Cisco Systems(NASDAQ) CSCO

Cisco Systems, Inc. builds the technology that runs the internet. It helps businesses connect computers and keep data safe. Its tools also help people talk over video calls.

Connections, Chips, and Clouds

• Networking: Hardware and software for switching, routing, and wireless connections; generated $34.7 billion in revenue in fiscal 2026.
• Security: Tools for network defense, identity management, and threat detection; generated $8.2 billion in revenue in fiscal 2026.
• Collaboration: Software and hardware for remote video meetings and teamwork; produced $4.3 billion in revenue in fiscal 2026.
• Observability: Analytics tools to monitor network assurance and application performance; produced $1.1 billion in revenue in fiscal 2026.
• Services: Technical support and consulting throughout the technology life cycle; accounts for 23.7% of total revenue.

Strategic Moves for AI

• Acquired Splunk to combine enterprise data monitoring with network security and observability.
• Launched the Cisco Silicon One architecture to provide high-speed, energy-efficient chips for data centers.
• Expanded into AI infrastructure to provide hardware for training and running artificial intelligence models.
• Integrated threat detection into the fabric of the network through the Hypershield security solution.

What Makes Cisco Different?

Cisco uses its custom Silicon One chips to provide high-speed networking for the largest internet companies. It integrates security directly into its hardware to protect data as it moves through a network.

A Look at the Numbers

• Total revenue reached $63.3 billion in fiscal 2026, up 12% year over year.
• Net income hit $13.3 billion in fiscal 2026, up 30% year over year.
• Product revenue generated 76.3% of total sales, growing 16% in fiscal 2026.
• Inventory and purchase commitments rose 112% during fiscal 2026 to support demand for chips.
• Diluted earnings per share reached $3.33 in fiscal 2026, up 31% year over year.

Evolution of Connectivity

Cisco has transitioned from a hardware vendor into a comprehensive software and services provider. Its focus on security and artificial intelligence infrastructure positions it as a key utility for the modern digital economy.