Fundamental analysis · SEC EDGAR · TTM through 25/04/2026

Fundamental analysis of Cisco Systems, Inc.

CSCO · Nasdaq · Technology

Fundamental quality

ATTRACTIVE

75

out of 100

Cisco Systems, Inc. runs like a cash machine: it converts about 19.4% of revenue into free cash flow and holds a 19.7% net margin, though it grows at a measured pace. On fundamental quality it scores 75 out of 100, profiling it as a company with solid fundamentals. Its weakest area is its growth (revenue +3.7%/yr). Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Cisco is the world's largest maker of networking equipment: routers, switches and the technology that moves internet traffic. Its software, cybersecurity and subscription business carries growing weight.

What will shape its future

  • Its shift from selling hardware to a more recurring software-and-subscription model.
  • Demand for networking gear tied to data-center and AI investment.
  • The growth of its cybersecurity business and industry competition.

Breakdown by area

I.Growth
36

EPS growth: 1.1% · Revenue growth: 3.7%

II.Profitability
89

Net margin: 19.7% · ROE: 24.5% · ROIC: 18.6%

III.Financial health
91

Net debt/EBITDA: 1.06x · FCF: 19.4%

Source: SEC EDGAR · TTM through 25/04/2026

The score includes +3 for dividend strength: 14 consecutive years of increases. Keeping that streak demands growing cash generation and balance-sheet discipline.

The score combines growth, profitability and financial strength. Here its financial strength weighs in its favor, while its growth drags it down the most.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 61%
ROEbeats 63%
Growthbeats 16%
Cash generationbeats 39%
Less debtbeats 42%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Cisco Systems, Inc. strengths

  • High gross margin (64.3%), pointing to pricing power.
  • Strong free-cash-flow generation (FCF margin of 19.4%): profit turns into real cash.
  • Strong return on equity (ROE of 24.5%): it puts shareholder capital to good use.
  • High net margin (19.7%): the business is clearly profitable.

Cisco Systems, Inc. risks and weaknesses

  • Shrinking margins: net margin has fallen from 23% to 18% in recent years.
  • Its net debt has grown over the period.

Cisco Systems, Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
202049,30111,21414,6562,774
202149,81810,59114,7622,351
202251,55711,81212,7491,836
202356,99812,61319,037-1,732
202453,80310,32010,21012,601
202556,65410,18013,28816,265

Between 2020 and 2025, revenue went from $49,301M to $56,654M (+15%) and net income went from $11,214M to $10,180M (-9%). Meanwhile, its margins have narrowed (from 23% to 18%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the nine months ended April 25, 2026, versus the nine months ended April 26, 2025 (SEC filings):

  • Revenue+9.7%
  • Net income+23.3%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

$1.62

per share, yearly

63.2% of earnings

Payout

at least 14 straight years raising it

Growth

That is what we can verify in the SEC filings, whose structured data only starts in 2008 and which many companies begin tagging later. The real streak may be considerably longer.

The dividend yield depends on today's price. Compute it in the analyzer → · See all dividend-paying stocks →

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Is Cisco Systems, Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

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Frequently asked questions

Is Cisco Systems, Inc. a good company to invest in?

In terms of business quality, Cisco Systems, Inc. scores 75 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Cisco Systems, Inc. a profitable company?

Yes. Cisco Systems, Inc. shows a net margin of 19.7% and an ROE of 24.5%, a sign of a profitable business.

Does Cisco Systems, Inc. have a lot of debt?

Not particularly. Its net debt is 1.06 times its EBITDA, a low level.

Is Cisco Systems, Inc. growing?

Its revenue has grown 3.7% annualized in recent years and its earnings per share 1.1%.

Does Cisco Systems, Inc. generate cash?

Yes. It converts about 19.4% of its revenue into free cash flow, and has done so positively year after year.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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