Cisco Systems(NASDAQ) CSCO

Cisco Systems, Inc. NASDAQ:CSCO 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.