Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software such as firewalls.
It is a $466B technology company. Revenue grew 11.8% over the last year, it keeps 21¢ of every dollar of sales as profit, and its net debt equals ~1.2 years of free cash flow. It trades at 35.2× earnings — near the highest of its own history.
- Website
- cisco.com
- Location
- San Jose, CA
- Employees
- 82 400
- Sector
- Technology
- Founded
- 1984
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability, quality and moat; Valuation lags behind.
Valuation22
- P/E vs own history97th pct · 0/25
- FCF yield2.7% · 5/25
- P/S7.4x · 12/25
- EV/EBITDA30.0x · 5/25
Growth55
- Revenue CAGR5.3% · 12/25
- Net income CAGR2.9% · 6/25
- EPS CAGR ~5Y5.9% · 12/25
- Fwd implied growth71.6% · 25/25
Profitability90
- ROIC20.2% · 20/25
- ROE27.4% · 25/25
- Net margin21.0% · 25/25
- Operating margin24.3% · 20/25
Health68
- Altman Z4.43 · 25/25
- Current ratio0.93 · 6/25
- Interest coverage22.8x · 25/25
- Net cash / debtD/A 12% · 12/25
Quality82
- Piotroski F6/9 · 15/25
- Beneish M-2.43 · 20/25
- FCF conversion99% · 22/25
- Margin stabilityσ 2.5% · 25/25
Moat82
- ROIC >12% years9/11 yrs · 20/25
- Median gross margin63.0% · 25/25
- FCF-positive years11/11 yrs · 25/25
- Worst-year net marginworst 0.2% · 12/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- FY2026FinancialBest year on record$13.3B net income
- Sep 21, 2023AcquisitionCisco announced the acquisition of cybersecurity firm Splunk in a $28 billion deal, its…
- FY2019FinancialRevenue crossed $50B$51.9B for the year
- FY2019FinancialBecame debt-freecash now exceeds total debt
- FY2016FinancialProfitable every year on record11 consecutive profitable years in our data
- FY2016FinancialRevenue already above $10B$49.2B in first reported year
- FY2016FinancialPositive free cash flow every year since11-year streak
- Jul 24, 2012AcquisitionCisco received approval from the EU to acquire NDS (a TV software developer) for US$5 billion
- 2010AcquisitionCisco bought Starent Networks (a mobile packet core company) for $2.9 billion and Moto Development Group, a…
- 2009AcquisitionCisco also expanded into new markets by acquisition, including its 2009 purchase of mobile specialist Starent…
- 2000MilestoneAt the height of the dot-com bubble, Cisco became the most valuable company in the world
- 1999ProductOne of them, Juniper Networks, shipped its first product in 1999 and by 2000 chipped away about 30% from Cisco SP…
- 1999AcquisitionCisco also acquired a stake for $1 billion in KPMG Consulting to enable establishing Internet firm Metrius…
- 1993AcquisitionAlthough many buy-ins (such as Crescendo Networks in 1993, Tandberg in 2010) resulted in acquisition of flagship…
- 1990IPOThe company went public in 1990 and, by the end of the dot-com bubble in 2000, had a market capitalization of $500…
- 1984FoundedCisco Systems was founded in December 1984 by Sandy Lerner, along with her husband Leonard Bosack
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (64.5%)
- Strongly profitable — 21.0% net margin
- Revenue growing 11.8% year over year
- Strong cash conversion — FCF is 20.2% of revenue
- Could repay net debt from ~1.3 years of free cash flow
Watch-outs
Nothing stands out as a concern in the available data.
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+11.8% YoY
- Profitable — makes more than it spends$13.3B TTM
- Profit growing — earnings are higher than last year+2.7% YoY
- Generates cash — cash left after running and investing$12.8B TTM
- Debt under control — could handle its obligations~1.2y of cash flow to repay
- Established company — not a micro-cap — lower blow-up risk$466B market cap
- Not printing shares — share count not ballooning — you keep your slice-5.9% shares over ~5y
- Proven track record — years of profitability behind it11/11 profitable years
- Financially stable — balance sheet not near distressAltman Z 4.4 — safe
- Pays a dividend — returns cash to shareholdersyield 1.40%
- Valuation not extreme — price not wildly above earningsP/E 35.2
Peer comparisonCisco Systems, Inc. vs 6 largest technology peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| CSCO this company | $466.0B | 35.2 | +11.8% | 21.0% | Solid |
| NVDA Nvidia Corp | $5.5T | 28.6 | +83.4% | 63.7% | Mixed |
| AAPL Apple Inc. | $4.9T | 38.1 | +14.2% | 27.6% | Strong |
| GOOGL Alphabet Inc. | $4.3T | 17.6 | +20.1% | 54.8% | Mixed |
| MSFT Microsoft Corp | $4.0T | 29.7 | +17.8% | 40.3% | Strong |
| SPCX Space Exploration Technologies Corp. | $2.1T | — | +33.2% | -34.0% | Strained |
| META Meta Platforms, Inc. | $1.8T | 26.9 | +27.7% | 29.8% | Mixed |
Head-to-head: CSCO vs NVDA · CSCO vs AAPL · CSCO vs GOOGL
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2026. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/CSCO
Want the live picture — intraday moves, valuation history and full analysis?
Deeper analysis of CSCO on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $118.20 · market cap $466B.