,380	2,400	2,355	2,377	2,431
Operating income	3,438	3,487	3,610	3,434	3,540	3,292	3,946	4,253	4,276	3,096	2,191	2,618	2,358	3,113	3,202	3,087	3,363	3,781	3,960	4,264
Operating margin	27%	27%	28%	26%	26%	24%	27%	28%	29%	24%	17%	19%	17%	22%	23%	21%	23%	25%	25%	25%
Interest expense	89.0	88.0	90.0	93.0	100	107	109	111	111	120	357	418	418	404	403	368	350	370	377	373
Pre-tax income	3,657	3,603	3,801	3,416	3,475	3,415	3,957	4,471	4,442	3,161	2,235	2,396	2,267	2,887	2,947	2,999	3,391	3,646	4,039	4,933
Tax rate	19%	17%	20%	18%	23%	19%	19%	11%	18%	17%	16%	10%	-20%	16%	15%	15%	16%	13%	16%	22%
Net income	2,980	2,973	3,044	2,815	2,670	2,773	3,212	3,958	3,638	2,634	1,886	2,162	2,711	2,428	2,491	2,550	2,860	3,175	3,373	3,859
Net margin	23%	23%	24%	21%	20%	20%	22%	26%	25%	21%	15%	16%	20%	17%	18%	17%	19%	21%	21%	22%
Diluted EPS	$0.70	$0.71	$0.73	$0.68	$0.65	$0.67	$0.78	$0.97	$0.89	$0.65	$0.46	$0.54	$0.68	$0.61	$0.62	$0.64	$0.72	$0.80	$0.85	$0.97
Operating cash flow	3,427	2,461	3,661	3,677	3,962	4,739	5,219	5,966	2,371	808	3,971	3,730	3,661	2,241	4,057	4,234	3,212	1,822	3,757	5,386
Capital expenditure	122	110	106	139	176	170	270	233	134	170	168	198	217	210	261	217	323	283	414	390
Free cash flow	3,305	2,351	3,555	3,538	3,786	4,569	4,949	5,733	2,237	638	3,803	3,532	3,444	2,031	3,796	4,017	2,889	1,539	3,343	4,996
Buybacks	273	4,832	242	2,342	556	1,204	1,269	1,264	1,300	1,204	1,268	2,015	2,003	1,240	1,505	1,252	1,992	1,363	1,250	1,501
Dividends paid	1,561	1,500	1,600	1,563	1,560	1,560	1,593	1,589	1,580	1,583	1,615	1,606	1,592	1,593	1,627	1,625	1,617	1,617	1,660	1,659
Shares outstanding	4,217m	4,151m	4,149m	4,110m	4,103m	4,095m	4,075m	4,066m	4,049m	4,050m	4,031m	4,007m	3,974m	3,977m	3,960m	3,960m	3,938m	3,949m	3,940m	3,946m
Filing	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K	10-Q	10-Q	10-Q	10-K

Each quarter as filed, linked to its filing.

* The fourth quarter is the full year less the first three quarters, because the company files the year and not the quarter on its own. A fourth quarter's EPS, and its diluted share count where shown, are from the company's results press release for that quarter, checked against the company's filed figures or a second data source. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and the share count are as they are. Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Cash flow lines filed year to date are the difference between two filings. Shares outstanding are at the period end where the balance sheet tags them, otherwise the count on the filing's cover page. A derived fourth-quarter EPS is left blank when a split in the year makes the arithmetic meaningless.

10-Q for the period ended 25 October 2025, filed 18 November 2025: the filing.