Cisco (CSCO)
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
$109.20+0.54%
Close 2026-09-04 · 1-day change
NASDAQInformation TechnologyCommunication EquipmentSnapshot 2026-09-04
QuarterlyIQ Insights · CSCO
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within information technology on a research-validated quality screen. As of 2026-09-04.
The screen ranks CSCO against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 3 of the last 3 quarter-over-quarter moves. Historically, Information Technology names rated strong grew net income 65% of the time over the next year (vs 52% for the rest of the cohort, n=6360).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 8 guided quarters · 35.0% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Focus on driving strong revenue growth with double-digit increases year over year across product and total revenue.
Stated as a priority in 6 of last 6 quarters. Revenue grew from $56.7 billion in FY 2025 to $63.3 billion in FY 2026, a 12% increase, with Q4 revenue up 18% year over year to $17.3 billion. Management consistently emphasized double-digit growth and record revenue, and the financials show delivering against this priority.
“Record top and bottom-line performance with double-digit growth in Q4 and FY 2026.”
“Cisco delivered record quarterly revenue in Q3 and we saw very strong, broad-based demand for our products.”
“Double-digit top and bottom-line growth exceeding our guidance, with EPS growing faster than revenue.”
“Strong top and bottom-line growth, exceeding our guidance and delivering continued operating leverage.”
“Strong topline performance at the high end of our guidance ranges.”
“Cisco once again had strong quarterly results with clear demand for our technologies.”
Focus on improving earnings per share and profitability metrics on a non-GAAP basis with consistent margin expansion.
Stated as a priority in 6 of last 6 quarters. Non-GAAP EPS grew from $3.81 in FY 2025 to $4.33 in FY 2026, a 14% increase, with Q4 non-GAAP EPS up 23% year over year to $1.22. Non-GAAP operating margin reached 35.9% in Q4 FY 2026, reflecting improved profitability. Management's focus on EPS and margins is delivering consistent progress.
Continue returning capital to shareholders through dividends and share repurchase programs with disciplined execution.
Stated as a priority in 6 of last 6 quarters. Cisco returned approximately $3.2 billion in Q4 FY 2026 and similar amounts in prior quarters through dividends and share repurchases, totaling about $6.5 billion in dividends and $6.1 billion in repurchases in FY 2026. Management has consistently executed capital returns, delivering on this priority.
Implement restructuring plans to enable investments in key growth areas such as silicon, optics, security, and artificial intelligence.
Stated as a priority in 3 of last 6 quarters. Cisco announced a restructuring plan in 2026-Q3 to invest in AI, security, and other growth areas, with pre-tax charges up to $1 billion. Restructuring charges rose from $35 million in 2026-Q1 to $511 million in 2026-Q2, showing active execution of this priority.
Manage senior leadership changes including retirement and succession in key executive roles.
Stated as a priority in 2 of last 6 quarters. Cisco disclosed senior leadership transitions including retirement of Chief Accounting Officer and Board director resignation for CEO role at Verizon. These changes are underway but no financial impact data is provided to assess delivery.
“Senior VP and Chief Accounting Officer retiring; successor appointed.”
Over the trailing year it converted 1.16x of net income into operating cash flow. Historically, Information Technology names rated neutral grew net income 57% of the time over the next year (vs 52% for the rest of the cohort, n=4162).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, Fed net liquidity, real (inflation-adjusted) rates (low R² over the window).
13 material management or governance events in the past 24 months, led by executive changes. Historically, Information Technology names rated neutral grew net income 60% of the time over the next year (vs 57% for the rest of the cohort, n=3673).
Not investment advice. As of 2026-09-04.
“Non-GAAP EPS increased 23% year over year to $1.22 in Q4 FY 2026.”
“Non-GAAP EPS increased 10% year over year to $1.06 in Q3 FY 2026.”
“Non-GAAP EPS increased 11% year over year to $1.04 in Q2 FY 2026.”
“Non-GAAP EPS increased 10% year over year to $1.00 in Q1 FY 2026.”
“Non-GAAP EPS increased 14% year over year to $0.99 in Q4 FY 2025.”
“Non-GAAP EPS increased 9% year over year to $0.96 in Q3 FY 2025.”
“Returned $3.2 billion to stockholders through share buybacks and dividends in Q4 FY 2026.”
“Returned $2.9 billion to stockholders through share buybacks and dividends in Q3 FY 2026.”
“Returned $3.0 billion to stockholders through share buybacks and dividends in Q2 FY 2026.”
“Returned $3.6 billion to stockholders through share buybacks and dividends in Q1 FY 2026.”
“Returned $2.9 billion to stockholders through share buybacks and dividends in Q4 FY 2025.”
“Returned $3.1 billion to stockholders through share buybacks and dividends in Q3 FY 2025.”
“Announced restructuring plan to invest in growth areas including AI and security.”
“Restructuring and other charges increased to $511 million in Q2 FY 2026.”
“Restructuring and other charges were $35 million in Q1 FY 2026.”
“Director resigned from Board due to new CEO role at Verizon Communications.”