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Cisco — Q4 2026 Earnings Presentation (FY2026 Q4)
Cisco (CSCO) · 0 slides · Filed Aug 12, 2026
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Slide 1 — Q4 Fiscal Year 2026
Q4 Fiscal Year 2026 August 12, 2026 Conference Call
Slide 2 — Forward-Looking Statements
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Forward-Looking Statements This presentation contains projections and other forward-looking statements regarding future events or the future financial performance of Cisco, including future operating results. These projections and statements are only predictions. Actual events or results may differ materially from those in the projections or other forward-looking statements. Please see Cisco’s filings with the SEC, including its most recent filings on Forms 10-K and 10-Q, for a discussion of important risk factors that could cause actual events or results to differ materially from those in the projections or other forward- looking statements. GAAP Reconciliation During this presentation references to financial measures of Cisco will include references to non-GAAP financial measures. Cisco provides a reconciliation between GAAP and non-GAAP financial information on the Cisco Investor Relations website: https://investor.cisco.com/financial-information/financial-results/default.aspx
Slide 3 — Business Momentum & Key Trends
Business Momentum & Key Trends
Slide 4 — FY 2026 Key Takeaways
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public FY 2026 Key Takeaways Accelerating Campus Refresh and DC Switching Growth Campus networking technology orders grew >15% Y/Y in FY26, with our next gen portfolio ramping faster than prior product launches Data center switching orders >25% Y/Y in FY26 Addressing a $100B+ network refresh opportunity Significant AI Momentum $9.3B of hyperscaler AI orders in FY26, a ~4.5x increase vs. FY25 ~$4B of Hyperscale AI revenue in FY26, now expecting $7.5B in FY27 $1.3B of AI orders taken from neocloud, sovereign, and enterprise customers in FY26 Strong Financial Performance FY26 revenue and EPS both exceeded the high end of our guidance ranges Highest employee productivity metrics in 30 years for revenue, operating margin, and earnings FY27 revenue and EPS guide of 15% Y/Y and 17% Y/Y growth respectively
Slide 5 — Q4 FY 2026 Summary
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Q4 FY 2026 Summary • Double-digit top and bottom-line growth, with record high revenue and EPS exceeding the high-end of guidance ranges • $17.3B in revenue, up 18% y/y, non-GAAP EPS of $1.22, up 23% y/y • Record non-GAAP operating income of $6.2B; non-GAAP operating margin of 35.9% • Record high demand for Cisco’s technologies with a networking supercycle underway • Product orders up 35% y/y with double-digit growth across all geographies and customer markets; up 25% y/y excluding hyperscale orders • Networking product orders up 40% y/y, marking the eighth consecutive quarter of double-digit growth • Significant momentum and raised expectations for AI Infrastructure • $4B of AI Infrastructure orders taken from hyperscalers in Q4, bringing the total for FY26 to $9.3B, a ~4.5x increase y/y • Expecting AI infrastructure revenue from hyperscalers of $7.5B in FY27, a significant increase compared to ~$4B in FY26 and $1B in FY25 • Three new hyperscale AI design wins: one P200 scale-across; one G200 scale-out; and one optical line system • >$400M of AI orders taken in Q4 from neocloud, sovereign, and enterprise customers, $1.3B taken in FY26, up ~150% y/y • Major multi-year, multi-billion-dollar campus networking refresh cycle underway • Record campus networking (switching, wireless, routing) orders, up 20% y/y, accelerating meaningfully in 2H FY26 • Next generation campus networking portfolio ramping faster than prior product launches, still early in the cycle • Leading-edge innovation and participation in industry-wide initiatives to advance capabilities for customers • Introduced Cisco Cloud Control, a single management plane and unified data layer for all Cisco products, built for humans and agents • Launched PQC compliant C9550 series core smart switch and 8600 series secure router for the agentic workplace • Launched Antares, a family of open-weight SLMs, to find known vulnerabilities in a codebase, supporting AI security adoption • Founding member of Anthropic’s Project Glasswing and OpenAI’s Daybreak to address vulnerabilities and harden customers’ networks • Commitment to returning capital to shareholders: returned $3.2B in Q4, representing 63% of free cash flow
Slide 6 — Cisco AI Infrastructure Orders Taken from Hyperscalers
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 Q1FY'25 Q2FY'25 Q3FY'25 Q4FY'25 Q1FY'26 Q2FY'26 Q3FY'26 Q4FY'26 $ millions Cisco AI Infrastructure Orders Taken from Hyperscalers $2B in FY25 $9.3B in FY26 The AI orders do not include Neocloud, Sovereign, or AI enterprise orders taken.
Slide 7 — AI Unlocking a Cisco Networking Supercycle
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public AI Unlocking a Cisco Networking Supercycle Hyperscalers Secure networking powered by Cisco's vertically integrated platform Networking Security Observability Silicon Optics Services Data Center Infrastructure Campus-Edge Infrastructure Orders/Revenue: Hyperscaler AI infrastructure orders were $9.3B in FY26, up triple-digits y/y, and ~$4B of revenue recognized in FY26. Growth driven by four of the top hyperscalers across multiple AI design wins Platforms: Series 8K, Silicon One, and Optics & Optical (including Acacia) Outlook: AI Revenue of $7.5B in FY27. Multiple AI design opportunities in the pipeline across Silicon One systems (G300, G200, P200, and others) and optics in FY27 Neo/Sovereign Clouds & Enterprises Platforms: Nexus DC Switching, Security, Splunk, and other high performance networking systems Orders: DC networking orders grew 25% y/y in FY26, driven by triple-digit y/y in Neo/ Sovereign cloud and Enterprise AI orders. $1.3B of orders taken in FY26 Outlook: Multi-billion dollar pipeline with demand ramping across the three customer cohorts: partly addressing a $100B+ total network refresh opportunity Campus/Workplace Platforms: Campus Switching (Catalyst and Smart Switch), Enterprise Routing, Wireless, IoT, and Security (including Splunk) Orders: Campus networking orders grew >15% y/y in FY26, with next gen portfolio ramping faster than prior product launches Outlook: Still in early stages of multi-year, multi-billion-dollar refresh cycle with 7% of campus switching install base refreshed as at end of FY26; partly addressing a $100B+ total network refresh opportunity As customers assess their most economical AI consumption model (open or closed/frontier LLMs) and where they chose to deploy their applications – whether in the public cloud, a neocloud, in an enterprise private AI cloud, or at the campus edge, we believe Cisco stands to benefit because of the depth and breadth of our portfolio, providing low-latency, high-bandwidth networking, and built-in security, observability and automation, in a co-designed, vertically integrated stack. This supports our view that we are in a Networking Supercycle accelerated by AI.
Slide 8 — A New Level of Secure Networking Demand
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public A New Level of Secure Networking Demand This graphic is for illustrative purposes only. It is not based on customer network data but depicts how Cisco believes network traffic levels will increase as inference demand further increases and proliferates within enterprise and end-user networking environments. The 450% increase in network traffic can be referenced in Cisco Report 2026: AI Impact on Wide Area Networks. High Low Chatbots Agentic AI Interactions Agentic Inference Traffic Increase As Agentic AI workloads rapidly expand, with AI agents being deployed in data centers, deployed across application environments, and engaging continuously with end-users, network traffic will not only exceed today's chatbot levels, but agents will keep it persistently high through their ongoing interactions, resulting in a +450% increase in traffic versus humans. Because AI agents must process data and respond at machine speed, ultra low latency connectivity is mission critical from the edge to the data center core. This fundamental shift will require networks to be upgraded, with multiple layers of security embedded deeply into the fabric of the network to safeguard every interaction. Cisco is uniquely positioned, with technology solutions spanning smart switches, advanced security, silicon, and software, to provide the critical infrastructure needed for the AI era. +450%
Slide 9 — Cisco Campus Networking Refresh Ramping
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Cisco Campus Networking Refresh Ramping C9350 & C9610 Smart Switches Wi-Fi 7 Access Points Catalyst 9000 Family Industrial IoT portfolio Campus, Wireless, and Edge Devices - Highlights Campus networking had record orders in Q4 FY26, up 20% y/y Next-gen campus networking portfolio ramping faster than prior product launches, driving accelerated order growth for campus networking solutions Wireless delivered a record Q4, with bookings up >25% y/y, and Wi-Fi 7 representing >50% of Wireless bookings mix in Q4 FY26 Wi-Fi 7 brings bandwidth well above 1Gps driving the requirement for multi-gigabit ethernet (mGig). As customers upgrade to Wi-Fi 7, we are seeing increased attach to our mGig campus switches to enable the latest performance benefits Industrial IoT portfolio had record orders in Q4 FY26, and orders have now grown in double-digits for 9 consecutive quarters, driven by the manufacturing and utilities industries with ramping activity with data center powered shell (infrastructure) customers
Slide 10 — Cisco Silicon One – Unlocking New Opportunities
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Cisco Silicon One – Unlocking New Opportunities Enterprise Switch Campus & Data Center Services Router Provider Edge & Enterprise Core Integrated Access Campus & Provider Access Scale within DC AI Cluster & Cloud Scale across DC WAN & AI Inter-Data Center Silicon One Highlights and Outlook One new Silicon One P200-powered system design win for a hyperscale customer for a major scale-across use case in Q4 FY26 One new Silicon One G200-powered system design win for a hyperscale customer for a scale-out use case in Q4 FY26 Momentum ramping with line-of-sight to multiple design wins expected over the next six months across our G300, G200, P200, and A100 designs Comprehensive Cisco-wide adoption of Silicon One architecture for high performance networking systems for Hyperscale and Enterprise by FY29. Bandwidth Silicon One P200 51.2Tb chip Silicon One G300 102.4T chip 102.4T Air Cooled System 102.4T Liquid Cooled System
Slide 11 — Cisco Accelerating AI Scale-Across Deployments
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Cisco Accelerating AI Scale-Across Deployments Cisco is one of few networking technology providers that can deliver AI Scale-across Systems, Silicon, Coherent Pluggables, and Optical Open Line Systems enabling hyperscalers and other service providers to deploy coherent AI networks across multiple data center locations. AI scale- across connects GPU back-end fabrics across various data center locations, driving a ~14x Data Center Interconnect bandwidth increase and requiring 12,000–32,000 coherent ports (compared to 1,000–2,000 at ~1x bandwidth in traditional cloud infrastructures). Acacia (Coherent Pluggables) Silicon One P200 powers the Cisco 8223 and Cisco N9000 systems Open Transport 3000 Series open line system NCS 1010 open line system 400G ZR/ZR+ 100ZR QSFP28 800G ZR/ZR+ Cisco Blog: Unlock the power of scale-across with Cisco converged silicon, systems, and optics – May 28, 2026 Silicon One P200 powers the Cisco 8223 and Cisco N9000 systems One new Silicon One P200-powered system design win for a hyperscale customer for a major scale-across use case in Q4 FY26 Two design wins in Q3 FY26 AI infrastructure orders already received from each of the three new P200 Design wins in Q4 FY26,, displacing competitors Cisco offers a complete portfolio of open line systems and transponders for metro, long-haul, subsea, AI scale-across. applications The Cisco NCS Series supports the full range of SP and hyperscaler applications for carrying multiple wavelengths and transponder-based systems Coming soon, the OT3000 Series OLS offers a multi-rail architecture that allows multiple fiber pairs to operate in parallel so it can handle multi- petabit traffic over long distance Cisco is the market leader and pioneer in coherent pluggables leading with Acacia's technology Acacia exceeded $1B in bookings in Q4 FY26 specifically for AI infrastructure Over 850,000 units shipped for 400G ports Over 75,000 units shipped for 800G ports Optical Systems Silicon One P200-powered systems
Slide 12 — AI Scale Across – Bandwidth Growth Multiplying
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public AI Scale Across – Bandwidth Growth Multiplying The Bandwidth Hierarchy Data center interconnect (DCI) baseline: Traditional DCI connects two facilities for cloud, enterprise, or other service provider traffic at 1x bandwidth, typically requiring 1,000–2,000 coherent ports. Scale across step-change: AI scale-across connects GPU back-end fabrics across data centers, driving ~14x DCI bandwidth and requiring 12,000–32,000 coherent ports. Order-of-magnitude port expansion: Scale across shifts interconnect requirements from thousands of ports to tens of thousands, underscoring the need for purpose-built silicon, deep buffering, proactive congestion control, and coherent optics in AI infrastructure. Data Center 1 Front End (CPUs) Back End (GPUs) Data Center 2 WAN/DCI 1x Bandwidth Connecting CPUs to users Scale-Across 14x Bandwidth Connecting GPUs across multiple data centers Front End (CPUs) Back End (GPUs) Scale-Across Bandwidth Multiplier Scale across for distributed AI data centers Cisco Blog: Unlock the power of scale-across with Cisco converged silicon, systems, and optics – May 28, 2026
Slide 13 — Financial Overview
Financial Overview
Slide 14 — Q4 FY 2026 Revenue and Total Gross Margin
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Q4 FY 2026 Revenue and Total Gross Margin Revenue Total Gross Margin % Q4 FY’25 Q3 FY’26 Q4 FY’26 Q4 FY’25 Q3 FY’26 Q4 FY’26 Americas $8,822 $9,569 $10,396 68.0% 63.7% 64.5% EMEA 3,645 4,054 4,350 71.7% 71.3% 70.1% APJC 2,206 2,218 2,506 64.2% 66.1% 67.3% Geographic Total $14,673 $15,841 $17,252 68.4% 66.0% 66.3% Amounts may not sum and percentages may not recalculate due to rounding. $M (except percentages)
Slide 15 — Q4 FY 2026 Revenue Highlights
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Q4 FY 2026 Revenue Highlights Category $M Y/Y Networking $9,791 28% Security 2,226 14% Collaboration 1,167 12% Observability 275 6% Services 3,793 0% Total Cisco $17,252 18% Amounts may not sum and percentages may not recalculate due to rounding.
Slide 16 — Q4 FY 2026 RPO and ARR
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Q4 FY 2026 RPO and ARR Q4 FY 2025 Q3 FY 2026 Q4 FY 2026 Remaining Performance Obligations (RPO): $43.5 $43.5 $46.7 Year/Year Change 6% 4% 7% Product RPO $21.6 $22.1 $23.4 Year/Year Change 8% 6% 9% Services RPO $22.0 $21.4 $23.3 Year/Year Change 5% 2% 6% Annualized Recurring Revenue (ARR) (1): $31.1 $31.2 $32.1 Year/Year Change 5% 2% 3% Product ARR $17.0 $17.5 $17.9 Year/Year Change 8% 4% 5% Services ARR $14.1 $13.8 $14.3 Year/Year Change 2% (1%) 2% $B (except percentages) Amounts may not sum and percentages may not recalculate due to rounding. (1) Annualized Recurring Revenue (“ARR”) represents the annualized revenue run-rate of active subscriptions, term licenses, operating leases and maintenance contracts at the end of a reporting period, net of rebates to customers and partners as well as certain other revenue adjustments. Includes both revenue recognized ratably as well as upfront on an annualized basis. ARR should be viewed independently of revenue, deferred revenue and remaining performance obligation as ARR is a management operational performance metric and is not intended as a substitute for any of these items.
Slide 17 — Q4 FY 2026 Product Orders
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Q4 FY 2026 Product Orders Customer Market Y/Y Enterprise 21% Public Sector 30% Service Provider & Cloud 95% Total Product Orders: 35% Y/Y Geographic Segment Y/Y Americas 44% EMEA 25% APJC 19%
Slide 18 — Q4 FY 2026 GAAP Income Statement Highlights
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Q4 FY 2026 GAAP Income Statement Highlights Q4 FY 2025 Q3 FY 2026 Q4 FY 2026 Revenue $14,673 $15,841 $17,252 Year/Year Change Product Services 8% $10,886 $3,787 12% $12,117 $3,724 18% $13,459 $3,793 Gross Margin 63.2% 63.6% 64.1% Product Gross Margin Services Gross Margin 61.5% 68.3% 61.9% 69.2% 62.6% 69.4% Operating Expenses $6,193 $6,120 $6,799 OPEX (% of Revenue) Operating Income (% of Revenue) 42.2% 21.0% 38.6% 25.0% 39.4% 24.7% Net Income $2,550 $3,373 $3,859 Year/Year Change 18% 35% 51% Earnings per Share (diluted) $0.64 $0.85 $0.97 Year/Year Change 19% 37% 52% $M (except per-share amounts and percentages)
Slide 19 — Q4 FY 2026 Non-GAAP Income Statement Highlights
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Q4 FY 2026 Non-GAAP Income Statement Highlights Q4 FY 2025 Q3 FY 2026 Q4 FY 2026 Revenue $14,673 $15,841 $17,252 Year/Year Change Product Services 8% $10,886 $3,787 12% $12,117 $3,724 18% $13,459 $3,793 Gross Margin 68.4% 66.0% 66.3% Product Gross Margin Services Gross Margin 67.5% 70.8% 64.3% 71.6% 64.8% 71.6% Operating Expenses $5,002 $5,046 $5,243 OPEX (% of Revenue) Operating Income (% of Revenue) 34.1% 34.3% 31.9% 34.2% 30.4% 35.9% Net Income $3,951 $4,227 $4,868 Year/Year Change 12% 10% 23% Earnings per Share (diluted) $0.99 $1.06 $1.22 Year/Year Change 14% 10% 23% $M (except per-share amounts and percentages)
Slide 20 — Q4 FY 2026 Key Financial Measures
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Q4 FY 2026 Key Financial Measures Q4 FY 2025 Q3 FY 2026 Q4 FY 2026 Cash, Cash Equivalents and Investments $16,110 $16,640 $15,918 Operating Cash Flow $4,234 $3,757 $5,386 Inventory $3,164 $4,708 $5,694 Inventory Purchase Commitments $7,599 $16,033 $17,165 Deferred Revenue: $28,779 $28,599 $29,781 Product Deferred Revenue $13,490 $13,461 $13,817 Services Deferred Revenue $15,289 $15,138 $15,964 Software Revenue $5,593 $5,660 $6,183 $M
Slide 21 — Q4 FY 2026 Capital Allocation
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Q4 FY 2026 Capital Allocation Total Capital Allocation Q4 FY 2026 FY 2026 Share Repurchases ($M) $1,502 $6,106 Dividends Paid ($M) 1,659 6,553 Total ($M) $3,161 $12,659 Dividend per Share $0.42 $1.66 Share Repurchases Q4 FY 2026 FY 2026 Amount Purchased ($M) $1,502 $6,106 Number of Shares (M) 13 76 Avg. Price per Share $111.53 $80.26 Approximately $8.1B remaining authorized funds in repurchase program as of the end of Q4 FY 2026.
Slide 22 — FY 2026 GAAP Income Statement Highlights
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public FY 2026 GAAP Income Statement Highlights $M (except per-share amounts and percentages) FY 2025 FY 2026 Revenue $56,654 $63,325 Year/Year Change Product Services 5% $41,608 $15,046 12% $48,295 $15,030 Gross Margin 64.9% 64.5% Product Gross Margin Services Gross Margin 63.7% 68.5% 63.2% 68.8% Operating Expenses $25,030 $25,492 OPEX (% of Revenue) Operating Income (% of Revenue) 44.2% 20.8% 40.3% 24.3% Net Income $10,180 $13,267 Year/Year Change (1%) 30% Earnings per Share (diluted) $2.55 $3.33 Year/Year Change 0% 31%
Slide 23 — FY 2026 Non-GAAP Income Statement Highlights
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public FY 2026 Non-GAAP Income Statement Highlights $M (except per-share amounts and percentages) FY 2025 FY 2026 Revenue $56,654 $63,325 Year/Year Change Product Services 5% $41,608 $15,046 12% $48,295 $15,030 Gross Margin 68.7% 66.9% Product Gross Margin Services Gross Margin 67.9% 71.0% 65.6% 71.2% Operating Expenses $19,447 $20,352 OPEX (% of Revenue) Operating Income (% of Revenue) 34.3% 34.4% 32.1% 34.8% Net Income $15,213 $17,249 Year/Year Change 0% 13% Earnings per Share (diluted) $3.81 $4.33 Year/Year Change 2% 14%
Slide 24 — Guidance
Guidance
Slide 25 — Guidance for Q1 FY 2027
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Guidance for Q1 FY 2027 Cisco expects to achieve the following results: • Cisco estimates that GAAP EPS will be $1.08 to $1.10 for the first quarter of fiscal 2027. • Q1 FY 2027 guidance assumes an effective tax provision rate of approximately 15% for GAAP and approximately 18.5% for non-GAAP results. • A reconciliation between the Guidance for Q1 FY 2027 on a GAAP and non-GAAP basis is provided in the slide entitled "GAAP to Non-GAAP Guidance for Q1 FY 2027" under the Supplemental Materials. Q1 FY 2027 Guidance Revenue $18.0B – $18.2B Non-GAAP Gross Margin 65% – 66% Non-GAAP Operating Margin 35.5% – 36.5% Non-GAAP EPS $1.32 – $1.34
Slide 26 — Guidance for FY 2027
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Guidance for FY 2027 Cisco expects to achieve the following results: • Cisco estimates that GAAP EPS will be $4.00 to $4.06 for fiscal 2027. • FY 2027 guidance assumes an effective tax provision rate of approximately 14.5% for GAAP and approximately 18.5% for non-GAAP results. • A reconciliation between the Guidance for FY 2027 on a GAAP and non-GAAP basis is provided in the slide entitled "GAAP to Non-GAAP Guidance for FY 2027" under the Supplemental Materials. FY 2027 Guidance Revenue $72.2B – $73.4B Non-GAAP EPS $5.05 – $5.11
Slide 27 — Q&A
Q&A
Slide 28 — Forward-Looking Statements
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public Forward-Looking Statements These presentation slides and the related conference call contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events (such as being well positioned to support our customers however or wherever they decide to deploy AI, the significant momentum and raised expectations of AI infrastructure from hyperscalers, the broad-based high demand for Cisco technology, and the significant growth opportunities ahead) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q1 FY 2027 and full year FY 2027. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results due to a variety of factors, including: business and economic conditions and growth trends in the networking industry, our customer markets and various geographic regions; global economic conditions and uncertainties in the geopolitical environment; our development and use of artificial intelligence; overall information technology spending; the growth and evolution of the Internet and levels of capital spending on Internet-based systems; variations in customer demand for products and services, including sales to the service provider market and other customer markets; the return on our investments in certain key priority areas, and in certain geographical locations, as well as maintaining leadership in Networking and services; the timing of orders and manufacturing and customer lead times; supply constraints; changes in customer order patterns or customer mix; insufficient, excess or obsolete inventory; variability of component costs; variations in sales channels, product costs or mix of products sold; our ability to successfully acquire businesses and technologies and to successfully integrate and operate these acquired businesses and technologies; our ability to achieve expected benefits of our partnerships; increased competition in our product and service markets, including the data center market; dependence on the introduction and market acceptance of new product offerings and standards; rapid technological and market change; manufacturing and sourcing risks; product defects and returns; litigation involving patents, other intellectual property, antitrust, stockholder and other matters, and governmental investigations; our ability to achieve the benefits of restructurings and possible changes in the size and timing of related charges; cyber-attacks, data breaches or other incidents; vulnerabilities and critical security defects; our ability to protect personal data; evolving regulatory uncertainty; terrorism; natural catastrophic events (including as a result of global climate change); any pandemic or epidemic; our ability to achieve the benefits anticipated from our investments in sales, engineering, service, marketing and manufacturing activities; our ability to recruit and retain key personnel; our ability to manage financial risk, and to manage expenses during economic downturns; risks related to the global nature of our operations, including our operations in emerging markets; currency fluctuations and other international factors; changes in provision for income taxes, including changes in tax laws and regulations or adverse outcomes resulting from examinations of our income tax returns; potential volatility in operating results; and other factors listed in Cisco’s most recent reports on Forms 10-Q and 10-K filed on May 19, 2026 and September 3, 2025, respectively. The financial information contained in these presentation slides and the related conference call should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent reports on Forms 10-Q and 10-K as each may be amended from time to time. Cisco’s results of operations for the three months and year ended July 25, 2026 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in these presentation slides and the related conference call are based on limited information currently available to Cisco, which is subject to change. Although any such projections and the factors influencing them will likely change, Cisco will not necessarily update the information, since Cisco will only provide guidance at certain points during the year. Such information speaks only as of the date of these presentation slides and the related conference call.
Slide 29
Slide 30 — Supplemental Materials
Supplemental Materials
Slide 31 — GAAP to Non-GAAP Guidance for Q1 FY 2027
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential Cisco Public GAAP to Non-GAAP Guidance for Q1 FY 2027 Q1 FY 2027 Gross margin Operating margin Earnings per share (1) GAAP 63% - 64% 28% - 29% $1.08 - $1.10 Estimated adjustments for: Share-based compensation expense 1.0% 4.5% $0.14 Amortization of acquisition-related intangible assets and other acquisition/divestiture-related costs 1.0% 2.5% $0.09 Restructuring and other charges (2) - 0.5% $0.01 Non-GAAP 65% - 66% 35.5% - 36.5% $1.32 - $1.34 (1) Estimated adjustments to GAAP earnings per share are shown after income tax effects. (2) Reflects estimated charges related to restructuring plan announced on May 13, 2026. We expect this plan to be substantially completed during fiscal 2027. Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, significant tax matters, or other items, which may or may not be significant.
Slide 32 — GAAP to Non-GAAP Guidance for FY 2027
© 2026 Cisco and/or its affiliates. All rights reserved. Cisco Confidential GAAP to Non-GAAP Guidance for FY 2027 (1) Estimated adjustments to GAAP earnings per share are shown after income tax effects. (2) Reflects estimated charges related to restructuring plan announced on May 13, 2026. We expect this plan to be substantially completed during fiscal 2027. Except as noted above, this guidance does not include the effects of any future acquisitions/divestitures, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, significant tax matters, or other items, which may or may not be significant. FY 2027 Operating margin Earnings per share (1) GAAP 27% $4.00 - $4.06 Estimated adjustments for: Share-based compensation expense 5% $0.60 Amortization of acquisition-related intangible assets and other acquisition/divestiture-related costs 2% $0.34 Restructuring and other charges (2) 1% $0.11 Non-GAAP 35% $5.05 - $5.11