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How Cisco Systems (CSCO) makes money
Cisco Systems (CSCO) made $17.3B of revenue in the fourth quarter fiscal 2026 (Q4 FY26). Product brought in $13.5B (78%); Services brought in $3.8B (22%). Of every dollar of revenue, 64¢ was left as gross profit, 25¢ was left as operating profit, 22¢ was left as net earnings.
Drawing the Sankey…
Revenue by segment, Q4 FY26
| Segment | Revenue | Share | Q/Q | Y/Y |
|---|---|---|---|---|
| Product | $13.5B | 78.0% | +11% | — |
| ↳ Networking | $9.8B | 56.8% | +11% | — |
| ↳ Security | $2.2B | 12.9% | +11% | — |
| ↳ Collaboration | $1.2B | 6.8% | +14% | — |
| ↳ Observability | $275M | 1.6% | +2% | — |
| Services | $3.8B | 22.0% | +2% | — |
Where each dollar of revenue goes
| Line | Q4 FY26 | % of revenue |
|---|---|---|
| Revenue | $17.3B | 100.0% |
| Cost of revenue | $6.2B | 35.9% |
| Gross profit | $11.1B | 64.1% |
| Operating expenses | $6.8B | 39.4% |
| Operating profit | $4.3B | 24.7% |
| Income tax | $1.1B | 6.2% |
| Net earnings | $3.9B | 22.4% |
| Operating cash flow | $5.4B | 31.2% |
| Free cash flow | $5.0B | 29.0% |
Revenue, quarter by quarter
| Quarter | Revenue | Y/Y |
|---|---|---|
| Q4 FY26 | $17.3B | +18% |
| Q3 FY26 | $15.8B | +12% |
| Q2 FY26 | $15.3B | +10% |
| Q1 FY26 | $14.9B | +8% |
| Q4 FY25 | $14.7B | +8% |
| Q3 FY25 | $14.1B | +11% |
| Q2 FY25 | $14.0B | +9% |
From Cisco Systems' 10-K filed Sep 2, 2026 (on EDGAR).
Questions
How does Cisco Systems make money?
Cisco Systems (CSCO) made $17.3B of revenue in the fourth quarter fiscal 2026 (Q4 FY26). Product brought in $13.5B (78%); Services brought in $3.8B (22%). Of every dollar of revenue, 64¢ was left as gross profit, 25¢ was left as operating profit, 22¢ was left as net earnings.
What is Cisco Systems' biggest business?
Product: $13.5B in the fourth quarter fiscal 2026, 78% of revenue.
What is Cisco Systems' profit margin?
Net earnings were $3.9B, 22.4% of revenue, in the fourth quarter fiscal 2026; the operating margin was 24.7%.
Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.