Cisco Systems Inc

cisco.com

What Do They Do?

Sells networking, security, and collaboration products to businesses, public-sector organizations, and service providers.

How Do They Make Money?

Networking customers buy hardware and software, with sales completed at shipment or electronic delivery; subscriptions and technical support run over contract terms, and professional services are delivered as work is done. Customers typically pay on 30-day terms.

revenue

Segment	Share	How money arrives
Networking Mix	55% FY2023: 61%	Mix
Security Mix	13% FY2023: 6.8%	Mix
Collaboration Mix	6.8% FY2023: 7.1%	Mix
Observability Mix	1.7% FY2023: 1.2%	Mix
Services Mix	24% FY2023: 24%	Mix

Who Are Their Customers?

Businesses and public-sector organizations, along with service providers, buy Cisco products and services through a mix of direct sales and channel partners. Systems integrators and service providers often sell to end users and add installation, technical support, or other services.

Customers above 10% of revenue, FY2026

of revenue from one customer

FY2024: no customer at 10% or more of revenue

Do Revenues Turn Into Profits?

Yes. It kept 21 cents of every revenue dollar as net income in FY2026 and turned 20 cents into free cash flow.

Operating income, FY2026

24% of revenue

▲ +31% vs FY2025 ($11.8B, 21%)

Net income, FY2026

21% of revenue

▲ +30% vs FY2025 ($10.2B, 18%)

Free cash flow, FY2026

20% of revenue

▼ −4% vs FY2025 ($13.3B, 23%)

How Are They Changing?

Growing. Revenue grew 23% in 4 years, from $51.6B in FY2022 to $63.3B in FY2026, about 5% a year.

Revenue over time

Networking Security Collaboration Observability Services

$100B$50B$0

FY2022 FY2023 FY2024 FY2025 FY2026

Who Do They Compete With?

Competes with Amazon Web Services, Arista Networks, Broadcom, Ciena, CrowdStrike Holdings, Datadog, Dell Technologies, Dynatrace, Fortinet, Hewlett-Packard Enterprise, Huawei Technologies, Microsoft, Nokia, Nvidia, Palo Alto Networks, RingCentral, Zoom Video Communications, and Zscaler

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