📊 CSCO Key Takeaways
Is Cisco Systems, Inc.. (CSCO) a Good Investment?
Cisco demonstrates solid fundamental strength with robust profitability metrics (65.2% gross margin, 23.6% operating margin, 20% net margin) and healthy cash generation ($4.4B free cash flow). Revenue growth of 5.3% YoY combined with strong interest coverage (12.1x) and manageable leverage (0.52x debt/equity) indicate a financially stable business, though modest growth and tightening liquidity warrant monitoring.
Cisco shows strong core profitability, with a 65.2% gross margin, 23.6% operating margin, and solid 14.6% free cash flow margin, indicating a durable and cash-generative business model. Revenue growth of 5.3% is constructive, but the slight decline in net income and sub-1.0 current ratio suggest growth quality is not fully translating into stronger bottom-line momentum or near-term balance sheet flexibility.
Why Buy Cisco Systems, Inc.. Stock? CSCO Key Strengths
- Strong profitability with gross margins exceeding 65% and operating margins of 23.6%
- Robust free cash flow generation of $4.4B with 14.6% FCF margin demonstrating high-quality earnings
- Conservative leverage profile with 0.52x debt-to-equity and excellent 12.1x interest coverage indicating low financial distress risk
- Solid net margin of 20% reflecting operational efficiency across the business
- High gross, operating, and net margins indicate strong earnings quality
- Free cash flow generation remains healthy relative to revenue and capital spending needs
- Leverage appears manageable with 12.1x interest coverage and moderate 0.52x debt-to-equity
CSCO Stock Risks: Cisco Systems, Inc.. Investment Risks
- Moderate revenue growth of only 5.3% YoY suggests mature market dynamics and limited expansion momentum
- Current ratio of 0.96x and quick ratio of 0.85x indicate tight short-term liquidity that warrants attention
- Net income declined 1.4% YoY despite revenue growth, signaling potential margin compression or increased costs
- Low ROA of 4.9% relative to total asset base of $123.4B suggests suboptimal asset utilization efficiency
- Net income declined despite revenue growth, which may indicate cost pressure or weaker operating leverage
- Current ratio of 0.96x and quick ratio of 0.85x point to limited short-term liquidity cushion
- ROA of 4.9% is modest relative to the company's large asset base, suggesting room for better capital efficiency
Key Metrics to Watch
- Revenue growth trajectory and operating margin sustainability
- Free cash flow generation and capital allocation decisions
- Current and quick ratios to monitor short-term liquidity trends
- Operating expense management and gross margin maintenance
- Long-term debt levels and debt-to-equity ratio evolution
- Operating margin and net income trend versus revenue growth
- Free cash flow margin and short-term liquidity ratios
Cisco Systems, Inc.. (CSCO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
CSCO Profit Margin, ROE & Profitability Analysis
CSCO vs Technology Sector: How Cisco Systems, Inc.. Compares
How Cisco Systems, Inc.. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Cisco Systems, Inc.. Stock Overvalued? CSCO Valuation Analysis 2026
Based on fundamental analysis, Cisco Systems, Inc.. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Cisco Systems, Inc.. Balance Sheet: CSCO Debt, Cash & Liquidity
CSCO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Cisco Systems, Inc..'s revenue has shown modest growth of 10% over the 5-year period. The most recent EPS of $3.07 reflects profitable operations.
CSCO Revenue Growth, EPS Growth & YoY Performance
CSCO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $14.0B | $2.4B | $0.61 |
| Q1 2026 | $13.8B | $2.7B | $0.68 |
| Q3 2025 | $12.7B | $1.9B | $0.46 |
| Q2 2025 | $12.8B | $2.4B | $0.61 |
| Q1 2025 | $13.8B | $2.7B | $0.68 |
| Q3 2024 | $12.7B | $1.9B | $0.46 |
| Q2 2024 | $12.8B | $2.6B | $0.65 |
| Q1 2024 | $13.6B | $2.7B | $0.65 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Cisco Systems, Inc.. Dividends, Buybacks & Capital Allocation
CSCO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Cisco Systems, Inc.. (CIK: 0000858877)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CSCO
What is the AI rating for CSCO?
Cisco Systems, Inc.. (CSCO) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CSCO's key strengths?
Claude: Strong profitability with gross margins exceeding 65% and operating margins of 23.6%. Robust free cash flow generation of $4.4B with 14.6% FCF margin demonstrating high-quality earnings. ChatGPT: High gross, operating, and net margins indicate strong earnings quality. Free cash flow generation remains healthy relative to revenue and capital spending needs.
What are the risks of investing in CSCO?
Claude: Moderate revenue growth of only 5.3% YoY suggests mature market dynamics and limited expansion momentum. Current ratio of 0.96x and quick ratio of 0.85x indicate tight short-term liquidity that warrants attention. ChatGPT: Net income declined despite revenue growth, which may indicate cost pressure or weaker operating leverage. Current ratio of 0.96x and quick ratio of 0.85x point to limited short-term liquidity cushion.
What is CSCO's revenue and growth?
Cisco Systems, Inc.. reported revenue of $30.2B.
Does CSCO pay dividends?
Cisco Systems, Inc.. pays dividends, with $3,234.0M distributed to shareholders in the trailing twelve months.
Where can I find CSCO SEC filings?
Official SEC filings for Cisco Systems, Inc.. (CIK: 0000858877) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CSCO's EPS?
Cisco Systems, Inc.. has a diluted EPS of $1.51.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CSCO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Cisco Systems, Inc.. has a BUY rating with 78% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is CSCO stock overvalued or undervalued?
Valuation metrics for CSCO: ROE of 12.6% (sector avg: 22%), net margin of 20.0% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy CSCO stock in 2026?
Our dual AI analysis gives Cisco Systems, Inc.. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is CSCO's free cash flow?
Cisco Systems, Inc..'s operating cash flow is $5.0B, with capital expenditures of $606.0M. FCF margin is 14.6%.
How does CSCO compare to other Technology stocks?
Vs Technology sector averages: Net margin 20.0% (avg: 18%), ROE 12.6% (avg: 22%), current ratio 0.96 (avg: 2.5).