CISCO SYSTEMS, INC.(CSCO)Stock Analysis
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Rank #231 of 2,879 stocksTOP 10%
Rankings refresh quarterly once 80% of peers have filed (~45 days after quarter-end). Next update: ~Aug 14, 2026.
Revenue Growth
Profitability
Balance Sheet
Earnings Quality
Free Cash Flow
Institutional Flow
Revenue Scale
Dilution Risk
CSCO Stock Analysis & AI Quality Score
AI stock analysis and institutional research for CISCO SYSTEMS, INC. (CSCO), a Technology sector company. 13F Pro's AI-powered ranking engine scores CSCO at 72.3/100 on a 32-signal composite quality model, placing it at rank #231 of 2,879 stocks — the top 10% of the AI-ranked universe. CSCO scores in the top quartile across revenue scale (97.7), balance sheet strength (86.1), profitability (84.7). Shareholder dilution risk is elevated at 22.4/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q3 2026), CISCO SYSTEMS, INC. reports quarterly revenue of $15.8B, net income of $3.4B, an operating margin of 25.0%. Top institutional holders of CSCO by reported 13-F value include Swedbank AB, WELLCOME LTD (THE) as trustee of the WELLCOME, WEALTH ENHANCEMENT ADVISORY SERVICES,, based on the most recent SEC filings. CSCO trades on the Nasdaq exchange and files with the SEC under CIK 858877. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CSCO daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for CISCO SYSTEMS, INC. directly from SEC EDGAR. CISCO SYSTEMS, INC.'s 13F Pro composite quality score has ranged between 8 and 75 since 2021, currently 72.3 — a stable long-term trajectory across 56 quarterly and live scoring snapshots.
What's Driving CSCO's Business? Latest 10-Q Breakdown
✓ 16/16 datapoints verifiedAI-extracted from CISCO SYSTEMS, INC.'s 10-Q filed 2026-05-19 — Q3 FY2026 (quarter ended April 25, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Cisco delivered 12% revenue growth to $15.8B in Q3 FY2026, driven by 25% Networking product growth and AI Infrastructure momentum, though product gross margin declined 2.5 points due to product mix and higher memory costs.
Biggest Revenue Drivers
Total revenue: $15.8B+12% YoY
Growth driven by Networking revenue increase of 25%, particularly AI Infrastructure and Campus Networking solutions.
Within Product
Growth in Campus Switching, Data Center Switching, Wireless and Service Provider Routing.
Declines in prior generation products and Splunk offset by growth in new and refreshed products.
Decline primarily driven by lower revenue from support services, partially offset by higher professional services.
Largest Expense Items
Product cost of sales increased 25% primarily due to higher material costs including memory, and higher shipment volumes.
Higher discretionary spending and headcount-related expenses reflecting investments in AI, offset by lower acquisition-related costs.
Higher headcount-related expenses and contracted services, partially offset by lower acquisition-related costs.
Lower headcount-related expenses, acquisition-related costs, and discretionary spending.
Margins: Product gross margin declined 2.5 percentage points to 61.9% due to negative impacts from product mix (higher Networking revenue) and higher memory costs, partially offset by productivity improvements. Services gross margin improved 0.5 percentage points to 69.2% driven by cost efficiencies.
Watch Items from the Filing
- Inventory and purchase commitments surged 93% combined to $20.7B, with inventory rising 49% and commitments up 111%, primarily for Cisco Silicon One manufacturing to meet hyperscaler demand, creating material excess and obsolescence risk if demand declines.
- Memory component costs remain elevated and constrained, adversely impacting product gross margin; company expects continued headwinds in fiscal 2026.
- Security product revenue flat YoY; Splunk offerings shifting from on-premise to cloud subscriptions, indicating transition challenges in newly acquired integration.
- Networking revenue growth of 25% driven by AI Infrastructure and campus solutions, demonstrating strong demand for AI-related networking products across hyperscalers and service providers.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Revenue
Q3 2026
$15.8B
Net Income
Q3 2026
$3.4B
Free Cash Flow
Q3 2026
$3.3B
Operating Margin
Q3 2026
25.0%
Revenue & Net Income
Earnings Per Share
Key Financials Over Time
Export Financial Table · Pro+Revenue
+5.3% YoYNet Income
-1.4% YoYOperating Income
-3.5% YoYEPS (Diluted)
+0.4% YoYTotal Assets
-1.7% YoYTotal Debt
-1.1% YoYOp. Cash Flow
+30.5% YoY| Metric | FY 2025 | FY 2024 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|
| Revenue | $56.65B +5.3% | $53.80B +4.4% | $51.56B +3.5% | $49.82B +1.0% | $49.30B -5.0% | $51.90B |
| Net Income | $10.18B -1.4% | $10.32B -12.6% | $11.81B +11.5% | $10.59B -5.6% | $11.21B -3.5% | $11.62B |
| Operating Income | $11.76B -3.5% | $12.18B -12.8% | $13.97B +8.9% | $12.83B -5.8% | $13.62B -4.2% | $14.22B |
| EPS (Diluted) | $2.55 +0.4% | $2.54 -9.9% | $2.82 +12.8% | $2.50 -5.3% | $2.64 +1.1% | $2.61 |
| Total Assets | $122.29B -1.7% | $124.41B +32.4% | $94.00B -3.6% | $97.50B +2.8% | $94.85B -3.0% | $97.79B |
| Total Debt | $31.59B -1.1% | $31.94B +203.8% | $10.51B -36.4% | $16.54B -19.7% | $20.59B -43.8% | $36.66B |
| Operating Cash Flow | $14.19B +30.5% | $10.88B -17.7% | $13.23B -14.4% | $15.45B +0.2% | $15.43B -2.6% | $15.83B |
AI Insight: CSCO Financial Trends
Cisco delivered consistent revenue growth and expanding operating margins, but debt climbed 20% from Q3 2024 to Q2 2026, raising leverage concerns.
• Revenue grew 16% from $13.6B (Q3 2024) to $15.8B (Q2 2026), with consecutive quarter-over-quarter gains accelerating.
• Operating income margin expanded from 19.2% (Q3 2024) to 25.0% (Q2 2026), a 580bp improvement over 8 quarters.
• Net income rose 56% from $2.2B (Q3 2024) to $3.4B (Q2 2026), outpacing revenue growth and reflecting operational leverage.
• Total debt increased from $31.9B to $38.3B while equity grew only 7%, pushing debt-to-equity from 0.70 to 0.78.
⚠ Operating cash flow declined to $1.8B in Q1 2026 from $4.2B in Q3 2025—40% drop in latest quarter despite strong earnings.
⚠ Debt surged $6.6B (21%) in latest 8 quarters; equity gains of $2.3B lag significantly, pressuring balance sheet flexibility.
AI Insight: CSCO Ratio Trends
Cisco's profitability and returns surge across the board in Q2 2026, with operating margin hitting 25.0% and ROIC reaching 18.2%—the strongest levels in the dataset.
• Operating margin expanded from 19.2% in Q3 2024 to 25.0% in Q2 2026, a 580bp improvement over 18 months.
• ROIC climbed from 13.5% in Q3 2024 to 18.2% in Q2 2026, signaling improved capital efficiency across the upswing.
• Net profit margin reached 21.3% in Q2 2026 versus 15.8% in Q3 2024, indicating strong operating leverage.
• ROE jumped to 27.6% in Q2 2026 from 19.0% in Q3 2024, though leverage edged up to 0.78 D/E.
⚠ Debt-to-equity rose to 0.78 in Q2 2026 from 0.70 in Q3 2024, offsetting margin gains and warranting leverage monitoring.
⚠ ROA stabilized near 10% in recent quarters but remains below pre-2024 efficiency levels; watch for capacity utilization trends.
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Top Institutional Holders of CSCO
Swedbank AB
$862.4M7,342,446 shWELLCOME TRUST LTD (THE) as trustee of the WELLCOME TRUST
$704.8M6,000,000 shWEALTH ENHANCEMENT ADVISORY SERVICES, LLC
$220.9M1,921,618 shUnion Bancaire Privee, UBP SA
$170.0M505,296 shCzech National Bank
$132.1M1,124,291 shDAVENPORT & Co LLC
$129.9M1,105,475 shFORT WASHINGTON INVESTMENT ADVISORS INC /OH/
$114.0M970,924 shCOMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLS RETRMT SYS
$102.5M872,424 shSarasin & Partners LLP
$101.4M863,286 shCONFLUENCE INVESTMENT MANAGEMENT LLC
$98.9M841,787 sh
| Fund | Value | Shares |
|---|---|---|
| Swedbank AB | $862.4M | 7,342,446 |
| WELLCOME TRUST LTD (THE) as trustee of the WELLCOME TRUST | $704.8M | 6,000,000 |
| WEALTH ENHANCEMENT ADVISORY SERVICES, LLC | $220.9M | 1,921,618 |
| Union Bancaire Privee, UBP SA | $170.0M | 505,296 |
| Czech National Bank | $132.1M | 1,124,291 |
| DAVENPORT & Co LLC | $129.9M | 1,105,475 |
| FORT WASHINGTON INVESTMENT ADVISORS INC /OH/ | $114.0M | 970,924 |
| COMMONWEALTH OF PENNSYLVANIA PUBLIC SCHOOL EMPLS RETRMT SYS | $102.5M | 872,424 |
| Sarasin & Partners LLP | $101.4M | 863,286 |
| CONFLUENCE INVESTMENT MANAGEMENT LLC | $98.9M | 841,787 |
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Is CSCO a good stock to buy?
13F Pro's AI-powered analysis of CISCO SYSTEMS, INC. (CSCO) draws on SEC EDGAR-sourced fundamentals, institutional 13F holdings, and insider Form 4 transactions in the Technology sector (listed on Nasdaq). The 32-signal AI Quality Score, current rank, and full bull/bear verdict for CSCO are available on the CSCO stock profile dashboard — with the same data, AI insights, ratios, and institutional activity refreshed after every 10-K, 10-Q, 13F, and Form 4 filing.
Which hedge funds own CSCO?
Institutional investors are required to disclose their holdings quarterly via SEC Form 13F. 13F Pro aggregates these filings to show which hedge funds, mutual funds, and asset managers are buying or selling CSCO. Combined with insider transaction data from Form 4 filings and AI-powered analysis from 10 specialized research agents, 13F Pro provides a comprehensive view of CISCO SYSTEMS, INC.'s investment landscape.