Cisco Systems Inc

paragraph:3: exhibit991pressrelease-q3f.htm

paragraph:4: EX-99.1

paragraph:5: Document

paragraph:6: Press Contact: Investor Relations Contact: Robyn Blum Sami Badri Cisco Cisco 1 (408) 930-8548 1 (469) 420-4834 rojenkin@cisco.com sambadri@cisco.com CISCO REPORTS THIRD QUARTER EARNINGS News Summary: • Double-digit top and bottom-line growth exceeding the high end of our guidance ◦ Record revenue of $15.8 billion, up 12% year over year; GAAP EPS of $0.85, up 37% year over year; and non-GAAP EPS of $1.06, up 10% year over year ◦ GAAP gross margin of 63.6% and non-GAAP gross margin of 66.0%; GAAP operating margin of 25.0% and non-GAAP operating margin of 34.2%, demonstrating strong execution and operational efficiencies • Broad-based, record high demand for Cisco technology ◦ Total product orders up 35% year over year; up 19% excluding hyperscalers ◦ Growth in networking product orders accelerated to more than 50% year over year • Significant momentum and raised expectations for AI infrastructure from hyperscalers ◦ $5.3 billion of orders taken year to date; raising expected FY26 orders to $9 billion, up from $5 billion ◦ Raising expected FY26 revenue to $4 billion, up from $3 billion • Major multi-year, multi-billion-dollar campus networking refresh cycle underway ◦ Campus networking orders grew greater than 25% year over year, with the next-generation portfolio ramping faster than prior product launches ◦ Data center switching orders grew greater than 40% year over year • Q3 FY 2026 Results: ◦ Revenue: $15.8 billion ▪ Increase of 12% year over year ◦ Earnings per Share: GAAP: $0.85; Non-GAAP: $1.06 ▪ GAAP EPS increased 37% year over year ▪ Non-GAAP EPS increased 10% year over year • Q4 FY 2026

paragraph:7: Guidance (1) :

paragraph:8: ◦ Revenue: $16.7 billion to $16.9 billion ◦ Earnings per Share: GAAP: $0.80 to $0.85; Non-GAAP: $1.16 to $1.18 • FY 2026 Guidance (1) : ◦ Revenue: $62.8 billion to $63.0 billion ◦ Earnings per Share: GAAP: $3.16 to $3.21; Non-GAAP: $4.27 to $4.29 (1) EPS guidance includes the estimated impact of tariffs based on current trade policy. 1 SAN JOSE, Calif. -- May 13, 2026 -- Cisco (NASDAQ: CSCO) today reported third quarter results for the period ended April 25, 2026. Cisco reported third quarter revenue of $15.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.4 billion or $0.85 per share, and non-GAAP net income of $4.2 billion or $1.06 per share. “Cisco delivered record quarterly revenue in Q3 and we saw very strong, broad-based demand for our products, demonstrating the relevance of our technology for connecting and securing AI,” said Chuck Robbins, chair and CEO of Cisco. “Cisco is well-positioned as the critical infrastructure for the AI era, building on our technology leadership and customer trust, while innovating at the speed and scale that our dynamic world demands.” “In Q3, we once again delivered double-digit growth on both the top and bottom lines which exceeded the high end of our guidance, coupled with record non-GAAP operating income,” said Mark Patterson, CFO of Cisco. “Our record results demonstrate great execution and financial discipline by our teams, enabling us to deliver shareholder value while we pursue the significant opportunities we see ahead.” GAAP Results Q3 FY 2026 Q3 FY 2025 vs. Q3 FY 2025 Revenue $ 15.8 billion $ 14.1 billion 12% Net Income $ 3.4 billion $ 2.5 billion 35% Diluted Earnings per Share (EPS) $ 0.85 $ 0.62 37% Non-GAAP Results Q3 FY 2026 Q3 FY 2025 vs. Q3 FY 2025 Net Income $ 4.2 billion $ 3.8 billion 10% EPS $ 1.06 $ 0.96 10% Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled "Reconciliations of GAAP to non-GAAP Measures." Cisco Declares Quarterly Dividend Cisco has declared a quarterly dividend of $0.42 per common share to be paid on July 22, 2026, to all stockholders of record as of the close of business on July 6, 2026. Future dividends will be subject to Board approval. 2 Financial Summary All comparative percentages are on a year-over-year basis unless otherwise noted. Q3 FY 2026 Highlights Revenue -- Total revenue was $15.8 billion, up 12%, with product revenue up 17% and services revenue down 1%. Revenue by geographic segment was: Americas up 14%, EMEA up 9%, and APJC up 9%. Product revenue performance reflected growth in Networking, up 25% and Observability up 3%. Collaboration was down 1%. Security was flat. Gross Margin --

paragraph:9: On a GAAP basis, total gross margin, product gross margin, and services gross margin were 63.6%, 61.9%, and 69.2%, respectively, as compared with 65.6%, 64.4%, and 68.7%, respectively, in the third quarter of fiscal 2025. On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 66.0%, 64.3%, and 71.6%, respectively, as compared with 68.6%, 67.6%, and 71.3%, respectively, in the third quarter of fiscal 2025. Total gross margins by geographic segment were: 63.7% for the Americas, 71.3% for EMEA and 66.1% for APJC. Operating Expenses --

paragraph:10: On a GAAP basis, operating expenses were $6.1 billion, up 1% year over year, and were 38.6% of revenue. Non-GAAP operating expenses were $5.0 billion, up 5%, and were 31.9% of revenue. Operating Income -- GAAP operating income was $4.0 billion, up 24%, with GAAP operating margin of 25.0%. Non-GAAP operating income was $5.4 billion, up 11%, with non-GAAP operating margin at 34.2%. Provision for Income Taxes -- The GAAP tax provision rate was 16.5%. The non-GAAP tax provision rate was 19.0%. Net Income and EPS -- On a GAAP basis, net income was $3.4 billion, an increase of 35%, and EPS was $0.85, an increase of 37%. On a non-GAAP basis, net income was $4.2 billion, an increase of 10%, and EPS was $1.06, an increase of 10%. Cash Flow from Operating Activities -- $3.8 billion for the third quarter of fiscal 2026, a decrease of 7%, compared with $4.1 billion for the third quarter of fiscal 2025. Balance Sheet and Other Financial Highlights Cash and Cash Equivalents and Investments -- $16.6 billion at the end of the third quarter of fiscal 2026, compared with $16.1 billion at the end of fiscal 2025 . Remaining Performance Obligations (RPO)

paragraph:11: -- $43.5 billion, up 4% in total. Product RPO was up 6%, of which long-term RPO was $11.7 billion, up 6%. Services RPO was up 2%. Deferred Revenue -- $28.6 billion, up 2% in total, with deferred product revenue up 2% and deferred services revenue up 2%. Capital Allocation -- In the third quarter of fiscal 2026, we returned $2.9 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.42 per common share, or $1.7 billion, and repurchased approximately 16 million shares of common stock under our stock repurchase program at an average price of $80.28 per share for an aggregate purchase price of $1.3 billion. The remaining authorized amount for stock repurchases under the progra m is $9.6 billion with no termination date. 3 Guidance Cisco expects to achieve the following results for the fourth quarter of fiscal 2026: Q4 FY 2026 Revenue $16.7 billion - $16.9 billion Non-GAAP gross margin 65.5% - 66.5% Non-GAAP operating margin 34% - 35% Non-GAAP EPS $1.16 - $1.18 Cisco estimates that GAAP EPS will be $0.80 to $0.85 for the fourth quarter of fiscal 2026. Cisco expects to achieve the following results for fiscal 2026: FY 2026 Revenue $62.8 billion - $63.0 billion Non-GAAP EPS $4.27 - $4.29 Cisco estimates that GAAP EPS will be $3.16 to $3.21 for fiscal 2026. Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy. Our Q4 FY 2026 guidance assumes an effective tax provision rate of approximately 16% for GAAP and approximately 19% for non-GAAP results. Our FY 2026 guidance assumes an effective tax provision rate of approximately 15% for GAAP and approximately 19% for non-GAAP results. A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled "GAAP to non-GAAP Guidance" located in the section entitled "Reconciliations of GAAP to non-GAAP Measures." Editor's Notes: • Q3 fiscal year 2026 conference call to discuss Cisco's results along with its guidance will be held on Wednesday, May 13, 2026 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international). • Conference call replay will be available from 4:00 p.m. Pacific Time, May 13, 2026 to 10:00 p.m. Pacific Time, May 19, 2026 at 1-800-839-2232 (United States) or 1-203-369-3662 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com. • Additional information regarding Cisco's financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, May 13, 2026. The conference call will also be livestreamed on YouTube at https://www.youtube.com/live/oihjxLboqdk & LinkedIn at https://www.linkedin.com/events/7455725440733798400. Text of the conference call's prepared remarks will be available within 24 hours of completion of the call. The webcast and livestreaming will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com. 4 CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per-share amounts) (Unaudited)

paragraph:12: Three Months Ended Nine Months Ended April 25, 2026 April 26, 2025 April 25, 2026 April 26, 2025 REVENUE: Product $ 12,117 $ 10,374 $ 34,836 $ 30,722 Services 3,724 3,775 11,237 11,259 Total revenue 15,841 14,149 46,073 41,981 COST OF SALES: Product 4,613 3,688 12,752 10,927 Services 1,148 1,183 3,524 3,544 Total cost of sales 5,761 4,871 16,276 14,471 GROSS MARGIN 10,080 9,278 29,797 27,510 OPERATING EXPENSES: Research and development 2,377 2,335 7,132 6,920 Sales and marketing 2,855 2,724 8,607 8,148 General and administrative 661 739 2,082 2,286 Amortization of purchased intangible assets 228 244 690 774 Restructuring and other charges (1) 34 182 709 Total operating expenses 6,120 6,076 18,693 18,837 OPERATING INCOME 3,960 3,202 11,104 8,673 Interest income 214 250 646 774 Interest expense (377) (403) (1,097) (1,225) Other income (loss), net 242 (102) 423 (121) Interest and other income (loss), net 79 (255) (28) (572) INCOME BEFORE PROVISION FOR INCOME TAXES 4,039 2,947 11,076 8,101 Provision for income taxes 666 456 1,668 471 NET INCOME $ 3,373 $ 2,491 $ 9,408 $ 7,630 Net income per share: Basic $ 0.85 $ 0.63 $ 2.38 $ 1.92 Diluted $ 0.85 $ 0.62 $ 2.36 $ 1.91 Shares used in per-share calculation: Basic 3,952 3,972 3,954 3,981 Diluted 3,982 4,002 3,987 4,004 5 CISCO SYSTEMS, INC. REVENUE BY SEGMENT (In millions, except percentages) April 25, 2026 Three Months Ended Nine Months Ended Amount Y/Y % Amount Y/Y % Revenue : Americas $ 9,569 14% $ 27,403 10% EMEA 4,054 9% 12,262 10% APJC 2,218 9% 6,409 7% Total $ 15,841 12% $ 46,073 10% Amounts may not sum and percentages may not recalculate due to rounding. CISCO SYSTEMS, INC. GROSS MARGIN PERCENTAGE BY SEGMENT (In percentages) April 25, 2026 Three Months Ended Nine Months Ended Gross Margin Percentage : Americas 63.7% 65.4% EMEA 71.3% 71.7% APJC 66.1% 66.3% CISCO SYSTEMS, INC. REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES (In millions, except percentages) April 25, 2026 Three Months Ended Nine Months Ended Amount Y/Y % Amount Y/Y % Revenue : Networking $ 8,815 25% $ 24,877 20% Security 2,008 —% 6,006 (2)% Collaboration 1,024 (1)% 3,133 1% Observability 269 3% 820 3% Total Product 12,117 17% 34,836 13% Services 3,724 (1)% 11,237 —% Total $ 15,841 12% $ 46,073 10% Amounts may not sum and percentages may not recalculate due to rounding. 6 CISCO SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) April 25, 2026 July 26, 2025 ASSETS Current assets: Cash and cash equivalents $ 7,083 $ 8,346 Investments 9,557 7,764 Accounts receivable, net of allowance of $73 at April 25, 2026 and $69 at July 26, 2025 6,480 6,701 Inventories 4,708 3,164 Financing receivables, net 2,936 3,061 Other current assets 5,795 5,950 Total current assets 36,559 34,986 Property and equipment, net 2,577 2,113 Financing receivables, net 3,642 3,466 Goodwill 59,292 59,136 Purchased intangible assets, net 7,850 9,175 Deferred tax assets 7,558 7,356 Other assets 8,068 6,059 TOTAL ASSETS $ 125,546 $ 122,291 LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 11,932 $ 5,232 Accounts payable 2,970 2,528 Income taxes payable 173 1,857 Accrued compensation 3,290 3,611 Deferred revenue 16,446 16,416 Other current liabilities 4,730 5,420 Total current liabilities 39,541 35,064 Long-term debt 19,371 22,861 Income taxes payable 2,304 2,165 Deferred revenue 12,153 12,363 Other long-term liabilities 3,316 2,995 Total liabilities 76,685 75,448 Total equity 48,861 46,843 TOTAL LIABILITIES AND EQUITY $ 125,546 $ 122,291 7 CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Three Months Ended Nine Months Ended April 25, 2026 April 26, 2025 April 25, 2026 April 26, 2025 Cash flows from operating activities: Net income $ 3,373 $ 2,491 $ 9,408 $ 7,630 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization, and other 637 626 1,902 2,176 Share-based compensation expense 914 945 2,903 2,693 Provision for receivables 2 10 11 17 Deferred income taxes (153) (410) (217) (792) (Gains) losses on divestitures, investments and other, net (263) 57 (500) 52 Change in operating assets and liabilities, net of effects of acquisitions and divestitures: Accounts receivable 133 437 187 1,406 Inventories (788) 100 (1,549) 541 Financing receivables 86 175 (34) 505 Other assets 40 (89) (602) (516) Accounts payable 208 349 444 (10) Income taxes, net 161 283 (2,342) (2,002) Accrued compensation (212) (138) (332) (431) Deferred revenue 149 31 (141) (524) Other liabilities (530) (810) (347) (786) Net cash provided by operating activities 3,757 4,057 8,791 9,959 Cash flows from investing activities: Purchases of investments (3,139) (805) (7,367) (3,066) Proceeds from sales of investments 439 437 1,884 2,228 Proceeds from maturities of investments 1,508 1,282 3,811 3,985 Acquisitions, net of cash and cash equivalents acquired and divestitures — (34) (46) (291) Purchases of non-marketable equity securities (634) (128) (699) (265) Return of investments in non-marketable equity securities 168 14 223 108 Acquisition of property and equipment (414) (261) (1,020) (688) Other 2 — (6) (5) Net cash provided by (used in) investing activities (2,070) 505 (3,220) 2,006 Cash flows from financing activities: Issuances of common stock — — 354 320 Repurchases of common stock - repurchase program (1,250) (1,505) (4,605) (4,748) Shares repurchased for tax withholdings on vesting of restricted stock units (294) (255) (1,362) (910) Short-term borrowings, original maturities of 90 days or less, net (338) (1,491) 412 (479) Issuances of debt 6,399 6,982 10,640 17,388 Repayments of debt (4,862) (7,163) (7,854) (18,545) Dividends paid (1,660) (1,627) (4,894) (4,812) Other (34) (78) (32) (80) Net cash used in financing activities (2,039) (5,137) (7,341) (11,866) Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents (24) (15) (57) (23) Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents (376) (590) (1,827) 76 Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period 7,459 9,508 8,910 8,842 Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $ 7,083 $ 8,918 $ 7,083 $ 8,918 Supplemental cash flow information: Cash paid for interest $ 604 $ 601 $ 1,305 $ 1,370 Cash paid for income taxes, net $ 659 $ 583 $ 4,228 $ 3,265 8 CISCO SYSTEMS, INC. REMAINING PERFORMANCE OBLIGATIONS (In millions, except percentages) April 25, 2026 January 24, 2026 April 26, 2025 Amount Y/Y% Amount Y/Y% Amount Y/Y% Product (1) $ 22,058 6 % $ 21,977 8 % $ 20,752 10 % Services 21,404 2 % 21,429 2 % 20,915 5 % Total $ 43,462 4 % $ 43,406 5 % $ 41,667 7 % (1) As of the end of the third quarter of fiscal 2026, long-term product RPO was $11.7 billion, up 6% year over year. CISCO SYSTEMS, INC. DEFERRED REVENUE (In millions) April 25, 2026 January 24, 2026 April 26, 2025 Deferred revenue: Product $ 13,461 $ 13,371 $ 13,170 Services 15,138 15,032 14,821 Total $ 28,599 $ 28,403 $ 27,991 Reported as: Current $ 16,446 $ 16,199 $ 16,081 Noncurrent 12,153 12,204 11,910 Total $ 28,599 $ 28,403 $ 27,991 CISCO SYSTEMS, INC. DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK (In millions, except per-share amounts) DIVIDENDS STOCK REPURCHASE PROGRAM TOTAL Quarter Ended Per Share Amount Shares Weighted-Average Price per Share Amount Amount Fiscal 2026 April 25, 2026 $ 0.42 $ 1,660 16 $ 80.28 $ 1,252 $ 2,912 January 24, 2026 $ 0.41 $ 1,617 18 $ 76.29 $ 1,351 $ 2,968 October 25, 2025 $ 0.41 $ 1,617 29 $ 68.28 $ 2,001 $ 3,618 Fiscal 2025 July 26, 2025 $ 0.41 $ 1,625 19 $ 64.65 $ 1,252 $ 2,877 April 26, 2025 $ 0.41 $ 1,627 25 $ 59.78 $ 1,504 $ 3,131 January 25, 2025 $ 0.40 $ 1,593 21 $ 58.58 $ 1,236 $ 2,829 October 26, 2024 $ 0.40 $ 1,592 40 $ 49.56 $ 2,003 $ 3,595 9 CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES GAAP TO NON-GAAP NET INCOME (In millions)

paragraph:13: Three Months Ended Nine Months Ended

paragraph:14: April 25, 2026 April 26, 2025 April 25, 2026 April 26, 2025 GAAP net income $ 3,373 $ 2,491 $ 9,408 $ 7,630 Adjustments to cost of sales: Share-based compensation expense 150 152 451 434 Amortization of acquisition-related intangible assets 221 263 682 917 Acquisition/divestiture-related costs 7 17 21 53 Supplier component remediation charge (adjustment) — (7) — (7) Total adjustments to GAAP cost of sales 378 425 1,154 1,397 Adjustments to operating expenses: Share-based compensation expense 764 778 2,430 2,222 Amortization of acquisition-related intangible assets 228 244 690 774 Acquisition/divestiture-related costs 83 197 282 687 Significant asset impairments and restructurings (1) 34 182 709 Total adjustments to GAAP operating expenses 1,074 1,253 3,584 4,392 Adjustments to interest and other income (loss), net: (Gains) and losses on investments (273) 19 (529) (72) Total adjustments to GAAP interest and other income (loss), net (273) 19 (529) (72) Total adjustments to GAAP income before provision for income taxes 1,179 1,697 4,209 5,717 Income tax effect of non-GAAP adjustments (325) (357) (1,104) (1,256) Significant tax matters — — (132) (829) Total adjustments to GAAP provision for income taxes (325) (357) (1,236) (2,085) Non-GAAP net income $ 4,227 $ 3,831 $ 12,381 $ 11,262

paragraph:15: 10 CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES GAAP TO NON-GAAP EPS

paragraph:16: Three Months Ended Nine Months Ended

paragraph:17: April 25, 2026 April 26, 2025 April 25, 2026 April 26, 2025 GAAP EPS $ 0.85 $ 0.62 $ 2.36 $ 1.91 Adjustments to GAAP: Share-based compensation expense 0.23 0.23 0.72 0.66 Amortization of acquisition-related intangible assets 0.11 0.13 0.34 0.42 Acquisition/divestiture-related costs 0.02 0.05 0.08 0.18 Significant asset impairments and restructurings — 0.01 0.05 0.18 (Gains) and losses on investments (0.07) — (0.13) (0.02) Income tax effect of non-GAAP adjustments (0.08) (0.09) (0.28) (0.31) Significant tax matters — — (0.03) (0.21) Non-GAAP EPS $ 1.06 $ 0.96 $ 3.11 $ 2.81 Amounts may not sum due to rounding. 11 CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME (In millions, except percentages) Three Months Ended April 25, 2026 Product Gross Margin Services Gross Margin Total Gross Margin Operating Expenses Y/Y Operating Income Y/Y Interest and other income (loss), net Net Income Y/Y GAAP amount $ 7,504 $ 2,576 $ 10,080 $ 6,120 1% $ 3,960 24% $ 79 $ 3,373 35% % of revenue 61.9 % 69.2 % 63.6 % 38.6 % 25.0 % 0.5 % 21.3 % Adjustments to GAAP amounts: Share-based compensation expense 64 86 150 764 914 — 914 Amortization of acquisition-related intangible assets 221 — 221 228 449 — 449 Acquisition/divestiture-related costs 2 5 7 83 90 — 90 Significant asset impairments and restructurings — — — (1) (1) — (1) (Gains) and losses on investments — — — — — (273) (273) Income tax effect/significant tax matters — — — — — — (325) Non-GAAP amount $ 7,791 $ 2,667 $ 10,458 $ 5,046 5% $ 5,412 11% $ (194) $ 4,227 10% % of revenue 64.3 % 71.6 % 66.0 % 31.9 % 34.2 % (1.2) % 26.7 %

paragraph:18: Three Months Ended April 26, 2025 Product Gross Margin Services Gross Margin Total Gross Margin Operating Expenses Operating Income Interest and other income (loss), net Net Income GAAP amount $ 6,686 $ 2,592 $ 9,278 $ 6,076 $ 3,202 $ (255) $ 2,491 % of revenue 64.4 % 68.7 % 65.6 % 42.9 % 22.6 % (1.8) % 17.6 % Adjustments to GAAP amounts: Share-based compensation expense 67 85 152 778 930 — 930 Amortization of acquisition-related intangible assets 263 — 263 244 507 — 507 Acquisition/divestiture-related costs 4 13 17 197 214 — 214 Supplier component remediation charge (adjustment) (7) — (7) — (7) — (7) Significant asset impairments and restructurings — — — 34 34 — 34 (Gains) and losses on investments — — — — — 19 19 Income tax effect/significant tax matters — — — — — — (357) Non-GAAP amount $ 7,013 $ 2,690 $ 9,703 $ 4,823 $ 4,880 $ (236) $ 3,831 % of revenue 67.6 % 71.3 % 68.6 % 34.1 % 34.5 % (1.7) % 27.1 % Amounts may not sum and percentages may not recalculate due to rounding. 12 CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME (In millions, except percentages) Nine Months Ended April 25, 2026 Product Gross Margin Services Gross Margin Total Gross Margin Operating Expenses Y/Y Operating Income Y/Y Interest and other income (loss), net Net Income Y/Y GAAP amount $ 22,084 $ 7,713 $ 29,797 $ 18,693 (1)% $ 11,104 28% $ (28) $ 9,408 23% % of revenue 63.4 % 68.6 % 64.7 % 40.6 % 24.1 % (0.1) % 20.4 % Adjustments to GAAP amounts: Share-based compensation expense 195 256 451 2,430 2,881 — 2,881 Amortization of acquisition-related intangible assets 682 — 682 690 1,372 — 1,372 Acquisition/divestiture-related costs 6 15 21 282 303 — 303 Significant asset impairments and restructurings — — — 182 182 — 182 (Gains) and losses on investments — — — — — (529) (529) Income tax effect/significant tax matters — — — — — — (1,236) Non-GAAP amount $ 22,967 $ 7,984 $ 30,951 $ 15,109 5% $ 15,842 10% $ (557) $ 12,381 10% % of revenue 65.9 % 71.1 % 67.2 % 32.8 % 34.4 % (1.2) % 26.9 %

paragraph:19: Nine Months Ended April 26, 2025 Product Gross Margin Services Gross Margin Total Gross Margin Operating Expenses Operating Income Interest and other income (loss), net Net Income GAAP amount $ 19,795 $ 7,715 $ 27,510 $ 18,837 $ 8,673 $ (572) $ 7,630 % of revenue 64.4 % 68.5 % 65.5 % 44.9 % 20.7 % (1.4) % 18.2 % Adjustments to GAAP amounts: Share-based compensation expense 189 245 434 2,222 2,656 — 2,656 Amortization of acquisition-related intangible assets 917 — 917 774 1,691 — 1,691 Acquisition/divestiture-related costs 12 41 53 687 740 — 740 Supplier component remediation charge (adjustment) (7) — (7) — (7) — (7) Significant asset impairments and restructurings — — — 709 709 — 709 (Gains) and losses on investments — — — — — (72) (72) Income tax effect/significant tax matters — — — — — — (2,085) Non-GAAP amount $ 20,906 $ 8,001 $ 28,907 $ 14,445 $ 14,462 $ (644) $ 11,262 % of revenue 68.0 % 71.1 % 68.9 % 34.4 % 34.4 % (1.5) % 26.8 % Amounts may not sum and percentages may not recalculate due to rounding. 13 CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES EFFECTIVE TAX RATE (In percentages) Three Months Ended Nine Months Ended April 25, 2026 April 26, 2025 April 25, 2026 April 26, 2025 GAAP effective tax rate 16.5 % 15.5 % 15.1 % 5.8 % Total adjustments to GAAP provision for income taxes 2.5 % 2.0 % 3.9 % 12.7 % Non-GAAP effective tax rate 19.0 % 17.5 % 19.0 % 18.5 % GAAP TO NON-GAAP GUIDANCE Q4 FY 2026 Gross Margin Rate Operating Margin Rate Earnings per Share (1) GAAP 63.5% - 64.5% 23% - 24% $0.80 - $0.85 Estimated adjustments for: Share-based compensation expense 1.0% 5.0% $0.14 - $0.15 Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs 1.0% 3.0% $0.10 - $0.11 Significant asset impairments and restructurings (2) — 3.0% $0.09 - $0.10 Non-GAAP 65.5% - 66.5% 34% - 35% $1.16 - $1.18 FY 2026 Earnings per Share (1) GAAP $3.16 - $3.21 Estimated adjustments for: Share-based compensation expense $0.67 - $0.68 Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs $0.43 - $0.44 Significant asset impairments and restructurings (2) $0.12 - $0.13 (Gains) and losses on investments ($0.11) Significant tax matters ($0.03) Non-GAAP $4.27 - $4.29 (1) Estimated adjustments to GAAP earnings per share are shown after income tax effects. (2) On May 13, 2026, Cisco announced a restructuring plan in order to allow it to invest in key growth opportunities including silicon, optics, security and AI. In connection with this restructuring plan, Cisco currently estimates that it will recognize pre-tax charges of up to $1 billion consisting of severance and other one-time termination benefits, and other costs. Cisco expects to recognize approximately $450 million of these charges in the fourth quarter of fiscal 2026 with the remaining amount expected to be recognized during fiscal 2027. Margin and EPS guidance includes the estimated impact of tariffs based on c urrent trade policy. Except as noted above, this guidance does not include the

paragraph:20: 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. 14 Forward Looking Statements, Non-GAAP Information and Additional Information This release may be deemed to 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 for the AI era, the significant momentum and raised expectations of AI infrastructure from hyperscalers, the major multi-year, multi-billion-dollar campus networking refresh, the speed and scale of our innovation, the significant opportunities that lie ahead, and the timing and size of the restructuring) and the future financial performance of Cisco (including the guidance for Q4 FY 2026 and full year FY 2026) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q4 FY 2026 and full year FY 2026. 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, cloud, enterprise 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 services 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 February 17, 2026 and September 3, 2025, respectively. The financial information contained in this release 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 and nine months ended April 25, 2026 are not necessarily indicative of Cisco's operating results for any future periods. Any projections in this release 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 this release. This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis. These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco's results of operations in conjunction with the corresponding GAAP measures. Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. For its internal budgeting process, Cisco's management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco's management also uses the foregoing 15 non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission. About Cisco Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco. Copyright © 2026 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information. RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds 16

2026-02-11Feb 11, 2026, 11:00 AM ESTSec 8k Exhibit22 segments

paragraph:1: EX-99.1

paragraph:3: exhibit991pressrelease-q2f.htm

paragraph:4: EX-99.1

paragraph:5: Document

paragraph:6: Press Contact: Investor Relations Contact: Robyn Blum Sami Badri Cisco Cisco 1 (408) 930-8548 1 (469) 420-4834 rojenkin@cisco.com sambadri@cisco.com CISCO REPORTS SECOND QUARTER EARNINGS News Summary: • Double-digit top and bottom-line growth exceeding our guidance, with EPS growing faster than revenue ◦ Record revenue of $15.3 billion, up 10% year over year; GAAP EPS of $0.80, up 31% year over year; and Non-GAAP EPS of $1.04, up 11% year over year ◦ GAAP gross margin of 65.0% and Non-GAAP gross margin of 67.5%; GAAP operating margin of 24.6% and Non-GAAP operating margin of 34.6%, both above the high end of our guidance range • Accelerating, double-digit growth in product orders across all geographies and robust growth across all customer markets ◦ Product orders up 18% year over year with networking product orders accelerating to more than 20% year over year • AI Infrastructure orders taken from hyperscalers totaled $2.1 billion, reflecting a significant acceleration in growth • Major multi-year, multi-billion-dollar campus networking refresh cycle underway • Dividend increased by 2% to $0.42 per share • Q2 FY 2026 Results: ◦ Revenue: $15.3 billion ▪ Increase of 10% year over year ◦ Earnings per Share: GAAP: $0.80; Non-GAAP: $1.04 ▪ GAAP EPS increased 31% year over year ▪ Non-GAAP EPS increased 11% year over year • Q3 FY 2026

paragraph:7: Guidance (1) :

paragraph:8: ◦ Revenue: $15.4 billion to $15.6 billion ◦ Earnings per Share: GAAP: $0.73 to $0.77; Non-GAAP: $1.02 to $1.04 • FY 2026 Guidance (1) : ◦ Revenue: $61.2 billion to $61.7 billion ◦ Earnings per Share: GAAP: $3.00 to $3.08; Non-GAAP: $4.13 to $4.17 (1) EPS guidance includes the estimated impact of tariffs based on current trade policy. SAN JOSE, Calif. -- February 11, 2026 -- Cisco (NASDAQ: CSCO) today reported second quarter results for the period ended January 24, 2026. Cisco reported second quarter revenue of $15.3 billion, net income on a generally accepted accounting principles (GAAP) basis of $3.2 billion or $0.80 per share, and non-GAAP net income of $4.1 billion or $1.04 per share. “Cisco's strong second quarter and first half of fiscal 2026 demonstrate both the power of our portfolio and the fundamental role we continue to play in connecting and protecting customers in a rapidly evolving landscape,” said Chuck Robbins, chair and CEO of Cisco. “With over 40 years of customer trust, global scale, and a relentless focus on innovation, we believe Cisco is uniquely positioned to deliver the trusted infrastructure needed to securely and confidently power the AI-era.” “In Q2, we delivered double-digit growth on both the top and bottom lines which exceeded the high end of our guidance and puts us on track to deliver our strongest revenue year yet in

paragraph:9: fiscal 2026,” said Mark Patterson, CFO of Cisco. “Operating margin was also above the high end of guidance, as we continue to drive profitability by exercising financial discipline. We see strong, broad-based demand for our technology solutions and remain focused on capturing the significant opportunities we see ahead.”

paragraph:10: 1 GAAP Results Q2 FY 2026 Q2 FY 2025 vs. Q2 FY 2025 Revenue $ 15.3 billion $ 14.0 billion 10% Net Income $ 3.2 billion $ 2.4 billion 31% Diluted Earnings per Share (EPS) $ 0.80 $ 0.61 31% Non-GAAP Results Q2 FY 2026 Q2 FY 2025 vs. Q2 FY 2025 Net Income $ 4.1 billion $ 3.8 billion 10% EPS $ 1.04 $ 0.94 11% Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled "Reconciliations of GAAP to non-GAAP Measures." Cisco Increases Quarterly Dividend Cisco has declared a quarterly dividend of $0.42 per common share, a 1-cent increase or up 2% over the previous quarter's dividend, to be paid on April 22, 2026, to all stockholders of record as of the close of business on April 2, 2026. Future dividends will be subject to Board approval. 2 Financial Summary All comparative percentages are on a year-over-year basis unless otherwise noted. Q2 FY 2026 Highlights Revenue -- Total revenue was $15.3 billion, up 10%, with product revenue up 14% and services revenue down 1%. Revenue by geographic segment was: Americas up 8%, EMEA up 15%, and APJC up 8% . Product revenue performance reflected growth in Networking, up 21%, and Collaboration, up 6%. Security was down 4%. Observability was flat. Gross Margin --

paragraph:11: On a GAAP basis, total gross margin, product gross margin, and services gross margin were 65.0%, 63.9%, and 68.4%, respectively, as compared with 65.1%, 63.7%, and 68.9%, respectively, in the second quarter of fiscal 2025. On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 67.5%, 66.4%, and 70.9%, respectively, as compared with 68.7%, 67.7%, and 71.6%, respectively, in the second quarter of fiscal 2025. Total gross margins by geographic segment were: 65.8% for the Americas, 71.7% for EMEA and 65.8% for APJC. Operating Expenses --

paragraph:12: On a GAAP basis, operating expenses were $6.2 billion, up 3% year over year, and were 40.3% of revenue. Non-GAAP operating expenses were $5.0 billion, up 6%, and were 32.9% of revenue. Operating Income -- GAAP operating income was $3.8 billion, up 21%, with GAAP operating margin of 24.6%. Non-GAAP operating income was $5.3 billion, up 9%, with non-GAAP operating margin at 34.6%. Provision for Income Taxes -- The GAAP tax provision rate was 12.9%. The non-GAAP tax provision rate was 19.0%. Net Income and EPS -- On a GAAP basis, net income was $3.2 billion, an increase of 31%, and EPS was $0.80, an increase of 31%. On a non-GAAP basis, net income was $4.1 billion, an increase of 10%, and EPS was $1.04, an increase of 11%. Cash Flow from Operating Activities -- $1.8 billion for the second quarter of fiscal 2026, a decrease of 19%, compared with $2.2 billion for the second quarter of fiscal 2025. Balance Sheet and Other Financial Highlights Cash and Cash Equivalents and Investments -- $15.8 billion at the end of the second quarter of fiscal 2026, compared with $16.1 billion at the end of fiscal 2025 . Remaining Performance Obligations (RPO)

paragraph:13: -- $43.4 billion, up 5% in total. Product RPO was up 8%, of which long-term RPO was $11.8 billion, up 11% . Services RPO was up 2%. Deferred Revenue -- $28.4 billion, up 2% in total, with deferred product revenue up 3% and deferred services revenue up 2%. Capital Allocation -- In the second quarter of fiscal 2026, we returned $3.0 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.41 per common share, or $1.6 billion, and repurchased approximately 18 million shares of common stock under our stock repurchase program at an average price of $76.29 per share for an aggregate purchase price of $1.4 billion. The remaining authorized amount for stock repurchases under the progra m is $10.8 billion with no termination date. Acquisitions In the second quarter of fiscal 2026, we closed the following acquisitions: • NeuralFabric Corp. , a privately held enterprise AI platform company • EzDubs, Inc. , a privately held AI software company 3 Guidance Cisco estimates the following results for the third quarter of fiscal 2026: Q3 FY 2026 Revenue $15.4 billion - $15.6 billion Non-GAAP gross margin 65.5% - 66.5% Non-GAAP operating margin 33.5% - 34.5% Non-GAAP EPS $1.02 - $1.04 Cisco estimates that GAAP EPS will be $0.73 to $0.77 for the third quarter of fiscal 2026. Cisco estimates the following results for fiscal 2026: FY 2026 Revenue $61.2 billion - $61.7 billion Non-GAAP EPS $4.13 - $4.17 Cisco estimates that GAAP EPS will be $3.00 to $3.08 for fiscal 2026. Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy. Our Q3 FY 2026 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 19% for non-GAAP results. Our FY 2026 guidance assumes an effective tax provision rate of approximately 16% for GAAP and approximately 19% for non-GAAP results. A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled "GAAP to non-GAAP Guidance" located in the section entitled "Reconciliations of GAAP to non-GAAP Measures." Editor's Notes: • Q2 fiscal year 2026 conference call to discuss Cisco's results along with its guidance will be held on Wednesday, February 11, 2026 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international). • Conference call replay will be available from 4:00 p.m. Pacific Time, February 11, 2026 to 10:00 p.m. Pacific Time, February 17, 2026 at 1-800-839-2232 (United States) or 1-203-369-3662 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com. • Additional information regarding Cisco's financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, February 11, 2026. Text of the conference call's prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com. 4 CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except per-share amounts) (Unaudited)

paragraph:14: Three Months Ended Six Months Ended January 24, 2026 January 25, 2025 January 24, 2026 January 25, 2025 REVENUE: Product $ 11,642 $ 10,234 $ 22,719 $ 20,348 Services 3,707 3,757 7,513 7,484 Total revenue 15,349 13,991 30,232 27,832 COST OF SALES: Product 4,205 3,713 8,139 7,239 Services 1,172 1,167 2,376 2,361 Total cost of sales 5,377 4,880 10,515 9,600 GROSS MARGIN 9,972 9,111 19,717 18,232 OPERATING EXPENSES: Research and development 2,355 2,299 4,755 4,585 Sales and marketing 2,881 2,672 5,752 5,424 General and administrative 688 752 1,421 1,547 Amortization of purchased intangible assets 231 265 462 530 Restructuring and other charges 36 10 183 675 Total operating expenses 6,191 5,998 12,573 12,761 OPERATING INCOME 3,781 3,113 7,144 5,471 Interest income 210 238 432 524 Interest expense (370) (404) (720) (822) Other income (loss), net 25 (60) 181 (19) Interest and other income (loss), net (135) (226) (107) (317) INCOME BEFORE PROVISION FOR INCOME TAXES 3,646 2,887 7,037 5,154 Provision for income taxes 471 459 1,002 15 NET INCOME $ 3,175 $ 2,428 $ 6,035 $ 5,139 Net income per share: Basic $ 0.80 $ 0.61 $ 1.53 $ 1.29 Diluted $ 0.80 $ 0.61 $ 1.51 $ 1.28 Shares used in per-share calculation: Basic 3,955 3,981 3,955 3,986 Diluted 3,984 4,005 3,987 4,008 5 CISCO SYSTEMS, INC. REVENUE BY SEGMENT (In millions, except percentages) January 24, 2026 Three Months Ended Six Months Ended Amount Y/Y % Amount Y/Y % Revenue : Americas $ 8,845 8% $ 17,834 8% EMEA 4,425 15% 8,208 10% APJC 2,080 8% 4,191 7% Total $ 15,349 10% $ 30,232 9% Amounts may not sum and percentages may not recalculate due to rounding. CISCO SYSTEMS, INC. GROSS MARGIN PERCENTAGE BY SEGMENT (In percentages) January 24, 2026 Three Months Ended Six Months Ended Gross Margin Percentage : Americas 65.8% 66.3% EMEA 71.7% 71.8% APJC 65.8% 66.4% CISCO SYSTEMS, INC. REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES (In millions, except percentages) January 24, 2026 Three Months Ended Six Months Ended Amount Y/Y % Amount Y/Y % Revenue : Networking $ 8,294 21% $ 16,061 18% Security 2,018 (4)% 3,998 (3)% Collaboration 1,054 6% 2,109 1% Observability 277 —% 550 3% Total Product 11,642 14% 22,719 12% Services 3,707 (1)% 7,513 —% Total $ 15,349 10% $ 30,232 9% Amounts may not sum and percentages may not recalculate due to rounding. 6 CISCO SYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In millions) (Unaudited) January 24, 2026 July 26, 2025 ASSETS Current assets: Cash and cash equivalents $ 7,458 $ 8,346 Investments 8,319 7,764 Accounts receivable, net of allowance of $76 at January 24, 2026 and $69 at July 26, 2025 6,606 6,701 Inventories 3,920 3,164 Financing receivables, net 2,944 3,061 Other current assets 5,884 5,950 Total current assets 35,131 34,986 Property and equipment, net 2,351 2,113 Financing receivables, net 3,698 3,466 Goodwill 59,234 59,136 Purchased intangible assets, net 8,307 9,175 Deferred tax assets 7,399 7,356 Other assets 7,251 6,059 TOTAL ASSETS $ 123,371 $ 122,291 LIABILITIES AND EQUITY Current liabilities: Short-term debt $ 8,719 $ 5,232 Accounts payable 2,762 2,528 Income taxes payable 195 1,857 Accrued compensation 3,494 3,611 Deferred revenue 16,199 16,416 Other current liabilities 5,417 5,420 Total current liabilities 36,786 35,064 Long-term debt 21,367 22,861 Income taxes payable 2,124 2,165 Deferred revenue 12,204 12,363 Other long-term liabilities 3,167 2,995 Total liabilities 75,648 75,448 Total equity 47,723 46,843 TOTAL LIABILITIES AND EQUITY $ 123,371 $ 122,291 7 CISCO SYSTEMS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions) (Unaudited) Three Months Ended Six Months Ended January 24, 2026 January 25, 2025 January 24, 2026 January 25, 2025 Cash flows from operating activities: Net income $ 3,175 $ 2,428 $ 6,035 $ 5,139 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization, and other 659 761 1,265 1,550 Share-based compensation expense 934 921 1,989 1,748 Provision for receivables 12 8 9 7 Deferred income taxes (89) (101) (64) (382) (Gains) losses on divestitures, investments and other, net (59) 55 (237) (5) Change in operating assets and liabilities, net of effects of acquisitions and divestitures: Accounts receivable (1,803) (1,258) 54 969 Inventories (527) 212 (761) 441 Financing receivables 192 157 (120) 330 Other assets (50) (237) (642) (427) Accounts payable 344 (90) 236 (359) Income taxes, net (2,375) (1,479) (2,503) (2,285) Accrued compensation 419 461 (120) (293) Deferred revenue 433 416 (290) (555) Other liabilities 557 (13) 183 24 Net cash provided by operating activities 1,822 2,241 5,034 5,902 Cash flows from investing activities: Purchases of investments (2,244) (486) (4,228) (2,261) Proceeds from sales of investments 176 301 1,445 1,791 Proceeds from maturities of investments 1,081 1,539 2,303 2,703 Acquisitions, net of cash and cash equivalents acquired and divestitures (39) (40) (46) (257) Purchases of investments in privately held companies (47) (95) (65) (137) Return of investments in privately held companies 36 17 55 94 Acquisition of property and equipment (283) (210) (606) (427) Other 14 (4) (8) (5) Net cash provided by (used in) investing activities (1,306) 1,022 (1,150) 1,501 Cash flows from financing activities: Issuances of common stock 354 320 354 320 Repurchases of common stock - repurchase program (1,363) (1,240) (3,355) (3,243) Shares repurchased for tax withholdings on vesting of restricted stock units (784) (490) (1,068) (655) Short-term borrowings, original maturities of 90 days or less, net (510) 944 750 1,012 Issuances of debt 2,682 4,674 4,241 10,406 Repayments of debt (204) (6,561) (2,992) (11,382) Dividends paid (1,617) (1,593) (3,234) (3,185) Other 3 1 2 (2) Net cash used in financing activities (1,439) (3,945) (5,302) (6,729) Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents (19) (18) (33) (8) Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents (942) (700) (1,451) 666 Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period 8,401 10,208 8,910 8,842 Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period $ 7,459 $ 9,508 $ 7,459 $ 9,508 Supplemental cash flow information: Cash paid for interest $ 85 $ 224 $ 701 $ 769 Cash paid for income taxes, net $ 2,935 $ 2,039 $ 3,569 $ 2,682 8 CISCO SYSTEMS, INC. REMAINING PERFORMANCE OBLIGATIONS (In millions, except percentages) January 24, 2026 October 25, 2025 January 25, 2025 Amount Y/Y% Amount Y/Y% Amount Y/Y% Product (1) $ 21,977 8 % $ 21,904 10 % $ 20,321 25 % Services 21,429 2 % 20,969 4 % 20,947 8 % Total $ 43,406 5 % $ 42,873 7 % $ 41,268 16 % (1) As of the end of the second quarter of fiscal 2026, long-term product RPO was $11.8 billion, up 11% year over year. CISCO SYSTEMS, INC. DEFERRED REVENUE (In millions) January 24, 2026 October 25, 2025 January 25, 2025 Deferred revenue: Product $ 13,371 $ 13,252 $ 13,033 Services 15,032 14,717 14,762 Total $ 28,403 $ 27,969 $ 27,795 Reported as: Current $ 16,199 $ 15,801 $ 15,999 Noncurrent 12,204 12,168 11,796 Total $ 28,403 $ 27,969 $ 27,795 CISCO SYSTEMS, INC. DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK (In millions, except per-share amounts) DIVIDENDS STOCK REPURCHASE PROGRAM TOTAL Quarter Ended Per Share Amount Shares Weighted-Average Price per Share Amount Amount Fiscal 2026 January 24, 2026 $ 0.41 $ 1,617 18 $ 76.29 $ 1,351 $ 2,968 October 25, 2025 $ 0.41 $ 1,617 29 $ 68.28 $ 2,001 $ 3,618 Fiscal 2025 July 26, 2025 $ 0.41 $ 1,625 19 $ 64.65 $ 1,252 $ 2,877 April 26, 2025 $ 0.41 $ 1,627 25 $ 59.78 $ 1,504 $ 3,131 January 25, 2025 $ 0.40 $ 1,593 21 $ 58.58 $ 1,236 $ 2,829 October 26, 2024 $ 0.40 $ 1,592 40 $ 49.56 $ 2,003 $ 3,595 9 CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES GAAP TO NON-GAAP NET INCOME (In millions)

paragraph:15: Three Months Ended Six Months Ended

paragraph:16: January 24, 2026 January 25, 2025 January 24, 2026 January 25, 2025 GAAP net income $ 3,175 $ 2,428 $ 6,035 $ 5,139 Adjustments to cost of sales: Share-based compensation expense 151 151 301 282 Amortization of acquisition-related intangible assets 228 335 461 654 Acquisition/divestiture-related costs 6 17 14 36 Total adjustments to GAAP cost of sales 385 503 776 972 Adjustments to operating expenses: Share-based compensation expense 782 765 1,666 1,444 Amortization of acquisition-related intangible assets 231 265 462 530 Acquisition/divestiture-related costs 96 205 199 490 Significant asset impairments and restructurings 36 10 183 675 Total adjustments to GAAP operating expenses 1,145 1,245 2,510 3,139 Adjustments to interest and other income (loss), net: (Gains) and losses on investments (61) 7 (256) (91) Total adjustments to GAAP interest and other income (loss), net (61) 7 (256) (91) Total adjustments to GAAP income before provision for income taxes 1,469 1,755 3,030 4,020 Income tax effect of non-GAAP adjustments (442) (423) (779) (899) Significant tax matters (59) — (132) (829) Total adjustments to GAAP provision for income taxes (501) (423) (911) (1,728) Non-GAAP net income $ 4,143 $ 3,760 $ 8,154 $ 7,431

paragraph:17: 10 CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES GAAP TO NON-GAAP EPS

paragraph:18: Three Months Ended Six Months Ended

paragraph:19: January 24, 2026 January 25, 2025 January 24, 2026 January 25, 2025 GAAP EPS $ 0.80 $ 0.61 $ 1.51 $ 1.28 Adjustments to GAAP: Share-based compensation expense 0.23 0.23 0.49 0.43 Amortization of acquisition-related intangible assets 0.12 0.15 0.23 0.30 Acquisition/divestiture-related costs 0.03 0.06 0.05 0.13 Significant asset impairments and restructurings 0.01 — 0.05 0.17 (Gains) and losses on investments (0.02) — (0.06) (0.02) Income tax effect of non-GAAP adjustments (0.11) (0.11) (0.20) (0.22) Significant tax matters (0.01) — (0.03) (0.21) Non-GAAP EPS $ 1.04 $ 0.94 $ 2.05 $ 1.85 Amounts may not sum due to rounding. 11 CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME (In millions, except percentages) Three Months Ended January 24, 2026 Product Gross Margin Services Gross Margin Total Gross Margin Operating Expenses Y/Y Operating Income Y/Y Interest and other income (loss), net Net Income Y/Y GAAP amount $ 7,437 $ 2,535 $ 9,972 $ 6,191 3% $ 3,781 21% $ (135) $ 3,175 31% % of revenue 63.9 % 68.4 % 65.0 % 40.3 % 24.6 % (0.9) % 20.7 % Adjustments to GAAP amounts: Share-based compensation expense 63 88 151 782 933 — 933 Amortization of acquisition-related intangible assets 228 — 228 231 459 — 459 Acquisition/divestiture-related costs 2 4 6 96 102 — 102 Significant asset impairments and restructurings — — — 36 36 — 36 (Gains) and losses on investments — — — — — (61) (61) Income tax effect/significant tax matters — — — — — — (501) Non-GAAP amount $ 7,730 $ 2,627 $ 10,357 $ 5,046 6% $ 5,311 9% $ (196) $ 4,143 10% % of revenue 66.4 % 70.9 % 67.5 % 32.9 % 34.6 % (1.3) % 27.0 %

paragraph:20: Three Months Ended January 25, 2025 Product Gross Margin Services Gross Margin Total Gross Margin Operating Expenses Operating Income Interest and other income (loss), net Net Income GAAP amount $ 6,521 $ 2,590 $ 9,111 $ 5,998 $ 3,113 $ (226) $ 2,428 % of revenue 63.7 % 68.9 % 65.1 % 42.9 % 22.3 % (1.6) % 17.4 % Adjustments to GAAP amounts: Share-based compensation expense 65 86 151 765 916 — 916 Amortization of acquisition-related intangible assets 335 — 335 265 600 — 600 Acquisition/divestiture-related costs 3 14 17 205 222 — 222 Significant asset impairments and restructurings — — — 10 10 — 10 (Gains) and losses on investments — — — — — 7 7 Income tax effect/significant tax matters — — — — — — (423) Non-GAAP amount $ 6,924 $ 2,690 $ 9,614 $ 4,753 $ 4,861 $ (219) $ 3,760 % of revenue 67.7 % 71.6 % 68.7 % 34.0 % 34.7 % (1.6) % 26.9 % Amounts may not sum and percentages may not recalculate due to rounding. 12 CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND NET INCOME (In millions, except percentages) Six Months Ended January 24, 2026 Product Gross Margin Services Gross Margin Total Gross Margin Operating Expenses Y/Y Operating Income Y/Y Interest and other income (loss), net Net Income Y/Y GAAP amount $ 14,580 $ 5,137 $ 19,717 $ 12,573 (1)% $ 7,144 31% $ (107) $ 6,035 17% % of revenue 64.2 % 68.4 % 65.2 % 41.6 % 23.6 % (0.4) % 20.0 % Adjustments to GAAP amounts: Share-based compensation expense 131 170 301 1,666 1,967 — 1,967 Amortization of acquisition-related intangible assets 461 — 461 462 923 — 923 Acquisition/divestiture-related costs 4 10 14 199 213 — 213 Significant asset impairments and restructurings — — — 183 183 — 183 (Gains) and losses on investments — — — — — (256) (256) Income tax effect/significant tax matters — — — — — — (911) Non-GAAP amount $ 15,176 $ 5,317 $ 20,493 $ 10,063 5% $ 10,430 9% $ (363) $ 8,154 10% % of revenue 66.8 % 70.8 % 67.8 % 33.3 % 34.5 % (1.2) % 27.0 %

paragraph:21: Six Months Ended January 25, 2025 Product Gross Margin Services Gross Margin Total Gross Margin Operating Expenses Operating Income Interest and other income (loss), net Net Income GAAP amount $ 13,109 $ 5,123 $ 18,232 $ 12,761 $ 5,471 $ (317) $ 5,139 % of revenue 64.4 % 68.5 % 65.5 % 45.9 % 19.7 % (1.1) % 18.5 % Adjustments to GAAP amounts: Share-based compensation expense 122 160 282 1,444 1,726 — 1,726 Amortization of acquisition-related intangible assets 654 — 654 530 1,184 — 1,184 Acquisition/divestiture-related costs 8 28 36 490 526 — 526 Significant asset impairments and restructurings — — — 675 675 — 675 (Gains) and losses on investments — — — — — (91) (91) Income tax effect/significant tax matters — — — — — — (1,728) Non-GAAP amount $ 13,893 $ 5,311 $ 19,204 $ 9,622 $ 9,582 $ (408) $ 7,431 % of revenue 68.3 % 71.0 % 69.0 % 34.6 % 34.4 % (1.5) % 26.7 % Amounts may not sum and percentages may not recalculate due to rounding. 13 CISCO SYSTEMS, INC. RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES EFFECTIVE TAX RATE (In percentages) Three Months Ended Six Months Ended January 24, 2026 January 25, 2025 January 24, 2026 January 25, 2025 GAAP effective tax rate 12.9 % 15.9 % 14.2 % 0.3 % Total adjustments to GAAP provision for income taxes 6.1 % 3.1 % 4.8 % 18.7 % Non-GAAP effective tax rate 19.0 % 19.0 % 19.0 % 19.0 % GAAP TO NON-GAAP GUIDANCE Q3 FY 2026 Gross Margin Rate Operating Margin Rate Earnings per Share (1) GAAP 63% - 64% 24% - 25% $0.73 - $0.77 Estimated adjustments for: Share-based compensation expense 1.0% 6.0% $0.17 - $0.18 Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs 1.5% 3.5% $0.10 - $0.11 Non-GAAP 65.5% - 66.5% 33.5% - 34.5% $1.02 - $1.04 FY 2026 Earnings per Share (1) GAAP $3.00 - $3.08 Estimated adjustments for: Share-based compensation expense $0.70 - $0.72 Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs $0.43 - $0.45 Significant asset impairments and restructurings $0.04 (Gains) and losses on investments ($0.05) Significant tax matters ($0.03) Non-GAAP $4.13 - $4.17 (1) Estimated adjustments to GAAP earnings per share are shown after income tax effects. Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy. Except as noted above, this guidance does not include the

paragraph:22: 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. 14 Forward Looking Statements, Non-GAAP Information and Additional Information This release may be deemed to 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 our belief in our unique position to deliver the trusted infrastructure needed to securely and confidently power the AI-era, continuing to drive profitability by exercising financial discipline, and the strong, broad-based demand for our technology solutions as we remain focused on capturing the significant opportunities ahead) and the future financial performance of Cisco (including the guidance for Q3 FY 2026 and full year FY 2026) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q3 FY 2026 and full year FY 2026. 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, cloud, enterprise 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 services 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 November 18, 2025 and September 3, 2025, respectively. The financial information contained in this release 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 and six months ended January 24, 2026 are not necessarily indicative of Cisco's operating results for any future periods. Any projections in this release 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 this release. This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis. These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco's results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco's results of operations in conjunction with the corresponding GAAP measures. Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations. For its internal budgeting process, Cisco's management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco's management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior 15 periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission. About Cisco Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco. Copyright © 2026 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information. RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds 16

2025-11-12Nov 12, 2025, 11:00 AM ESTSec 8k Exhibit1259 segments

paragraph:1: EX-99.1

paragraph:3: d484663dex991.htm

paragraph:4: EX-99.1

paragraph:5: EX-99.1

paragraph:6: Exhibit 99.1

paragraph:7: Press Contact:

paragraph:8: Investor Relations Contact:

paragraph:9: Robyn Blum

paragraph:10: Sami Badri

paragraph:11: Cisco

paragraph:12: Cisco

paragraph:13: 1 (408) 930-8548

paragraph:14: 1 (469) 420-4834

paragraph:15: rojenkin@cisco.com

paragraph:16: sambadri@cisco.com

paragraph:17: CISCO REPORTS FIRST QUARTER EARNINGS

paragraph:18: News Summary:

paragraph:20: Strong top and bottom-line growth, exceeding our guidance and delivering continued operating leverage

paragraph:22: Revenue of $14.9 billion, up 8% year over year; GAAP EPS of $0.72, up 6% year over year; and Non-GAAP EPS of $1.00, up 10% year over year, above the high end of our guidance ranges and demonstrating solid operating leverage

paragraph:24: GAAP gross margin of 65.5% and Non-GAAP gross margin of 68.1%; GAAP operating margin of 22.6% and Non-GAAP operating margin of 34.4%, both above the high end of our guidance ranges

paragraph:26: Growth in product orders across all geographies and customer markets, demonstrating strong demand for Cisco’s technologies

paragraph:28: Product orders up 13% year over year, with double-digit growth in Networking product orders for the fifth consecutive quarter

paragraph:30: AI Infrastructure orders taken from hyperscaler customers totaled $1.3 billion, reflecting a significant acceleration in growth

paragraph:32: Major multi-year, multi-billion-dollar campus networking refresh cycle underway

paragraph:34: All technologies within campus networking (switching, routing, wireless and IoT) saw accelerated order growth in Q1

paragraph:36: All next-generation solutions including smart switches, secure routers and WiFi 7 products are ramping faster than prior product launches

paragraph:38: Q1 FY 2026 Results:

paragraph:40: Revenue: $14.9 billion

paragraph:42: Increase of 8% year over year

paragraph:44: Earnings per Share: GAAP: $0.72; Non-GAAP: $1.00

paragraph:46: GAAP EPS increased 6% year over year

paragraph:48: Non-GAAP EPS increased 10% year over year

paragraph:50: Q2 FY 2026 Guidance (1) :

paragraph:52: Revenue: $15.0 billion to $15.2 billion

paragraph:54: Earnings per Share: GAAP: $0.69 to $0.74; Non-GAAP: $1.01 to $1.03

paragraph:56: FY 2026 Guidance (1) :

paragraph:58: Revenue: $60.2 billion to $61.0 billion

paragraph:59: •

paragraph:60: Earnings per Share: GAAP: $2.87 to $2.98; Non-GAAP: $4.08 to $4.14

paragraph:61: (1) Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:62: 1

paragraph:63: SAN JOSE, Calif. — November 12, 2025 — Cisco today reported first quarter results for the period ended October 25, 2025. Cisco reported first quarter revenue of $14.9 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.9 billion or $0.72 per share, and

paragraph:64: non-GAAP net income of $4.0 billion or $1.00 per share.

paragraph:65: “We had a solid start to fiscal 2026, and Cisco is on track to deliver our strongest year yet,” said Chuck Robbins, chair and CEO of Cisco. “The widespread demand for our technologies highlights the critical role of secure networking and the value of our portfolio as customers move quickly to unlock the potential of AI.”

paragraph:66: “We delivered a strong quarter, with top and bottom-line performance exceeding our guidance, as well as solid margins and operating cash flow,” said Mark Patterson, CFO of Cisco. “Our relevance in AI continues to build and we have a multi-year, multi-billion-dollar campus refresh opportunity starting to ramp, with strong demand for our refreshed networking products. Looking ahead, you can expect a continued focus on profitable growth, capital returns, and strategic investments to capture the significant opportunities ahead.”

paragraph:67: GAAP Results

paragraph:68: Q1 FY 2026

paragraph:69: Q1 FY 2025

paragraph:70: Vs. Q1 FY 2025

paragraph:71: Revenue

paragraph:72: $14.9 billion

paragraph:73: $13.8 billion

paragraph:74: 8%

paragraph:75: Net Income

paragraph:76: $2.9 billion

paragraph:77: $2.7 billion

paragraph:78: 5%

paragraph:79: Diluted Earnings per Share (EPS)

paragraph:80: $0.72

paragraph:81: $0.68

paragraph:82: 6%

paragraph:83: Non-GAAP Results

paragraph:84: Q1 FY 2026

paragraph:85: Q1 FY 2025

paragraph:86: Vs. Q1 FY 2025

paragraph:87: Net Income

paragraph:88: $4.0 billion

paragraph:89: $3.7 billion

paragraph:90: 9%

paragraph:91: EPS

paragraph:92: $1.00

paragraph:93: $0.91

paragraph:94: 10%

paragraph:95: Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP

paragraph:96: basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:97: Cisco Declares Quarterly Dividend

paragraph:98: Cisco has declared a quarterly dividend of $0.41 per common share to be paid on January 21, 2026, to all stockholders of record as of the close of business on January 2, 2026. Future dividends will be subject to Board approval.

paragraph:99: 2

paragraph:100: Financial Summary

paragraph:101: All comparative percentages are on a year-over-year basis unless otherwise noted.

paragraph:102: Q1 FY 2026 Highlights

paragraph:103: Revenue —

paragraph:104: Total revenue was $14.9 billion, up 8%, with product revenue up 10% and services revenue up 2%.

paragraph:105: Revenue by geographic segment was: Americas up 9%, EMEA up 5%, and APJC up 5%. Product revenue performance reflected growth in Networking up 15% and Observability up 6%. Security was down 2% and Collaboration was down 3%.

paragraph:106: Gross Margin —

paragraph:107: On a GAAP basis, total gross margin, product gross margin, and services gross margin were 65.5%, 64.5%, and 68.4%, respectively, as compared with 65.9%, 65.1%, and 68.0%, respectively, in the first quarter of fiscal 2025.

paragraph:108: On a non-GAAP basis, total gross margin, product gross margin, and services gross margin were 68.1%, 67.2%, and 70.7%, respectively, as compared with 69.3%, 68.9%, and 70.3%, respectively, in the first quarter of fiscal 2025.

paragraph:109: Total gross margins by geographic segment were: 66.8% for the Americas, 71.9% for EMEA and 66.9% for APJC.

paragraph:110: Operating Expenses —

paragraph:111: On a GAAP basis, operating expenses were $6.4 billion, down 6% year over year, and were 42.9% of revenue.

paragraph:112: Non-GAAP operating expenses were $5.0 billion, up 3%, and were 33.7% of revenue.

paragraph:113: Operating Income — GAAP operating income was $3.4 billion, up 43%, with GAAP operating margin of 22.6%. Non-GAAP operating income was $5.1 billion, up 8%, with non-GAAP operating margin at 34.4%.

paragraph:114: Provision for Income Taxes — The GAAP tax provision rate was 15.7%. The non-GAAP tax provision rate was 19.0%.

paragraph:115: Net Income and EPS — On a GAAP basis, net income was $2.9 billion, an increase of 5%, and EPS was $0.72, an increase of 6%. On a non-GAAP basis, net income was $4.0 billion, an increase of 9%, and EPS was $1.00, an increase of 10%.

paragraph:116: Cash Flow from Operating Activities — $3.2 billion for the first quarter of fiscal 2026, a decrease of 12%, compared with $3.7 billion for the first quarter of fiscal 2025.

paragraph:117: Balance Sheet and Other Financial Highlights

paragraph:118: Cash and Cash Equivalents and Investments — $15.7 billion at the end of the first quarter of fiscal 2026, compared with $16.1 billion at the end of fiscal 2025.

paragraph:119: Remaining Performance Obligations (RPO)

paragraph:120: —

paragraph:121: $42.9 billion, up 7% in total. Product RPO was up 10%, of which long-term RPO was $11.8 billion, up 13%. Services RPO was up 4%.

paragraph:122: Deferred Revenue — $28.0 billion, up 2% in total, with deferred product revenue up 2% and deferred services revenue up 1%.

paragraph:123: Capital Allocation — In the first quarter of fiscal 2026, we returned $3.6 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.41 per common share, or $1.6 billion, and repurchased approximately 29 million shares of common stock under our stock repurchase program at an average price of $68.28 per share for an aggregate purchase price of $2.0 billion. The remaining authorized amount for stock repurchases under the program is $12.2 billion with no termination date.

paragraph:124: Acquisitions

paragraph:125: In the first quarter of fiscal 2026, we closed the acquisition of Aura Asset Intelligence, an asset and risk intelligence (ARI) solution created by Discovered Intelligence, a privately held company based in Toronto, Canada.

paragraph:126: 3

paragraph:127: Guidance

paragraph:128: Cisco estimates the following results for the second quarter of fiscal 2026:

paragraph:129: Q2 FY 2026

paragraph:130: Revenue

paragraph:131: $15.0 billion - $15.2 billion

paragraph:132: Non-GAAP gross margin

paragraph:133: 67.5% - 68.5%

paragraph:134: Non-GAAP operating margin

paragraph:135: 33.5% - 34.5%

paragraph:136: Non-GAAP EPS

paragraph:137: $1.01 - $1.03

paragraph:138: Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:139: Cisco estimates that GAAP EPS will be $0.69 to $0.74 for the second quarter of fiscal 2026.

paragraph:140: Cisco estimates the following results for fiscal 2026:

paragraph:141: FY 2026

paragraph:142: Revenue

paragraph:143: $60.2 billion - $61.0 billion

paragraph:144: Non-GAAP EPS

paragraph:145: $4.08 - $4.14

paragraph:146: Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:147: Cisco estimates that GAAP EPS will be $2.87 to $2.98 for fiscal 2026.

paragraph:148: Our Q2 FY 2026 guidance assumes an effective tax provision rate of approximately 16% for GAAP and approximately 19% for

paragraph:149: non-GAAP results. Our FY 2026 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 19% for non-GAAP results.

paragraph:150: A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:151: Editor’s Notes:

paragraph:152: •

paragraph:153: Q1 fiscal year 2026 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, November 12, 2025 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).

paragraph:154: •

paragraph:155: Conference call replay will be available from 4:00 p.m. Pacific Time, November 12, 2025 to 10:00 p.m. Pacific Time, November 18, 2025 at 1-800-839-2232 (United States) or 1-203-369-3662 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:156: •

paragraph:157: Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, November 12, 2025. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to

paragraph:158: non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:159: 4

paragraph:160: CISCO SYSTEMS, INC.

paragraph:161: CONSOLIDATED STATEMENTS OF OPERATIONS

paragraph:162: (In millions, except per-share amounts)

paragraph:163: (Unaudited)

paragraph:164: Three Months Ended

paragraph:165: October 25, 2025

paragraph:166: October 26, 2024

paragraph:167: REVENUE:

paragraph:168: Product

paragraph:169: $

paragraph:170: 11,077

paragraph:171: $

paragraph:172: 10,114

paragraph:173: Services

paragraph:174: 3,806

paragraph:175: 3,727

paragraph:176: Total revenue

paragraph:177: 14,883

paragraph:178: 13,841

paragraph:179: COST OF SALES:

paragraph:180: Product

paragraph:181: 3,934

paragraph:182: 3,526

paragraph:183: Services

paragraph:184: 1,204

paragraph:185: 1,194

paragraph:186: Total cost of sales

paragraph:187: 5,138

paragraph:188: 4,720

paragraph:189: GROSS MARGIN

paragraph:190: 9,745

paragraph:191: 9,121

paragraph:192: OPERATING EXPENSES:

paragraph:193: Research and development

paragraph:194: 2,400

paragraph:195: 2,286

paragraph:196: Sales and marketing

paragraph:197: 2,871

paragraph:198: 2,752

paragraph:199: General and administrative

paragraph:200: 733

paragraph:201: 795

paragraph:202: Amortization of purchased intangible assets

paragraph:203: 231

paragraph:204: 265

paragraph:205: Restructuring and other charges

paragraph:206: 147

paragraph:207: 665

paragraph:208: Total operating expenses

paragraph:209: 6,382

paragraph:210: 6,763

paragraph:211: OPERATING INCOME

paragraph:212: 3,363

paragraph:213: 2,358

paragraph:214: Interest income

paragraph:215: 222

paragraph:216: 286

paragraph:217: Interest expense

paragraph:218: (350

paragraph:219: )

paragraph:220: (418

paragraph:221: )

paragraph:222: Other income (loss), net

paragraph:223: 156

paragraph:224: 41

paragraph:225: Interest and other income (loss), net

paragraph:226: 28

paragraph:227: (91

paragraph:228: )

paragraph:229: INCOME BEFORE PROVISION FOR INCOME TAXES

paragraph:230: 3,391

paragraph:231: 2,267

paragraph:232: Provision for (benefit from) income taxes

paragraph:233: 531

paragraph:234: (444

paragraph:235: )

paragraph:236: NET INCOME

paragraph:237: $

paragraph:238: 2,860

paragraph:239: $

paragraph:240: 2,711

paragraph:241: Net income per share:

paragraph:242: Basic

paragraph:243: $

paragraph:244: 0.72

paragraph:245: $

paragraph:246: 0.68

paragraph:247: Diluted

paragraph:248: $

paragraph:249: 0.72

paragraph:250: $

paragraph:251: 0.68

paragraph:252: Shares used in per-share calculation:

paragraph:253: Basic

paragraph:254: 3,956

paragraph:255: 3,990

paragraph:256: Diluted

paragraph:257: 3,993

paragraph:258: 4,013

paragraph:259: 5

paragraph:260: CISCO SYSTEMS, INC.

paragraph:261: REVENUE BY SEGMENT

paragraph:262: (In millions, except percentages)

paragraph:263: Three Months Ended

paragraph:264: October 25, 2025

paragraph:265: Amount

paragraph:266: Y/Y%

paragraph:267: Revenue:

paragraph:268: Americas

paragraph:269: $

paragraph:270: 8,989

paragraph:271: 9%

paragraph:272: EMEA

paragraph:273: 3,784

paragraph:274: 5%

paragraph:275: APJC

paragraph:276: 2,111

paragraph:277: 5%

paragraph:278: Total

paragraph:279: $

paragraph:280: 14,883

paragraph:281: 8%

paragraph:282: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:283: CISCO SYSTEMS, INC.

paragraph:284: GROSS MARGIN PERCENTAGE BY SEGMENT

paragraph:285: (In percentages)

paragraph:286: Three Months Ended

paragraph:287: October 25, 2025

paragraph:288: Gross Margin Percentage:

paragraph:289: Americas

paragraph:290: 66.8%

paragraph:291: EMEA

paragraph:292: 71.9%

paragraph:293: APJC

paragraph:294: 66.9%

paragraph:295: CISCO SYSTEMS, INC.

paragraph:296: REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

paragraph:297: (In millions, except percentages)

paragraph:298: Three Months Ended

paragraph:299: October 25, 2025

paragraph:300: Amount

paragraph:301: Y/Y%

paragraph:302: Revenue:

paragraph:303: Networking

paragraph:304: $

paragraph:305: 7,768

paragraph:306: 15%

paragraph:307: Security

paragraph:308: 1,980

paragraph:309: (2)%

paragraph:310: Collaboration

paragraph:311: 1,055

paragraph:312: (3)%

paragraph:313: Observability

paragraph:314: 274

paragraph:315: 6%

paragraph:316: Total Product

paragraph:317: 11,077

paragraph:318: 10%

paragraph:319: Services

paragraph:320: 3,806

paragraph:321: 2%

paragraph:322: Total

paragraph:323: $

paragraph:324: 14,883

paragraph:325: 8%

paragraph:326: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:327: 6

paragraph:328: CISCO SYSTEMS, INC.

paragraph:329: CONDENSED CONSOLIDATED BALANCE SHEETS

paragraph:330: (In millions)

paragraph:331: (Unaudited)

paragraph:332: October 25, 2025

paragraph:333: July 26, 2025

paragraph:334: ASSETS

paragraph:335: Current assets:

paragraph:336: Cash and cash equivalents

paragraph:337: $

paragraph:338: 8,400

paragraph:339: $

paragraph:340: 8,346

paragraph:341: Investments

paragraph:342: 7,336

paragraph:343: 7,764

paragraph:344: Accounts receivable, net of allowance of $62 at October 25, 2025 and $69 at July 26, 2025

paragraph:345: 4,827

paragraph:346: 6,701

paragraph:347: Inventories

paragraph:348: 3,395

paragraph:349: 3,164

paragraph:350: Financing receivables, net

paragraph:351: 3,085

paragraph:352: 3,061

paragraph:353: Other current assets

paragraph:354: 5,833

paragraph:355: 5,950

paragraph:356: Total current assets

paragraph:357: 32,876

paragraph:358: 34,986

paragraph:359: Property and equipment, net

paragraph:360: 2,248

paragraph:361: 2,113

paragraph:362: Financing receivables, net

paragraph:363: 3,719

paragraph:364: 3,466

paragraph:365: Goodwill

paragraph:366: 59,119

paragraph:367: 59,136

paragraph:368: Purchased intangible assets, net

paragraph:369: 8,713

paragraph:370: 9,175

paragraph:371: Deferred tax assets

paragraph:372: 7,314

paragraph:373: 7,356

paragraph:374: Other assets

paragraph:375: 7,113

paragraph:376: 6,059

paragraph:377: TOTAL ASSETS

paragraph:378: $

paragraph:379: 121,102

paragraph:380: $

paragraph:381: 122,291

paragraph:382: LIABILITIES AND EQUITY

paragraph:383: Current liabilities:

paragraph:384: Short-term debt

paragraph:385: $

paragraph:386: 6,725

paragraph:387: $

paragraph:388: 5,232

paragraph:389: Accounts payable

paragraph:390: 2,418

paragraph:391: 2,528

paragraph:392: Income taxes payable

paragraph:393: 2,471

paragraph:394: 1,857

paragraph:395: Accrued compensation

paragraph:396: 3,064

paragraph:397: 3,611

paragraph:398: Deferred revenue

paragraph:399: 15,801

paragraph:400: 16,416

paragraph:401: Other current liabilities

paragraph:402: 4,972

paragraph:403: 5,420

paragraph:404: Total current liabilities

paragraph:405: 35,451

paragraph:406: 35,064

paragraph:407: Long-term debt

paragraph:408: 21,364

paragraph:409: 22,861

paragraph:410: Income taxes payable

paragraph:411: 2,172

paragraph:412: 2,165

paragraph:413: Deferred revenue

paragraph:414: 12,168

paragraph:415: 12,363

paragraph:416: Other long-term liabilities

paragraph:417: 3,074

paragraph:418: 2,995

paragraph:419: Total liabilities

paragraph:420: 74,229

paragraph:421: 75,448

paragraph:422: Total equity

paragraph:423: 46,873

paragraph:424: 46,843

paragraph:425: TOTAL LIABILITIES AND EQUITY

paragraph:426: $

paragraph:427: 121,102

paragraph:428: $

paragraph:429: 122,291

paragraph:430: 7

paragraph:431: CISCO SYSTEMS, INC.

paragraph:432: CONSOLIDATED STATEMENTS OF CASH FLOWS

paragraph:433: (In millions)

paragraph:434: (Unaudited)

paragraph:435: Three Months Ended

paragraph:436: October 25, 2025

paragraph:437: October 26, 2024

paragraph:438: Cash flows from operating activities:

paragraph:439: Net income

paragraph:440: $

paragraph:441: 2,860

paragraph:442: $

paragraph:443: 2,711

paragraph:444: Adjustments to reconcile net income to net cash provided by operating activities:

paragraph:445: Depreciation, amortization, and other

paragraph:446: 606

paragraph:447: 789

paragraph:448: Share-based compensation expense

paragraph:449: 1,055

paragraph:450: 827

paragraph:451: Provision for (benefit from) receivables

paragraph:452: (3

paragraph:453: )

paragraph:454: (1

paragraph:455: )

paragraph:456: Deferred income taxes

paragraph:457: 25

paragraph:458: (281

paragraph:459: )

paragraph:460: (Gains) losses on divestitures, investments and other, net

paragraph:461: (178

paragraph:462: )

paragraph:463: (60

paragraph:464: )

paragraph:465: Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

paragraph:466: Accounts receivable

paragraph:467: 1,857

paragraph:468: 2,227

paragraph:469: Inventories

paragraph:470: (234

paragraph:471: )

paragraph:472: 229

paragraph:473: Financing receivables

paragraph:474: (312

paragraph:475: )

paragraph:476: 173

paragraph:477: Other assets

paragraph:478: (592

paragraph:479: )

paragraph:480: (190

paragraph:481: )

paragraph:482: Accounts payable

paragraph:483: (108

paragraph:484: )

paragraph:485: (269

paragraph:486: )

paragraph:487: Income taxes, net

paragraph:488: (128

paragraph:489: )

paragraph:490: (806

paragraph:491: )

paragraph:492: Accrued compensation

paragraph:493: (539

paragraph:494: )

paragraph:495: (754

paragraph:496: )

paragraph:497: Deferred revenue

paragraph:498: (723

paragraph:499: )

paragraph:500: (971

paragraph:501: )

paragraph:502: Other liabilities

paragraph:503: (374

paragraph:504: )

paragraph:505: 37

paragraph:506: Net cash provided by operating activities

paragraph:507: 3,212

paragraph:508: 3,661

paragraph:509: Cash flows from investing activities:

paragraph:510: Purchases of investments

paragraph:511: (1,984

paragraph:512: )

paragraph:513: (1,775

paragraph:514: )

paragraph:515: Proceeds from sales of investments

paragraph:516: 1,269

paragraph:517: 1,490

paragraph:518: Proceeds from maturities of investments

paragraph:519: 1,222

paragraph:520: 1,164

paragraph:521: Acquisitions, net of cash and cash equivalents acquired and divestitures

paragraph:522: (7

paragraph:523: )

paragraph:524: (217

paragraph:525: )

paragraph:526: Purchases of investments in privately held companies

paragraph:527: (18

paragraph:528: )

paragraph:529: (42

paragraph:530: )

paragraph:531: Return of investments in privately held companies

paragraph:532: 19

paragraph:533: 77

paragraph:534: Acquisition of property and equipment

paragraph:535: (323

paragraph:536: )

paragraph:537: (217

paragraph:538: )

paragraph:539: Other

paragraph:540: (22

paragraph:541: )

paragraph:542: (1

paragraph:543: )

paragraph:544: Net cash provided by investing activities

paragraph:545: 156

paragraph:546: 479

paragraph:547: Cash flows from financing activities:

paragraph:548: Repurchases of common stock - repurchase program

paragraph:549: (1,992

paragraph:550: )

paragraph:551: (2,003

paragraph:552: )

paragraph:553: Shares repurchased for tax withholdings on vesting of restricted stock units

paragraph:554: (284

paragraph:555: )

paragraph:556: (165

paragraph:557: )

paragraph:558: Short-term borrowings, original maturities of 90 days or less, net

paragraph:559: 1,260

paragraph:560: 68

paragraph:561: Issuances of debt

paragraph:562: 1,559

paragraph:563: 5,732

paragraph:564: Repayments of debt

paragraph:565: (2,788

paragraph:566: )

paragraph:567: (4,821

paragraph:568: )

paragraph:569: Dividends paid

paragraph:570: (1,617

paragraph:571: )

paragraph:572: (1,592

paragraph:573: )

paragraph:574: Other

paragraph:575: (1

paragraph:576: )

paragraph:577: (3

paragraph:578: )

paragraph:579: Net cash used in financing activities

paragraph:580: (3,863

paragraph:581: )

paragraph:582: (2,784

paragraph:583: )

paragraph:584: Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:585: (14

paragraph:586: )

paragraph:587: 10

paragraph:588: Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:589: (509

paragraph:590: )

paragraph:591: 1,366

paragraph:592: Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

paragraph:593: 8,910

paragraph:594: 8,842

paragraph:595: Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

paragraph:596: $

paragraph:597: 8,401

paragraph:598: $

paragraph:599: 10,208

paragraph:600: Supplemental cash flow information:

paragraph:601: Cash paid for interest

paragraph:602: $

paragraph:603: 616

paragraph:604: $

paragraph:605: 545

paragraph:606: Cash paid for income taxes, net

paragraph:607: $

paragraph:608: 634

paragraph:609: $

paragraph:610: 643

paragraph:611: 8

paragraph:612: CISCO SYSTEMS, INC.

paragraph:613: REMAINING PERFORMANCE OBLIGATIONS

paragraph:614: (In millions, except percentages)

paragraph:615: October 25, 2025

paragraph:616: July 26, 2025

paragraph:617: October 26, 2024

paragraph:618: Amount

paragraph:619: Y/Y%

paragraph:620: Amount

paragraph:621: Y/Y%

paragraph:622: Amount

paragraph:623: Y/Y%

paragraph:624: Product (1)

paragraph:625: $

paragraph:626: 21,904

paragraph:627: 10

paragraph:628: %

paragraph:629: $

paragraph:630: 21,572

paragraph:631: 8

paragraph:632: %

paragraph:633: $

paragraph:634: 19,882

paragraph:635: 24

paragraph:636: %

paragraph:637: Services

paragraph:638: 20,969

paragraph:639: 4

paragraph:640: %

paragraph:641: 21,961

paragraph:642: 5

paragraph:643: %

paragraph:644: 20,108

paragraph:645: 7

paragraph:646: %

paragraph:647: Total

paragraph:648: $

paragraph:649: 42,873

paragraph:650: 7

paragraph:651: %

paragraph:652: $

paragraph:653: 43,533

paragraph:654: 6

paragraph:655: %

paragraph:656: $

paragraph:657: 39,990

paragraph:658: 15

paragraph:659: %

paragraph:660: (1) As of the end of the first quarter of fiscal 2026, long-term product RPO was $11.8B, up 13% year over year.

paragraph:661: CISCO SYSTEMS, INC.

paragraph:662: DEFERRED REVENUE

paragraph:663: (In millions)

paragraph:664: October 25, 2025

paragraph:665: July 26, 2025

paragraph:666: October 26, 2024

paragraph:667: Deferred revenue:

paragraph:668: Product

paragraph:669: $

paragraph:670: 13,252

paragraph:671: $

paragraph:672: 13,490

paragraph:673: $

paragraph:674: 12,941

paragraph:675: Services

paragraph:676: 14,717

paragraph:677: 15,289

paragraph:678: 14,561

paragraph:679: Total

paragraph:680: $

paragraph:681: 27,969

paragraph:682: $

paragraph:683: 28,779

paragraph:684: $

paragraph:685: 27,502

paragraph:686: Reported as:

paragraph:687: Current

paragraph:688: $

paragraph:689: 15,801

paragraph:690: $

paragraph:691: 16,416

paragraph:692: $

paragraph:693: 15,615

paragraph:694: Noncurrent

paragraph:695: 12,168

paragraph:696: 12,363

paragraph:697: 11,887

paragraph:698: Total

paragraph:699: $

paragraph:700: 27,969

paragraph:701: $

paragraph:702: 28,779

paragraph:703: $

paragraph:704: 27,502

paragraph:705: CISCO SYSTEMS, INC.

paragraph:706: DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

paragraph:707: (In millions, except per-share amounts)

paragraph:708: DIVIDENDS

paragraph:709: STOCK REPURCHASE PROGRAM

paragraph:710: TOTAL

paragraph:711: Quarter Ended

paragraph:712: Per Share

paragraph:713: Amount

paragraph:714: Shares

paragraph:715: Weighted- Average Price per Share

paragraph:716: Amount

paragraph:717: Amount

paragraph:718: Fiscal 2026

paragraph:719: October 25, 2025

paragraph:720: $

paragraph:721: 0.41

paragraph:722: $

paragraph:723: 1,617

paragraph:724: 29

paragraph:725: $

paragraph:726: 68.28

paragraph:727: $

paragraph:728: 2,001

paragraph:729: $

paragraph:730: 3,618

paragraph:731: Fiscal 2025

paragraph:732: July 26, 2025

paragraph:733: $

paragraph:734: 0.41

paragraph:735: $

paragraph:736: 1,625

paragraph:737: 19

paragraph:738: $

paragraph:739: 64.65

paragraph:740: $

paragraph:741: 1,252

paragraph:742: $

paragraph:743: 2,877

paragraph:744: April 26, 2025

paragraph:745: $

paragraph:746: 0.41

paragraph:747: $

paragraph:748: 1,627

paragraph:749: 25

paragraph:750: $

paragraph:751: 59.78

paragraph:752: $

paragraph:753: 1,504

paragraph:754: $

paragraph:755: 3,131

paragraph:756: January 25, 2025

paragraph:757: $

paragraph:758: 0.40

paragraph:759: $

paragraph:760: 1,593

paragraph:761: 21

paragraph:762: $

paragraph:763: 58.58

paragraph:764: $

paragraph:765: 1,236

paragraph:766: $

paragraph:767: 2,829

paragraph:768: October 26, 2024

paragraph:769: $

paragraph:770: 0.40

paragraph:771: $

paragraph:772: 1,592

paragraph:773: 40

paragraph:775: 49.56

paragraph:777: 2,003

paragraph:779: 3,595

paragraph:781: CISCO SYSTEMS, INC.

paragraph:782: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:783: GAAP TO NON-GAAP NET INCOME

paragraph:784: (In millions)

paragraph:785: Three Months Ended

paragraph:786: October 25, 2025

paragraph:787: October 26, 2024

paragraph:788: GAAP net income

paragraph:789: $

paragraph:790: 2,860

paragraph:791: $

paragraph:792: 2,711

paragraph:793: Adjustments to cost of sales:

paragraph:794: Share-based compensation expense

paragraph:795: 150

paragraph:796: 131

paragraph:797: Amortization of acquisition-related intangible assets

paragraph:798: 233

paragraph:799: 319

paragraph:800: Acquisition/divestiture-related costs

paragraph:801: 8

paragraph:802: 19

paragraph:803: Total adjustments to GAAP cost of sales

paragraph:804: 391

paragraph:805: 469

paragraph:806: Adjustments to operating expenses:

paragraph:807: Share-based compensation expense

paragraph:808: 884

paragraph:809: 679

paragraph:810: Amortization of acquisition-related intangible assets

paragraph:811: 231

paragraph:812: 265

paragraph:813: Acquisition/divestiture-related costs

paragraph:814: 103

paragraph:815: 285

paragraph:816: Significant asset impairments and restructurings

paragraph:817: 147

paragraph:818: 665

paragraph:819: Total adjustments to GAAP operating expenses

paragraph:820: 1,365

paragraph:821: 1,894

paragraph:822: Adjustments to interest and other income (loss), net:

paragraph:823: (Gains) and losses on investments

paragraph:824: (195

paragraph:825: )

paragraph:826: (98

paragraph:827: )

paragraph:828: Total adjustments to GAAP interest and other income (loss), net

paragraph:829: (195

paragraph:830: )

paragraph:831: (98

paragraph:832: )

paragraph:833: Total adjustments to GAAP income before provision for income taxes

paragraph:834: 1,561

paragraph:835: 2,265

paragraph:836: Income tax effect of non-GAAP adjustments

paragraph:837: (337

paragraph:838: )

paragraph:839: (476

paragraph:840: )

paragraph:841: Significant tax matters

paragraph:842: (73

paragraph:843: )

paragraph:844: (829

paragraph:845: )

paragraph:846: Total adjustments to GAAP provision for income taxes

paragraph:847: (410

paragraph:848: )

paragraph:849: (1,305

paragraph:850: )

paragraph:851: Non-GAAP net income

paragraph:852: $

paragraph:853: 4,011

paragraph:854: $

paragraph:855: 3,671

paragraph:856: 10

paragraph:857: CISCO SYSTEMS, INC.

paragraph:858: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:859: GAAP TO NON-GAAP EPS

paragraph:860: Three Months Ended

paragraph:861: October 25, 2025

paragraph:862: October 26, 2024

paragraph:863: GAAP EPS

paragraph:864: $

paragraph:865: 0.72

paragraph:866: $

paragraph:867: 0.68

paragraph:868: Adjustments to GAAP:

paragraph:869: Share-based compensation expense

paragraph:870: 0.26

paragraph:871: 0.20

paragraph:872: Amortization of acquisition-related intangible assets

paragraph:873: 0.12

paragraph:874: 0.15

paragraph:875: Acquisition/divestiture-related costs

paragraph:876: 0.03

paragraph:877: 0.08

paragraph:878: Significant asset impairments and restructurings

paragraph:879: 0.04

paragraph:880: 0.17

paragraph:881: (Gains) and losses on investments

paragraph:882: (0.05

paragraph:883: )

paragraph:884: (0.02

paragraph:885: )

paragraph:886: Income tax effect of non-GAAP adjustments

paragraph:887: (0.08

paragraph:888: )

paragraph:889: (0.12

paragraph:890: )

paragraph:891: Significant tax matters

paragraph:892: (0.02

paragraph:893: )

paragraph:894: (0.21

paragraph:895: )

paragraph:896: Non-GAAP EPS

paragraph:897: $

paragraph:898: 1.00

paragraph:899: $

paragraph:900: 0.91

paragraph:901: Amounts may not sum due to rounding.

paragraph:902: 11

paragraph:903: CISCO SYSTEMS, INC.

paragraph:904: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:905: GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND

paragraph:906: NET INCOME

paragraph:907: (In millions, except percentages)

paragraph:908: Three Months Ended

paragraph:909: October 25, 2025

paragraph:910: Product Gross Margin

paragraph:911: Services Gross Margin

paragraph:912: Total Gross Margin

paragraph:913: Operating Expenses

paragraph:914: Y/Y

paragraph:915: Operating Income

paragraph:916: Y/Y

paragraph:917: Interest and other income (loss), net

paragraph:918: Net Income

paragraph:919: Y/Y

paragraph:920: GAAP amount

paragraph:922: 7,143

paragraph:924: 2,602

paragraph:926: 9,745

paragraph:928: 6,382

paragraph:929: (6

paragraph:930: )%

paragraph:931: $

paragraph:932: 3,363

paragraph:933: 43

paragraph:936: 28

paragraph:938: 2,860

paragraph:941: % of revenue

paragraph:942: 64.5

paragraph:944: 68.4

paragraph:946: 65.5

paragraph:948: 42.9

paragraph:950: 22.6

paragraph:952: 0.2

paragraph:954: 19.2

paragraph:956: Adjustments to GAAP amounts:

paragraph:957: Share-based compensation expense

paragraph:958: 68

paragraph:959: 82

paragraph:960: 150

paragraph:961: 884

paragraph:962: 1,034

paragraph:963: —

paragraph:964: 1,034

paragraph:965: Amortization of acquisition-related intangible assets

paragraph:966: 233

paragraph:967: —

paragraph:968: 233

paragraph:969: 231

paragraph:970: 464

paragraph:971: —

paragraph:972: 464

paragraph:973: Acquisition/divestiture-related costs

paragraph:974: 2

paragraph:975: 6

paragraph:976: 8

paragraph:977: 103

paragraph:978: 111

paragraph:979: —

paragraph:980: 111

paragraph:981: Significant asset impairments and restructurings

paragraph:982: —

paragraph:983: —

paragraph:984: —

paragraph:985: 147

paragraph:986: 147

paragraph:987: —

paragraph:988: 147

paragraph:989: (Gains) and losses on investments

paragraph:990: —

paragraph:991: —

paragraph:992: —

paragraph:993: —

paragraph:994: —

paragraph:995: (195

paragraph:996: )

paragraph:997: (195

paragraph:998: )

paragraph:999: Income tax effect/significant tax matters

paragraph:1000: —

paragraph:1001: —

paragraph:1002: —

paragraph:1003: —

paragraph:1004: —

paragraph:1005: —

paragraph:1006: (410

paragraph:1007: )

paragraph:1008: Non-GAAP amount

paragraph:1009: $

paragraph:1010: 7,446

paragraph:1011: $

paragraph:1012: 2,690

paragraph:1013: $

paragraph:1014: 10,136

paragraph:1015: $

paragraph:1016: 5,017

paragraph:1017: 3

paragraph:1018: %

paragraph:1019: $

paragraph:1020: 5,119

paragraph:1024: (167

paragraph:1027: 4,011

paragraph:1028: 9

paragraph:1029: %

paragraph:1030: % of revenue

paragraph:1031: 67.2

paragraph:1033: 70.7

paragraph:1035: 68.1

paragraph:1037: 33.7

paragraph:1039: 34.4

paragraph:1041: (1.1

paragraph:1042: )%

paragraph:1043: 27.0

paragraph:1044: %

paragraph:1045: Three Months Ended

paragraph:1046: October 26, 2024

paragraph:1047: Product Gross Margin

paragraph:1048: Services Gross Margin

paragraph:1049: Total Gross Margin

paragraph:1050: Operating Expenses

paragraph:1051: Operating Income

paragraph:1052: Interest and other income (loss), net

paragraph:1053: Net Income

paragraph:1054: GAAP amount

paragraph:1055: $

paragraph:1056: 6,588

paragraph:1057: $

paragraph:1058: 2,533

paragraph:1059: $

paragraph:1060: 9,121

paragraph:1061: $

paragraph:1062: 6,763

paragraph:1063: $

paragraph:1064: 2,358

paragraph:1065: $

paragraph:1066: (91

paragraph:1067: )

paragraph:1068: $

paragraph:1069: 2,711

paragraph:1070: % of revenue

paragraph:1071: 65.1

paragraph:1073: 68.0

paragraph:1075: 65.9

paragraph:1077: 48.9

paragraph:1079: 17.0

paragraph:1081: (0.7

paragraph:1082: )%

paragraph:1083: 19.6

paragraph:1084: %

paragraph:1085: Adjustments to GAAP amounts:

paragraph:1086: Share-based compensation expense

paragraph:1087: 57

paragraph:1088: 74

paragraph:1089: 131

paragraph:1090: 679

paragraph:1091: 810

paragraph:1092: —

paragraph:1093: 810

paragraph:1094: Amortization of acquisition-related intangible assets

paragraph:1095: 319

paragraph:1096: —

paragraph:1097: 319

paragraph:1098: 265

paragraph:1099: 584

paragraph:1100: —

paragraph:1101: 584

paragraph:1102: Acquisition/divestiture-related costs

paragraph:1103: 5

paragraph:1104: 14

paragraph:1105: 19

paragraph:1106: 285

paragraph:1107: 304

paragraph:1108: —

paragraph:1109: 304

paragraph:1110: Significant asset impairments and restructurings

paragraph:1111: —

paragraph:1112: —

paragraph:1113: —

paragraph:1114: 665

paragraph:1115: 665

paragraph:1116: —

paragraph:1117: 665

paragraph:1118: (Gains) and losses on investments

paragraph:1119: —

paragraph:1120: —

paragraph:1121: —

paragraph:1122: —

paragraph:1123: —

paragraph:1124: (98

paragraph:1125: )

paragraph:1126: (98

paragraph:1127: )

paragraph:1128: Income tax effect/significant tax matters

paragraph:1129: —

paragraph:1130: —

paragraph:1131: —

paragraph:1132: —

paragraph:1133: —

paragraph:1134: —

paragraph:1135: (1,305

paragraph:1136: )

paragraph:1137: Non-GAAP amount

paragraph:1138: $

paragraph:1139: 6,969

paragraph:1140: $

paragraph:1141: 2,621

paragraph:1142: $

paragraph:1143: 9,590

paragraph:1144: $

paragraph:1145: 4,869

paragraph:1146: $

paragraph:1147: 4,721

paragraph:1148: $

paragraph:1149: (189

paragraph:1150: )

paragraph:1151: $

paragraph:1152: 3,671

paragraph:1153: % of revenue

paragraph:1154: 68.9

paragraph:1156: 70.3

paragraph:1158: 69.3

paragraph:1160: 35.2

paragraph:1162: 34.1

paragraph:1164: (1.4

paragraph:1165: )%

paragraph:1166: 26.5

paragraph:1167: %

paragraph:1168: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:1169: 12

paragraph:1170: CISCO SYSTEMS, INC.

paragraph:1171: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1172: EFFECTIVE TAX RATE

paragraph:1173: (In percentages)

paragraph:1174: Three Months Ended

paragraph:1175: October 25, 2025

paragraph:1176: October 26, 2024

paragraph:1177: GAAP effective tax rate

paragraph:1178: 15.7

paragraph:1179: %

paragraph:1180: (19.6

paragraph:1181: )%

paragraph:1182: Total adjustments to GAAP provision for income taxes

paragraph:1183: 3.3

paragraph:1184: %

paragraph:1185: 38.6

paragraph:1186: %

paragraph:1187: Non-GAAP effective tax rate

paragraph:1188: 19.0

paragraph:1189: %

paragraph:1190: 19.0

paragraph:1191: %

paragraph:1192: GAAP TO NON-GAAP GUIDANCE

paragraph:1193: Q2 FY 2026

paragraph:1194: Gross Margin Rate

paragraph:1195: Operating Margin Rate

paragraph:1196: Earnings per Share (1)

paragraph:1197: GAAP

paragraph:1198: 65% - 66%

paragraph:1199: 22.5% - 23.5%

paragraph:1200: $0.69 - $0.74

paragraph:1201: Estimated adjustments for:

paragraph:1202: Share-based compensation expense

paragraph:1203: 1.0%

paragraph:1204: 7.0%

paragraph:1205: $0.18 - $0.19

paragraph:1206: Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

paragraph:1207: 1.5%

paragraph:1208: 3.5%

paragraph:1209: $0.11 - $0.12

paragraph:1210: Significant asset impairments and restructurings

paragraph:1211: —

paragraph:1212: 0.5%

paragraph:1213: $0.00 - $0.01

paragraph:1214: Non-GAAP

paragraph:1215: 67.5% - 68.5%

paragraph:1216: 33.5% - 34.5%

paragraph:1217: $1.01 - $1.03

paragraph:1218: FY 2026

paragraph:1219: Earnings per Share (1)

paragraph:1220: GAAP

paragraph:1221: $

paragraph:1222: 2.87 - $2.98

paragraph:1223: Estimated adjustments for:

paragraph:1224: Share-based compensation expense

paragraph:1225: $

paragraph:1226: 0.75 - $0.77

paragraph:1227: Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

paragraph:1228: $

paragraph:1229: 0.43 - $0.45

paragraph:1230: Significant asset impairments and restructurings

paragraph:1231: $

paragraph:1232: 0.03 - $0.04

paragraph:1233: (Gains) and losses on investments

paragraph:1234: ($0.03)

paragraph:1235: Significant tax matters

paragraph:1236: ($0.02)

paragraph:1237: Non-GAAP

paragraph:1238: $

paragraph:1239: 4.08 - $4.14

paragraph:1240: (1)

paragraph:1241: Estimated adjustments to GAAP earnings per share are shown after income tax effects.

paragraph:1242: Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:1243: 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.

paragraph:1244: 13

paragraph:1245: Forward Looking Statements, Non-GAAP Information and Additional Information

paragraph:1246: This release may be deemed to 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 the widespread demand for our technologies highlighting the critical role of secure networking and the value of our portfolio as customers move quickly to unlock the potential of AI, our campus refresh opportunity, and our continued focus on profitable growth, capital returns, and strategic investments to capture the significant opportunities ahead) and the future financial performance of Cisco (including the guidance for Q2 FY 2026 and full year FY 2026) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q2 FY2026 and full year FY2026. 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, cloud, enterprise 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 services 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 report on Form

paragraph:1247: 10-K filed on September 3, 2025. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent report on Form 10-K as it may be amended from time to time. Cisco’s results of operations for the three months ended October 25, 2025 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release 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 this release.

paragraph:1248: This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates,

paragraph:1249: non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

paragraph:1250: These

paragraph:1251: non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.

paragraph:1252: 14

paragraph:1253: Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

paragraph:1254: For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

paragraph:1255: About Cisco

paragraph:1256: Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

paragraph:1257: Copyright © 2025 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

paragraph:1258: RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds

paragraph:1259: 15

2025-08-13Aug 13, 2025, 12:00 PM EDTSec 8k Exhibit1978 segments

paragraph:1: EX-99.1

paragraph:3: d901470dex991.htm

paragraph:4: EX-99.1

paragraph:5: EX-99.1

paragraph:6: Exhibit 99.1

paragraph:7: Press Contact:

paragraph:8: Investor Relations Contact:

paragraph:9: Robyn Blum

paragraph:10: Sami Badri

paragraph:11: Cisco

paragraph:12: Cisco

paragraph:13: 1 (408) 930-8548

paragraph:14: 1 (469) 420-4834

paragraph:15: rojenkin@cisco.com

paragraph:16: sambadri@cisco.com

paragraph:17: CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2025 EARNINGS

paragraph:18: News Summary :

paragraph:20: Strong topline performance at the high end of our guidance ranges:

paragraph:22: Q4 revenue of $14.7 billion, up 8% year over year

paragraph:24: FY 2025 revenue of $56.7 billion, up 5% year over year

paragraph:26: Q4 product orders up 7% year over year with growth across all geographies, demonstrating robust demand for Cisco’s technologies

paragraph:28: AI Infrastructure orders taken from webscale customers exceeded $800 million, bringing the FY 2025 total to over $2 billion, more than double the original $1 billion target

paragraph:30: Strong profitability in Q4:

paragraph:32: GAAP gross margin of 65.7% and non-GAAP gross margin of 68.4%, at the high end of our guidance range

paragraph:34: GAAP EPS of $0.71 and non-GAAP EPS of $0.99, above the high end of our guidance range

paragraph:36: Q4 FY 2025 Results:

paragraph:38: Revenue: $14.7 billion

paragraph:40: Increase of 8% year over year

paragraph:42: Earnings per Share: GAAP: $0.71; Non-GAAP: $0.99

paragraph:44: GAAP EPS increased 31% year over year

paragraph:46: Non-GAAP EPS increased 14% year over year

paragraph:48: FY 2025 Results:

paragraph:50: Revenue: $56.7 billion

paragraph:52: Increase of 5% year over year

paragraph:54: Earnings per Share: GAAP: $2.61; Non-GAAP: $3.81

paragraph:56: GAAP EPS increased 3% year over year

paragraph:58: Non-GAAP EPS increased 2% year over year

paragraph:59: •

paragraph:60: Q1 FY 2026 Guidance (1) :

paragraph:61: •

paragraph:62: Revenue: $14.65 billion to $14.85 billion

paragraph:63: •

paragraph:64: Earnings per Share: GAAP: $0.63 to $0.68; Non-GAAP: $0.97 to $0.99

paragraph:65: •

paragraph:66: FY 2026 Guidance (1) :

paragraph:67: •

paragraph:68: Revenue: $59.0 billion to $60.0 billion

paragraph:69: •

paragraph:70: Earnings per Share: GAAP: $2.79 to $2.91; Non-GAAP: $4.00 to $4.06

paragraph:71: (1) Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:72: 1

paragraph:73: SAN JOSE, Calif. — August 13, 2025 — Cisco today reported fourth quarter and fiscal year results for the period ended July 26, 2025. Cisco reported fourth quarter revenue of $14.7 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.8 billion or $0.71 per share, and non-GAAP net income of $4.0 billion or $0.99 per share.

paragraph:74: “We delivered a strong close to fiscal 2025, driven by our accelerated innovation and solid execution,” said Chuck Robbins, chair and CEO of Cisco. “The AI infrastructure orders we received from webscale customers in fiscal 2025 were more than double our original target, indicating a massive opportunity ahead as we lead the required architectural shift and build the critical infrastructure needed for the AI era.”

paragraph:75: “In Q4, revenue, gross margin and operating margin were at the high end of our guidance ranges, earnings per share was above the guidance range and we delivered solid operating cash flow,” said Mark Patterson, CFO of Cisco. “As we enter fiscal 2026, we remain focused on making strategic investments in innovation, driving durable, profitable growth and delivering shareholder value.”

paragraph:76: Q4 GAAP Results

paragraph:77: Q4 FY 2025

paragraph:78: Q4 FY 2024

paragraph:79: Vs. Q4 FY 2024

paragraph:80: Revenue

paragraph:81: $14.7 billion

paragraph:82: $13.6 billion

paragraph:83: 8%

paragraph:84: Net Income

paragraph:85: $2.8 billion

paragraph:86: $2.2 billion

paragraph:87: 31%

paragraph:88: Diluted Earnings per Share (EPS)

paragraph:89: $0.71

paragraph:90: $0.54

paragraph:91: 31%

paragraph:92: Q4 Non-GAAP Results

paragraph:93: Q4 FY 2025

paragraph:94: Q4 FY 2024

paragraph:95: Vs. Q4 FY 2024

paragraph:96: Net Income

paragraph:97: $4.0 billion

paragraph:98: $3.5 billion

paragraph:99: 12%

paragraph:100: EPS

paragraph:101: $0.99

paragraph:102: $0.87

paragraph:103: 14%

paragraph:104: Fiscal Year GAAP Results

paragraph:105: FY 2025

paragraph:106: FY 2024

paragraph:107: Vs. FY 2024

paragraph:108: Revenue

paragraph:109: $56.7 billion

paragraph:110: $53.8 billion

paragraph:111: 5%

paragraph:112: Net Income

paragraph:113: $10.5 billion

paragraph:114: $10.3 billion

paragraph:115: 1%

paragraph:116: EPS

paragraph:117: $2.61

paragraph:118: $2.54

paragraph:119: 3%

paragraph:120: Fiscal Year Non-GAAP Results

paragraph:121: FY 2025

paragraph:122: FY 2024

paragraph:123: Vs. FY 2024

paragraph:124: Net Income

paragraph:125: $15.2 billion

paragraph:126: $15.2 billion

paragraph:127: —%

paragraph:128: EPS

paragraph:129: $3.81

paragraph:130: $3.73

paragraph:131: 2%

paragraph:132: Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP

paragraph:133: basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:134: Cisco Declares Quarterly Dividend

paragraph:135: Cisco has declared a quarterly dividend of $0.41 per common share to be paid on October 22, 2025, to all stockholders of record as of the close of business on October 3, 2025. Future dividends will be subject to Board approval.

paragraph:136: 2

paragraph:137: Financial Summary

paragraph:138: All comparative percentages are on a year-over-year basis unless otherwise noted.

paragraph:139: Q4 FY 2025 Highlights

paragraph:140: Revenue —

paragraph:141: Total revenue was $14.7 billion, up 8%, with product revenue up 10% and services revenue flat.

paragraph:142: Revenue by geographic segment was: Americas up 9%, EMEA up 4%, and APJC up 7%. Product revenue performance reflected growth in Networking up 12%, Security up 9%, Observability up 4%, and Collaboration up 2%.

paragraph:143: Gross Margin —

paragraph:144: On a GAAP basis, total gross margin, product gross margin, and services gross margin were 65.7%, 64.7%, and 68.3%, respectively, as compared with 64.4%, 63.0%, and 67.8%, respectively, in the fourth quarter of fiscal 2024.

paragraph:145: On a

paragraph:146: non-GAAP basis, total gross margin, product gross margin, and services gross margin were 68.4%, 67.5%, and 70.8%, respectively, as compared with 67.9%, 67.0%, and 70.3%, respectively, in the fourth quarter of fiscal 2024.

paragraph:147: Total gross margins by geographic segment were: 68.0% for the Americas, 71.7% for EMEA and 64.2% for APJC.

paragraph:148: Operating Expenses —

paragraph:149: On a GAAP basis, operating expenses were $6.2 billion, flat year over year, and were 42.2% of revenue. Non-GAAP operating expenses were $5.0 billion, up 4%, and were 34.1% of revenue.

paragraph:150: Operating Income — GAAP operating income was $3.4 billion, up 32%, with GAAP operating margin of 23.5%. Non-GAAP operating income was $5.0 billion, up 13%, with

paragraph:151: non-GAAP operating margin at 34.3%.

paragraph:152: Provision for Income Taxes — The GAAP tax provision rate was 15.8%. The non-GAAP tax provision rate was 18.1%.

paragraph:153: Net Income and EPS — On a GAAP basis, net income was $2.8 billion, an increase of 31%, and EPS was $0.71, an increase of 31%. On a non-GAAP basis, net income was $4.0 billion, an increase of 12%, and EPS was $0.99, an increase of 14%.

paragraph:154: Cash Flow from Operating Activities — $4.2 billion for the fourth quarter of fiscal 2025, an increase of 14% compared with $3.7 billion for the fourth quarter of fiscal 2024.

paragraph:155: FY 2025 Highlights

paragraph:156: Revenue — Total revenue was $56.7 billion, an increase of 5%.

paragraph:157: Net Income and EPS — On a GAAP basis, net income was $10.5 billion, an increase of 1%, and EPS was $2.61, an increase of 3%. On a non-GAAP basis, net income was $15.2 billion, flat compared to fiscal 2024, and EPS was $3.81, an increase of 2%.

paragraph:158: Cash Flow from Operating Activities — $14.2 billion for fiscal 2025, an increase of 30% compared with $10.9 billion for fiscal 2024.

paragraph:159: Balance Sheet and Other Financial Highlights

paragraph:160: Cash and Cash Equivalents and Investments — $16.1 billion at the end of the fourth quarter of fiscal 2025, compared with $15.6 billion at the end of the third quarter of fiscal 2025, and compared with $17.9 billion at the end of fiscal 2024.

paragraph:161: Remaining Performance Obligations (RPO)

paragraph:162: —

paragraph:163: $43.5 billion, up 6% in total, with 50% of this amount expected to be recognized as revenue over the next 12 months. Product RPO was up 8% and services RPO was up 5%.

paragraph:164: Deferred Revenue — $28.8 billion, up 1% in total, with deferred product revenue up 2%. Deferred services revenue was flat.

paragraph:165: Capital Allocation — In the fourth quarter of fiscal 2025, we returned $2.9 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.41 per common share, or $1.6 billion, and repurchased approximately 19 million shares of common stock under our stock repurchase program at an average price of $64.65 per share for an aggregate purchase price of $1.3 billion. The remaining authorized amount for stock repurchases under the program is $14.2 billion with no termination date.

paragraph:166: 3

paragraph:167: Guidance

paragraph:168: Cisco estimates the following results for the first quarter of fiscal 2026:

paragraph:169: Q1 FY 2026

paragraph:170: Revenue

paragraph:171: $14.65 billion - $14.85 billion

paragraph:172: Non-GAAP gross margin

paragraph:173: 67.5% - 68.5%

paragraph:174: Non-GAAP operating margin

paragraph:175: 33% - 34%

paragraph:176: Non-GAAP EPS

paragraph:177: $0.97 - $0.99

paragraph:178: Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:179: Cisco estimates that GAAP EPS will be $0.63 to $0.68 for the first quarter of fiscal 2026.

paragraph:180: Cisco estimates the following results for fiscal 2026:

paragraph:181: FY 2026

paragraph:182: Revenue

paragraph:183: $59.0 billion - $60.0 billion

paragraph:184: Non-GAAP EPS

paragraph:185: $4.00 - $4.06

paragraph:186: Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:187: Cisco estimates that GAAP EPS will be $2.79 to $2.91 for fiscal 2026.

paragraph:188: Our Q1 FY 2026 and FY 2026 guidance assumes an effective tax provision rate of approximately 18% for GAAP and approximately 19% for non-GAAP results.

paragraph:189: A reconciliation between the guidance on a GAAP and non-GAAP

paragraph:190: basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:191: Editor’s Notes:

paragraph:192: •

paragraph:193: Q4 fiscal year 2025 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, August 13, 2025 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).

paragraph:194: •

paragraph:195: Conference call replay will be available from 4:00 p.m. Pacific Time, August 13, 2025 to 10:00 p.m. Pacific Time, August 19, 2025 at 1-800-391-9853 (United States) or

paragraph:196: 1-203-369-3269 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:197: •

paragraph:198: Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August 13, 2025. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP

paragraph:199: reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:200: 4

paragraph:201: CISCO SYSTEMS, INC.

paragraph:202: CONSOLIDATED STATEMENTS OF OPERATIONS

paragraph:203: (In millions, except per-share amounts)

paragraph:204: (Unaudited)

paragraph:205: Three Months Ended

paragraph:206: Fiscal Year Ended

paragraph:207: July 26, 2025

paragraph:208: July 27, 2024

paragraph:209: July 26, 2025

paragraph:210: July 27, 2024

paragraph:211: REVENUE:

paragraph:212: Product

paragraph:213: $

paragraph:214: 10,886

paragraph:215: $

paragraph:216: 9,858

paragraph:217: $

paragraph:218: 41,608

paragraph:219: $

paragraph:220: 39,253

paragraph:221: Services

paragraph:222: 3,787

paragraph:223: 3,784

paragraph:224: 15,046

paragraph:225: 14,550

paragraph:226: Total revenue

paragraph:227: 14,673

paragraph:228: 13,642

paragraph:229: 56,654

paragraph:230: 53,803

paragraph:231: COST OF SALES:

paragraph:232: Product

paragraph:233: 3,839

paragraph:234: 3,644

paragraph:235: 14,766

paragraph:236: 14,339

paragraph:237: Services

paragraph:238: 1,199

paragraph:239: 1,217

paragraph:240: 4,743

paragraph:241: 4,636

paragraph:242: Total cost of sales

paragraph:243: 5,038

paragraph:244: 4,861

paragraph:245: 19,509

paragraph:246: 18,975

paragraph:247: GROSS MARGIN

paragraph:248: 9,635

paragraph:249: 8,781

paragraph:250: 37,145

paragraph:251: 34,828

paragraph:252: OPERATING EXPENSES:

paragraph:253: Research and development

paragraph:254: 2,380

paragraph:255: 2,179

paragraph:256: 9,300

paragraph:257: 7,983

paragraph:258: Sales and marketing

paragraph:259: 2,818

paragraph:260: 2,841

paragraph:261: 10,966

paragraph:262: 10,364

paragraph:263: General and administrative

paragraph:264: 706

paragraph:265: 763

paragraph:266: 2,992

paragraph:267: 2,813

paragraph:268: Amortization of purchased intangible assets

paragraph:269: 254

paragraph:270: 268

paragraph:271: 1,028

paragraph:272: 698

paragraph:273: Restructuring and other charges

paragraph:274: 35

paragraph:275: 112

paragraph:276: 744

paragraph:277: 789

paragraph:278: Total operating expenses

paragraph:279: 6,193

paragraph:280: 6,163

paragraph:281: 25,030

paragraph:282: 22,647

paragraph:283: OPERATING INCOME

paragraph:284: 3,442

paragraph:285: 2,618

paragraph:286: 12,115

paragraph:287: 12,181

paragraph:288: Interest income

paragraph:289: 227

paragraph:290: 270

paragraph:291: 1,001

paragraph:292: 1,365

paragraph:293: Interest expense

paragraph:294: (368

paragraph:295: )

paragraph:296: (418

paragraph:297: )

paragraph:298: (1,593

paragraph:299: )

paragraph:300: (1,006

paragraph:301: )

paragraph:302: Other income (loss), net

paragraph:303: 53

paragraph:304: (74

paragraph:305: )

paragraph:306: (68

paragraph:307: )

paragraph:308: (306

paragraph:309: )

paragraph:310: Interest and other income (loss), net

paragraph:311: (88

paragraph:312: )

paragraph:313: (222

paragraph:314: )

paragraph:315: (660

paragraph:316: )

paragraph:317: 53

paragraph:318: INCOME BEFORE PROVISION FOR INCOME TAXES

paragraph:319: 3,354

paragraph:320: 2,396

paragraph:321: 11,455

paragraph:322: 12,234

paragraph:323: Provision for income taxes

paragraph:324: 531

paragraph:325: 234

paragraph:326: 1,002

paragraph:327: 1,914

paragraph:328: NET INCOME

paragraph:329: $

paragraph:330: 2,823

paragraph:331: $

paragraph:332: 2,162

paragraph:333: $

paragraph:334: 10,453

paragraph:335: $

paragraph:336: 10,320

paragraph:337: Net income per share:

paragraph:338: Basic

paragraph:340: 0.71

paragraph:342: 0.54

paragraph:344: 2.63

paragraph:346: 2.55

paragraph:347: Diluted

paragraph:349: 0.71

paragraph:351: 0.54

paragraph:353: 2.61

paragraph:355: 2.54

paragraph:356: Shares used in per-share calculation:

paragraph:357: Basic

paragraph:358: 3,960

paragraph:359: 4,018

paragraph:360: 3,976

paragraph:361: 4,043

paragraph:362: Diluted

paragraph:363: 3,992

paragraph:364: 4,035

paragraph:365: 3,998

paragraph:366: 4,062

paragraph:367: 5

paragraph:368: CISCO SYSTEMS, INC.

paragraph:369: REVENUE BY SEGMENT

paragraph:370: (In millions, except percentages)

paragraph:371: July 26, 2025

paragraph:372: Three Months Ended

paragraph:373: Fiscal Year Ended

paragraph:374: Amount

paragraph:375: Y/Y%

paragraph:376: Amount

paragraph:377: Y/Y%

paragraph:378: Revenue :

paragraph:379: Americas

paragraph:380: $

paragraph:381: 8,822

paragraph:382: 9%

paragraph:383: $

paragraph:384: 33,656

paragraph:385: 5%

paragraph:386: EMEA

paragraph:387: 3,645

paragraph:388: 4%

paragraph:389: 14,824

paragraph:390: 5%

paragraph:391: APJC

paragraph:392: 2,206

paragraph:393: 7%

paragraph:394: 8,174

paragraph:395: 6%

paragraph:396: Total

paragraph:397: $

paragraph:398: 14,673

paragraph:399: 8%

paragraph:400: $

paragraph:401: 56,654

paragraph:402: 5%

paragraph:403: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:404: CISCO SYSTEMS, INC.

paragraph:405: GROSS MARGIN PERCENTAGE BY SEGMENT

paragraph:406: (In percentages)

paragraph:407: July 26, 2025

paragraph:408: Three Months Ended

paragraph:409: Fiscal Year Ended

paragraph:410: Gross Margin Percentage :

paragraph:411: Americas

paragraph:412: 68.0%

paragraph:413: 68.2%

paragraph:414: EMEA

paragraph:415: 71.7%

paragraph:416: 71.1%

paragraph:417: APJC

paragraph:418: 64.2%

paragraph:419: 66.4%

paragraph:420: CISCO SYSTEMS, INC.

paragraph:421: REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

paragraph:422: (In millions, except percentages)

paragraph:423: July 26, 2025

paragraph:424: Three Months Ended

paragraph:425: Fiscal Year Ended

paragraph:426: Amount

paragraph:427: Y/Y%

paragraph:428: Amount

paragraph:429: Y/Y%

paragraph:430: Revenue :

paragraph:431: Networking

paragraph:432: $

paragraph:433: 7,633

paragraph:434: 12%

paragraph:435: $

paragraph:436: 28,304

paragraph:437: (3)%

paragraph:438: Security

paragraph:439: 1,952

paragraph:440: 9%

paragraph:441: 8,094

paragraph:442: 59%

paragraph:443: Collaboration

paragraph:444: 1,042

paragraph:445: 2%

paragraph:446: 4,154

paragraph:447: 1%

paragraph:448: Observability

paragraph:449: 259

paragraph:450: 4%

paragraph:451: 1,055

paragraph:452: 26%

paragraph:453: Total Product

paragraph:454: 10,886

paragraph:455: 10%

paragraph:456: 41,608

paragraph:457: 6%

paragraph:458: Services

paragraph:459: 3,787

paragraph:460: — %

paragraph:461: 15,046

paragraph:462: 3%

paragraph:463: Total

paragraph:464: $

paragraph:465: 14,673

paragraph:466: 8%

paragraph:467: $

paragraph:468: 56,654

paragraph:469: 5%

paragraph:470: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:471: 6

paragraph:472: CISCO SYSTEMS, INC.

paragraph:473: CONDENSED CONSOLIDATED BALANCE SHEETS

paragraph:474: (In millions)

paragraph:475: (Unaudited)

paragraph:476: July 26, 2025

paragraph:477: July 27, 2024

paragraph:478: ASSETS

paragraph:479: Current assets:

paragraph:480: Cash and cash equivalents

paragraph:481: $

paragraph:482: 8,346

paragraph:483: $

paragraph:484: 7,508

paragraph:485: Investments

paragraph:486: 7,764

paragraph:487: 10,346

paragraph:488: Accounts receivable, net of allowance of $69 at July 26, 2025 and $87 at July 27, 2024

paragraph:489: 6,701

paragraph:490: 6,685

paragraph:491: Inventories

paragraph:492: 3,095

paragraph:493: 3,373

paragraph:494: Financing receivables, net

paragraph:495: 3,061

paragraph:496: 3,338

paragraph:497: Other current assets

paragraph:498: 6,374

paragraph:499: 5,612

paragraph:500: Total current assets

paragraph:501: 35,341

paragraph:502: 36,862

paragraph:503: Property and equipment, net

paragraph:504: 2,113

paragraph:505: 2,090

paragraph:506: Financing receivables, net

paragraph:507: 3,466

paragraph:508: 3,376

paragraph:509: Goodwill

paragraph:510: 59,136

paragraph:511: 58,660

paragraph:512: Purchased intangible assets, net

paragraph:513: 9,175

paragraph:514: 11,219

paragraph:515: Deferred tax assets

paragraph:516: 7,274

paragraph:517: 6,262

paragraph:518: Other assets

paragraph:519: 6,059

paragraph:520: 5,944

paragraph:521: TOTAL ASSETS

paragraph:522: $

paragraph:523: 122,564

paragraph:524: $

paragraph:525: 124,413

paragraph:526: LIABILITIES AND EQUITY

paragraph:527: Current liabilities:

paragraph:528: Short-term debt

paragraph:529: $

paragraph:530: 5,232

paragraph:531: $

paragraph:532: 11,341

paragraph:533: Accounts payable

paragraph:534: 2,528

paragraph:535: 2,304

paragraph:536: Income taxes payable

paragraph:537: 1,857

paragraph:538: 1,439

paragraph:539: Accrued compensation

paragraph:540: 3,611

paragraph:541: 3,608

paragraph:542: Deferred revenue

paragraph:543: 16,416

paragraph:544: 16,249

paragraph:545: Other current liabilities

paragraph:546: 5,420

paragraph:547: 5,643

paragraph:548: Total current liabilities

paragraph:549: 35,064

paragraph:550: 40,584

paragraph:551: Long-term debt

paragraph:552: 22,861

paragraph:553: 19,621

paragraph:554: Income taxes payable

paragraph:555: 2,165

paragraph:556: 3,985

paragraph:557: Deferred revenue

paragraph:558: 12,363

paragraph:559: 12,226

paragraph:560: Other long-term liabilities

paragraph:561: 2,995

paragraph:562: 2,540

paragraph:563: Total liabilities

paragraph:564: 75,448

paragraph:565: 78,956

paragraph:566: Total equity

paragraph:567: 47,116

paragraph:568: 45,457

paragraph:569: TOTAL LIABILITIES AND EQUITY

paragraph:570: $

paragraph:571: 122,564

paragraph:572: $

paragraph:573: 124,413

paragraph:574: 7

paragraph:575: CISCO SYSTEMS, INC.

paragraph:576: CONSOLIDATED STATEMENTS OF CASH FLOWS

paragraph:577: (In millions)

paragraph:578: (Unaudited)

paragraph:579: Three Months Ended

paragraph:580: Fiscal Year Ended

paragraph:581: July 26, 2025

paragraph:582: July 27, 2024

paragraph:583: July 26, 2025

paragraph:584: July 27, 2024

paragraph:585: Cash flows from operating activities:

paragraph:586: Net income

paragraph:587: $

paragraph:588: 2,823

paragraph:589: $

paragraph:590: 2,162

paragraph:591: $

paragraph:592: 10,453

paragraph:593: $

paragraph:594: 10,320

paragraph:595: Adjustments to reconcile net income to net cash provided by operating activities:

paragraph:596: Depreciation, amortization, and other

paragraph:597: 635

paragraph:598: 823

paragraph:599: 2,811

paragraph:600: 2,507

paragraph:601: Share-based compensation expense

paragraph:602: 948

paragraph:603: 800

paragraph:604: 3,641

paragraph:605: 3,074

paragraph:606: Provision for receivables

paragraph:607: 7

paragraph:608: 15

paragraph:609: 24

paragraph:610: 34

paragraph:611: Deferred income taxes

paragraph:612: (259

paragraph:613: )

paragraph:614: (727

paragraph:615: )

paragraph:616: (1,051

paragraph:617: )

paragraph:618: (972

paragraph:619: )

paragraph:620: (Gains) losses on divestitures, investments and other, net

paragraph:621: (90

paragraph:622: )

paragraph:623: (9

paragraph:624: )

paragraph:625: (38

paragraph:626: )

paragraph:627: 215

paragraph:628: Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

paragraph:629: Accounts receivable

paragraph:630: (1,428

paragraph:631: )

paragraph:632: (1,575

paragraph:633: )

paragraph:634: (22

paragraph:635: )

paragraph:636: (289

paragraph:637: )

paragraph:638: Inventories

paragraph:639: (263

paragraph:640: )

paragraph:641: (255

paragraph:642: )

paragraph:643: 278

paragraph:644: 275

paragraph:645: Financing receivables

paragraph:646: (291

paragraph:647: )

paragraph:648: (16

paragraph:649: )

paragraph:650: 214

paragraph:651: 76

paragraph:652: Other assets

paragraph:653: (407

paragraph:655: (289

paragraph:657: (923

paragraph:659: (671

paragraph:661: Accounts payable

paragraph:662: 267

paragraph:663: 210

paragraph:664: 257

paragraph:665: (90

paragraph:666: )

paragraph:667: Income taxes, net

paragraph:668: 163

paragraph:669: 684

paragraph:670: (1,839

paragraph:671: )

paragraph:672: (4,539

paragraph:673: )

paragraph:674: Accrued compensation

paragraph:675: 378

paragraph:676: 396

paragraph:677: (53

paragraph:678: )

paragraph:679: (696

paragraph:680: )

paragraph:681: Deferred revenue

paragraph:682: 772

paragraph:683: 1,009

paragraph:684: 248

paragraph:685: 1,220

paragraph:686: Other liabilities

paragraph:687: 979

paragraph:688: 502

paragraph:689: 193

paragraph:690: 416

paragraph:691: Net cash provided by operating activities

paragraph:692: 4,234

paragraph:693: 3,730

paragraph:694: 14,193

paragraph:695: 10,880

paragraph:696: Cash flows from investing activities:

paragraph:697: Purchases of investments

paragraph:698: (1,523

paragraph:699: )

paragraph:700: (1,186

paragraph:701: )

paragraph:702: (4,589

paragraph:703: )

paragraph:704: (4,230

paragraph:705: )

paragraph:706: Proceeds from sales of investments

paragraph:707: 415

paragraph:708: 262

paragraph:709: 2,643

paragraph:710: 4,136

paragraph:711: Proceeds from maturities of investments

paragraph:712: 958

paragraph:713: 563

paragraph:714: 4,943

paragraph:715: 6,367

paragraph:716: Acquisitions, net of cash and cash equivalents acquired and divestitures

paragraph:717: —

paragraph:718: (120

paragraph:719: )

paragraph:720: (291

paragraph:721: )

paragraph:722: (25,994

paragraph:723: )

paragraph:724: Purchases of investments in privately held companies

paragraph:725: (118

paragraph:727: (202

paragraph:729: (383

paragraph:731: (284

paragraph:733: Return of investments in privately held companies

paragraph:734: 198

paragraph:735: 56

paragraph:736: 306

paragraph:737: 202

paragraph:738: Acquisition of property and equipment

paragraph:739: (217

paragraph:741: (198

paragraph:743: (905

paragraph:745: (670

paragraph:747: Other

paragraph:748: 14

paragraph:749: (3

paragraph:750: )

paragraph:751: 9

paragraph:752: (5

paragraph:753: )

paragraph:754: Net cash provided by (used in) investing activities

paragraph:755: (273

paragraph:756: )

paragraph:757: (828

paragraph:758: )

paragraph:759: 1,733

paragraph:760: (20,478

paragraph:761: )

paragraph:762: Cash flows from financing activities:

paragraph:763: Issuances of common stock

paragraph:764: 416

paragraph:765: 367

paragraph:766: 736

paragraph:767: 714

paragraph:768: Repurchases of common stock - repurchase program

paragraph:769: (1,252

paragraph:770: )

paragraph:771: (2,015

paragraph:772: )

paragraph:773: (6,000

paragraph:774: )

paragraph:775: (5,787

paragraph:776: )

paragraph:777: Shares repurchased for tax withholdings on vesting of restricted stock units

paragraph:778: (312

paragraph:779: )

paragraph:780: (227

paragraph:781: )

paragraph:782: (1,222

paragraph:783: )

paragraph:784: (992

paragraph:785: )

paragraph:786: Short-term borrowings, original maturities of 90 days or less, net

paragraph:787: 448

paragraph:788: (1,069

paragraph:789: )

paragraph:790: (31

paragraph:791: )

paragraph:792: 478

paragraph:793: Issuances of debt

paragraph:794: 1,904

paragraph:795: 7,659

paragraph:796: 19,292

paragraph:797: 31,818

paragraph:798: Repayments of debt

paragraph:799: (3,528

paragraph:800: )

paragraph:801: (7,631

paragraph:802: )

paragraph:803: (22,073

paragraph:804: )

paragraph:805: (9,826

paragraph:806: )

paragraph:807: Repayments of Splunk convertible debt, net

paragraph:808: —

paragraph:809: —

paragraph:810: —

paragraph:811: (3,140

paragraph:812: )

paragraph:813: Dividends paid

paragraph:814: (1,625

paragraph:815: )

paragraph:816: (1,606

paragraph:817: )

paragraph:818: (6,437

paragraph:819: )

paragraph:820: (6,384

paragraph:821: )

paragraph:822: Other

paragraph:823: —

paragraph:824: 15

paragraph:825: (80

paragraph:826: )

paragraph:827: (37

paragraph:828: )

paragraph:829: Net cash provided by (used in) financing activities

paragraph:830: (3,949

paragraph:831: )

paragraph:832: (4,507

paragraph:833: )

paragraph:834: (15,815

paragraph:835: )

paragraph:836: 6,844

paragraph:837: Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:838: (20

paragraph:841: (43

paragraph:843: (31

paragraph:845: Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:846: (8

paragraph:847: )

paragraph:848: (1,597

paragraph:849: )

paragraph:850: 68

paragraph:851: (2,785

paragraph:852: )

paragraph:853: Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

paragraph:854: 8,918

paragraph:855: 10,439

paragraph:856: 8,842

paragraph:857: 11,627

paragraph:858: Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

paragraph:860: 8,910

paragraph:862: 8,842

paragraph:864: 8,910

paragraph:866: 8,842

paragraph:867: Supplemental cash flow information:

paragraph:868: Cash paid for interest

paragraph:870: 130

paragraph:872: 233

paragraph:874: 1,500

paragraph:876: 583

paragraph:877: Cash paid for income taxes, net

paragraph:879: 627

paragraph:881: 276

paragraph:883: 3,892

paragraph:885: 7,426

paragraph:887: CISCO SYSTEMS, INC.

paragraph:888: REMAINING PERFORMANCE OBLIGATIONS

paragraph:889: (In millions, except percentages)

paragraph:890: July 26, 2025

paragraph:891: April 26, 2025

paragraph:892: July 27, 2024

paragraph:893: Amount

paragraph:894: Y/Y%

paragraph:895: Amount

paragraph:896: Y/Y%

paragraph:897: Amount

paragraph:898: Y/Y%

paragraph:899: Product

paragraph:900: $

paragraph:901: 21,572

paragraph:902: 8

paragraph:903: %

paragraph:904: $

paragraph:905: 20,752

paragraph:906: 10

paragraph:907: %

paragraph:908: $

paragraph:909: 20,055

paragraph:910: 27

paragraph:911: %

paragraph:912: Services

paragraph:913: 21,961

paragraph:914: 5

paragraph:915: %

paragraph:916: 20,915

paragraph:917: 5

paragraph:918: %

paragraph:919: 20,993

paragraph:920: 10

paragraph:921: %

paragraph:922: Total

paragraph:923: $

paragraph:924: 43,533

paragraph:925: 6

paragraph:926: %

paragraph:927: $

paragraph:928: 41,667

paragraph:929: 7

paragraph:930: %

paragraph:931: $

paragraph:932: 41,048

paragraph:933: 18

paragraph:934: %

paragraph:935: We expect 50% of total RPO at July 26, 2025 to be recognized as revenue over the next 12 months.

paragraph:936: CISCO SYSTEMS, INC.

paragraph:937: DEFERRED REVENUE

paragraph:938: (In millions)

paragraph:939: July 26, 2025

paragraph:940: April 26, 2025

paragraph:941: July 27, 2024

paragraph:942: Deferred revenue:

paragraph:943: Product

paragraph:944: $

paragraph:945: 13,490

paragraph:946: $

paragraph:947: 13,170

paragraph:948: $

paragraph:949: 13,219

paragraph:950: Services

paragraph:951: 15,289

paragraph:952: 14,821

paragraph:953: 15,256

paragraph:954: Total

paragraph:955: $

paragraph:956: 28,779

paragraph:957: $

paragraph:958: 27,991

paragraph:959: $

paragraph:960: 28,475

paragraph:961: Reported as:

paragraph:962: Current

paragraph:963: $

paragraph:964: 16,416

paragraph:965: $

paragraph:966: 16,081

paragraph:967: $

paragraph:968: 16,249

paragraph:969: Noncurrent

paragraph:970: 12,363

paragraph:971: 11,910

paragraph:972: 12,226

paragraph:973: Total

paragraph:974: $

paragraph:975: 28,779

paragraph:976: $

paragraph:977: 27,991

paragraph:978: $

paragraph:979: 28,475

paragraph:980: CISCO SYSTEMS, INC.

paragraph:981: DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

paragraph:982: (In millions, except per-share amounts)

paragraph:983: DIVIDENDS

paragraph:984: STOCK REPURCHASE PROGRAM

paragraph:985: TOTAL

paragraph:986: Quarter Ended

paragraph:987: Per Share

paragraph:988: Amount

paragraph:989: Shares

paragraph:990: Weighted- Average Price per Share

paragraph:991: Amount

paragraph:992: Amount

paragraph:993: Fiscal 2025

paragraph:994: July 26, 2025

paragraph:995: $

paragraph:996: 0.41

paragraph:997: $

paragraph:998: 1,625

paragraph:999: 19

paragraph:1000: $

paragraph:1001: 64.65

paragraph:1002: $

paragraph:1003: 1,252

paragraph:1004: $

paragraph:1005: 2,877

paragraph:1006: April 26, 2025

paragraph:1007: $

paragraph:1008: 0.41

paragraph:1009: $

paragraph:1010: 1,627

paragraph:1011: 25

paragraph:1012: $

paragraph:1013: 59.78

paragraph:1014: $

paragraph:1015: 1,504

paragraph:1016: $

paragraph:1017: 3,131

paragraph:1018: January 25, 2025

paragraph:1019: $

paragraph:1020: 0.40

paragraph:1021: $

paragraph:1022: 1,593

paragraph:1023: 21

paragraph:1024: $

paragraph:1025: 58.58

paragraph:1026: $

paragraph:1027: 1,236

paragraph:1028: $

paragraph:1029: 2,829

paragraph:1030: October 26, 2024

paragraph:1031: $

paragraph:1032: 0.40

paragraph:1033: $

paragraph:1034: 1,592

paragraph:1035: 40

paragraph:1036: $

paragraph:1037: 49.56

paragraph:1038: $

paragraph:1039: 2,003

paragraph:1040: $

paragraph:1041: 3,595

paragraph:1042: Fiscal 2024

paragraph:1043: July 27, 2024

paragraph:1044: $

paragraph:1045: 0.40

paragraph:1046: $

paragraph:1047: 1,606

paragraph:1048: 43

paragraph:1049: $

paragraph:1050: 46.80

paragraph:1051: $

paragraph:1052: 2,002

paragraph:1053: $

paragraph:1054: 3,608

paragraph:1055: April 27, 2024

paragraph:1056: $

paragraph:1057: 0.40

paragraph:1058: $

paragraph:1059: 1,615

paragraph:1060: 26

paragraph:1061: $

paragraph:1062: 49.22

paragraph:1063: $

paragraph:1064: 1,256

paragraph:1065: $

paragraph:1066: 2,871

paragraph:1067: January 27, 2024

paragraph:1068: $

paragraph:1069: 0.39

paragraph:1070: $

paragraph:1071: 1,583

paragraph:1072: 25

paragraph:1073: $

paragraph:1074: 49.54

paragraph:1075: $

paragraph:1076: 1,254

paragraph:1077: $

paragraph:1078: 2,837

paragraph:1079: October 28, 2023

paragraph:1080: $

paragraph:1081: 0.39

paragraph:1082: $

paragraph:1083: 1,580

paragraph:1084: 23

paragraph:1085: $

paragraph:1086: 54.53

paragraph:1087: $

paragraph:1088: 1,252

paragraph:1089: $

paragraph:1090: 2,832

paragraph:1091: 9

paragraph:1092: CISCO SYSTEMS, INC.

paragraph:1093: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1094: GAAP TO NON-GAAP NET INCOME

paragraph:1095: (In millions)

paragraph:1096: Three Months Ended

paragraph:1097: Fiscal Year Ended

paragraph:1098: July 26, 2025

paragraph:1099: July 27, 2024

paragraph:1100: July 26, 2025

paragraph:1101: July 27, 2024

paragraph:1102: GAAP net income

paragraph:1103: $

paragraph:1104: 2,823

paragraph:1105: $

paragraph:1106: 2,162

paragraph:1107: $

paragraph:1108: 10,453

paragraph:1109: $

paragraph:1110: 10,320

paragraph:1111: Adjustments to cost of sales:

paragraph:1112: Share-based compensation expense

paragraph:1113: 150

paragraph:1114: 133

paragraph:1115: 584

paragraph:1116: 514

paragraph:1117: Amortization of acquisition-related intangible assets

paragraph:1118: 233

paragraph:1119: 331

paragraph:1120: 1,150

paragraph:1121: 936

paragraph:1122: Acquisition/divestiture-related costs

paragraph:1123: 13

paragraph:1124: 21

paragraph:1125: 66

paragraph:1126: 34

paragraph:1127: Supplier component remediation charge (adjustment)

paragraph:1128: —

paragraph:1129: —

paragraph:1130: (7

paragraph:1131: )

paragraph:1132: —

paragraph:1133: Total adjustments to GAAP cost of sales

paragraph:1134: 396

paragraph:1135: 485

paragraph:1136: 1,793

paragraph:1137: 1,484

paragraph:1138: Adjustments to operating expenses:

paragraph:1139: Share-based compensation expense

paragraph:1140: 797

paragraph:1141: 660

paragraph:1142: 3,019

paragraph:1143: 2,537

paragraph:1144: Amortization of acquisition-related intangible assets

paragraph:1145: 255

paragraph:1146: 268

paragraph:1147: 1,029

paragraph:1148: 698

paragraph:1149: Acquisition/divestiture-related costs

paragraph:1150: 104

paragraph:1151: 297

paragraph:1152: 791

paragraph:1153: 700

paragraph:1154: Russia-Ukraine war costs

paragraph:1155: —

paragraph:1156: —

paragraph:1157: —

paragraph:1158: (12

paragraph:1159: )

paragraph:1160: Significant asset impairments and restructurings

paragraph:1161: 35

paragraph:1162: 112

paragraph:1163: 744

paragraph:1164: 789

paragraph:1165: Total adjustments to GAAP operating expenses

paragraph:1166: 1,191

paragraph:1167: 1,337

paragraph:1168: 5,583

paragraph:1169: 4,712

paragraph:1170: Adjustments to interest and other income (loss), net:

paragraph:1171: Russia-Ukraine war costs

paragraph:1172: —

paragraph:1173: 49

paragraph:1174: —

paragraph:1175: 49

paragraph:1176: (Gains) and losses on investments

paragraph:1177: (115

paragraph:1178: )

paragraph:1179: (32

paragraph:1180: )

paragraph:1181: (187

paragraph:1182: )

paragraph:1183: 100

paragraph:1184: Total adjustments to GAAP interest and other income (loss), net

paragraph:1185: (115

paragraph:1186: )

paragraph:1187: 17

paragraph:1188: (187

paragraph:1189: )

paragraph:1190: 149

paragraph:1191: Total adjustments to GAAP income before provision for income taxes

paragraph:1192: 1,472

paragraph:1193: 1,839

paragraph:1194: 7,189

paragraph:1195: 6,345

paragraph:1196: Income tax effect of non-GAAP adjustments

paragraph:1197: (344

paragraph:1198: )

paragraph:1199: (315

paragraph:1200: )

paragraph:1201: (1,600

paragraph:1202: )

paragraph:1203: (1,360

paragraph:1205: Significant tax matters (1)

paragraph:1206: —

paragraph:1207: (155

paragraph:1208: )

paragraph:1209: (829

paragraph:1210: )

paragraph:1211: (155

paragraph:1212: )

paragraph:1213: Total adjustments to GAAP provision for income taxes

paragraph:1214: (344

paragraph:1215: )

paragraph:1216: (470

paragraph:1217: )

paragraph:1218: (2,429

paragraph:1219: )

paragraph:1220: (1,515

paragraph:1221: )

paragraph:1222: Non-GAAP net income

paragraph:1223: $

paragraph:1224: 3,951

paragraph:1225: $

paragraph:1226: 3,531

paragraph:1227: $

paragraph:1228: 15,213

paragraph:1229: $

paragraph:1230: 15,150

paragraph:1231: (1)

paragraph:1232: The fiscal year ended July 26, 2025 includes a $720 million benefit due to an August 2024 U.S. Tax Court decision regarding the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act.

paragraph:1233: 10

paragraph:1234: CISCO SYSTEMS, INC.

paragraph:1235: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1236: GAAP TO NON-GAAP EPS

paragraph:1237: Three Months Ended

paragraph:1238: Fiscal Year Ended

paragraph:1239: July 26, 2025

paragraph:1240: July 27, 2024

paragraph:1241: July 26, 2025

paragraph:1242: July 27, 2024

paragraph:1243: GAAP EPS

paragraph:1245: 0.71

paragraph:1247: 0.54

paragraph:1249: 2.61

paragraph:1251: 2.54

paragraph:1252: Adjustments to GAAP:

paragraph:1253: Share-based compensation expense

paragraph:1254: 0.24

paragraph:1255: 0.20

paragraph:1256: 0.90

paragraph:1257: 0.75

paragraph:1258: Amortization of acquisition-related intangible assets

paragraph:1259: 0.12

paragraph:1260: 0.15

paragraph:1261: 0.55

paragraph:1262: 0.40

paragraph:1263: Acquisition/divestiture-related costs

paragraph:1264: 0.03

paragraph:1265: 0.08

paragraph:1266: 0.21

paragraph:1267: 0.18

paragraph:1268: Russia-Ukraine war costs

paragraph:1269: —

paragraph:1270: 0.01

paragraph:1271: —

paragraph:1272: 0.01

paragraph:1273: Significant asset impairments and restructurings

paragraph:1274: 0.01

paragraph:1275: 0.03

paragraph:1276: 0.19

paragraph:1277: 0.19

paragraph:1278: (Gains) and losses on investments

paragraph:1279: (0.03

paragraph:1280: )

paragraph:1281: (0.01

paragraph:1282: )

paragraph:1283: (0.05

paragraph:1284: )

paragraph:1285: 0.02

paragraph:1286: Income tax effect of non-GAAP adjustments

paragraph:1287: (0.09

paragraph:1288: )

paragraph:1289: (0.08

paragraph:1290: )

paragraph:1291: (0.40

paragraph:1292: )

paragraph:1293: (0.33

paragraph:1294: )

paragraph:1295: Significant tax matters

paragraph:1296: —

paragraph:1297: (0.04

paragraph:1298: )

paragraph:1299: (0.21

paragraph:1300: )

paragraph:1301: (0.04

paragraph:1302: )

paragraph:1303: Non-GAAP EPS

paragraph:1305: 0.99

paragraph:1307: 0.87

paragraph:1309: 3.81

paragraph:1311: 3.73

paragraph:1312: Amounts may not sum due to rounding.

paragraph:1313: 11

paragraph:1314: CISCO SYSTEMS, INC.

paragraph:1315: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1316: GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND

paragraph:1317: NET INCOME

paragraph:1318: (In millions, except percentages)

paragraph:1319: Three Months Ended

paragraph:1320: July 26, 2025

paragraph:1321: Product Gross Margin

paragraph:1322: Services Gross Margin

paragraph:1323: Total Gross Margin

paragraph:1324: Operating Expenses

paragraph:1325: Y/Y

paragraph:1326: Operating Income

paragraph:1327: Y/Y

paragraph:1328: Interest and other income (loss), net

paragraph:1329: Net Income

paragraph:1330: Y/Y

paragraph:1331: GAAP amount

paragraph:1332: $

paragraph:1333: 7,047

paragraph:1334: $

paragraph:1335: 2,588

paragraph:1336: $

paragraph:1337: 9,635

paragraph:1338: $

paragraph:1339: 6,193

paragraph:1340: —

paragraph:1341: %

paragraph:1342: $

paragraph:1343: 3,442

paragraph:1344: 32

paragraph:1347: (88

paragraph:1350: 2,823

paragraph:1351: 31

paragraph:1352: %

paragraph:1353: % of revenue

paragraph:1354: 64.7

paragraph:1356: 68.3

paragraph:1358: 65.7

paragraph:1360: 42.2

paragraph:1362: 23.5

paragraph:1364: (0.6

paragraph:1365: )%

paragraph:1366: 19.2

paragraph:1367: %

paragraph:1368: Adjustments to GAAP amounts:

paragraph:1369: Share-based compensation expense

paragraph:1370: 66

paragraph:1371: 84

paragraph:1372: 150

paragraph:1373: 797

paragraph:1374: 947

paragraph:1375: —

paragraph:1376: 947

paragraph:1377: Amortization of acquisition-related intangible assets

paragraph:1378: 233

paragraph:1379: —

paragraph:1380: 233

paragraph:1381: 255

paragraph:1382: 488

paragraph:1383: —

paragraph:1384: 488

paragraph:1385: Acquisition/divestiture-related costs

paragraph:1386: 2

paragraph:1387: 11

paragraph:1388: 13

paragraph:1389: 104

paragraph:1390: 117

paragraph:1391: —

paragraph:1392: 117

paragraph:1393: Significant asset impairments and restructurings

paragraph:1394: —

paragraph:1395: —

paragraph:1396: —

paragraph:1397: 35

paragraph:1398: 35

paragraph:1399: —

paragraph:1400: 35

paragraph:1401: (Gains) and losses on investments

paragraph:1402: —

paragraph:1403: —

paragraph:1404: —

paragraph:1405: —

paragraph:1406: —

paragraph:1407: (115

paragraph:1408: )

paragraph:1409: (115

paragraph:1410: )

paragraph:1411: Income tax effect/significant tax matters

paragraph:1412: —

paragraph:1413: —

paragraph:1414: —

paragraph:1415: —

paragraph:1416: —

paragraph:1417: —

paragraph:1418: (344

paragraph:1419: )

paragraph:1420: Non-GAAP amount

paragraph:1421: $

paragraph:1422: 7,348

paragraph:1423: $

paragraph:1424: 2,683

paragraph:1425: $

paragraph:1426: 10,031

paragraph:1427: $

paragraph:1428: 5,002

paragraph:1429: 4

paragraph:1430: %

paragraph:1431: $

paragraph:1432: 5,029

paragraph:1433: 13

paragraph:1436: (203

paragraph:1439: 3,951

paragraph:1440: 12

paragraph:1441: %

paragraph:1442: % of revenue

paragraph:1443: 67.5

paragraph:1445: 70.8

paragraph:1447: 68.4

paragraph:1449: 34.1

paragraph:1451: 34.3

paragraph:1453: (1.4

paragraph:1454: )%

paragraph:1455: 26.9

paragraph:1456: %

paragraph:1457: Three Months Ended

paragraph:1458: July 27, 2024

paragraph:1459: Product Gross Margin

paragraph:1460: Services Gross Margin

paragraph:1461: Total Gross Margin

paragraph:1462: Operating Expenses

paragraph:1463: Operating Income

paragraph:1464: Interest and other income (loss), net

paragraph:1465: Net Income

paragraph:1466: GAAP amount

paragraph:1467: $

paragraph:1468: 6,214

paragraph:1469: $

paragraph:1470: 2,567

paragraph:1471: $

paragraph:1472: 8,781

paragraph:1473: $

paragraph:1474: 6,163

paragraph:1475: $

paragraph:1476: 2,618

paragraph:1477: $

paragraph:1478: (222

paragraph:1479: )

paragraph:1480: $

paragraph:1481: 2,162

paragraph:1482: % of revenue

paragraph:1483: 63.0

paragraph:1485: 67.8

paragraph:1487: 64.4

paragraph:1489: 45.2

paragraph:1491: 19.2

paragraph:1493: (1.6

paragraph:1494: )%

paragraph:1495: 15.8

paragraph:1496: %

paragraph:1497: Adjustments to GAAP amounts:

paragraph:1498: Share-based compensation expense

paragraph:1499: 57

paragraph:1500: 76

paragraph:1501: 133

paragraph:1502: 660

paragraph:1503: 793

paragraph:1504: —

paragraph:1505: 793

paragraph:1506: Amortization of acquisition-related intangible assets

paragraph:1507: 331

paragraph:1508: —

paragraph:1509: 331

paragraph:1510: 268

paragraph:1511: 599

paragraph:1512: —

paragraph:1513: 599

paragraph:1514: Acquisition/divestiture-related costs

paragraph:1515: 5

paragraph:1516: 16

paragraph:1517: 21

paragraph:1518: 297

paragraph:1519: 318

paragraph:1520: —

paragraph:1521: 318

paragraph:1522: Russia-Ukraine war costs

paragraph:1523: —

paragraph:1524: —

paragraph:1525: —

paragraph:1526: —

paragraph:1527: —

paragraph:1528: 49

paragraph:1529: 49

paragraph:1530: Significant asset impairments and restructurings

paragraph:1531: —

paragraph:1532: —

paragraph:1533: —

paragraph:1534: 112

paragraph:1535: 112

paragraph:1536: —

paragraph:1537: 112

paragraph:1538: (Gains) and losses on investments

paragraph:1539: —

paragraph:1540: —

paragraph:1541: —

paragraph:1542: —

paragraph:1543: —

paragraph:1544: (32

paragraph:1545: )

paragraph:1546: (32

paragraph:1547: )

paragraph:1548: Income tax effect/significant tax matters

paragraph:1549: —

paragraph:1550: —

paragraph:1551: —

paragraph:1552: —

paragraph:1553: —

paragraph:1554: —

paragraph:1555: (470

paragraph:1556: )

paragraph:1557: Non-GAAP amount

paragraph:1558: $

paragraph:1559: 6,607

paragraph:1560: $

paragraph:1561: 2,659

paragraph:1562: $

paragraph:1563: 9,266

paragraph:1564: $

paragraph:1565: 4,826

paragraph:1566: $

paragraph:1567: 4,440

paragraph:1568: $

paragraph:1569: (205

paragraph:1570: )

paragraph:1571: $

paragraph:1572: 3,531

paragraph:1573: % of revenue

paragraph:1574: 67.0

paragraph:1576: 70.3

paragraph:1578: 67.9

paragraph:1580: 35.4

paragraph:1582: 32.5

paragraph:1584: (1.5

paragraph:1585: )%

paragraph:1586: 25.9

paragraph:1587: %

paragraph:1588: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:1589: 12

paragraph:1590: CISCO SYSTEMS, INC.

paragraph:1591: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1592: GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET, AND

paragraph:1593: NET INCOME

paragraph:1594: (In millions, except percentages)

paragraph:1595: Fiscal Year Ended

paragraph:1596: July 26, 2025

paragraph:1597: Product Gross Margin

paragraph:1598: Services Gross Margin

paragraph:1599: Total Gross Margin

paragraph:1600: Operating Expenses

paragraph:1601: Y/Y

paragraph:1602: Operating Income

paragraph:1603: Y/Y

paragraph:1604: Interest and other income (loss), net

paragraph:1605: Net Income

paragraph:1606: Y/Y

paragraph:1607: GAAP amount

paragraph:1608: $

paragraph:1609: 26,842

paragraph:1610: $

paragraph:1611: 10,303

paragraph:1612: $

paragraph:1613: 37,145

paragraph:1614: $

paragraph:1615: 25,030

paragraph:1616: 11

paragraph:1617: %

paragraph:1618: $

paragraph:1619: 12,115

paragraph:1620: (1

paragraph:1621: )%

paragraph:1622: $

paragraph:1623: (660

paragraph:1624: )

paragraph:1625: $

paragraph:1626: 10,453

paragraph:1627: 1

paragraph:1628: %

paragraph:1629: % of revenue

paragraph:1630: 64.5

paragraph:1632: 68.5

paragraph:1634: 65.6

paragraph:1636: 44.2

paragraph:1638: 21.4

paragraph:1640: (1.2

paragraph:1641: )%

paragraph:1642: 18.5

paragraph:1643: %

paragraph:1644: Adjustments to GAAP amounts:

paragraph:1645: Share-based compensation expense

paragraph:1646: 255

paragraph:1647: 329

paragraph:1648: 584

paragraph:1649: 3,019

paragraph:1650: 3,603

paragraph:1651: —

paragraph:1652: 3,603

paragraph:1653: Amortization of acquisition-related intangible assets

paragraph:1654: 1,150

paragraph:1655: —

paragraph:1656: 1,150

paragraph:1657: 1,029

paragraph:1658: 2,179

paragraph:1659: —

paragraph:1660: 2,179

paragraph:1661: Acquisition/divestiture-related costs

paragraph:1662: 14

paragraph:1663: 52

paragraph:1664: 66

paragraph:1665: 791

paragraph:1666: 857

paragraph:1667: —

paragraph:1668: 857

paragraph:1669: Supplier component remediation charge (adjustment)

paragraph:1670: (7

paragraph:1671: )

paragraph:1672: —

paragraph:1673: (7

paragraph:1674: )

paragraph:1675: —

paragraph:1676: (7

paragraph:1677: )

paragraph:1678: —

paragraph:1679: (7

paragraph:1680: )

paragraph:1681: Significant asset impairments and restructurings

paragraph:1682: —

paragraph:1683: —

paragraph:1684: —

paragraph:1685: 744

paragraph:1686: 744

paragraph:1687: —

paragraph:1688: 744

paragraph:1689: (Gains) and losses on investments

paragraph:1690: —

paragraph:1691: —

paragraph:1692: —

paragraph:1693: —

paragraph:1694: —

paragraph:1695: (187

paragraph:1696: )

paragraph:1697: (187

paragraph:1698: )

paragraph:1699: Income tax effect/significant tax matters

paragraph:1700: —

paragraph:1701: —

paragraph:1702: —

paragraph:1703: —

paragraph:1704: —

paragraph:1705: —

paragraph:1706: (2,429

paragraph:1707: )

paragraph:1708: Non-GAAP amount

paragraph:1709: $

paragraph:1710: 28,254

paragraph:1711: $

paragraph:1712: 10,684

paragraph:1713: $

paragraph:1714: 38,938

paragraph:1715: $

paragraph:1716: 19,447

paragraph:1717: 8

paragraph:1718: %

paragraph:1719: $

paragraph:1720: 19,491

paragraph:1724: (847

paragraph:1727: 15,213

paragraph:1728: —

paragraph:1729: %

paragraph:1730: % of revenue

paragraph:1731: 67.9

paragraph:1733: 71.0

paragraph:1735: 68.7

paragraph:1737: 34.3

paragraph:1739: 34.4

paragraph:1741: (1.5

paragraph:1742: )%

paragraph:1743: 26.9

paragraph:1744: %

paragraph:1745: Fiscal Year Ended

paragraph:1746: July 27, 2024

paragraph:1747: Product Gross Margin

paragraph:1748: Services Gross Margin

paragraph:1749: Total Gross Margin

paragraph:1750: Operating Expenses

paragraph:1751: Operating Income

paragraph:1752: Interest and other income (loss), net

paragraph:1753: Net Income

paragraph:1754: GAAP amount

paragraph:1755: $

paragraph:1756: 24,914

paragraph:1757: $

paragraph:1758: 9,914

paragraph:1759: $

paragraph:1760: 34,828

paragraph:1761: $

paragraph:1762: 22,647

paragraph:1763: $

paragraph:1764: 12,181

paragraph:1765: $

paragraph:1766: 53

paragraph:1767: $

paragraph:1768: 10,320

paragraph:1769: % of revenue

paragraph:1770: 63.5

paragraph:1772: 68.1

paragraph:1774: 64.7

paragraph:1776: 42.1

paragraph:1778: 22.6

paragraph:1780: 0.1

paragraph:1782: 19.2

paragraph:1784: Adjustments to GAAP amounts:

paragraph:1785: Share-based compensation expense

paragraph:1786: 214

paragraph:1787: 300

paragraph:1788: 514

paragraph:1789: 2,537

paragraph:1790: 3,051

paragraph:1791: —

paragraph:1792: 3,051

paragraph:1793: Amortization of acquisition-related intangible assets

paragraph:1794: 936

paragraph:1795: —

paragraph:1796: 936

paragraph:1797: 698

paragraph:1798: 1,634

paragraph:1799: —

paragraph:1800: 1,634

paragraph:1801: Acquisition/divestiture-related costs

paragraph:1802: 10

paragraph:1803: 24

paragraph:1804: 34

paragraph:1805: 700

paragraph:1806: 734

paragraph:1807: —

paragraph:1808: 734

paragraph:1809: Russia-Ukraine war costs

paragraph:1810: —

paragraph:1811: —

paragraph:1812: —

paragraph:1813: (12

paragraph:1814: )

paragraph:1815: (12

paragraph:1816: )

paragraph:1817: 49

paragraph:1818: 37

paragraph:1819: Significant asset impairments and restructurings

paragraph:1820: —

paragraph:1821: —

paragraph:1822: —

paragraph:1823: 789

paragraph:1824: 789

paragraph:1825: —

paragraph:1826: 789

paragraph:1827: (Gains) and losses on investments

paragraph:1828: —

paragraph:1829: —

paragraph:1830: —

paragraph:1831: —

paragraph:1832: —

paragraph:1833: 100

paragraph:1834: 100

paragraph:1835: Income tax effect/significant tax matters

paragraph:1836: —

paragraph:1837: —

paragraph:1838: —

paragraph:1839: —

paragraph:1840: —

paragraph:1841: —

paragraph:1842: (1,515

paragraph:1843: )

paragraph:1844: Non-GAAP amount

paragraph:1845: $

paragraph:1846: 26,074

paragraph:1847: $

paragraph:1848: 10,238

paragraph:1849: $

paragraph:1850: 36,312

paragraph:1851: $

paragraph:1852: 17,935

paragraph:1853: $

paragraph:1854: 18,377

paragraph:1855: $

paragraph:1856: 202

paragraph:1857: $

paragraph:1858: 15,150

paragraph:1859: % of revenue

paragraph:1860: 66.4

paragraph:1862: 70.4

paragraph:1864: 67.5

paragraph:1866: 33.3

paragraph:1868: 34.2

paragraph:1870: 0.4

paragraph:1872: 28.2

paragraph:1874: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:1875: 13

paragraph:1876: CISCO SYSTEMS, INC.

paragraph:1877: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1878: EFFECTIVE TAX RATE

paragraph:1879: (In percentages)

paragraph:1880: Three Months Ended

paragraph:1881: Fiscal Year Ended

paragraph:1882: July 26, 2025

paragraph:1883: July 27, 2024

paragraph:1884: July 26, 2025

paragraph:1885: July 27, 2024

paragraph:1886: GAAP effective tax rate

paragraph:1887: 15.8

paragraph:1889: 9.8

paragraph:1891: 8.7

paragraph:1893: 15.6

paragraph:1895: Total adjustments to GAAP provision for income taxes

paragraph:1896: 2.3

paragraph:1898: 6.8

paragraph:1900: 9.7

paragraph:1902: 2.9

paragraph:1904: Non-GAAP effective tax rate

paragraph:1905: 18.1

paragraph:1907: 16.6

paragraph:1909: 18.4

paragraph:1911: 18.5

paragraph:1913: GAAP TO NON-GAAP GUIDANCE

paragraph:1914: Q1 FY 2026

paragraph:1915: Gross Margin

paragraph:1916: Operating Margin

paragraph:1917: Earnings per Share (1)

paragraph:1918: GAAP

paragraph:1919: 65% - 66%

paragraph:1920: 21.5% - 22.5%

paragraph:1921: $0.63 - $0.68

paragraph:1922: Estimated adjustments for:

paragraph:1923: Share-based compensation expense

paragraph:1924: 1.0%

paragraph:1925: 6.5%

paragraph:1926: $0.18 - $0.19

paragraph:1927: Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

paragraph:1928: 1.5%

paragraph:1929: 4.0%

paragraph:1930: $0.11 - $0.12

paragraph:1931: Significant asset impairments and restructurings

paragraph:1932: (2)

paragraph:1933: —

paragraph:1934: 1.0%

paragraph:1935: $0.02 - $0.03

paragraph:1936: Non-GAAP

paragraph:1937: 67.5% - 68.5%

paragraph:1938: 33% - 34%

paragraph:1939: $0.97 - $0.99

paragraph:1940: FY 2026

paragraph:1941: Earnings per Share (1)

paragraph:1942: GAAP

paragraph:1943: $2.79 - $2.91

paragraph:1944: Estimated adjustments for:

paragraph:1945: Share-based compensation expense

paragraph:1946: $0.69 -$0.71

paragraph:1947: Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

paragraph:1948: $0.43 - $0.45

paragraph:1949: Significant asset impairments and restructurings

paragraph:1950: (2)

paragraph:1951: $0.03 - $0.05

paragraph:1952: Non-GAAP

paragraph:1953: $4.00 - $4.06

paragraph:1954: (1)

paragraph:1955: Estimated adjustments to GAAP earnings per share are shown after income tax effects.

paragraph:1956: (2)

paragraph:1957: Reflects charges related to a restructuring plan announced on August 14, 2024. We expect this plan to be substantially completed by the end of the second quarter of fiscal 2026.

paragraph:1958: Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:1959: 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.

paragraph:1960: 14

paragraph:1961: Forward Looking Statements, Non-GAAP Information and Additional Information

paragraph:1962: This release may be deemed to 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 the massive opportunity ahead as we lead the required architectural shift and building the critical infrastructure needed for the AI era, and our focus on making strategic investments in innovation, driving durable, profitable growth and delivering shareholder value) and the future financial performance of Cisco (including the guidance for Q1 FY 2026 and full year FY 2026) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q1 FY 2026 and full year FY 2026. 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, cloud, enterprise 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 services 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

paragraph:1963: 10-K filed on May 20, 2025 and September 5, 2024, respectively. The financial information contained in this release 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 the year ended July 26, 2025 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release 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 this release.

paragraph:1964: This release includes non-GAAP net income,

paragraph:1965: non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin,

paragraph:1966: non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

paragraph:1967: These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.

paragraph:1968: Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

paragraph:1969: For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia-Ukraine war costs, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From

paragraph:1970: 15

paragraph:1971: time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

paragraph:1972: About Cisco

paragraph:1973: Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading

paragraph:1974: AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

paragraph:1975: Copyright © 2025 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

paragraph:1976: RSS Feed for

paragraph:1977: Cisco: https://newsroom.cisco.com/rss-feeds

paragraph:1978: 16

2025-05-14May 14, 2025, 12:00 PM EDTSec 8k Exhibit1792 segments

paragraph:1: EX-99.1

paragraph:3: d946014dex991.htm

paragraph:4: EX-99.1

paragraph:5: EX-99.1

paragraph:6: Exhibit 99.1

paragraph:7: Press Contact:

paragraph:8: Investor Relations Contact:

paragraph:9: Robyn Blum

paragraph:10: Sami Badri

paragraph:11: Cisco

paragraph:12: Cisco

paragraph:13: 1 (408) 930-8548

paragraph:14: 1 (469) 420-4834

paragraph:15: rojenkin@cisco.com

paragraph:16: sambadri@cisco.com

paragraph:17: CISCO REPORTS THIRD QUARTER EARNINGS

paragraph:18: News Summary:

paragraph:20: Product orders up 20% year over year; up 9% excluding Splunk, with growth across all geographies and customer markets

paragraph:22: AI Infrastructure orders taken from webscale customers exceeded $600 million, surpassing our $1 billion target one quarter early

paragraph:24: Revenue of $14.1 billion, up 11% year over year, above the high end of our guidance range

paragraph:26: Strong profitability with GAAP and non-GAAP margins and EPS above the high end of our guidance range

paragraph:28: Q3 FY 2025 Results:

paragraph:30: Revenue: $14.1 billion

paragraph:32: Increase of 11% year over year

paragraph:34: Earnings per Share: GAAP: $0.62; Non-GAAP: $0.96

paragraph:36: GAAP EPS increased 35% year over year

paragraph:38: Non-GAAP EPS increased 9% year over year

paragraph:40: Q4 FY 2025 Guidance (1) :

paragraph:42: Revenue: $14.5 billion to $14.7 billion

paragraph:44: Earnings per Share: GAAP: $0.62 to $0.67; Non-GAAP: $0.96 to $0.98

paragraph:46: FY 2025 Guidance (1) :

paragraph:48: Revenue: $56.5 billion to $56.7 billion

paragraph:50: Earnings per Share: GAAP: $2.53 to $2.58; Non-GAAP: $3.77 to $3.79

paragraph:51: (1) Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:52: SAN JOSE, Calif. — May 14, 2025 — Cisco today reported third quarter results for the period ended April 26, 2025. Cisco reported third quarter revenue of $14.1 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.5 billion or $0.62 per share, and non-GAAP net income of $3.8 billion or $0.96 per share.

paragraph:53: “Cisco once again had strong quarterly results with clear demand for our technologies,” said Chuck Robbins, chair and CEO of Cisco. “The momentum we are seeing with AI is fueled by the power of our secure networking portfolio, our trusted global partnerships, and the value we bring to our customers.”

paragraph:54: “Another quarter of solid execution in Q3 drove revenue, margins and EPS above our guidance ranges,” said Scott Herren, CFO of Cisco. “Our innovation positions us well for future growth and our operational discipline is generating strong cash flows, enabling us to deliver significant shareholder returns.”

paragraph:55: 1

paragraph:56: GAAP Results

paragraph:57: Q3 FY 2025

paragraph:58: Q3 FY 2024

paragraph:59: Vs. Q3 FY 2024

paragraph:60: Revenue

paragraph:61: $

paragraph:62: 14.1 billion

paragraph:63: $

paragraph:64: 12.7 billion

paragraph:65: 11%

paragraph:66: Net Income

paragraph:67: $

paragraph:68: 2.5 billion

paragraph:69: $

paragraph:70: 1.9 billion

paragraph:71: 32%

paragraph:72: Diluted Earnings per Share (EPS)

paragraph:73: $

paragraph:74: 0.62

paragraph:75: $

paragraph:76: 0.46

paragraph:77: 35%

paragraph:78: Non-GAAP Results

paragraph:79: Q3 FY 2025

paragraph:80: Q3 FY 2024

paragraph:81: Vs. Q3 FY 2024

paragraph:82: Net Income

paragraph:83: $

paragraph:84: 3.8 billion

paragraph:85: $

paragraph:86: 3.6 billion

paragraph:87: 8%

paragraph:88: EPS

paragraph:89: $

paragraph:90: 0.96

paragraph:91: $

paragraph:92: 0.88

paragraph:93: 9%

paragraph:94: Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP

paragraph:95: basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:96: Cisco Declares Quarterly Dividend

paragraph:97: Cisco has declared a quarterly dividend of $0.41 per common share to be paid on July 23, 2025, to all stockholders of record as of the close of business on July 3, 2025. Future dividends will be subject to Board approval.

paragraph:98: 2

paragraph:99: Financial Summary

paragraph:100: All comparative percentages are on a year-over-year basis unless otherwise noted.

paragraph:101: Q3 FY 2025 Highlights

paragraph:102: Revenue — Total revenue was $14.1 billion, up 11%, with product revenue up 15% and services revenue up 3%.

paragraph:103: Revenue by geographic segment was: Americas up 14%, EMEA up 8%, and APJC up 9%. Product revenue performance reflected growth in Security up 54%, Observability up 24%, Networking up 8%, and Collaboration up 4%.

paragraph:104: Gross Margin —

paragraph:105: On a GAAP basis, total gross margin, product gross margin, and services gross margin were 65.6%, 64.4%, and 68.7%, respectively, as compared with 65.1%, 63.5%, and 69.2%, respectively, in the third quarter of fiscal 2024.

paragraph:106: On a

paragraph:107: non-GAAP basis, total gross margin, product gross margin, and services gross margin were 68.6%, 67.6%, and 71.3%, respectively, as compared with 68.3%, 66.9%, and 71.6%, respectively, in the third quarter of fiscal 2024.

paragraph:108: Total gross margins by geographic segment were: 67.7% for the Americas, 71.2% for EMEA and 67.2% for APJC.

paragraph:109: Operating Expenses —

paragraph:110: On a GAAP basis, operating expenses were $6.1 billion, flat year over year, and were 42.9% of revenue. Non-GAAP operating expenses were $4.8 billion, up 12%, and were 34.1% of revenue.

paragraph:111: Operating Income — GAAP operating income was $3.2 billion, up 46%, with GAAP operating margin of 22.6%. Non-GAAP operating income was $4.9 billion, up 12%, with

paragraph:112: non-GAAP operating margin at 34.5%.

paragraph:113: Provision for Income Taxes — The GAAP tax provision rate was 15.5%. The non-GAAP tax provision rate was 17.5%.

paragraph:114: Net Income and EPS — On a GAAP basis, net income was $2.5 billion, an increase of 32%, and EPS was $0.62, an increase of 35%. On a non-GAAP basis, net income was $3.8 billion, an increase of 8%, and EPS was $0.96, an increase of 9%.

paragraph:115: Cash Flow from Operating Activities — $4.1 billion for the third quarter of fiscal 2025, an increase of 2%, compared with $4.0 billion for the third quarter of fiscal 2024.

paragraph:116: Balance Sheet and Other Financial Highlights

paragraph:117: Cash and Cash Equivalents and Investments — $15.6 billion at the end of the third quarter of fiscal 2025, compared with $17.9 billion at the end of fiscal 2024.

paragraph:118: Remaining Performance Obligations (RPO)

paragraph:119: — $41.7 billion, up 7% in total, with 51% of this amount expected to be recognized as revenue over the next 12 months. Product RPO was up 10% and services RPO was up 5%.

paragraph:120: Deferred Revenue — $28.0 billion, up 2% in total, with deferred product revenue up 2% and deferred services revenue up 1%.

paragraph:121: Capital Allocation — In the third quarter of fiscal 2025, we returned $3.1 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.41 per common share, or $1.6 billion, and repurchased approximately 25 million shares of common stock under our stock repurchase program at an average price of $59.78 per share for an aggregate purchase price of $1.5 billion. The remaining authorized amount for stock repurchases under the program is $15.4 billion with no termination date.

paragraph:122: Acquisitions

paragraph:123: In the third quarter of fiscal 2025, we closed the acquisition of SnapAttack, a privately held company that offers a threat detection and engineering platform.

paragraph:124: 3

paragraph:125: Guidance

paragraph:126: Cisco estimates the following results for the fourth quarter of fiscal 2025:

paragraph:127: Q4 FY 2025

paragraph:128: Revenue

paragraph:129: $14.5 billion - $14.7 billion

paragraph:130: Non-GAAP gross margin

paragraph:131: 67.5% - 68.5%

paragraph:132: Non-GAAP operating margin

paragraph:133: 33.5% - 34.5%

paragraph:134: Non-GAAP EPS

paragraph:135: $0.96 - $0.98

paragraph:136: Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:137: Cisco estimates that GAAP EPS will be $0.62 to $0.67 for the fourth quarter of fiscal 2025.

paragraph:138: Cisco estimates the following results for fiscal 2025:

paragraph:139: FY 2025

paragraph:140: Revenue

paragraph:141: $56.5 billion - $56.7 billion

paragraph:142: Non-GAAP EPS

paragraph:143: $3.77 - $3.79

paragraph:144: Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:145: Cisco estimates that GAAP EPS will be $2.53 to $2.58 for fiscal 2025.

paragraph:146: Our Q4 FY 2025 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 18% for

paragraph:147: non-GAAP results. Our FY 2025 guidance assumes an effective tax provision rate of approximately 9% for GAAP and approximately 18.5% for non-GAAP results.

paragraph:148: A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:149: Editor’s Notes:

paragraph:150: •

paragraph:151: Q3 fiscal year 2025 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, May 14, 2025 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).

paragraph:152: •

paragraph:153: Conference call replay will be available from 4:00 p.m. Pacific Time, May 14, 2025 to 4:00 p.m. Pacific Time, May 20, 2025 at 1-800-876-5258 (United States) or 1-203-369-3998 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:154: •

paragraph:155: Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, May 14, 2025. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP

paragraph:156: reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:157: 4

paragraph:158: CISCO SYSTEMS, INC.

paragraph:159: CONSOLIDATED STATEMENTS OF OPERATIONS

paragraph:160: (In millions, except per-share amounts)

paragraph:161: (Unaudited)

paragraph:162: Three Months Ended

paragraph:163: Nine Months Ended

paragraph:164: April 26, 2025

paragraph:165: April 27, 2024

paragraph:166: April 26, 2025

paragraph:167: April 27, 2024

paragraph:168: REVENUE:

paragraph:169: Product

paragraph:170: $

paragraph:171: 10,374

paragraph:172: $

paragraph:173: 9,024

paragraph:174: $

paragraph:175: 30,722

paragraph:176: $

paragraph:177: 29,395

paragraph:178: Services

paragraph:179: 3,775

paragraph:180: 3,678

paragraph:181: 11,259

paragraph:182: 10,766

paragraph:183: Total revenue

paragraph:184: 14,149

paragraph:185: 12,702

paragraph:186: 41,981

paragraph:187: 40,161

paragraph:188: COST OF SALES:

paragraph:189: Product

paragraph:190: 3,688

paragraph:191: 3,295

paragraph:192: 10,927

paragraph:193: 10,695

paragraph:194: Services

paragraph:195: 1,183

paragraph:196: 1,134

paragraph:197: 3,544

paragraph:198: 3,419

paragraph:199: Total cost of sales

paragraph:200: 4,871

paragraph:201: 4,429

paragraph:202: 14,471

paragraph:203: 14,114

paragraph:204: GROSS MARGIN

paragraph:205: 9,278

paragraph:206: 8,273

paragraph:207: 27,510

paragraph:208: 26,047

paragraph:209: OPERATING EXPENSES:

paragraph:210: Research and development

paragraph:211: 2,335

paragraph:212: 1,948

paragraph:213: 6,920

paragraph:214: 5,804

paragraph:215: Sales and marketing

paragraph:216: 2,724

paragraph:217: 2,559

paragraph:218: 8,148

paragraph:219: 7,523

paragraph:220: General and administrative

paragraph:221: 739

paragraph:222: 736

paragraph:223: 2,286

paragraph:224: 2,050

paragraph:225: Amortization of purchased intangible assets

paragraph:226: 244

paragraph:227: 297

paragraph:228: 774

paragraph:229: 430

paragraph:230: Restructuring and other charges

paragraph:231: 34

paragraph:232: 542

paragraph:233: 709

paragraph:234: 677

paragraph:235: Total operating expenses

paragraph:236: 6,076

paragraph:237: 6,082

paragraph:238: 18,837

paragraph:239: 16,484

paragraph:240: OPERATING INCOME

paragraph:241: 3,202

paragraph:242: 2,191

paragraph:243: 8,673

paragraph:244: 9,563

paragraph:245: Interest income

paragraph:246: 250

paragraph:247: 411

paragraph:248: 774

paragraph:249: 1,095

paragraph:250: Interest expense

paragraph:251: (403

paragraph:252: )

paragraph:253: (357

paragraph:254: )

paragraph:255: (1,225

paragraph:256: )

paragraph:257: (588

paragraph:258: )

paragraph:259: Other income (loss), net

paragraph:260: (102

paragraph:262: (10

paragraph:264: (121

paragraph:266: (232

paragraph:268: Interest and other income (loss), net

paragraph:269: (255

paragraph:270: )

paragraph:271: 44

paragraph:272: (572

paragraph:273: )

paragraph:274: 275

paragraph:275: INCOME BEFORE PROVISION FOR INCOME TAXES

paragraph:276: 2,947

paragraph:277: 2,235

paragraph:278: 8,101

paragraph:279: 9,838

paragraph:280: Provision for income taxes

paragraph:281: 456

paragraph:282: 349

paragraph:283: 471

paragraph:284: 1,680

paragraph:285: NET INCOME

paragraph:287: 2,491

paragraph:289: 1,886

paragraph:291: 7,630

paragraph:293: 8,158

paragraph:294: Net income per share:

paragraph:295: Basic

paragraph:297: 0.63

paragraph:299: 0.47

paragraph:301: 1.92

paragraph:303: 2.01

paragraph:304: Diluted

paragraph:306: 0.62

paragraph:308: 0.46

paragraph:310: 1.91

paragraph:312: 2.00

paragraph:313: Shares used in per-share calculation:

paragraph:314: Basic

paragraph:315: 3,972

paragraph:316: 4,042

paragraph:317: 3,981

paragraph:318: 4,051

paragraph:319: Diluted

paragraph:320: 4,002

paragraph:321: 4,060

paragraph:322: 4,004

paragraph:323: 4,071

paragraph:324: 5

paragraph:325: CISCO SYSTEMS, INC.

paragraph:326: REVENUE BY SEGMENT

paragraph:327: (In millions, except percentages)

paragraph:328: April 26, 2025

paragraph:329: Three Months Ended

paragraph:330: Nine Months Ended

paragraph:331: Amount

paragraph:332: Y/Y %

paragraph:333: Amount

paragraph:334: Y/Y %

paragraph:335: Revenue :

paragraph:336: Americas

paragraph:337: $

paragraph:338: 8,380

paragraph:339: 14%

paragraph:340: $

paragraph:341: 24,834

paragraph:342: 4%

paragraph:343: EMEA

paragraph:344: 3,736

paragraph:345: 8%

paragraph:346: 11,179

paragraph:347: 5%

paragraph:348: APJC

paragraph:349: 2,034

paragraph:350: 9%

paragraph:351: 5,968

paragraph:352: 6%

paragraph:353: Total

paragraph:354: $

paragraph:355: 14,149

paragraph:356: 11%

paragraph:357: $

paragraph:358: 41,981

paragraph:359: 5%

paragraph:360: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:361: CISCO SYSTEMS, INC.

paragraph:362: GROSS MARGIN PERCENTAGE BY SEGMENT

paragraph:363: (In percentages)

paragraph:364: April 26, 2025

paragraph:365: Three Months Ended

paragraph:366: Nine Months Ended

paragraph:367: Gross Margin Percentage :

paragraph:368: Americas

paragraph:369: 67.7%

paragraph:370: 68.3%

paragraph:371: EMEA

paragraph:372: 71.2%

paragraph:373: 70.9%

paragraph:374: APJC

paragraph:375: 67.2%

paragraph:376: 67.3%

paragraph:377: CISCO SYSTEMS, INC.

paragraph:378: REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

paragraph:379: (In millions, except percentages)

paragraph:380: April 26, 2025

paragraph:381: Three Months Ended

paragraph:382: Nine Months Ended

paragraph:383: Amount

paragraph:384: Y/Y %

paragraph:385: Amount

paragraph:386: Y/Y %

paragraph:387: Revenue :

paragraph:388: Networking

paragraph:389: $

paragraph:390: 7,068

paragraph:391: 8%

paragraph:392: $

paragraph:393: 20,671

paragraph:394: (8)%

paragraph:395: Security

paragraph:396: 2,013

paragraph:397: 54%

paragraph:398: 6,142

paragraph:399: 87%

paragraph:400: Collaboration

paragraph:401: 1,031

paragraph:402: 4%

paragraph:403: 3,112

paragraph:404: 1%

paragraph:405: Observability

paragraph:406: 261

paragraph:407: 24%

paragraph:408: 796

paragraph:409: 35%

paragraph:410: Total Product

paragraph:411: 10,374

paragraph:412: 15%

paragraph:413: 30,722

paragraph:414: 5%

paragraph:415: Services

paragraph:416: 3,775

paragraph:417: 3%

paragraph:418: 11,259

paragraph:419: 5%

paragraph:420: Total

paragraph:421: $

paragraph:422: 14,149

paragraph:423: 11%

paragraph:424: $

paragraph:425: 41,981

paragraph:426: 5%

paragraph:427: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:428: 6

paragraph:429: CISCO SYSTEMS, INC.

paragraph:430: CONDENSED CONSOLIDATED BALANCE SHEETS

paragraph:431: (In millions)

paragraph:432: (Unaudited)

paragraph:433: April 26, 2025

paragraph:434: July 27, 2024

paragraph:435: ASSETS

paragraph:436: Current assets:

paragraph:437: Cash and cash equivalents

paragraph:438: $

paragraph:439: 8,161

paragraph:440: $

paragraph:441: 7,508

paragraph:442: Investments

paragraph:443: 7,481

paragraph:444: 10,346

paragraph:445: Accounts receivable, net of allowance of $82 at April 26, 2025 and $87 at July 27, 2024

paragraph:446: 5,277

paragraph:447: 6,685

paragraph:448: Inventories

paragraph:449: 2,832

paragraph:450: 3,373

paragraph:451: Financing receivables, net

paragraph:452: 2,958

paragraph:453: 3,338

paragraph:454: Other current assets

paragraph:455: 6,107

paragraph:456: 5,612

paragraph:457: Total current assets

paragraph:458: 32,816

paragraph:459: 36,862

paragraph:460: Property and equipment, net

paragraph:461: 2,076

paragraph:462: 2,090

paragraph:463: Financing receivables, net

paragraph:464: 3,247

paragraph:465: 3,376

paragraph:466: Goodwill

paragraph:467: 59,024

paragraph:468: 58,660

paragraph:469: Purchased intangible assets, net

paragraph:470: 9,643

paragraph:471: 11,219

paragraph:472: Deferred tax assets

paragraph:473: 7,016

paragraph:474: 6,262

paragraph:475: Other assets

paragraph:476: 5,960

paragraph:477: 5,944

paragraph:478: TOTAL ASSETS

paragraph:479: $

paragraph:480: 119,782

paragraph:481: $

paragraph:482: 124,413

paragraph:483: LIABILITIES AND EQUITY

paragraph:484: Current liabilities:

paragraph:485: Short-term debt

paragraph:486: $

paragraph:487: 6,422

paragraph:488: $

paragraph:489: 11,341

paragraph:490: Accounts payable

paragraph:491: 2,260

paragraph:492: 2,304

paragraph:493: Income taxes payable

paragraph:494: 1,821

paragraph:495: 1,439

paragraph:496: Accrued compensation

paragraph:497: 3,210

paragraph:498: 3,608

paragraph:499: Deferred revenue

paragraph:500: 16,081

paragraph:501: 16,249

paragraph:502: Other current liabilities

paragraph:503: 4,701

paragraph:504: 5,643

paragraph:505: Total current liabilities

paragraph:506: 34,495

paragraph:507: 40,584

paragraph:508: Long-term debt

paragraph:509: 22,857

paragraph:510: 19,621

paragraph:511: Income taxes payable

paragraph:512: 1,874

paragraph:513: 3,985

paragraph:514: Deferred revenue

paragraph:515: 11,910

paragraph:516: 12,226

paragraph:517: Other long-term liabilities

paragraph:518: 2,711

paragraph:519: 2,540

paragraph:520: Total liabilities

paragraph:521: 73,847

paragraph:522: 78,956

paragraph:523: Total equity

paragraph:524: 45,935

paragraph:525: 45,457

paragraph:526: TOTAL LIABILITIES AND EQUITY

paragraph:527: $

paragraph:528: 119,782

paragraph:529: $

paragraph:530: 124,413

paragraph:531: 7

paragraph:532: CISCO SYSTEMS, INC.

paragraph:533: CONSOLIDATED STATEMENTS OF CASH FLOWS

paragraph:534: (In millions)

paragraph:535: (Unaudited)

paragraph:536: Nine Months Ended

paragraph:537: April 26, 2025

paragraph:538: April 27, 2024

paragraph:539: Cash flows from operating activities:

paragraph:540: Net income

paragraph:541: $

paragraph:542: 7,630

paragraph:543: $

paragraph:544: 8,158

paragraph:545: Adjustments to reconcile net income to net cash provided by operating activities:

paragraph:546: Depreciation, amortization, and other

paragraph:547: 2,176

paragraph:548: 1,684

paragraph:549: Share-based compensation expense

paragraph:550: 2,693

paragraph:551: 2,274

paragraph:552: Provision for receivables

paragraph:553: 17

paragraph:554: 19

paragraph:555: Deferred income taxes

paragraph:556: (792

paragraph:557: )

paragraph:558: (245

paragraph:559: )

paragraph:560: (Gains) losses on divestitures, investments and other, net

paragraph:561: 52

paragraph:562: 224

paragraph:563: Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

paragraph:564: Accounts receivable

paragraph:565: 1,406

paragraph:566: 1,286

paragraph:567: Inventories

paragraph:568: 541

paragraph:569: 530

paragraph:570: Financing receivables

paragraph:571: 505

paragraph:572: 92

paragraph:573: Other assets

paragraph:574: (516

paragraph:575: )

paragraph:576: (382

paragraph:577: )

paragraph:578: Accounts payable

paragraph:579: (10

paragraph:580: )

paragraph:581: (300

paragraph:582: )

paragraph:583: Income taxes, net

paragraph:584: (2,002

paragraph:585: )

paragraph:586: (5,223

paragraph:587: )

paragraph:588: Accrued compensation

paragraph:589: (431

paragraph:590: )

paragraph:591: (1,092

paragraph:592: )

paragraph:593: Deferred revenue

paragraph:594: (524

paragraph:595: )

paragraph:596: 211

paragraph:597: Other liabilities

paragraph:598: (786

paragraph:599: )

paragraph:600: (86

paragraph:601: )

paragraph:602: Net cash provided by operating activities

paragraph:603: 9,959

paragraph:604: 7,150

paragraph:605: Cash flows from investing activities:

paragraph:606: Purchases of investments

paragraph:607: (3,066

paragraph:608: )

paragraph:609: (3,044

paragraph:610: )

paragraph:611: Proceeds from sales of investments

paragraph:612: 2,228

paragraph:613: 3,874

paragraph:614: Proceeds from maturities of investments

paragraph:615: 3,985

paragraph:616: 5,804

paragraph:617: Acquisitions, net of cash and cash equivalents acquired and divestitures

paragraph:618: (291

paragraph:619: )

paragraph:620: (25,874

paragraph:621: )

paragraph:622: Purchases of investments in privately held companies

paragraph:623: (265

paragraph:624: )

paragraph:625: (82

paragraph:626: )

paragraph:627: Return of investments in privately held companies

paragraph:628: 108

paragraph:629: 146

paragraph:630: Acquisition of property and equipment

paragraph:631: (688

paragraph:632: )

paragraph:633: (472

paragraph:634: )

paragraph:635: Other

paragraph:636: (5

paragraph:637: )

paragraph:638: (2

paragraph:639: )

paragraph:640: Net cash provided by (used in) investing activities

paragraph:641: 2,006

paragraph:642: (19,650

paragraph:643: )

paragraph:644: Cash flows from financing activities:

paragraph:645: Issuances of common stock

paragraph:646: 320

paragraph:647: 347

paragraph:648: Repurchases of common stock—repurchase program

paragraph:649: (4,748

paragraph:650: )

paragraph:651: (3,772

paragraph:652: )

paragraph:653: Shares repurchased for tax withholdings on vesting of restricted stock units

paragraph:654: (910

paragraph:655: )

paragraph:656: (765

paragraph:657: )

paragraph:658: Short-term borrowings, original maturities of 90 days or less, net

paragraph:659: (479

paragraph:660: )

paragraph:661: 1,547

paragraph:662: Issuances of debt

paragraph:663: 17,388

paragraph:664: 24,159

paragraph:665: Repayments of debt

paragraph:666: (18,545

paragraph:667: )

paragraph:668: (2,195

paragraph:669: )

paragraph:670: Repayments of Splunk convertible debt, net

paragraph:671: —

paragraph:672: (3,140

paragraph:673: )

paragraph:674: Dividends paid

paragraph:675: (4,812

paragraph:676: )

paragraph:677: (4,778

paragraph:678: )

paragraph:679: Other

paragraph:680: (80

paragraph:681: )

paragraph:682: (52

paragraph:683: )

paragraph:684: Net cash provided by (used in) financing activities

paragraph:685: (11,866

paragraph:686: )

paragraph:687: 11,351

paragraph:688: Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:689: (23

paragraph:690: )

paragraph:691: (39

paragraph:692: )

paragraph:693: Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:694: 76

paragraph:695: (1,188

paragraph:696: )

paragraph:697: Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

paragraph:698: 8,842

paragraph:699: 11,627

paragraph:700: Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

paragraph:701: $

paragraph:702: 8,918

paragraph:703: $

paragraph:704: 10,439

paragraph:705: Supplemental cash flow information:

paragraph:706: Cash paid for interest

paragraph:707: $

paragraph:708: 1,370

paragraph:709: $

paragraph:710: 350

paragraph:711: Cash paid for income taxes, net

paragraph:712: $

paragraph:713: 3,265

paragraph:714: $

paragraph:715: 7,150

paragraph:716: 8

paragraph:717: CISCO SYSTEMS, INC.

paragraph:718: REMAINING PERFORMANCE OBLIGATIONS

paragraph:719: (In millions, except percentages)

paragraph:720: April 26, 2025

paragraph:721: January 25, 2025

paragraph:722: April 27, 2024

paragraph:723: Amount

paragraph:724: Y/Y%

paragraph:725: Amount

paragraph:726: Y/Y%

paragraph:727: Amount

paragraph:728: Y/Y%

paragraph:729: Product

paragraph:730: $

paragraph:731: 20,752

paragraph:732: 10

paragraph:733: %

paragraph:734: $

paragraph:735: 20,321

paragraph:736: 25

paragraph:737: %

paragraph:738: $

paragraph:739: 18,876

paragraph:740: 29

paragraph:741: %

paragraph:742: Services

paragraph:743: 20,915

paragraph:744: 5

paragraph:745: %

paragraph:746: 20,947

paragraph:747: 8

paragraph:748: %

paragraph:749: 19,898

paragraph:750: 14

paragraph:751: %

paragraph:752: Total

paragraph:753: $

paragraph:754: 41,667

paragraph:755: 7

paragraph:756: %

paragraph:757: $

paragraph:758: 41,268

paragraph:759: 16

paragraph:760: %

paragraph:761: $

paragraph:762: 38,774

paragraph:763: 21

paragraph:764: %

paragraph:765: We expect 51% of total RPO at April 26, 2025 to be recognized as revenue over the next 12 months.

paragraph:766: CISCO SYSTEMS, INC.

paragraph:767: DEFERRED REVENUE

paragraph:768: (In millions)

paragraph:769: April 26, 2025

paragraph:770: January 25, 2025

paragraph:771: April 27, 2024

paragraph:772: Deferred revenue:

paragraph:773: Product

paragraph:774: $

paragraph:775: 13,170

paragraph:776: $

paragraph:777: 13,033

paragraph:778: $

paragraph:779: 12,856

paragraph:780: Services

paragraph:781: 14,821

paragraph:782: 14,762

paragraph:783: 14,619

paragraph:784: Total

paragraph:785: $

paragraph:786: 27,991

paragraph:787: $

paragraph:788: 27,795

paragraph:789: $

paragraph:790: 27,475

paragraph:791: Reported as:

paragraph:792: Current

paragraph:793: $

paragraph:794: 16,081

paragraph:795: $

paragraph:796: 15,999

paragraph:797: $

paragraph:798: 15,751

paragraph:799: Noncurrent

paragraph:800: 11,910

paragraph:801: 11,796

paragraph:802: 11,724

paragraph:803: Total

paragraph:804: $

paragraph:805: 27,991

paragraph:806: $

paragraph:807: 27,795

paragraph:808: $

paragraph:809: 27,475

paragraph:810: CISCO SYSTEMS, INC.

paragraph:811: DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

paragraph:812: (In millions, except per-share amounts)

paragraph:813: DIVIDENDS

paragraph:814: STOCK REPURCHASE PROGRAM

paragraph:815: TOTAL

paragraph:816: Quarter Ended

paragraph:817: Per Share

paragraph:818: Amount

paragraph:819: Shares

paragraph:820: Weighted- Average Price per Share

paragraph:821: Amount

paragraph:822: Amount

paragraph:823: Fiscal 2025

paragraph:824: April 26, 2025

paragraph:825: $

paragraph:826: 0.41

paragraph:827: $

paragraph:828: 1,627

paragraph:829: 25

paragraph:830: $

paragraph:831: 59.78

paragraph:832: $

paragraph:833: 1,504

paragraph:834: $

paragraph:835: 3,131

paragraph:836: January 25, 2025

paragraph:837: $

paragraph:838: 0.40

paragraph:839: $

paragraph:840: 1,593

paragraph:841: 21

paragraph:842: $

paragraph:843: 58.58

paragraph:844: $

paragraph:845: 1,236

paragraph:846: $

paragraph:847: 2,829

paragraph:848: October 26, 2024

paragraph:849: $

paragraph:850: 0.40

paragraph:851: $

paragraph:852: 1,592

paragraph:853: 40

paragraph:854: $

paragraph:855: 49.56

paragraph:856: $

paragraph:857: 2,003

paragraph:858: $

paragraph:859: 3,595

paragraph:860: Fiscal 2024

paragraph:861: July 27, 2024

paragraph:862: $

paragraph:863: 0.40

paragraph:864: $

paragraph:865: 1,606

paragraph:866: 43

paragraph:867: $

paragraph:868: 46.80

paragraph:869: $

paragraph:870: 2,002

paragraph:871: $

paragraph:872: 3,608

paragraph:873: April 27, 2024

paragraph:874: $

paragraph:875: 0.40

paragraph:876: $

paragraph:877: 1,615

paragraph:878: 26

paragraph:879: $

paragraph:880: 49.22

paragraph:881: $

paragraph:882: 1,256

paragraph:883: $

paragraph:884: 2,871

paragraph:885: January 27, 2024

paragraph:886: $

paragraph:887: 0.39

paragraph:888: $

paragraph:889: 1,583

paragraph:890: 25

paragraph:891: $

paragraph:892: 49.54

paragraph:893: $

paragraph:894: 1,254

paragraph:895: $

paragraph:896: 2,837

paragraph:897: October 28, 2023

paragraph:898: $

paragraph:899: 0.39

paragraph:900: $

paragraph:901: 1,580

paragraph:902: 23

paragraph:904: 54.53

paragraph:906: 1,252

paragraph:908: 2,832

paragraph:910: CISCO SYSTEMS, INC.

paragraph:911: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:912: GAAP TO NON-GAAP NET INCOME

paragraph:913: (In millions)

paragraph:914: Three Months Ended

paragraph:915: Nine Months Ended

paragraph:916: April 26, 2025

paragraph:917: April 27, 2024

paragraph:918: April 26, 2025

paragraph:919: April 27, 2024

paragraph:920: GAAP net income

paragraph:922: 2,491

paragraph:924: 1,886

paragraph:926: 7,630

paragraph:928: 8,158

paragraph:929: Adjustments to cost of sales:

paragraph:930: Share-based compensation expense

paragraph:931: 152

paragraph:932: 139

paragraph:933: 434

paragraph:934: 381

paragraph:935: Amortization of acquisition-related intangible assets

paragraph:936: 263

paragraph:937: 249

paragraph:938: 917

paragraph:939: 605

paragraph:940: Acquisition/divestiture-related costs

paragraph:941: 17

paragraph:942: 12

paragraph:943: 53

paragraph:944: 13

paragraph:945: Supplier component remediation charge (adjustment)

paragraph:946: (7

paragraph:947: )

paragraph:948: —

paragraph:949: (7

paragraph:950: )

paragraph:951: —

paragraph:952: Total adjustments to GAAP cost of sales

paragraph:953: 425

paragraph:954: 400

paragraph:955: 1,397

paragraph:956: 999

paragraph:957: Adjustments to operating expenses:

paragraph:958: Share-based compensation expense

paragraph:959: 778

paragraph:960: 665

paragraph:961: 2,222

paragraph:962: 1,877

paragraph:963: Amortization of acquisition-related intangible assets

paragraph:964: 244

paragraph:965: 297

paragraph:966: 774

paragraph:967: 430

paragraph:968: Acquisition/divestiture-related costs

paragraph:969: 197

paragraph:970: 264

paragraph:971: 687

paragraph:972: 403

paragraph:973: Russia-Ukraine war costs

paragraph:974: —

paragraph:975: (10

paragraph:976: )

paragraph:977: —

paragraph:978: (12

paragraph:979: )

paragraph:980: Significant asset impairments and restructurings

paragraph:981: 34

paragraph:982: 542

paragraph:983: 709

paragraph:984: 677

paragraph:985: Total adjustments to GAAP operating expenses

paragraph:986: 1,253

paragraph:987: 1,758

paragraph:988: 4,392

paragraph:989: 3,375

paragraph:990: Adjustments to interest and other income (loss), net:

paragraph:991: (Gains) and losses on investments

paragraph:992: 19

paragraph:993: (7

paragraph:994: )

paragraph:995: (72

paragraph:996: )

paragraph:997: 132

paragraph:998: Total adjustments to GAAP interest and other income (loss), net

paragraph:999: 19

paragraph:1000: (7

paragraph:1001: )

paragraph:1002: (72

paragraph:1003: )

paragraph:1004: 132

paragraph:1005: Total adjustments to GAAP income before provision for income taxes

paragraph:1006: 1,697

paragraph:1007: 2,151

paragraph:1008: 5,717

paragraph:1009: 4,506

paragraph:1010: Income tax effect of non-GAAP adjustments

paragraph:1011: (357

paragraph:1012: )

paragraph:1013: (484

paragraph:1014: )

paragraph:1015: (1,256

paragraph:1016: )

paragraph:1017: (1,045

paragraph:1018: )

paragraph:1019: Significant tax matters (1)

paragraph:1020: —

paragraph:1021: —

paragraph:1022: (829

paragraph:1023: )

paragraph:1024: —

paragraph:1025: Total adjustments to GAAP provision for income taxes

paragraph:1026: (357

paragraph:1027: )

paragraph:1028: (484

paragraph:1029: )

paragraph:1030: (2,085

paragraph:1031: )

paragraph:1032: (1,045

paragraph:1033: )

paragraph:1034: Non-GAAP net income

paragraph:1035: $

paragraph:1036: 3,831

paragraph:1037: $

paragraph:1038: 3,553

paragraph:1039: $

paragraph:1040: 11,262

paragraph:1041: $

paragraph:1042: 11,619

paragraph:1043: (1)

paragraph:1044: The nine months ended April 26, 2025 includes a $720 million benefit due to an August 2024 U.S. Tax Court decision regarding the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act.

paragraph:1045: 10

paragraph:1046: CISCO SYSTEMS, INC.

paragraph:1047: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1048: GAAP TO NON-GAAP EPS

paragraph:1049: Three Months Ended

paragraph:1050: Nine Months Ended

paragraph:1051: April 26, 2025

paragraph:1052: April 27, 2024

paragraph:1053: April 26, 2025

paragraph:1054: April 27, 2024

paragraph:1055: GAAP EPS

paragraph:1057: 0.62

paragraph:1059: 0.46

paragraph:1061: 1.91

paragraph:1063: 2.00

paragraph:1064: Adjustments to GAAP:

paragraph:1065: Share-based compensation expense

paragraph:1066: 0.23

paragraph:1067: 0.20

paragraph:1068: 0.66

paragraph:1069: 0.55

paragraph:1070: Amortization of acquisition-related intangible assets

paragraph:1071: 0.13

paragraph:1072: 0.13

paragraph:1073: 0.42

paragraph:1074: 0.25

paragraph:1075: Acquisition/divestiture-related costs

paragraph:1076: 0.05

paragraph:1077: 0.07

paragraph:1078: 0.18

paragraph:1079: 0.10

paragraph:1080: Significant asset impairments and restructurings

paragraph:1081: 0.01

paragraph:1082: 0.13

paragraph:1083: 0.18

paragraph:1084: 0.17

paragraph:1085: (Gains) and losses on investments

paragraph:1086: —

paragraph:1087: —

paragraph:1088: (0.02

paragraph:1089: )

paragraph:1090: 0.03

paragraph:1091: Income tax effect of non-GAAP adjustments

paragraph:1092: (0.09

paragraph:1093: )

paragraph:1094: (0.12

paragraph:1095: )

paragraph:1096: (0.31

paragraph:1097: )

paragraph:1098: (0.26

paragraph:1099: )

paragraph:1100: Significant tax matters

paragraph:1101: —

paragraph:1102: —

paragraph:1103: (0.21

paragraph:1104: )

paragraph:1105: —

paragraph:1106: Non-GAAP EPS

paragraph:1108: 0.96

paragraph:1110: 0.88

paragraph:1112: 2.81

paragraph:1114: 2.85

paragraph:1115: Amounts may not sum due to rounding.

paragraph:1116: 11

paragraph:1117: CISCO SYSTEMS, INC.

paragraph:1118: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1119: GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,

paragraph:1120: AND NET INCOME

paragraph:1121: (In millions, except percentages)

paragraph:1122: Three Months Ended

paragraph:1123: April 26, 2025

paragraph:1124: Product Gross Margin

paragraph:1125: Services Gross Margin

paragraph:1126: Total Gross Margin

paragraph:1127: Operating Expenses

paragraph:1128: Y/Y

paragraph:1129: Operating Income

paragraph:1130: Y/Y

paragraph:1131: Interest and other income (loss), net

paragraph:1132: Net Income

paragraph:1133: Y/Y

paragraph:1134: GAAP amount

paragraph:1135: $

paragraph:1136: 6,686

paragraph:1137: $

paragraph:1138: 2,592

paragraph:1139: $

paragraph:1140: 9,278

paragraph:1141: $

paragraph:1142: 6,076

paragraph:1143: —

paragraph:1144: %

paragraph:1145: $

paragraph:1146: 3,202

paragraph:1147: 46

paragraph:1150: (255

paragraph:1153: 2,491

paragraph:1154: 32

paragraph:1155: %

paragraph:1156: % of revenue

paragraph:1157: 64.4

paragraph:1159: 68.7

paragraph:1161: 65.6

paragraph:1163: 42.9

paragraph:1165: 22.6

paragraph:1167: (1.8

paragraph:1168: )%

paragraph:1169: 17.6

paragraph:1170: %

paragraph:1171: Adjustments to GAAP amounts:

paragraph:1172: Share-based compensation expense

paragraph:1173: 67

paragraph:1174: 85

paragraph:1175: 152

paragraph:1176: 778

paragraph:1177: 930

paragraph:1178: —

paragraph:1179: 930

paragraph:1180: Amortization of acquisition-related intangible assets

paragraph:1181: 263

paragraph:1182: —

paragraph:1183: 263

paragraph:1184: 244

paragraph:1185: 507

paragraph:1186: —

paragraph:1187: 507

paragraph:1188: Acquisition/divestiture-related costs

paragraph:1189: 4

paragraph:1190: 13

paragraph:1191: 17

paragraph:1192: 197

paragraph:1193: 214

paragraph:1194: —

paragraph:1195: 214

paragraph:1196: Supplier component remediation charge (adjustment)

paragraph:1197: (7

paragraph:1198: )

paragraph:1199: —

paragraph:1200: (7

paragraph:1201: )

paragraph:1202: —

paragraph:1203: (7

paragraph:1205: —

paragraph:1206: (7

paragraph:1207: )

paragraph:1208: Significant asset impairments and restructurings

paragraph:1209: —

paragraph:1210: —

paragraph:1211: —

paragraph:1212: 34

paragraph:1213: 34

paragraph:1214: —

paragraph:1215: 34

paragraph:1216: (Gains) and losses on investments

paragraph:1217: —

paragraph:1218: —

paragraph:1219: —

paragraph:1220: —

paragraph:1221: —

paragraph:1222: 19

paragraph:1223: 19

paragraph:1224: Income tax effect/significant tax matters

paragraph:1225: —

paragraph:1226: —

paragraph:1227: —

paragraph:1228: —

paragraph:1229: —

paragraph:1230: —

paragraph:1231: (357

paragraph:1232: )

paragraph:1233: Non-GAAP amount

paragraph:1234: $

paragraph:1235: 7,013

paragraph:1236: $

paragraph:1237: 2,690

paragraph:1238: $

paragraph:1239: 9,703

paragraph:1240: $

paragraph:1241: 4,823

paragraph:1242: 12

paragraph:1243: %

paragraph:1244: $

paragraph:1245: 4,880

paragraph:1246: 12

paragraph:1249: (236

paragraph:1252: 3,831

paragraph:1253: 8

paragraph:1254: %

paragraph:1255: % of revenue

paragraph:1256: 67.6

paragraph:1258: 71.3

paragraph:1260: 68.6

paragraph:1262: 34.1

paragraph:1264: 34.5

paragraph:1266: (1.7

paragraph:1267: )%

paragraph:1268: 27.1

paragraph:1269: %

paragraph:1270: Three Months Ended

paragraph:1271: April 27, 2024

paragraph:1272: Product Gross Margin

paragraph:1273: Services Gross Margin

paragraph:1274: Total Gross Margin

paragraph:1275: Operating Expenses

paragraph:1276: Operating Income

paragraph:1277: Interest and other income (loss), net

paragraph:1278: Net Income

paragraph:1279: GAAP amount

paragraph:1280: $

paragraph:1281: 5,729

paragraph:1282: $

paragraph:1283: 2,544

paragraph:1284: $

paragraph:1285: 8,273

paragraph:1286: $

paragraph:1287: 6,082

paragraph:1288: $

paragraph:1289: 2,191

paragraph:1290: $

paragraph:1291: 44

paragraph:1292: $

paragraph:1293: 1,886

paragraph:1294: % of revenue

paragraph:1295: 63.5

paragraph:1297: 69.2

paragraph:1299: 65.1

paragraph:1301: 47.9

paragraph:1303: 17.2

paragraph:1305: 0.3

paragraph:1307: 14.8

paragraph:1309: Adjustments to GAAP amounts:

paragraph:1310: Share-based compensation expense

paragraph:1311: 57

paragraph:1312: 82

paragraph:1313: 139

paragraph:1314: 665

paragraph:1315: 804

paragraph:1316: —

paragraph:1317: 804

paragraph:1318: Amortization of acquisition-related intangible assets

paragraph:1319: 249

paragraph:1320: —

paragraph:1321: 249

paragraph:1322: 297

paragraph:1323: 546

paragraph:1324: —

paragraph:1325: 546

paragraph:1326: Acquisition/divestiture-related costs

paragraph:1327: 4

paragraph:1328: 8

paragraph:1329: 12

paragraph:1330: 264

paragraph:1331: 276

paragraph:1332: —

paragraph:1333: 276

paragraph:1334: Significant asset impairments and restructurings

paragraph:1335: —

paragraph:1336: —

paragraph:1337: —

paragraph:1338: 542

paragraph:1339: 542

paragraph:1340: —

paragraph:1341: 542

paragraph:1342: Russia-Ukraine war costs

paragraph:1343: —

paragraph:1344: —

paragraph:1345: —

paragraph:1346: (10

paragraph:1347: )

paragraph:1348: (10

paragraph:1349: )

paragraph:1350: —

paragraph:1351: (10

paragraph:1352: )

paragraph:1353: (Gains) and losses on investments

paragraph:1354: —

paragraph:1355: —

paragraph:1356: —

paragraph:1357: —

paragraph:1358: —

paragraph:1359: (7

paragraph:1360: )

paragraph:1361: (7

paragraph:1362: )

paragraph:1363: Income tax effect/significant tax matters

paragraph:1364: —

paragraph:1365: —

paragraph:1366: —

paragraph:1367: —

paragraph:1368: —

paragraph:1369: —

paragraph:1370: (484

paragraph:1371: )

paragraph:1372: Non-GAAP amount

paragraph:1373: $

paragraph:1374: 6,039

paragraph:1375: $

paragraph:1376: 2,634

paragraph:1377: $

paragraph:1378: 8,673

paragraph:1379: $

paragraph:1380: 4,324

paragraph:1381: $

paragraph:1382: 4,349

paragraph:1383: $

paragraph:1384: 37

paragraph:1385: $

paragraph:1386: 3,553

paragraph:1387: % of revenue

paragraph:1388: 66.9

paragraph:1390: 71.6

paragraph:1392: 68.3

paragraph:1394: 34.0

paragraph:1396: 34.2

paragraph:1398: 0.3

paragraph:1400: 28.0

paragraph:1402: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:1403: 12

paragraph:1404: CISCO SYSTEMS, INC.

paragraph:1405: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1406: GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,

paragraph:1407: AND NET INCOME

paragraph:1408: (In millions, except percentages)

paragraph:1409: Nine Months Ended

paragraph:1410: April 26, 2025

paragraph:1411: Product Gross Margin

paragraph:1412: Services Gross Margin

paragraph:1413: Total Gross Margin

paragraph:1414: Operating Expenses

paragraph:1415: Y/Y

paragraph:1416: Operating Income

paragraph:1417: Y/Y

paragraph:1418: Interest and other income (loss), net

paragraph:1419: Net Income

paragraph:1420: Y/Y

paragraph:1421: GAAP amount

paragraph:1422: $

paragraph:1423: 19,795

paragraph:1424: $

paragraph:1425: 7,715

paragraph:1426: $

paragraph:1427: 27,510

paragraph:1428: $

paragraph:1429: 18,837

paragraph:1430: 14

paragraph:1431: %

paragraph:1432: $

paragraph:1433: 8,673

paragraph:1434: (9

paragraph:1435: )%

paragraph:1436: $

paragraph:1437: (572

paragraph:1438: )

paragraph:1439: $

paragraph:1440: 7,630

paragraph:1441: (6

paragraph:1442: )%

paragraph:1443: % of revenue

paragraph:1444: 64.4

paragraph:1446: 68.5

paragraph:1448: 65.5

paragraph:1450: 44.9

paragraph:1452: 20.7

paragraph:1454: (1.4

paragraph:1455: )%

paragraph:1456: 18.2

paragraph:1457: %

paragraph:1458: Adjustments to GAAP amounts:

paragraph:1459: Share-based compensation expense

paragraph:1460: 189

paragraph:1461: 245

paragraph:1462: 434

paragraph:1463: 2,222

paragraph:1464: 2,656

paragraph:1465: —

paragraph:1466: 2,656

paragraph:1467: Amortization of acquisition-related intangible assets

paragraph:1468: 917

paragraph:1469: —

paragraph:1470: 917

paragraph:1471: 774

paragraph:1472: 1,691

paragraph:1473: —

paragraph:1474: 1,691

paragraph:1475: Acquisition/divestiture-related costs

paragraph:1476: 12

paragraph:1477: 41

paragraph:1478: 53

paragraph:1479: 687

paragraph:1480: 740

paragraph:1481: —

paragraph:1482: 740

paragraph:1483: Supplier component remediation charge (adjustment)

paragraph:1484: (7

paragraph:1485: )

paragraph:1486: —

paragraph:1487: (7

paragraph:1488: )

paragraph:1489: —

paragraph:1490: (7

paragraph:1491: )

paragraph:1492: —

paragraph:1493: (7

paragraph:1494: )

paragraph:1495: Significant asset impairments and restructurings

paragraph:1496: —

paragraph:1497: —

paragraph:1498: —

paragraph:1499: 709

paragraph:1500: 709

paragraph:1501: —

paragraph:1502: 709

paragraph:1503: (Gains) and losses on investments

paragraph:1504: —

paragraph:1505: —

paragraph:1506: —

paragraph:1507: —

paragraph:1508: —

paragraph:1509: (72

paragraph:1510: )

paragraph:1511: (72

paragraph:1512: )

paragraph:1513: Income tax effect/significant tax matters

paragraph:1514: —

paragraph:1515: —

paragraph:1516: —

paragraph:1517: —

paragraph:1518: —

paragraph:1519: —

paragraph:1520: (2,085

paragraph:1521: )

paragraph:1522: Non-GAAP amount

paragraph:1523: $

paragraph:1524: 20,906

paragraph:1525: $

paragraph:1526: 8,001

paragraph:1527: $

paragraph:1528: 28,907

paragraph:1529: $

paragraph:1530: 14,445

paragraph:1531: 10

paragraph:1532: %

paragraph:1533: $

paragraph:1534: 14,462

paragraph:1538: (644

paragraph:1541: 11,262

paragraph:1542: (3

paragraph:1543: )%

paragraph:1544: % of revenue

paragraph:1545: 68.0

paragraph:1547: 71.1

paragraph:1549: 68.9

paragraph:1551: 34.4

paragraph:1553: 34.4

paragraph:1555: (1.5

paragraph:1556: )%

paragraph:1557: 26.8

paragraph:1558: %

paragraph:1559: Nine Months Ended

paragraph:1560: April 27, 2024

paragraph:1561: Product Gross Margin

paragraph:1562: Services Gross Margin

paragraph:1563: Total Gross Margin

paragraph:1564: Operating Expenses

paragraph:1565: Operating Income

paragraph:1566: Interest and other income (loss), net

paragraph:1567: Net Income

paragraph:1568: GAAP amount

paragraph:1569: $

paragraph:1570: 18,700

paragraph:1571: $

paragraph:1572: 7,347

paragraph:1573: $

paragraph:1574: 26,047

paragraph:1575: $

paragraph:1576: 16,484

paragraph:1577: $

paragraph:1578: 9,563

paragraph:1579: $

paragraph:1580: 275

paragraph:1581: $

paragraph:1582: 8,158

paragraph:1583: % of revenue

paragraph:1584: 63.6

paragraph:1586: 68.2

paragraph:1588: 64.9

paragraph:1590: 41.0

paragraph:1592: 23.8

paragraph:1594: 0.7

paragraph:1596: 20.3

paragraph:1598: Adjustments to GAAP amounts:

paragraph:1599: Share-based compensation expense

paragraph:1600: 157

paragraph:1601: 224

paragraph:1602: 381

paragraph:1603: 1,877

paragraph:1604: 2,258

paragraph:1605: —

paragraph:1606: 2,258

paragraph:1607: Amortization of acquisition-related intangible assets

paragraph:1608: 605

paragraph:1609: —

paragraph:1610: 605

paragraph:1611: 430

paragraph:1612: 1,035

paragraph:1613: —

paragraph:1614: 1,035

paragraph:1615: Acquisition/divestiture-related costs

paragraph:1616: 5

paragraph:1617: 8

paragraph:1618: 13

paragraph:1619: 403

paragraph:1620: 416

paragraph:1621: —

paragraph:1622: 416

paragraph:1623: Significant asset impairments and restructurings

paragraph:1624: —

paragraph:1625: —

paragraph:1626: —

paragraph:1627: 677

paragraph:1628: 677

paragraph:1629: —

paragraph:1630: 677

paragraph:1631: Russia-Ukraine war costs

paragraph:1632: —

paragraph:1633: —

paragraph:1634: —

paragraph:1635: (12

paragraph:1636: )

paragraph:1637: (12

paragraph:1638: )

paragraph:1639: —

paragraph:1640: (12

paragraph:1641: )

paragraph:1642: (Gains) and losses on investments

paragraph:1643: —

paragraph:1644: —

paragraph:1645: —

paragraph:1646: —

paragraph:1647: —

paragraph:1648: 132

paragraph:1649: 132

paragraph:1650: Income tax effect/significant tax matters

paragraph:1651: —

paragraph:1652: —

paragraph:1653: —

paragraph:1654: —

paragraph:1655: —

paragraph:1656: —

paragraph:1657: (1,045

paragraph:1658: )

paragraph:1659: Non-GAAP amount

paragraph:1660: $

paragraph:1661: 19,467

paragraph:1662: $

paragraph:1663: 7,579

paragraph:1664: $

paragraph:1665: 27,046

paragraph:1666: $

paragraph:1667: 13,109

paragraph:1668: $

paragraph:1669: 13,937

paragraph:1670: $

paragraph:1671: 407

paragraph:1672: $

paragraph:1673: 11,619

paragraph:1674: % of revenue

paragraph:1675: 66.2

paragraph:1677: 70.4

paragraph:1679: 67.3

paragraph:1681: 32.6

paragraph:1683: 34.7

paragraph:1685: 1.0

paragraph:1687: 28.9

paragraph:1689: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:1690: 13

paragraph:1691: CISCO SYSTEMS, INC.

paragraph:1692: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1693: EFFECTIVE TAX RATE

paragraph:1694: (In percentages)

paragraph:1695: Three Months Ended

paragraph:1696: Nine Months Ended

paragraph:1697: April 26, 2025

paragraph:1698: April 27, 2024

paragraph:1699: April 26, 2025

paragraph:1700: April 27, 2024

paragraph:1701: GAAP effective tax rate

paragraph:1702: 15.5

paragraph:1704: 15.6

paragraph:1706: 5.8

paragraph:1708: 17.1

paragraph:1710: Total adjustments to GAAP provision for income taxes

paragraph:1711: 2.0

paragraph:1713: 3.4

paragraph:1715: 12.7

paragraph:1717: 1.9

paragraph:1719: Non-GAAP effective tax rate

paragraph:1720: 17.5

paragraph:1722: 19.0

paragraph:1724: 18.5

paragraph:1726: 19.0

paragraph:1728: GAAP TO NON-GAAP GUIDANCE

paragraph:1729: Q4 FY 2025

paragraph:1730: Gross Margin Rate

paragraph:1731: Operating Margin Rate

paragraph:1732: Earnings per Share (1)

paragraph:1733: GAAP

paragraph:1734: 64.5% - 65.5%

paragraph:1735: 22% - 23%

paragraph:1736: $0.62 - $0.67

paragraph:1737: Estimated adjustments for:

paragraph:1738: Share-based compensation expense

paragraph:1739: 1.0%

paragraph:1740: 6.5%

paragraph:1741: $0.18 - $0.19

paragraph:1742: Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

paragraph:1743: 2.0%

paragraph:1744: 4.5%

paragraph:1745: $0.12 - $0.13

paragraph:1746: Significant asset impairments and restructurings

paragraph:1747: (2)

paragraph:1748: —

paragraph:1749: 0.5%

paragraph:1750: $0.01 - $0.02

paragraph:1751: Non-GAAP

paragraph:1752: 67.5% - 68.5%

paragraph:1753: 33.5% - 34.5%

paragraph:1754: $0.96 - $0.98

paragraph:1755: FY 2025

paragraph:1756: Earnings per Share (1)

paragraph:1757: GAAP

paragraph:1758: $2.53 - $2.58

paragraph:1759: Estimated adjustments for:

paragraph:1760: Share-based compensation expense

paragraph:1761: $0.69 - $0.70

paragraph:1762: Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

paragraph:1763: $0.60 - $0.61

paragraph:1764: Significant asset impairments and restructurings

paragraph:1765: (2)

paragraph:1766: $0.14 - $0.15

paragraph:1767: (Gains) and losses on investments

paragraph:1768: ($0.01)

paragraph:1769: Significant tax matters

paragraph:1770: ($0.21)

paragraph:1771: Non-GAAP

paragraph:1772: $3.77 - $3.79

paragraph:1773: (1)

paragraph:1774: Estimated adjustments to GAAP earnings per share are shown after income tax effects.

paragraph:1775: (2)

paragraph:1776: Reflects charges related to a restructuring plan announced on August 14, 2024. We expect this plan to be substantially completed by the end of the first quarter of fiscal 2026.

paragraph:1777: Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

paragraph:1778: 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.

paragraph:1779: 14

paragraph:1780: Forward Looking Statements, Non-GAAP Information and Additional Information

paragraph:1781: This release may be deemed to 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 the demand for our technologies, the momentum we are seeing with AI and how it is fueled, and our operational discipline and its impact on generating strong cash flows) and the future financial performance of Cisco (including the guidance for Q4 FY 2025 and full year FY 2025) that involve risks and uncertainties, such as the actual impact of tariffs on our guidance for Q4 FY2025 and full year FY2025. 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, cloud, enterprise 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 services 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 February 18, 2025 and September 5, 2024, respectively. The financial information contained in this release 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 and nine months ended April 26, 2025 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release 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 this release.

paragraph:1782: This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

paragraph:1783: These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.

paragraph:1784: 15

paragraph:1785: Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

paragraph:1786: For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia-Ukraine war costs, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP

paragraph:1787: financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

paragraph:1788: About Cisco

paragraph:1789: Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

paragraph:1790: Copyright © 2025 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

paragraph:1791: RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds

paragraph:1792: 16

2025-02-12Feb 12, 2025, 11:00 AM ESTSec 8k Exhibit1732 segments

paragraph:1: EX-99.1

paragraph:3: d851168dex991.htm

paragraph:4: EX-99.1

paragraph:5: EX-99.1

paragraph:6: Exhibit 99.1

paragraph:7: Press Contact:

paragraph:8: Investor Relations Contact:

paragraph:9: Robyn Blum

paragraph:10: Sami Badri

paragraph:11: Cisco

paragraph:12: Cisco

paragraph:13: 1 (408) 930-8548

paragraph:14: 1 (469) 420-4834

paragraph:15: rojenkin@cisco.com

paragraph:16: sambadri@cisco.com

paragraph:17: CISCO REPORTS SECOND QUARTER EARNINGS

paragraph:18: News Summary:

paragraph:20: Broad-based strength in product orders demonstrating growing demand for Cisco technologies

paragraph:22: Product orders up 29% year over year; up 11% excluding Splunk

paragraph:24: AI Infrastructure orders of more than $350 million, bringing the total for 1HFY25 to approximately $700 million

paragraph:26: Revenue of $14.0 billion, above the high end of our guidance range

paragraph:28: Strong profitability:

paragraph:30: GAAP gross margin of 65.1% and non-GAAP gross margin of 68.7%

paragraph:32: GAAP EPS of $0.61 and non-GAAP EPS of $0.94, above the high end of our guidance range

paragraph:34: Quarterly dividend increased to $0.41 per share, up 3%, and additional $15 billion authorized for stock repurchases

paragraph:36: Q2 FY 2025 Results:

paragraph:38: Revenue: $14.0 billion

paragraph:40: Increase of 9% year over year

paragraph:42: Earnings per Share: GAAP: $0.61; Non-GAAP: $0.94

paragraph:44: GAAP EPS decreased 6% year over year

paragraph:46: Non-GAAP EPS increased 8% year over year

paragraph:48: Q3 FY 2025 Guidance:

paragraph:50: Revenue: $13.9 billion to $14.1 billion

paragraph:52: Earnings per Share: GAAP: $0.57 to $0.61; Non-GAAP: $0.90 to $0.92

paragraph:54: FY 2025 Guidance:

paragraph:56: Revenue: $56.0 billion to $56.5 billion

paragraph:58: Earnings per Share: GAAP: $2.40 to $2.52; Non-GAAP: $3.68 to $3.74

paragraph:59: SAN JOSE, Calif. — February 12, 2025 — Cisco today reported second quarter results for the period ended January 25, 2025. Cisco reported second quarter revenue of $14.0 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.4 billion or $0.61 per share, and non-GAAP net income of $3.8 billion or $0.94 per share.

paragraph:60: “Cisco’s strong quarterly results were driven by accelerating customer demand for our technology” said Chuck Robbins, chair and CEO of Cisco. “As AI becomes more pervasive, we are well positioned to help our customers scale their network infrastructure, increase their data capacity requirements, and adopt best-in-class AI security.”

paragraph:61: “Q2 was another quarter of solid execution which drove revenue and EPS above our guidance ranges. Splunk continues to perform in line with our expectations on the top line, and was accretive to Q2 non-GAAP EPS, earlier than we had planned” said Scott Herren, CFO of Cisco. “Our strong cash flows have led us to increase our annual dividend again this year, as well as our overall share repurchase authorization.”

paragraph:62: 1

paragraph:63: GAAP Results

paragraph:64: Q2 FY 2025

paragraph:65: Q2 FY 2024

paragraph:66: Vs. Q2 FY 2024

paragraph:67: Revenue

paragraph:68: $

paragraph:69: 14.0 billion

paragraph:70: $

paragraph:71: 12.8 billion

paragraph:72: 9%

paragraph:73: Net Income

paragraph:74: $

paragraph:75: 2.4 billion

paragraph:76: $

paragraph:77: 2.6 billion

paragraph:78: (8)%

paragraph:79: Diluted Earnings per Share (EPS)

paragraph:80: $

paragraph:81: 0.61

paragraph:82: $

paragraph:83: 0.65

paragraph:84: (6)%

paragraph:85: Non-GAAP Results

paragraph:86: Q2 FY 2025

paragraph:87: Q2 FY 2024

paragraph:88: Vs. Q2 FY 2024

paragraph:89: Net Income

paragraph:90: $

paragraph:91: 3.8 billion

paragraph:92: $

paragraph:93: 3.5 billion

paragraph:94: 6%

paragraph:95: EPS

paragraph:96: $

paragraph:97: 0.94

paragraph:98: $

paragraph:99: 0.87

paragraph:100: 8%

paragraph:101: Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP

paragraph:102: basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:103: Cisco Increases Quarterly Dividend; Stock Repurchase Program Authorization Increased

paragraph:104: Cisco has declared a quarterly dividend of $0.41 per common share, a 1-cent increase or up 3% over the previous quarter’s dividend, to be paid on April 23, 2025, to all stockholders of record as of the close of business on April 3, 2025. Future dividends will be subject to Board approval.

paragraph:105: Cisco’s board of directors has also approved a $15 billion increase to the authorization of the stock repurchase program. There is no fixed termination date for the repurchase program. The remaining authorized fixed amount for stock repurchases including the additional authorization is approximately $17 billion.

paragraph:106: 2

paragraph:107: Financial Summary

paragraph:108: All comparative percentages are on a year-over-year basis unless otherwise noted.

paragraph:109: Q2 FY 2025 Highlights

paragraph:110: Revenue — Total revenue was $14.0 billion, up 9%, with product revenue up 11% and services revenue up 6%. Excluding the contribution from Splunk, total revenue was down 1%.

paragraph:111: Revenue by geographic segment was: Americas up 9%, EMEA up 11%, and APJC up 8%. Product revenue performance reflected growth in Security up 117%, Observability up 47%, and Collaboration up 1%. Networking was down 3%. Excluding Splunk, Security and Observability grew 4% and 3%, respectively, in the second quarter of fiscal 2025.

paragraph:112: Gross Margin —

paragraph:113: On a GAAP basis, total gross margin, product gross margin, and services gross margin were 65.1%, 63.7%, and 68.9%, respectively, as compared with 64.2%, 62.7%, and 68.2%, respectively, in the second quarter of fiscal 2024.

paragraph:114: On a

paragraph:115: non-GAAP basis, total gross margin, product gross margin, and services gross margin were 68.7%, 67.7%, and 71.6%, respectively, as compared with 66.7%, 65.2%, and 70.5%, respectively, in the second quarter of fiscal 2024.

paragraph:116: Total gross margins by geographic segment were: 67.6% for the Americas, 71.3% for EMEA and 68.3% for APJC.

paragraph:117: Operating Expenses —

paragraph:118: On a GAAP basis, operating expenses were $6.0 billion, up 17%, and were 42.9% of revenue. Non-GAAP operating expenses were $4.8 billion, up 10%, and were 34.0% of revenue.

paragraph:119: Operating Income — GAAP operating income was $3.1 billion, up 1%, with GAAP operating margin of 22.3%. Non-GAAP operating income was $4.9 billion, up 15%, with

paragraph:120: non-GAAP operating margin at 34.7%.

paragraph:121: Provision for Income Taxes — The GAAP tax provision rate was 15.9%. The non-GAAP tax provision rate was 19.0%.

paragraph:122: Net Income and EPS — On a GAAP basis, net income was $2.4 billion, a decrease of 8%, and EPS was $0.61, a decrease of 6%. On a non-GAAP basis, net income was $3.8 billion, an increase of 6%, and EPS was $0.94, an increase of 8%.

paragraph:123: Cash Flow from Operating Activities — $2.2 billion for the second quarter of fiscal 2025, an increase of 177%, compared with $0.8 billion for the second quarter of fiscal 2024.

paragraph:124: Balance Sheet and Other Financial Highlights

paragraph:125: Cash and Cash Equivalents and Investments — $16.9 billion at the end of the second quarter of fiscal 2025, compared with $17.9 billion at the end of fiscal 2024.

paragraph:126: Remaining Performance Obligations (RPO)

paragraph:127: — $41.3 billion, up 16% in total, with 51% of this amount to be recognized as revenue over the next 12 months. Product RPO up 25% and services RPO up 8%.

paragraph:128: Deferred Revenue — $27.8 billion, up 8% in total, with deferred product revenue up 12%. Deferred services revenue up 4%.

paragraph:129: Capital Allocation —

paragraph:130: In the second quarter of fiscal 2025, we returned $2.8 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.40 per common share, or $1.6 billion, and repurchased approximately 21 million shares of common stock under our stock repurchase program at an average price of $58.58 per share for an aggregate purchase price of $1.2 billion.

paragraph:131: Acquisitions

paragraph:132: In the second quarter of fiscal 2025, we closed the acquisition of Deeper Insights AI Ltd., a privately held AI services company.

paragraph:133: 3

paragraph:134: Guidance

paragraph:135: Cisco estimates the following results for the third quarter of fiscal 2025:

paragraph:136: Q3 FY 2025

paragraph:137: Revenue

paragraph:138: $13.9 billion - $14.1 billion

paragraph:139: Non-GAAP gross margin

paragraph:140: 67% - 68%

paragraph:141: Non-GAAP operating margin

paragraph:142: 33% - 34%

paragraph:143: Non-GAAP EPS

paragraph:144: $0.90 - $0.92

paragraph:145: Gross margin guidance includes the estimated impact of proposed tariffs on Mexico, Canada, and China.

paragraph:146: Cisco estimates that GAAP EPS will be $0.57 to $0.61 for the third quarter of fiscal 2025.

paragraph:147: Cisco estimates the following results for fiscal 2025:

paragraph:148: FY 2025

paragraph:149: Revenue

paragraph:150: $56.0 billion - $56.5 billion

paragraph:151: Non-GAAP EPS

paragraph:152: $3.68 - $3.74

paragraph:153: Gross margin guidance includes the estimated impact of proposed tariffs on Mexico, Canada, and China.

paragraph:154: Cisco estimates that GAAP EPS will be $2.40 to $2.52 for fiscal 2025.

paragraph:155: Our Q3 FY 2025 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 19% for

paragraph:156: non-GAAP results. Our FY 2025 guidance assumes an effective tax provision rate of approximately 9% for GAAP and approximately 19% for non-GAAP results.

paragraph:157: A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:158: Editor’s Notes:

paragraph:159: •

paragraph:160: Q2 fiscal year 2025 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, February 12, 2025 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).

paragraph:161: •

paragraph:162: Conference call replay will be available from 4:00 p.m. Pacific Time, February 12, 2025 to 4:00 p.m. Pacific Time, February 18, 2025 at 1-800-395-6236 (United States) or

paragraph:163: 1-203-369-3270 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:164: •

paragraph:165: Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, February 12, 2025. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to

paragraph:166: non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:167: 4

paragraph:168: CISCO SYSTEMS, INC.

paragraph:169: CONSOLIDATED STATEMENTS OF OPERATIONS

paragraph:170: (In millions, except per-share amounts)

paragraph:171: (Unaudited)

paragraph:172: Three Months Ended

paragraph:173: Six Months Ended

paragraph:174: January 25, 2025

paragraph:175: January 27, 2024

paragraph:176: January 25, 2025

paragraph:177: January 27, 2024

paragraph:178: REVENUE:

paragraph:179: Product

paragraph:180: $

paragraph:181: 10,234

paragraph:182: $

paragraph:183: 9,232

paragraph:184: $

paragraph:185: 20,348

paragraph:186: $

paragraph:187: 20,371

paragraph:188: Services

paragraph:189: 3,757

paragraph:190: 3,559

paragraph:191: 7,484

paragraph:192: 7,088

paragraph:193: Total revenue

paragraph:194: 13,991

paragraph:195: 12,791

paragraph:196: 27,832

paragraph:197: 27,459

paragraph:198: COST OF SALES:

paragraph:199: Product

paragraph:200: 3,713

paragraph:201: 3,443

paragraph:202: 7,239

paragraph:203: 7,400

paragraph:204: Services

paragraph:205: 1,167

paragraph:206: 1,131

paragraph:207: 2,361

paragraph:208: 2,285

paragraph:209: Total cost of sales

paragraph:210: 4,880

paragraph:211: 4,574

paragraph:212: 9,600

paragraph:213: 9,685

paragraph:214: GROSS MARGIN

paragraph:215: 9,111

paragraph:216: 8,217

paragraph:217: 18,232

paragraph:218: 17,774

paragraph:219: OPERATING EXPENSES:

paragraph:220: Research and development

paragraph:221: 2,299

paragraph:222: 1,943

paragraph:223: 4,585

paragraph:224: 3,856

paragraph:225: Sales and marketing

paragraph:226: 2,672

paragraph:227: 2,458

paragraph:228: 5,424

paragraph:229: 4,964

paragraph:230: General and administrative

paragraph:231: 752

paragraph:232: 642

paragraph:233: 1,547

paragraph:234: 1,314

paragraph:235: Amortization of purchased intangible assets

paragraph:236: 265

paragraph:237: 66

paragraph:238: 530

paragraph:239: 133

paragraph:240: Restructuring and other charges

paragraph:241: 10

paragraph:242: 12

paragraph:243: 675

paragraph:244: 135

paragraph:245: Total operating expenses

paragraph:246: 5,998

paragraph:247: 5,121

paragraph:248: 12,761

paragraph:249: 10,402

paragraph:250: OPERATING INCOME

paragraph:251: 3,113

paragraph:252: 3,096

paragraph:253: 5,471

paragraph:254: 7,372

paragraph:255: Interest income

paragraph:256: 238

paragraph:257: 324

paragraph:258: 524

paragraph:259: 684

paragraph:260: Interest expense

paragraph:261: (404

paragraph:263: (120

paragraph:265: (822

paragraph:267: (231

paragraph:269: Other income (loss), net

paragraph:270: (60

paragraph:272: (139

paragraph:274: (19

paragraph:276: (222

paragraph:278: Interest and other income (loss), net

paragraph:279: (226

paragraph:280: )

paragraph:281: 65

paragraph:282: (317

paragraph:283: )

paragraph:284: 231

paragraph:285: INCOME BEFORE PROVISION FOR INCOME TAXES

paragraph:286: 2,887

paragraph:287: 3,161

paragraph:288: 5,154

paragraph:289: 7,603

paragraph:290: Provision for income taxes

paragraph:291: 459

paragraph:292: 527

paragraph:293: 15

paragraph:294: 1,331

paragraph:295: NET INCOME

paragraph:297: 2,428

paragraph:299: 2,634

paragraph:301: 5,139

paragraph:303: 6,272

paragraph:304: Net income per share:

paragraph:305: Basic

paragraph:307: 0.61

paragraph:309: 0.65

paragraph:311: 1.29

paragraph:313: 1.55

paragraph:314: Diluted

paragraph:316: 0.61

paragraph:318: 0.65

paragraph:320: 1.28

paragraph:322: 1.54

paragraph:323: Shares used in per-share calculation:

paragraph:324: Basic

paragraph:325: 3,981

paragraph:326: 4,055

paragraph:327: 3,986

paragraph:328: 4,056

paragraph:329: Diluted

paragraph:330: 4,005

paragraph:331: 4,073

paragraph:332: 4,008

paragraph:333: 4,079

paragraph:334: 5

paragraph:335: CISCO SYSTEMS, INC.

paragraph:336: REVENUE BY SEGMENT

paragraph:337: (In millions, except percentages)

paragraph:338: January 25, 2025

paragraph:339: Three Months Ended

paragraph:340: Six Months Ended

paragraph:341: Amount

paragraph:342: Y/Y %

paragraph:343: Amount

paragraph:344: Y/Y %

paragraph:345: Revenue :

paragraph:346: Americas

paragraph:347: $

paragraph:348: 8,202

paragraph:349: 9%

paragraph:350: $

paragraph:351: 16,454

paragraph:352: —%

paragraph:353: EMEA

paragraph:354: 3,855

paragraph:355: 11%

paragraph:356: 7,444

paragraph:357: 4%

paragraph:358: APJC

paragraph:359: 1,934

paragraph:360: 8%

paragraph:361: 3,934

paragraph:362: 4%

paragraph:363: Total

paragraph:364: $

paragraph:365: 13,991

paragraph:366: 9%

paragraph:367: $

paragraph:368: 27,832

paragraph:369: 1%

paragraph:370: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:371: CISCO SYSTEMS, INC.

paragraph:372: GROSS MARGIN PERCENTAGE BY SEGMENT

paragraph:373: (In percentages)

paragraph:374: January 25, 2025

paragraph:375: Three Months Ended

paragraph:376: Six Months Ended

paragraph:377: Gross Margin Percentage :

paragraph:378: Americas

paragraph:379: 67.6%

paragraph:380: 68.6%

paragraph:381: EMEA

paragraph:382: 71.3%

paragraph:383: 70.8%

paragraph:384: APJC

paragraph:385: 68.3%

paragraph:386: 67.3%

paragraph:387: CISCO SYSTEMS, INC.

paragraph:388: REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

paragraph:389: (In millions, except percentages)

paragraph:390: January 25, 2025

paragraph:391: Three Months Ended

paragraph:392: Six Months Ended

paragraph:393: Amount

paragraph:394: Y/Y %

paragraph:395: Amount

paragraph:396: Y/Y %

paragraph:397: Revenue :

paragraph:398: Networking

paragraph:399: $

paragraph:400: 6,850

paragraph:401: (3)%

paragraph:402: $

paragraph:403: 13,603

paragraph:404: (14)%

paragraph:405: Security

paragraph:406: 2,111

paragraph:407: 117%

paragraph:408: 4,129

paragraph:409: 108%

paragraph:410: Collaboration

paragraph:411: 996

paragraph:412: 1%

paragraph:413: 2,081

paragraph:414: (1)%

paragraph:415: Observability

paragraph:416: 277

paragraph:417: 47%

paragraph:418: 535

paragraph:419: 42%

paragraph:420: Total Product

paragraph:421: 10,234

paragraph:422: 11%

paragraph:423: 20,348

paragraph:424: —%

paragraph:425: Services

paragraph:426: 3,757

paragraph:427: 6%

paragraph:428: 7,484

paragraph:429: 6%

paragraph:430: Total

paragraph:431: $

paragraph:432: 13,991

paragraph:433: 9%

paragraph:434: $

paragraph:435: 27,832

paragraph:436: 1%

paragraph:437: Excluding Splunk, Security and Observability grew 4% and 3% year over year, respectively, in the second quarter of fiscal 2025.

paragraph:438: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:439: 6

paragraph:440: CISCO SYSTEMS, INC.

paragraph:441: CONDENSED CONSOLIDATED BALANCE SHEETS

paragraph:442: (In millions)

paragraph:443: (Unaudited)

paragraph:444: January 25, 2025

paragraph:445: July 27, 2024

paragraph:446: ASSETS

paragraph:447: Current assets:

paragraph:448: Cash and cash equivalents

paragraph:449: $

paragraph:450: 8,556

paragraph:451: $

paragraph:452: 7,508

paragraph:453: Investments

paragraph:454: 8,297

paragraph:455: 10,346

paragraph:456: Accounts receivable, net of allowance of $80 at January 25, 2025 and $87 at July 27, 2024

paragraph:457: 5,669

paragraph:458: 6,685

paragraph:459: Inventories

paragraph:460: 2,927

paragraph:461: 3,373

paragraph:462: Financing receivables, net

paragraph:463: 3,074

paragraph:464: 3,338

paragraph:465: Other current assets

paragraph:466: 6,158

paragraph:467: 5,612

paragraph:468: Total current assets

paragraph:469: 34,681

paragraph:470: 36,862

paragraph:471: Property and equipment, net

paragraph:472: 1,992

paragraph:473: 2,090

paragraph:474: Financing receivables, net

paragraph:475: 3,240

paragraph:476: 3,376

paragraph:477: Goodwill

paragraph:478: 58,719

paragraph:479: 58,660

paragraph:480: Purchased intangible assets, net

paragraph:481: 10,139

paragraph:482: 11,219

paragraph:483: Deferred tax assets

paragraph:484: 6,591

paragraph:485: 6,262

paragraph:486: Other assets

paragraph:487: 6,013

paragraph:488: 5,944

paragraph:489: TOTAL ASSETS

paragraph:490: $

paragraph:491: 121,375

paragraph:492: $

paragraph:493: 124,413

paragraph:494: LIABILITIES AND EQUITY

paragraph:495: Current liabilities:

paragraph:496: Short-term debt

paragraph:497: $

paragraph:498: 11,413

paragraph:499: $

paragraph:500: 11,341

paragraph:501: Accounts payable

paragraph:502: 1,902

paragraph:503: 2,304

paragraph:504: Income taxes payable

paragraph:505: 1,884

paragraph:506: 1,439

paragraph:507: Accrued compensation

paragraph:508: 3,299

paragraph:509: 3,608

paragraph:510: Deferred revenue

paragraph:511: 15,999

paragraph:512: 16,249

paragraph:513: Other current liabilities

paragraph:514: 5,522

paragraph:515: 5,643

paragraph:516: Total current liabilities

paragraph:517: 40,019

paragraph:518: 40,584

paragraph:519: Long-term debt

paragraph:520: 19,625

paragraph:521: 19,621

paragraph:522: Income taxes payable

paragraph:523: 1,756

paragraph:524: 3,985

paragraph:525: Deferred revenue

paragraph:526: 11,796

paragraph:527: 12,226

paragraph:528: Other long-term liabilities

paragraph:529: 2,649

paragraph:530: 2,540

paragraph:531: Total liabilities

paragraph:532: 75,845

paragraph:533: 78,956

paragraph:534: Total equity

paragraph:535: 45,530

paragraph:536: 45,457

paragraph:537: TOTAL LIABILITIES AND EQUITY

paragraph:538: $

paragraph:539: 121,375

paragraph:540: $

paragraph:541: 124,413

paragraph:542: 7

paragraph:543: CISCO SYSTEMS, INC.

paragraph:544: CONSOLIDATED STATEMENTS OF CASH FLOWS

paragraph:545: (In millions)

paragraph:546: (Unaudited)

paragraph:547: Six Months Ended

paragraph:548: January 25, 2025

paragraph:549: January 27, 2024

paragraph:550: Cash flows from operating activities:

paragraph:551: Net income

paragraph:552: $

paragraph:553: 5,139

paragraph:554: $

paragraph:555: 6,272

paragraph:556: Adjustments to reconcile net income to net cash provided by operating activities:

paragraph:557: Depreciation, amortization, and other

paragraph:558: 1,550

paragraph:559: 823

paragraph:560: Share-based compensation expense

paragraph:561: 1,748

paragraph:562: 1,463

paragraph:563: Provision for receivables

paragraph:564: 7

paragraph:565: 12

paragraph:566: Deferred income taxes

paragraph:567: (382

paragraph:568: )

paragraph:569: (816

paragraph:570: )

paragraph:571: (Gains) losses on divestitures, investments and other, net

paragraph:572: (5

paragraph:573: )

paragraph:574: 205

paragraph:575: Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

paragraph:576: Accounts receivable

paragraph:577: 969

paragraph:578: 941

paragraph:579: Inventories

paragraph:580: 441

paragraph:581: 442

paragraph:582: Financing receivables

paragraph:583: 330

paragraph:584: (33

paragraph:585: )

paragraph:586: Other assets

paragraph:587: (427

paragraph:588: )

paragraph:589: (403

paragraph:590: )

paragraph:591: Accounts payable

paragraph:592: (359

paragraph:593: )

paragraph:594: (476

paragraph:595: )

paragraph:596: Income taxes, net

paragraph:597: (2,285

paragraph:598: )

paragraph:599: (4,656

paragraph:600: )

paragraph:601: Accrued compensation

paragraph:602: (293

paragraph:603: )

paragraph:604: (763

paragraph:605: )

paragraph:606: Deferred revenue

paragraph:607: (555

paragraph:608: )

paragraph:609: 293

paragraph:610: Other liabilities

paragraph:611: 24

paragraph:612: (125

paragraph:613: )

paragraph:614: Net cash provided by operating activities

paragraph:615: 5,902

paragraph:616: 3,179

paragraph:617: Cash flows from investing activities:

paragraph:618: Purchases of investments

paragraph:619: (2,261

paragraph:620: )

paragraph:621: (2,253

paragraph:622: )

paragraph:623: Proceeds from sales of investments

paragraph:624: 1,791

paragraph:625: 2,484

paragraph:626: Proceeds from maturities of investments

paragraph:627: 2,703

paragraph:628: 4,044

paragraph:629: Acquisitions, net of cash and cash equivalents acquired and divestitures

paragraph:630: (257

paragraph:631: )

paragraph:632: (878

paragraph:633: )

paragraph:634: Purchases of investments in privately held companies

paragraph:635: (137

paragraph:636: )

paragraph:637: (50

paragraph:638: )

paragraph:639: Return of investments in privately held companies

paragraph:640: 94

paragraph:641: 123

paragraph:642: Acquisition of property and equipment

paragraph:643: (427

paragraph:644: )

paragraph:645: (304

paragraph:646: )

paragraph:647: Other

paragraph:648: (5

paragraph:649: )

paragraph:650: (1

paragraph:651: )

paragraph:652: Net cash provided by investing activities

paragraph:653: 1,501

paragraph:654: 3,165

paragraph:655: Cash flows from financing activities:

paragraph:656: Issuances of common stock

paragraph:657: 320

paragraph:658: 349

paragraph:659: Repurchases of common stock—repurchase program

paragraph:660: (3,243

paragraph:661: )

paragraph:662: (2,504

paragraph:663: )

paragraph:664: Shares repurchased for tax withholdings on vesting of restricted stock units

paragraph:665: (655

paragraph:666: )

paragraph:667: (581

paragraph:668: )

paragraph:669: Short-term borrowings, original maturities of 90 days or less, net

paragraph:670: 1,012

paragraph:671: 1,398

paragraph:672: Issuances of debt

paragraph:673: 10,406

paragraph:674: 2,537

paragraph:675: Repayments of debt

paragraph:676: (11,382

paragraph:677: )

paragraph:678: (750

paragraph:679: )

paragraph:680: Dividends paid

paragraph:681: (3,185

paragraph:682: )

paragraph:683: (3,163

paragraph:684: )

paragraph:685: Other

paragraph:686: (2

paragraph:687: )

paragraph:688: (7

paragraph:689: )

paragraph:690: Net cash used in financing activities

paragraph:691: (6,729

paragraph:692: )

paragraph:693: (2,721

paragraph:694: )

paragraph:695: Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:696: (8

paragraph:697: )

paragraph:698: (32

paragraph:699: )

paragraph:700: Net increase in cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:701: 666

paragraph:702: 3,591

paragraph:703: Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

paragraph:704: 8,842

paragraph:705: 11,627

paragraph:706: Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

paragraph:707: $

paragraph:708: 9,508

paragraph:709: $

paragraph:710: 15,218

paragraph:711: Supplemental cash flow information:

paragraph:712: Cash paid for interest

paragraph:713: $

paragraph:714: 769

paragraph:715: $

paragraph:716: 203

paragraph:717: Cash paid for income taxes, net

paragraph:718: $

paragraph:719: 2,682

paragraph:720: $

paragraph:721: 6,804

paragraph:722: 8

paragraph:723: CISCO SYSTEMS, INC.

paragraph:724: REMAINING PERFORMANCE OBLIGATIONS

paragraph:725: (In millions, except percentages)

paragraph:726: January 25, 2025

paragraph:727: October 26, 2024

paragraph:728: January 27, 2024

paragraph:729: Amount

paragraph:730: Y/Y%

paragraph:731: Amount

paragraph:732: Y/Y%

paragraph:733: Amount

paragraph:734: Y/Y%

paragraph:735: Product

paragraph:736: $

paragraph:737: 20,321

paragraph:738: 25

paragraph:739: %

paragraph:740: $

paragraph:741: 19,882

paragraph:742: 24

paragraph:743: %

paragraph:744: $

paragraph:745: 16,249

paragraph:746: 12

paragraph:747: %

paragraph:748: Services

paragraph:749: 20,947

paragraph:750: 8

paragraph:751: %

paragraph:752: 20,108

paragraph:753: 7

paragraph:754: %

paragraph:755: 19,407

paragraph:756: 12

paragraph:757: %

paragraph:758: Total

paragraph:759: $

paragraph:760: 41,268

paragraph:761: 16

paragraph:762: %

paragraph:763: $

paragraph:764: 39,990

paragraph:765: 15

paragraph:766: %

paragraph:767: $

paragraph:768: 35,656

paragraph:769: 12

paragraph:770: %

paragraph:771: We expect 51% of total RPO at January 25, 2025 will be recognized as revenue over the next 12 months.

paragraph:772: CISCO SYSTEMS, INC.

paragraph:773: DEFERRED REVENUE

paragraph:774: (In millions)

paragraph:775: January 25, 2025

paragraph:776: October 26, 2024

paragraph:777: January 27, 2024

paragraph:778: Deferred revenue:

paragraph:779: Product

paragraph:780: $

paragraph:781: 13,033

paragraph:782: $

paragraph:783: 12,941

paragraph:784: $

paragraph:785: 11,640

paragraph:786: Services

paragraph:787: 14,762

paragraph:788: 14,561

paragraph:789: 14,131

paragraph:790: Total

paragraph:791: $

paragraph:792: 27,795

paragraph:793: $

paragraph:794: 27,502

paragraph:795: $

paragraph:796: 25,771

paragraph:797: Reported as:

paragraph:798: Current

paragraph:799: $

paragraph:800: 15,999

paragraph:801: $

paragraph:802: 15,615

paragraph:803: $

paragraph:804: 14,011

paragraph:805: Noncurrent

paragraph:806: 11,796

paragraph:807: 11,887

paragraph:808: 11,760

paragraph:809: Total

paragraph:810: $

paragraph:811: 27,795

paragraph:812: $

paragraph:813: 27,502

paragraph:814: $

paragraph:815: 25,771

paragraph:816: CISCO SYSTEMS, INC.

paragraph:817: DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

paragraph:818: (In millions, except per-share amounts)

paragraph:819: DIVIDENDS

paragraph:820: STOCK REPURCHASE PROGRAM

paragraph:821: TOTAL

paragraph:822: Quarter Ended

paragraph:823: Per Share

paragraph:824: Amount

paragraph:825: Shares

paragraph:826: Weighted- Average Price per Share

paragraph:827: Amount

paragraph:828: Amount

paragraph:829: Fiscal 2025

paragraph:830: January 25, 2025

paragraph:831: $

paragraph:832: 0.40

paragraph:833: $

paragraph:834: 1,593

paragraph:835: 21

paragraph:836: $

paragraph:837: 58.58

paragraph:838: $

paragraph:839: 1,236

paragraph:840: $

paragraph:841: 2,829

paragraph:842: October 26, 2024

paragraph:843: $

paragraph:844: 0.40

paragraph:845: $

paragraph:846: 1,592

paragraph:847: 40

paragraph:848: $

paragraph:849: 49.56

paragraph:850: $

paragraph:851: 2,003

paragraph:852: $

paragraph:853: 3,595

paragraph:854: Fiscal 2024

paragraph:855: July 27, 2024

paragraph:856: $

paragraph:857: 0.40

paragraph:858: $

paragraph:859: 1,606

paragraph:860: 43

paragraph:861: $

paragraph:862: 46.80

paragraph:863: $

paragraph:864: 2,002

paragraph:865: $

paragraph:866: 3,608

paragraph:867: April 27, 2024

paragraph:868: $

paragraph:869: 0.40

paragraph:870: $

paragraph:871: 1,615

paragraph:872: 26

paragraph:873: $

paragraph:874: 49.22

paragraph:875: $

paragraph:876: 1,256

paragraph:877: $

paragraph:878: 2,871

paragraph:879: January 27, 2024

paragraph:880: $

paragraph:881: 0.39

paragraph:882: $

paragraph:883: 1,583

paragraph:884: 25

paragraph:885: $

paragraph:886: 49.54

paragraph:887: $

paragraph:888: 1,254

paragraph:889: $

paragraph:890: 2,837

paragraph:891: October 28, 2023

paragraph:892: $

paragraph:893: 0.39

paragraph:894: $

paragraph:895: 1,580

paragraph:896: 23

paragraph:898: 54.53

paragraph:900: 1,252

paragraph:902: 2,832

paragraph:904: CISCO SYSTEMS, INC.

paragraph:905: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:906: GAAP TO NON-GAAP NET INCOME

paragraph:907: (In millions)

paragraph:908: Three Months Ended

paragraph:909: Six Months Ended

paragraph:910: January 25, 2025

paragraph:911: January 27, 2024

paragraph:912: January 25, 2025

paragraph:913: January 27, 2024

paragraph:914: GAAP net income

paragraph:916: 2,428

paragraph:918: 2,634

paragraph:920: 5,139

paragraph:922: 6,272

paragraph:923: Adjustments to cost of sales:

paragraph:924: Share-based compensation expense

paragraph:925: 151

paragraph:926: 139

paragraph:927: 282

paragraph:928: 242

paragraph:929: Amortization of acquisition-related intangible assets

paragraph:930: 335

paragraph:931: 175

paragraph:932: 654

paragraph:933: 356

paragraph:934: Acquisition/divestiture-related costs

paragraph:935: 17

paragraph:936: 1

paragraph:937: 36

paragraph:938: 1

paragraph:939: Total adjustments to GAAP cost of sales

paragraph:940: 503

paragraph:941: 315

paragraph:942: 972

paragraph:943: 599

paragraph:944: Adjustments to operating expenses:

paragraph:945: Share-based compensation expense

paragraph:946: 765

paragraph:947: 662

paragraph:948: 1,444

paragraph:949: 1,212

paragraph:950: Amortization of acquisition-related intangible assets

paragraph:951: 265

paragraph:952: 66

paragraph:953: 530

paragraph:954: 133

paragraph:955: Acquisition/divestiture-related costs

paragraph:956: 205

paragraph:957: 64

paragraph:958: 490

paragraph:959: 139

paragraph:960: Russia-Ukraine war costs

paragraph:961: —

paragraph:962: —

paragraph:963: —

paragraph:964: (2

paragraph:965: )

paragraph:966: Significant asset impairments and restructurings

paragraph:967: 10

paragraph:968: 12

paragraph:969: 675

paragraph:970: 135

paragraph:971: Total adjustments to GAAP operating expenses

paragraph:972: 1,245

paragraph:973: 804

paragraph:974: 3,139

paragraph:975: 1,617

paragraph:976: Adjustments to interest and other income (loss), net:

paragraph:977: (Gains) and losses on investments

paragraph:978: 7

paragraph:979: 88

paragraph:980: (91

paragraph:981: )

paragraph:982: 139

paragraph:983: Total adjustments to GAAP interest and other income (loss), net

paragraph:984: 7

paragraph:985: 88

paragraph:986: (91

paragraph:987: )

paragraph:988: 139

paragraph:989: Total adjustments to GAAP income before provision for income taxes

paragraph:990: 1,755

paragraph:991: 1,207

paragraph:992: 4,020

paragraph:993: 2,355

paragraph:994: Income tax effect of non-GAAP adjustments

paragraph:995: (423

paragraph:997: (303

paragraph:999: (899

paragraph:1001: (561

paragraph:1003: Significant tax matters (1)

paragraph:1004: —

paragraph:1005: —

paragraph:1006: (829

paragraph:1007: )

paragraph:1008: —

paragraph:1009: Total adjustments to GAAP provision for income taxes

paragraph:1010: (423

paragraph:1011: )

paragraph:1012: (303

paragraph:1013: )

paragraph:1014: (1,728

paragraph:1015: )

paragraph:1016: (561

paragraph:1017: )

paragraph:1018: Non-GAAP net income

paragraph:1019: $

paragraph:1020: 3,760

paragraph:1021: $

paragraph:1022: 3,538

paragraph:1023: $

paragraph:1024: 7,431

paragraph:1025: $

paragraph:1026: 8,066

paragraph:1027: (1)

paragraph:1028: The six months ended January 25, 2025 include a $720 million benefit due to a recent U.S. Tax Court decision regarding the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act.

paragraph:1029: 10

paragraph:1030: CISCO SYSTEMS, INC.

paragraph:1031: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1032: GAAP TO NON-GAAP EPS

paragraph:1033: Three Months Ended

paragraph:1034: Six Months Ended

paragraph:1035: January 25, 2025

paragraph:1036: January 27, 2024

paragraph:1037: January 25, 2025

paragraph:1038: January 27, 2024

paragraph:1039: GAAP EPS

paragraph:1041: 0.61

paragraph:1043: 0.65

paragraph:1045: 1.28

paragraph:1047: 1.54

paragraph:1048: Adjustments to GAAP:

paragraph:1049: Share-based compensation expense

paragraph:1050: 0.23

paragraph:1051: 0.20

paragraph:1052: 0.43

paragraph:1053: 0.36

paragraph:1054: Amortization of acquisition-related intangible assets

paragraph:1055: 0.15

paragraph:1056: 0.06

paragraph:1057: 0.30

paragraph:1058: 0.12

paragraph:1059: Acquisition/divestiture-related costs

paragraph:1060: 0.06

paragraph:1061: 0.02

paragraph:1062: 0.13

paragraph:1063: 0.03

paragraph:1064: Significant asset impairments and restructurings

paragraph:1065: —

paragraph:1066: —

paragraph:1067: 0.17

paragraph:1068: 0.03

paragraph:1069: (Gains) and losses on investments

paragraph:1070: —

paragraph:1071: 0.02

paragraph:1072: (0.02

paragraph:1073: )

paragraph:1074: 0.03

paragraph:1075: Income tax effect of non-GAAP adjustments

paragraph:1076: (0.11

paragraph:1077: )

paragraph:1078: (0.07

paragraph:1079: )

paragraph:1080: (0.22

paragraph:1081: )

paragraph:1082: (0.14

paragraph:1083: )

paragraph:1084: Significant tax matters

paragraph:1085: —

paragraph:1086: —

paragraph:1087: (0.21

paragraph:1088: )

paragraph:1089: —

paragraph:1090: Non-GAAP EPS

paragraph:1092: 0.94

paragraph:1094: 0.87

paragraph:1096: 1.85

paragraph:1098: 1.98

paragraph:1099: Amounts may not sum due to rounding.

paragraph:1100: 11

paragraph:1101: CISCO SYSTEMS, INC.

paragraph:1102: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1103: GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,

paragraph:1104: AND NET INCOME

paragraph:1105: (In millions, except percentages)

paragraph:1106: Three Months Ended

paragraph:1107: January 25, 2025

paragraph:1108: Product Gross Margin

paragraph:1109: Services Gross Margin

paragraph:1110: Total Gross Margin

paragraph:1111: Operating Expenses

paragraph:1112: Y/Y

paragraph:1113: Operating Income

paragraph:1114: Y/Y

paragraph:1115: Interest and other income (loss), net

paragraph:1116: Net Income

paragraph:1117: Y/Y

paragraph:1118: GAAP amount

paragraph:1119: $

paragraph:1120: 6,521

paragraph:1121: $

paragraph:1122: 2,590

paragraph:1123: $

paragraph:1124: 9,111

paragraph:1125: $

paragraph:1126: 5,998

paragraph:1127: 17

paragraph:1128: %

paragraph:1129: $

paragraph:1130: 3,113

paragraph:1134: (226

paragraph:1137: 2,428

paragraph:1138: (8

paragraph:1139: )%

paragraph:1140: % of revenue

paragraph:1141: 63.7

paragraph:1143: 68.9

paragraph:1145: 65.1

paragraph:1147: 42.9

paragraph:1149: 22.3

paragraph:1151: (1.6

paragraph:1152: )%

paragraph:1153: 17.4

paragraph:1154: %

paragraph:1155: Adjustments to GAAP amounts:

paragraph:1156: Share-based compensation expense

paragraph:1157: 65

paragraph:1158: 86

paragraph:1159: 151

paragraph:1160: 765

paragraph:1161: 916

paragraph:1162: —

paragraph:1163: 916

paragraph:1164: Amortization of acquisition-related intangible assets

paragraph:1165: 335

paragraph:1166: —

paragraph:1167: 335

paragraph:1168: 265

paragraph:1169: 600

paragraph:1170: —

paragraph:1171: 600

paragraph:1172: Acquisition/divestiture-related costs

paragraph:1173: 3

paragraph:1174: 14

paragraph:1175: 17

paragraph:1176: 205

paragraph:1177: 222

paragraph:1178: —

paragraph:1179: 222

paragraph:1180: Significant asset impairments and restructurings

paragraph:1181: —

paragraph:1182: —

paragraph:1183: —

paragraph:1184: 10

paragraph:1185: 10

paragraph:1186: —

paragraph:1187: 10

paragraph:1188: (Gains) and losses on investments

paragraph:1189: —

paragraph:1190: —

paragraph:1191: —

paragraph:1192: —

paragraph:1193: —

paragraph:1194: 7

paragraph:1195: 7

paragraph:1196: Income tax effect/significant tax matters

paragraph:1197: —

paragraph:1198: —

paragraph:1199: —

paragraph:1200: —

paragraph:1201: —

paragraph:1202: —

paragraph:1203: (423

paragraph:1205: Non-GAAP amount

paragraph:1206: $

paragraph:1207: 6,924

paragraph:1208: $

paragraph:1209: 2,690

paragraph:1210: $

paragraph:1211: 9,614

paragraph:1212: $

paragraph:1213: 4,753

paragraph:1214: 10

paragraph:1215: %

paragraph:1216: $

paragraph:1217: 4,861

paragraph:1218: 15

paragraph:1221: (219

paragraph:1224: 3,760

paragraph:1225: 6

paragraph:1226: %

paragraph:1227: % of revenue

paragraph:1228: 67.7

paragraph:1230: 71.6

paragraph:1232: 68.7

paragraph:1234: 34.0

paragraph:1236: 34.7

paragraph:1238: (1.6

paragraph:1239: )%

paragraph:1240: 26.9

paragraph:1241: %

paragraph:1242: Three Months Ended

paragraph:1243: January 27, 2024

paragraph:1244: Product Gross Margin

paragraph:1245: Services Gross Margin

paragraph:1246: Total Gross Margin

paragraph:1247: Operating Expenses

paragraph:1248: Operating Income

paragraph:1249: Interest and other income (loss), net

paragraph:1250: Net Income

paragraph:1251: GAAP amount

paragraph:1252: $

paragraph:1253: 5,789

paragraph:1254: $

paragraph:1255: 2,428

paragraph:1256: $

paragraph:1257: 8,217

paragraph:1258: $

paragraph:1259: 5,121

paragraph:1260: $

paragraph:1261: 3,096

paragraph:1262: $

paragraph:1263: 65

paragraph:1264: $

paragraph:1265: 2,634

paragraph:1266: % of revenue

paragraph:1267: 62.7

paragraph:1269: 68.2

paragraph:1271: 64.2

paragraph:1273: 40.0

paragraph:1275: 24.2

paragraph:1277: 0.5

paragraph:1279: 20.6

paragraph:1281: Adjustments to GAAP amounts:

paragraph:1282: Share-based compensation expense

paragraph:1283: 58

paragraph:1284: 81

paragraph:1285: 139

paragraph:1286: 662

paragraph:1287: 801

paragraph:1288: —

paragraph:1289: 801

paragraph:1290: Amortization of acquisition-related intangible assets

paragraph:1291: 175

paragraph:1292: —

paragraph:1293: 175

paragraph:1294: 66

paragraph:1295: 241

paragraph:1296: —

paragraph:1297: 241

paragraph:1298: Acquisition/divestiture-related costs

paragraph:1299: 1

paragraph:1300: —

paragraph:1301: 1

paragraph:1302: 64

paragraph:1303: 65

paragraph:1304: —

paragraph:1305: 65

paragraph:1306: Significant asset impairments and restructurings

paragraph:1307: —

paragraph:1308: —

paragraph:1309: —

paragraph:1310: 12

paragraph:1311: 12

paragraph:1312: —

paragraph:1313: 12

paragraph:1314: (Gains) and losses on investments

paragraph:1315: —

paragraph:1316: —

paragraph:1317: —

paragraph:1318: —

paragraph:1319: —

paragraph:1320: 88

paragraph:1321: 88

paragraph:1322: Income tax effect/significant tax matters

paragraph:1323: —

paragraph:1324: —

paragraph:1325: —

paragraph:1326: —

paragraph:1327: —

paragraph:1328: —

paragraph:1329: (303

paragraph:1330: )

paragraph:1331: Non-GAAP amount

paragraph:1332: $

paragraph:1333: 6,023

paragraph:1334: $

paragraph:1335: 2,509

paragraph:1336: $

paragraph:1337: 8,532

paragraph:1338: $

paragraph:1339: 4,317

paragraph:1340: $

paragraph:1341: 4,215

paragraph:1342: $

paragraph:1343: 153

paragraph:1344: $

paragraph:1345: 3,538

paragraph:1346: % of revenue

paragraph:1347: 65.2

paragraph:1349: 70.5

paragraph:1351: 66.7

paragraph:1353: 33.8

paragraph:1355: 33.0

paragraph:1357: 1.2

paragraph:1359: 27.7

paragraph:1361: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:1362: 12

paragraph:1363: CISCO SYSTEMS, INC.

paragraph:1364: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1365: GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,

paragraph:1366: AND NET INCOME

paragraph:1367: (In millions, except percentages)

paragraph:1368: Six Months Ended

paragraph:1369: January 25, 2025

paragraph:1370: Product Gross Margin

paragraph:1371: Services Gross Margin

paragraph:1372: Total Gross Margin

paragraph:1373: Operating Expenses

paragraph:1374: Y/Y

paragraph:1375: Operating Income

paragraph:1376: Y/Y

paragraph:1377: Interest and other income (loss), net

paragraph:1378: Net Income

paragraph:1379: Y/Y

paragraph:1380: GAAP amount

paragraph:1381: $

paragraph:1382: 13,109

paragraph:1383: $

paragraph:1384: 5,123

paragraph:1385: $

paragraph:1386: 18,232

paragraph:1387: $

paragraph:1388: 12,761

paragraph:1389: 23

paragraph:1390: %

paragraph:1391: $

paragraph:1392: 5,471

paragraph:1393: (26

paragraph:1394: )%

paragraph:1395: $

paragraph:1396: (317

paragraph:1397: )

paragraph:1398: $

paragraph:1399: 5,139

paragraph:1400: (18

paragraph:1401: )%

paragraph:1402: % of revenue

paragraph:1403: 64.4

paragraph:1405: 68.5

paragraph:1407: 65.5

paragraph:1409: 45.9

paragraph:1411: 19.7

paragraph:1413: (1.1

paragraph:1414: )%

paragraph:1415: 18.5

paragraph:1416: %

paragraph:1417: Adjustments to GAAP amounts:

paragraph:1418: Share-based compensation expense

paragraph:1419: 122

paragraph:1420: 160

paragraph:1421: 282

paragraph:1422: 1,444

paragraph:1423: 1,726

paragraph:1424: —

paragraph:1425: 1,726

paragraph:1426: Amortization of acquisition-related intangible assets

paragraph:1427: 654

paragraph:1428: —

paragraph:1429: 654

paragraph:1430: 530

paragraph:1431: 1,184

paragraph:1432: —

paragraph:1433: 1,184

paragraph:1434: Acquisition/divestiture-related costs

paragraph:1435: 8

paragraph:1436: 28

paragraph:1437: 36

paragraph:1438: 490

paragraph:1439: 526

paragraph:1440: —

paragraph:1441: 526

paragraph:1442: Significant asset impairments and restructurings

paragraph:1443: —

paragraph:1444: —

paragraph:1445: —

paragraph:1446: 675

paragraph:1447: 675

paragraph:1448: —

paragraph:1449: 675

paragraph:1450: (Gains) and losses on investments

paragraph:1451: —

paragraph:1452: —

paragraph:1453: —

paragraph:1454: —

paragraph:1455: —

paragraph:1456: (91

paragraph:1457: )

paragraph:1458: (91

paragraph:1459: )

paragraph:1460: Income tax effect/significant tax matters

paragraph:1461: —

paragraph:1462: —

paragraph:1463: —

paragraph:1464: —

paragraph:1465: —

paragraph:1466: —

paragraph:1467: (1,728

paragraph:1468: )

paragraph:1469: Non-GAAP amount

paragraph:1470: $

paragraph:1471: 13,893

paragraph:1472: $

paragraph:1473: 5,311

paragraph:1474: $

paragraph:1475: 19,204

paragraph:1476: $

paragraph:1477: 9,622

paragraph:1478: 10

paragraph:1479: %

paragraph:1480: $

paragraph:1481: 9,582

paragraph:1482: —

paragraph:1485: (408

paragraph:1488: 7,431

paragraph:1489: (8

paragraph:1490: )%

paragraph:1491: % of revenue

paragraph:1492: 68.3

paragraph:1494: 71.0

paragraph:1496: 69.0

paragraph:1498: 34.6

paragraph:1500: 34.4

paragraph:1502: (1.5

paragraph:1503: )%

paragraph:1504: 26.7

paragraph:1505: %

paragraph:1506: Six Months Ended

paragraph:1507: January 27, 2024

paragraph:1508: Product Gross Margin

paragraph:1509: Services Gross Margin

paragraph:1510: Total Gross Margin

paragraph:1511: Operating Expenses

paragraph:1512: Operating Income

paragraph:1513: Interest and other income (loss), net

paragraph:1514: Net Income

paragraph:1515: GAAP amount

paragraph:1516: $

paragraph:1517: 12,971

paragraph:1518: $

paragraph:1519: 4,803

paragraph:1520: $

paragraph:1521: 17,774

paragraph:1522: $

paragraph:1523: 10,402

paragraph:1524: $

paragraph:1525: 7,372

paragraph:1526: $

paragraph:1527: 231

paragraph:1528: $

paragraph:1529: 6,272

paragraph:1530: % of revenue

paragraph:1531: 63.7

paragraph:1533: 67.8

paragraph:1535: 64.7

paragraph:1537: 37.9

paragraph:1539: 26.8

paragraph:1541: 0.8

paragraph:1543: 22.8

paragraph:1545: Adjustments to GAAP amounts:

paragraph:1546: Share-based compensation expense

paragraph:1547: 100

paragraph:1548: 142

paragraph:1549: 242

paragraph:1550: 1,212

paragraph:1551: 1,454

paragraph:1552: —

paragraph:1553: 1,454

paragraph:1554: Amortization of acquisition-related intangible assets

paragraph:1555: 356

paragraph:1556: —

paragraph:1557: 356

paragraph:1558: 133

paragraph:1559: 489

paragraph:1560: —

paragraph:1561: 489

paragraph:1562: Acquisition/divestiture-related costs

paragraph:1563: 1

paragraph:1564: —

paragraph:1565: 1

paragraph:1566: 139

paragraph:1567: 140

paragraph:1568: —

paragraph:1569: 140

paragraph:1570: Significant asset impairments and restructurings

paragraph:1571: —

paragraph:1572: —

paragraph:1573: —

paragraph:1574: 135

paragraph:1575: 135

paragraph:1576: —

paragraph:1577: 135

paragraph:1578: Russia-Ukraine war costs

paragraph:1579: —

paragraph:1580: —

paragraph:1581: —

paragraph:1582: (2

paragraph:1583: )

paragraph:1584: (2

paragraph:1585: )

paragraph:1586: —

paragraph:1587: (2

paragraph:1588: )

paragraph:1589: (Gains) and losses on investments

paragraph:1590: —

paragraph:1591: —

paragraph:1592: —

paragraph:1593: —

paragraph:1594: —

paragraph:1595: 139

paragraph:1596: 139

paragraph:1597: Income tax effect/significant tax matters

paragraph:1598: —

paragraph:1599: —

paragraph:1600: —

paragraph:1601: —

paragraph:1602: —

paragraph:1603: —

paragraph:1604: (561

paragraph:1605: )

paragraph:1606: Non-GAAP amount

paragraph:1607: $

paragraph:1608: 13,428

paragraph:1609: $

paragraph:1610: 4,945

paragraph:1611: $

paragraph:1612: 18,373

paragraph:1613: $

paragraph:1614: 8,785

paragraph:1615: $

paragraph:1616: 9,588

paragraph:1617: $

paragraph:1618: 370

paragraph:1619: $

paragraph:1620: 8,066

paragraph:1621: % of revenue

paragraph:1622: 65.9

paragraph:1624: 69.8

paragraph:1626: 66.9

paragraph:1628: 32.0

paragraph:1630: 34.9

paragraph:1632: 1.3

paragraph:1634: 29.4

paragraph:1636: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:1637: 13

paragraph:1638: CISCO SYSTEMS, INC.

paragraph:1639: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1640: EFFECTIVE TAX RATE

paragraph:1641: (In percentages)

paragraph:1642: Three Months Ended

paragraph:1643: Six Months Ended

paragraph:1644: January 25, 2025

paragraph:1645: January 27, 2024

paragraph:1646: January 25, 2025

paragraph:1647: January 27, 2024

paragraph:1648: GAAP effective tax rate

paragraph:1649: 15.9

paragraph:1651: 16.7

paragraph:1653: 0.3

paragraph:1655: 17.5

paragraph:1657: Total adjustments to GAAP provision for income taxes

paragraph:1658: 3.1

paragraph:1660: 2.3

paragraph:1662: 18.7

paragraph:1664: 1.5

paragraph:1666: Non-GAAP effective tax rate

paragraph:1667: 19.0

paragraph:1669: 19.0

paragraph:1671: 19.0

paragraph:1673: 19.0

paragraph:1675: GAAP TO NON-GAAP GUIDANCE

paragraph:1676: Q3 FY 2025

paragraph:1677: Gross Margin Rate

paragraph:1678: Operating Margin Rate

paragraph:1679: Earnings per Share (1)

paragraph:1680: GAAP

paragraph:1681: 64% - 65%

paragraph:1682: 21% - 22%

paragraph:1683: $0.57 - $0.61

paragraph:1684: Estimated adjustments for:

paragraph:1685: Share-based compensation expense

paragraph:1686: 1.0%

paragraph:1687: 7.0%

paragraph:1688: $0.17 - $0.18

paragraph:1689: Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

paragraph:1690: 2.0%

paragraph:1691: 5.0%

paragraph:1692: $0.14 - $0.15

paragraph:1693: Non-GAAP

paragraph:1694: 67% - 68%

paragraph:1695: 33% - 34%

paragraph:1696: $0.90 - $0.92

paragraph:1697: FY 2025

paragraph:1698: Earnings per Share (1)

paragraph:1699: GAAP

paragraph:1700: $2.40 - $2.52

paragraph:1701: Estimated adjustments for:

paragraph:1702: Share-based compensation expense

paragraph:1703: $0.69 - $0.71

paragraph:1704: Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

paragraph:1705: $0.60 - $0.62

paragraph:1706: Significant asset impairments and restructurings

paragraph:1707: $0.16 - $0.18

paragraph:1708: (Gains) and losses on investments

paragraph:1709: ($0.02)

paragraph:1710: Significant tax matters

paragraph:1711: ($0.21)

paragraph:1712: Non-GAAP

paragraph:1713: $3.68 - $3.74

paragraph:1714: (1)

paragraph:1715: Estimated adjustments to GAAP earnings per share are shown after income tax effects.

paragraph:1716: 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.

paragraph:1717: 14

paragraph:1718: Forward Looking Statements, Non-GAAP Information and Additional Information

paragraph:1719: This release may be deemed to 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 customer demand and our position to help our customers scale their network infrastructure, increase their data capacity requirements, and adopt best-in-class AI security) and the future financial performance of Cisco (including the guidance for Q3 FY 2025 and full year FY 2025) that involve risks and uncertainties. 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, cloud, enterprise 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 services 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 November 19, 2024 and September 5, 2024, respectively. The financial information contained in this release 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 and six months ended January 25, 2025 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release 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 this release.

paragraph:1720: This release includes

paragraph:1721: non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP

paragraph:1722: operating income and margin, non-GAAP effective tax rates, non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

paragraph:1723: These non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.

paragraph:1724: 15

paragraph:1725: Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

paragraph:1726: For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia-Ukraine war costs, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP

paragraph:1727: financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

paragraph:1728: About Cisco

paragraph:1729: Cisco (NASDAQ: CSCO) is the worldwide technology leader that is revolutionizing the way organizations connect and protect in the AI era. For more than 40 years, Cisco has securely connected the world. With its industry leading AI-powered solutions and services, Cisco enables its customers, partners and communities to unlock innovation, enhance productivity and strengthen digital resilience. With purpose at its core, Cisco remains committed to creating a more connected and inclusive future for all. Discover more on The Newsroom and follow us on X at @Cisco.

paragraph:1730: Copyright © 2025 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

paragraph:1731: RSS Feed for Cisco: https://newsroom.cisco.com/rss-feeds

paragraph:1732: 16

2024-11-13Nov 13, 2024, 11:00 AM ESTSec 8k Exhibit1279 segments

paragraph:1: EX-99.1

paragraph:3: d875468dex991.htm

paragraph:4: EX-99.1

paragraph:5: EX-99.1

paragraph:6: Exhibit 99.1

paragraph:7: Press Contact:

paragraph:8: Investor Relations Contact:

paragraph:9: Robyn Blum

paragraph:10: Sami Badri

paragraph:11: Cisco

paragraph:12: Cisco

paragraph:13: 1 (408) 930-8548

paragraph:14: 1 (469) 420-4834

paragraph:15: rojenkin@cisco.com

paragraph:16: sambadri@cisco.com

paragraph:17: CISCO REPORTS FIRST QUARTER EARNINGS

paragraph:18: News Summary:

paragraph:20: Broad-based acceleration in product orders reflecting normalizing demand

paragraph:22: Product orders up 20% year over year; up 9% year over year excluding Splunk

paragraph:24: Revenue of $13.8 billion in Q1, at the high end of our guidance range

paragraph:26: Strong profitability:

paragraph:28: GAAP gross margin of 65.9% and non-GAAP gross margin of 69.3%, above our guidance range

paragraph:30: GAAP EPS of $0.68 and non-GAAP EPS of $0.91, above our guidance range

paragraph:32: Q1 FY 2025 Results:

paragraph:34: Revenue: $13.8 billion

paragraph:36: Decrease of 6% year over year

paragraph:38: Earnings per Share: GAAP: $0.68; Non-GAAP: $0.91

paragraph:40: GAAP EPS decreased 24% year over year

paragraph:42: Non-GAAP EPS decreased 18% year over year

paragraph:44: Q2 FY 2025 Guidance:

paragraph:46: Revenue: $13.75 billion to $13.95 billion

paragraph:48: Earnings per Share: GAAP: $0.51 to $0.56; Non-GAAP: $0.89 to $0.91

paragraph:50: FY 2025 Guidance:

paragraph:52: Revenue: $55.3 billion to $56.3 billion

paragraph:54: Earnings per Share: GAAP: $2.26 to $2.38; Non-GAAP: $3.60 to $3.66

paragraph:55: SAN JOSE, Calif. — November 13, 2024 — Cisco today reported first quarter results for the period ended October 26, 2024. Cisco reported first quarter revenue of $13.8 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.7 billion or $0.68 per share, and non-GAAP net income of $3.7 billion or $0.91 per share.

paragraph:56: “Cisco is off to a strong start to fiscal 2025” said Chuck Robbins, chair and CEO of Cisco. “Our customers are investing in critical infrastructure to prepare for AI, and with the breadth of our portfolio, we are uniquely positioned to capitalize on this opportunity.”

paragraph:57: “Revenue, gross margin and EPS in Q1 were at the high end or above our guidance range, generating strong operating leverage” said Scott Herren, CFO of Cisco. “We are focused on solid execution and operating discipline while making strategic investments to drive innovation and growth.”

paragraph:58: 1

paragraph:59: GAAP Results

paragraph:60: Q1 FY 2025

paragraph:61: Q1 FY 2024

paragraph:62: Vs. Q1 FY 2024

paragraph:63: Revenue

paragraph:64: $

paragraph:65: 13.8 billion

paragraph:66: $

paragraph:67: 14.7 billion

paragraph:68: (6

paragraph:69: )%

paragraph:70: Net Income

paragraph:71: $

paragraph:72: 2.7 billion

paragraph:73: $

paragraph:74: 3.6 billion

paragraph:75: (25

paragraph:76: )%

paragraph:77: Diluted Earnings per Share (EPS)

paragraph:78: $

paragraph:79: 0.68

paragraph:80: $

paragraph:81: 0.89

paragraph:82: (24

paragraph:83: )%

paragraph:84: Q1 FY 2025 GAAP results include a tax benefit of $720 million due to a recent U.S. Tax Court decision regarding the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act.

paragraph:85: Non-GAAP Results

paragraph:86: Q1 FY 2025

paragraph:87: Q1 FY 2024

paragraph:88: Vs. Q1 FY 2024

paragraph:89: Net Income

paragraph:90: $

paragraph:91: 3.7 billion

paragraph:92: $

paragraph:93: 4.5 billion

paragraph:94: (19

paragraph:95: )%

paragraph:96: EPS

paragraph:97: $

paragraph:98: 0.91

paragraph:99: $

paragraph:100: 1.11

paragraph:101: (18

paragraph:102: )%

paragraph:103: Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP

paragraph:104: basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:105: Cisco Declares Quarterly Dividend

paragraph:106: Cisco has declared a quarterly dividend of $0.40 per common share to be paid on January 22, 2025, to all stockholders of record as of the close of business on January 3, 2025. Future dividends will be subject to Board approval.

paragraph:107: 2

paragraph:108: Financial Summary

paragraph:109: All comparative percentages are on a year-over-year basis unless otherwise noted.

paragraph:110: Q1 FY 2025 Highlights

paragraph:111: Revenue — Total revenue was $13.8 billion, down 6%, with product revenue down 9% and services revenue up 6%. Excluding the contribution from Splunk, total revenue was down 14%.

paragraph:112: Revenue by geographic segment was: Americas down 9%, EMEA down 2%, and APJC up 1%. Product revenue performance reflected growth in Security up 100% and Observability up 36%. Networking was down 23% and Collaboration was down 3%. Excluding Splunk, Security and Observability grew 2% and 1%, respectively, in the first quarter of fiscal 2025.

paragraph:113: Gross Margin —

paragraph:114: On a GAAP basis, total gross margin, product gross margin, and services gross margin were 65.9%, 65.1%, and 68.0%, respectively, as compared with 65.2%, 64.5%, and 67.3%, respectively, in the first quarter of fiscal 2024.

paragraph:115: On a

paragraph:116: non-GAAP basis, total gross margin, product gross margin, and services gross margin were 69.3%, 68.9%, and 70.3%, respectively, as compared with 67.1%, 66.5%, and 69.0%, respectively, in the first quarter of fiscal 2024.

paragraph:117: Total gross margins by geographic segment were: 69.6% for the Americas, 70.3% for EMEA and 66.4% for APJC.

paragraph:118: Operating Expenses —

paragraph:119: On a GAAP basis, operating expenses were $6.8 billion, up 28%, and were 48.9% of revenue. Non-GAAP operating expenses were $4.9 billion, up 9%, and were 35.2% of revenue.

paragraph:120: Operating Income — GAAP operating income was $2.4 billion, down 45%, with GAAP operating margin of 17.0%. Non-GAAP operating income was $4.7 billion, down 12%, with

paragraph:121: non-GAAP operating margin at 34.1%.

paragraph:122: Provision for (benefit from) Income Taxes — The GAAP tax provision rate was a benefit of 19.6%, which includes the $720 million benefit on deemed foreign dividends as discussed above. The non-GAAP tax provision rate was 19.0%.

paragraph:123: Net Income and EPS — On a GAAP basis, net income was $2.7 billion, a decrease of 25%, and EPS was $0.68, a decrease of 24%. On a non-GAAP basis, net income was $3.7 billion, a decrease of 19%, and EPS was $0.91, a decrease of 18%.

paragraph:124: Cash Flow from Operating Activities — $3.7 billion for the first quarter of fiscal 2025, an increase of 54%, compared with $2.4 billion for the first quarter of fiscal 2024.

paragraph:125: Balance Sheet and Other Financial Highlights

paragraph:126: Cash and Cash Equivalents and Investments — $18.7 billion at the end of the first quarter of fiscal 2025, compared with $17.9 billion at the end of fiscal 2024.

paragraph:127: Remaining Performance Obligations (RPO)

paragraph:128: — $40.0 billion, up 15% in total, with 51% of this amount to be recognized as revenue over the next 12 months. Product RPO were up 24% and services RPO were up 7%.

paragraph:129: Deferred Revenue — $27.5 billion, up 7% in total, with deferred product revenue up 11%. Deferred services revenue was up 4%.

paragraph:130: Capital Allocation — In the first quarter of fiscal 2025, we returned $3.6 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.40 per common share, or $1.6 billion, and repurchased approximately 40 million shares of common stock under our stock repurchase program at an average price of $49.56 per share for an aggregate purchase price of $2.0 billion. The remaining authorized amount for stock repurchases under the program is $3.2 billion with no termination date.

paragraph:131: Acquisitions

paragraph:132: In the first quarter of fiscal 2025, we closed the following acquisitions:

paragraph:133: •

paragraph:134: DeepFactor, Inc. , a privately held cloud-native application security company

paragraph:135: •

paragraph:136: Robust Intelligence, Inc. , a privately held AI security solutions company

paragraph:137: 3

paragraph:138: Guidance

paragraph:139: Cisco estimates the following results for the second quarter of fiscal 2025:

paragraph:140: Q2 FY 2025

paragraph:141: Revenue

paragraph:142: $13.75 billion - $13.95 billion

paragraph:143: Non-GAAP gross margin

paragraph:144: 68% - 69%

paragraph:145: Non-GAAP operating margin

paragraph:146: 33.5% - 34.5%

paragraph:147: Non-GAAP EPS

paragraph:148: $0.89 - $0.91

paragraph:149: Cisco estimates that GAAP EPS will be $0.51 to $0.56 for the second quarter of fiscal 2025.

paragraph:150: Cisco estimates the following results for fiscal 2025:

paragraph:151: FY 2025

paragraph:152: Revenue

paragraph:153: $55.3 billion - $56.3 billion

paragraph:154: Non-GAAP EPS

paragraph:155: $3.60 - $3.66

paragraph:156: Cisco estimates that GAAP EPS will be $2.26 to $2.38 for fiscal 2025.

paragraph:157: Our Q2 FY 2025 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 19% for

paragraph:158: non-GAAP results. Our FY 2025 guidance assumes an effective tax provision rate of approximately 9% for GAAP and approximately 19% for non-GAAP results.

paragraph:159: A reconciliation between the guidance on a GAAP and non-GAAP basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:160: Editor’s Notes:

paragraph:161: •

paragraph:162: Q1 fiscal year 2025 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, November 13, 2024 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).

paragraph:163: •

paragraph:164: Conference call replay will be available from 4:00 p.m. Pacific Time, November 13, 2024 to 4:00 p.m. Pacific Time, November 19, 2024 at 1-866-360-7722 (United States) or

paragraph:165: 1-203-369-0174 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:166: •

paragraph:167: Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, November 13, 2024. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to

paragraph:168: non-GAAP reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:169: 4

paragraph:170: CISCO SYSTEMS, INC.

paragraph:171: CONSOLIDATED STATEMENTS OF OPERATIONS

paragraph:172: (In millions, except per-share amounts)

paragraph:173: (Unaudited)

paragraph:174: Three Months Ended

paragraph:175: October 26, 2024

paragraph:176: October 28, 2023

paragraph:177: REVENUE:

paragraph:178: Product

paragraph:179: $

paragraph:180: 10,114

paragraph:181: $

paragraph:182: 11,139

paragraph:183: Services

paragraph:184: 3,727

paragraph:185: 3,529

paragraph:186: Total revenue

paragraph:187: 13,841

paragraph:188: 14,668

paragraph:189: COST OF SALES:

paragraph:190: Product

paragraph:191: 3,526

paragraph:192: 3,957

paragraph:193: Services

paragraph:194: 1,194

paragraph:195: 1,154

paragraph:196: Total cost of sales

paragraph:197: 4,720

paragraph:198: 5,111

paragraph:199: GROSS MARGIN

paragraph:200: 9,121

paragraph:201: 9,557

paragraph:202: OPERATING EXPENSES:

paragraph:203: Research and development

paragraph:204: 2,286

paragraph:205: 1,913

paragraph:206: Sales and marketing

paragraph:207: 2,752

paragraph:208: 2,506

paragraph:209: General and administrative

paragraph:210: 795

paragraph:211: 672

paragraph:212: Amortization of purchased intangible assets

paragraph:213: 265

paragraph:214: 67

paragraph:215: Restructuring and other charges

paragraph:216: 665

paragraph:217: 123

paragraph:218: Total operating expenses

paragraph:219: 6,763

paragraph:220: 5,281

paragraph:221: OPERATING INCOME

paragraph:222: 2,358

paragraph:223: 4,276

paragraph:224: Interest income

paragraph:225: 286

paragraph:226: 360

paragraph:227: Interest expense

paragraph:228: (418

paragraph:229: )

paragraph:230: (111

paragraph:231: )

paragraph:232: Other income (loss), net

paragraph:233: 41

paragraph:234: (83

paragraph:235: )

paragraph:236: Interest and other income (loss), net

paragraph:237: (91

paragraph:238: )

paragraph:239: 166

paragraph:240: INCOME BEFORE PROVISION FOR INCOME TAXES

paragraph:241: 2,267

paragraph:242: 4,442

paragraph:243: Provision for (benefit from) income taxes

paragraph:244: (444

paragraph:245: )

paragraph:246: 804

paragraph:247: NET INCOME

paragraph:248: $

paragraph:249: 2,711

paragraph:250: $

paragraph:251: 3,638

paragraph:252: Net income per share:

paragraph:253: Basic

paragraph:254: $

paragraph:255: 0.68

paragraph:256: $

paragraph:257: 0.90

paragraph:258: Diluted

paragraph:259: $

paragraph:260: 0.68

paragraph:261: $

paragraph:262: 0.89

paragraph:263: Shares used in per-share calculation:

paragraph:264: Basic

paragraph:265: 3,990

paragraph:266: 4,057

paragraph:267: Diluted

paragraph:268: 4,013

paragraph:269: 4,087

paragraph:270: 5

paragraph:271: CISCO SYSTEMS, INC.

paragraph:272: REVENUE BY SEGMENT

paragraph:273: (In millions, except percentages)

paragraph:274: Three Months Ended October 26, 2024

paragraph:275: Amount

paragraph:276: Y/Y%

paragraph:277: Revenue:

paragraph:278: Americas

paragraph:279: $

paragraph:280: 8,252

paragraph:281: (9

paragraph:282: )%

paragraph:283: EMEA

paragraph:284: 3,588

paragraph:285: (2

paragraph:286: )%

paragraph:287: APJC

paragraph:288: 2,001

paragraph:289: 1

paragraph:290: %

paragraph:291: Total

paragraph:292: $

paragraph:293: 13,841

paragraph:294: (6

paragraph:295: )%

paragraph:296: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:297: CISCO SYSTEMS, INC.

paragraph:298: GROSS MARGIN PERCENTAGE BY SEGMENT

paragraph:299: (In percentages)

paragraph:300: Three Months Ended October 26, 2024

paragraph:301: Gross Margin Percentage:

paragraph:302: Americas

paragraph:303: 69.6%

paragraph:304: EMEA

paragraph:305: 70.3%

paragraph:306: APJC

paragraph:307: 66.4%

paragraph:308: CISCO SYSTEMS, INC.

paragraph:309: REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

paragraph:310: (In millions, except percentages)

paragraph:311: Three Months Ended October 26, 2024

paragraph:312: Amount

paragraph:313: Y/Y%

paragraph:314: Revenue:

paragraph:315: Networking

paragraph:316: $

paragraph:317: 6,753

paragraph:318: (23

paragraph:319: )%

paragraph:320: Security

paragraph:321: 2,017

paragraph:322: 100

paragraph:323: %

paragraph:324: Collaboration

paragraph:325: 1,085

paragraph:326: (3

paragraph:327: )%

paragraph:328: Observability

paragraph:329: 258

paragraph:330: 36

paragraph:331: %

paragraph:332: Total Product

paragraph:333: 10,114

paragraph:334: (9

paragraph:335: )%

paragraph:336: Services

paragraph:337: 3,727

paragraph:338: 6

paragraph:339: %

paragraph:340: Total

paragraph:341: $

paragraph:342: 13,841

paragraph:343: (6

paragraph:344: )%

paragraph:345: Excluding Splunk, Security and Observability grew 2% and 1%, respectively, in the first quarter of fiscal 2025.

paragraph:346: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:347: 6

paragraph:348: CISCO SYSTEMS, INC.

paragraph:349: CONDENSED CONSOLIDATED BALANCE SHEETS

paragraph:350: (In millions)

paragraph:351: (Unaudited)

paragraph:352: October 26, 2024

paragraph:353: July 27, 2024

paragraph:354: ASSETS

paragraph:355: Current assets:

paragraph:356: Cash and cash equivalents

paragraph:357: $

paragraph:358: 9,065

paragraph:359: $

paragraph:360: 7,508

paragraph:361: Investments

paragraph:362: 9,606

paragraph:363: 10,346

paragraph:364: Accounts receivable, net of allowance of $78 at October 26, 2024 and $87 at July 27, 2024

paragraph:365: 4,457

paragraph:366: 6,685

paragraph:367: Inventories

paragraph:368: 3,143

paragraph:369: 3,373

paragraph:370: Financing receivables, net

paragraph:371: 3,123

paragraph:372: 3,338

paragraph:373: Other current assets

paragraph:374: 6,358

paragraph:375: 5,612

paragraph:376: Total current assets

paragraph:377: 35,752

paragraph:378: 36,862

paragraph:379: Property and equipment, net

paragraph:380: 2,082

paragraph:381: 2,090

paragraph:382: Financing receivables, net

paragraph:383: 3,411

paragraph:384: 3,376

paragraph:385: Goodwill

paragraph:386: 58,774

paragraph:387: 58,660

paragraph:388: Purchased intangible assets, net

paragraph:389: 10,744

paragraph:390: 11,219

paragraph:391: Deferred tax assets

paragraph:392: 6,514

paragraph:393: 6,262

paragraph:394: Other assets

paragraph:395: 6,056

paragraph:396: 5,944

paragraph:397: TOTAL ASSETS

paragraph:398: $

paragraph:399: 123,333

paragraph:400: $

paragraph:401: 124,413

paragraph:402: LIABILITIES AND EQUITY

paragraph:403: Current liabilities:

paragraph:404: Short-term debt

paragraph:405: $

paragraph:406: 12,364

paragraph:407: $

paragraph:408: 11,341

paragraph:409: Accounts payable

paragraph:410: 1,996

paragraph:411: 2,304

paragraph:412: Income taxes payable

paragraph:413: 2,096

paragraph:414: 1,439

paragraph:415: Accrued compensation

paragraph:416: 2,861

paragraph:417: 3,608

paragraph:418: Deferred revenue

paragraph:419: 15,615

paragraph:420: 16,249

paragraph:421: Other current liabilities

paragraph:422: 5,610

paragraph:423: 5,643

paragraph:424: Total current liabilities

paragraph:425: 40,542

paragraph:426: 40,584

paragraph:427: Long-term debt

paragraph:428: 19,623

paragraph:429: 19,621

paragraph:430: Income taxes payable

paragraph:431: 3,367

paragraph:432: 3,985

paragraph:433: Deferred revenue

paragraph:434: 11,887

paragraph:435: 12,226

paragraph:436: Other long-term liabilities

paragraph:437: 2,637

paragraph:438: 2,540

paragraph:439: Total liabilities

paragraph:440: 78,056

paragraph:441: 78,956

paragraph:442: Total equity

paragraph:443: 45,277

paragraph:444: 45,457

paragraph:445: TOTAL LIABILITIES AND EQUITY

paragraph:446: $

paragraph:447: 123,333

paragraph:448: $

paragraph:449: 124,413

paragraph:450: 7

paragraph:451: CISCO SYSTEMS, INC.

paragraph:452: CONSOLIDATED STATEMENTS OF CASH FLOWS

paragraph:453: (In millions)

paragraph:454: (Unaudited)

paragraph:455: Three Months Ended

paragraph:456: October 26, 2024

paragraph:457: October 28, 2023

paragraph:458: Cash flows from operating activities:

paragraph:459: Net income

paragraph:460: $

paragraph:461: 2,711

paragraph:462: $

paragraph:463: 3,638

paragraph:464: Adjustments to reconcile net income to net cash provided by operating activities:

paragraph:465: Depreciation, amortization, and other

paragraph:466: 789

paragraph:467: 401

paragraph:468: Share-based compensation expense

paragraph:469: 827

paragraph:470: 661

paragraph:471: Provision (benefit) for receivables

paragraph:472: (1

paragraph:473: )

paragraph:474: 4

paragraph:475: Deferred income taxes

paragraph:476: (281

paragraph:477: )

paragraph:478: (513

paragraph:479: )

paragraph:480: (Gains) losses on divestitures, investments and other, net

paragraph:481: (60

paragraph:482: )

paragraph:483: 89

paragraph:484: Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

paragraph:485: Accounts receivable

paragraph:486: 2,227

paragraph:487: 979

paragraph:488: Inventories

paragraph:489: 229

paragraph:490: 307

paragraph:491: Financing receivables

paragraph:492: 173

paragraph:493: 25

paragraph:494: Other assets

paragraph:495: (190

paragraph:496: )

paragraph:497: (290

paragraph:498: )

paragraph:499: Accounts payable

paragraph:500: (269

paragraph:501: )

paragraph:502: (235

paragraph:503: )

paragraph:504: Income taxes, net

paragraph:505: (806

paragraph:506: )

paragraph:507: (1,773

paragraph:508: )

paragraph:509: Accrued compensation

paragraph:510: (754

paragraph:511: )

paragraph:512: (908

paragraph:513: )

paragraph:514: Deferred revenue

paragraph:515: (971

paragraph:516: )

paragraph:517: 259

paragraph:518: Other liabilities

paragraph:519: 37

paragraph:520: (273

paragraph:521: )

paragraph:522: Net cash provided by operating activities

paragraph:523: 3,661

paragraph:524: 2,371

paragraph:525: Cash flows from investing activities:

paragraph:526: Purchases of investments

paragraph:527: (1,775

paragraph:528: )

paragraph:529: (1,850

paragraph:530: )

paragraph:531: Proceeds from sales of investments

paragraph:532: 1,490

paragraph:533: 1,280

paragraph:534: Proceeds from maturities of investments

paragraph:535: 1,164

paragraph:536: 2,497

paragraph:537: Acquisitions, net of cash and cash equivalents acquired and divestitures

paragraph:538: (217

paragraph:539: )

paragraph:540: (876

paragraph:541: )

paragraph:542: Purchases of investments in privately held companies

paragraph:543: (42

paragraph:544: )

paragraph:545: (13

paragraph:546: )

paragraph:547: Return of investments in privately held companies

paragraph:548: 77

paragraph:549: 47

paragraph:550: Acquisition of property and equipment

paragraph:551: (217

paragraph:552: )

paragraph:553: (134

paragraph:554: )

paragraph:555: Other

paragraph:556: (1

paragraph:557: )

paragraph:558: 1

paragraph:559: Net cash provided by investing activities

paragraph:560: 479

paragraph:561: 952

paragraph:562: Cash flows from financing activities:

paragraph:563: Repurchases of common stock—repurchase program

paragraph:564: (2,003

paragraph:565: )

paragraph:566: (1,300

paragraph:567: )

paragraph:568: Shares repurchased for tax withholdings on vesting of restricted stock units

paragraph:569: (165

paragraph:570: )

paragraph:571: (153

paragraph:572: )

paragraph:573: Short-term borrowings, original maturities of 90 days or less, net

paragraph:574: 68

paragraph:575: —

paragraph:576: Issuances of debt

paragraph:577: 5,732

paragraph:578: —

paragraph:579: Repayments of debt

paragraph:580: (4,821

paragraph:581: )

paragraph:582: (750

paragraph:583: )

paragraph:584: Dividends paid

paragraph:585: (1,592

paragraph:586: )

paragraph:587: (1,580

paragraph:588: )

paragraph:589: Other

paragraph:590: (3

paragraph:591: )

paragraph:592: (17

paragraph:593: )

paragraph:594: Net cash used in financing activities

paragraph:595: (2,784

paragraph:596: )

paragraph:597: (3,800

paragraph:598: )

paragraph:599: Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:600: 10

paragraph:601: (45

paragraph:602: )

paragraph:603: Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:604: 1,366

paragraph:605: (522

paragraph:606: )

paragraph:607: Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of period

paragraph:608: 8,842

paragraph:609: 11,627

paragraph:610: Cash, cash equivalents, restricted cash and restricted cash equivalents, end of period

paragraph:611: $

paragraph:612: 10,208

paragraph:613: $

paragraph:614: 11,105

paragraph:615: Supplemental cash flow information:

paragraph:616: Cash paid for interest

paragraph:617: $

paragraph:618: 545

paragraph:619: $

paragraph:620: 128

paragraph:621: Cash paid for income taxes, net

paragraph:622: $

paragraph:623: 643

paragraph:624: $

paragraph:625: 3,090

paragraph:626: 8

paragraph:627: CISCO SYSTEMS, INC.

paragraph:628: REMAINING PERFORMANCE OBLIGATIONS

paragraph:629: (In millions, except percentages)

paragraph:630: October 26, 2024

paragraph:631: July 27, 2024

paragraph:632: October 28, 2023

paragraph:633: Amount

paragraph:634: Y/Y%

paragraph:635: Amount

paragraph:636: Y/Y%

paragraph:637: Amount

paragraph:638: Y/Y%

paragraph:639: Product

paragraph:640: $

paragraph:641: 19,882

paragraph:642: 24

paragraph:643: %

paragraph:644: $

paragraph:645: 20,055

paragraph:646: 27

paragraph:647: %

paragraph:648: $

paragraph:649: 16,011

paragraph:650: 14

paragraph:651: %

paragraph:652: Services

paragraph:653: 20,108

paragraph:654: 7

paragraph:655: %

paragraph:656: 20,993

paragraph:657: 10

paragraph:658: %

paragraph:659: 18,742

paragraph:660: 11

paragraph:661: %

paragraph:662: Total

paragraph:663: $

paragraph:664: 39,990

paragraph:665: 15

paragraph:666: %

paragraph:667: $

paragraph:668: 41,048

paragraph:669: 18

paragraph:670: %

paragraph:671: $

paragraph:672: 34,753

paragraph:673: 12

paragraph:674: %

paragraph:675: We expect 51% of total RPO at October 26, 2024 will be recognized as revenue over the next 12 months.

paragraph:676: CISCO SYSTEMS, INC.

paragraph:677: DEFERRED REVENUE

paragraph:678: (In millions)

paragraph:679: October 26, 2024

paragraph:680: July 27, 2024

paragraph:681: October 28, 2023

paragraph:682: Deferred revenue:

paragraph:683: Product

paragraph:684: $

paragraph:685: 12,941

paragraph:686: $

paragraph:687: 13,219

paragraph:688: $

paragraph:689: 11,689

paragraph:690: Services

paragraph:691: 14,561

paragraph:692: 15,256

paragraph:693: 13,970

paragraph:694: Total

paragraph:695: $

paragraph:696: 27,502

paragraph:697: $

paragraph:698: 28,475

paragraph:699: $

paragraph:700: 25,659

paragraph:701: Reported as:

paragraph:702: Current

paragraph:703: $

paragraph:704: 15,615

paragraph:705: $

paragraph:706: 16,249

paragraph:707: $

paragraph:708: 13,812

paragraph:709: Noncurrent

paragraph:710: 11,887

paragraph:711: 12,226

paragraph:712: 11,847

paragraph:713: Total

paragraph:714: $

paragraph:715: 27,502

paragraph:716: $

paragraph:717: 28,475

paragraph:718: $

paragraph:719: 25,659

paragraph:720: CISCO SYSTEMS, INC.

paragraph:721: DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

paragraph:722: (In millions, except per-share amounts)

paragraph:723: DIVIDENDS

paragraph:724: STOCK REPURCHASE PROGRAM

paragraph:725: TOTAL

paragraph:726: Quarter Ended

paragraph:727: Per Share

paragraph:728: Amount

paragraph:729: Shares

paragraph:730: Weighted- Average Price per Share

paragraph:731: Amount

paragraph:732: Amount

paragraph:733: Fiscal 2025

paragraph:734: October 26, 2024

paragraph:735: $

paragraph:736: 0.40

paragraph:737: $

paragraph:738: 1,592

paragraph:739: 40

paragraph:740: $

paragraph:741: 49.56

paragraph:742: $

paragraph:743: 2,003

paragraph:744: $

paragraph:745: 3,595

paragraph:746: Fiscal 2024

paragraph:747: July 27, 2024

paragraph:748: $

paragraph:749: 0.40

paragraph:750: $

paragraph:751: 1,606

paragraph:752: 43

paragraph:753: $

paragraph:754: 46.80

paragraph:755: $

paragraph:756: 2,002

paragraph:757: $

paragraph:758: 3,608

paragraph:759: April 27, 2024

paragraph:760: $

paragraph:761: 0.40

paragraph:762: $

paragraph:763: 1,615

paragraph:764: 26

paragraph:765: $

paragraph:766: 49.22

paragraph:767: $

paragraph:768: 1,256

paragraph:769: $

paragraph:770: 2,871

paragraph:771: January 27, 2024

paragraph:772: $

paragraph:773: 0.39

paragraph:774: $

paragraph:775: 1,583

paragraph:776: 25

paragraph:777: $

paragraph:778: 49.54

paragraph:779: $

paragraph:780: 1,254

paragraph:781: $

paragraph:782: 2,837

paragraph:783: October 28, 2023

paragraph:784: $

paragraph:785: 0.39

paragraph:786: $

paragraph:787: 1,580

paragraph:788: 23

paragraph:790: 54.53

paragraph:792: 1,252

paragraph:794: 2,832

paragraph:796: CISCO SYSTEMS, INC.

paragraph:797: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:798: GAAP TO NON-GAAP NET INCOME

paragraph:799: (In millions)

paragraph:800: Three Months Ended

paragraph:801: October 26, 2024

paragraph:802: October 28, 2023

paragraph:803: GAAP net income

paragraph:804: $

paragraph:805: 2,711

paragraph:806: $

paragraph:807: 3,638

paragraph:808: Adjustments to cost of sales:

paragraph:809: Share-based compensation expense

paragraph:810: 131

paragraph:811: 103

paragraph:812: Amortization of acquisition-related intangible assets

paragraph:813: 319

paragraph:814: 181

paragraph:815: Acquisition/divestiture-related costs

paragraph:816: 19

paragraph:817: —

paragraph:818: Total adjustments to GAAP cost of sales

paragraph:819: 469

paragraph:820: 284

paragraph:821: Adjustments to operating expenses:

paragraph:822: Share-based compensation expense

paragraph:823: 679

paragraph:824: 550

paragraph:825: Amortization of acquisition-related intangible assets

paragraph:826: 265

paragraph:827: 67

paragraph:828: Acquisition/divestiture-related costs

paragraph:829: 285

paragraph:830: 75

paragraph:831: Russia-Ukraine war costs

paragraph:832: —

paragraph:833: (2

paragraph:834: )

paragraph:835: Significant asset impairments and restructurings

paragraph:836: 665

paragraph:837: 123

paragraph:838: Total adjustments to GAAP operating expenses

paragraph:839: 1,894

paragraph:840: 813

paragraph:841: Adjustments to interest and other income (loss), net:

paragraph:842: (Gains) and losses on investments

paragraph:843: (98

paragraph:844: )

paragraph:845: 51

paragraph:846: Total adjustments to GAAP interest and other income (loss), net

paragraph:847: (98

paragraph:848: )

paragraph:849: 51

paragraph:850: Total adjustments to GAAP income before provision for income taxes

paragraph:851: 2,265

paragraph:852: 1,148

paragraph:853: Income tax effect of non-GAAP adjustments

paragraph:854: (476

paragraph:855: )

paragraph:856: (258

paragraph:857: )

paragraph:858: Significant tax matters (1)

paragraph:859: (829

paragraph:860: )

paragraph:861: —

paragraph:862: Total adjustments to GAAP provision for income taxes

paragraph:863: (1,305

paragraph:864: )

paragraph:865: (258

paragraph:866: )

paragraph:867: Non-GAAP net income

paragraph:868: $

paragraph:869: 3,671

paragraph:870: $

paragraph:871: 4,528

paragraph:872: (1)

paragraph:873: The three months ended October 26, 2024 include a $720 million benefit due to a recent U.S. Tax Court decision regarding the U.S. taxation of deemed foreign dividends in the transition year of the Tax Cuts and Jobs Act.

paragraph:874: 10

paragraph:875: CISCO SYSTEMS, INC.

paragraph:876: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:877: GAAP TO NON-GAAP EPS

paragraph:878: Three Months Ended

paragraph:879: October 26, 2024

paragraph:880: October 28, 2023

paragraph:881: GAAP EPS

paragraph:882: $

paragraph:883: 0.68

paragraph:884: $

paragraph:885: 0.89

paragraph:886: Adjustments to GAAP:

paragraph:887: Share-based compensation expense

paragraph:888: 0.20

paragraph:889: 0.16

paragraph:890: Amortization of acquisition-related intangible assets

paragraph:891: 0.15

paragraph:892: 0.06

paragraph:893: Acquisition/divestiture-related costs

paragraph:894: 0.08

paragraph:895: 0.02

paragraph:896: Significant asset impairments and restructurings

paragraph:897: 0.17

paragraph:898: 0.03

paragraph:899: (Gains) and losses on investments

paragraph:900: (0.02

paragraph:901: )

paragraph:902: 0.01

paragraph:903: Income tax effect of non-GAAP adjustments

paragraph:904: (0.12

paragraph:905: )

paragraph:906: (0.06

paragraph:907: )

paragraph:908: Significant tax matters

paragraph:909: (0.21

paragraph:910: )

paragraph:911: —

paragraph:912: Non-GAAP EPS

paragraph:913: $

paragraph:914: 0.91

paragraph:915: $

paragraph:916: 1.11

paragraph:917: Amounts may not sum due to rounding.

paragraph:918: 11

paragraph:919: CISCO SYSTEMS, INC.

paragraph:920: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:921: GROSS MARGINS, OPERATING EXPENSES, OPERATING MARGINS, INTEREST AND OTHER INCOME (LOSS), NET,

paragraph:922: AND NET INCOME

paragraph:923: (In millions, except percentages)

paragraph:924: Three Months Ended

paragraph:925: October 26, 2024

paragraph:926: Product Gross Margin

paragraph:927: Services Gross Margin

paragraph:928: Total Gross Margin

paragraph:929: Operating Expenses

paragraph:930: Y/Y

paragraph:931: Operating Income

paragraph:932: Y/Y

paragraph:933: Interest and other income (loss), net

paragraph:934: Net Income

paragraph:935: Y/Y

paragraph:936: GAAP amount

paragraph:938: 6,588

paragraph:940: 2,533

paragraph:942: 9,121

paragraph:944: 6,763

paragraph:945: 28

paragraph:946: %

paragraph:947: $

paragraph:948: 2,358

paragraph:949: (45

paragraph:950: )%

paragraph:951: $

paragraph:952: (91

paragraph:953: )

paragraph:954: $

paragraph:955: 2,711

paragraph:956: (25

paragraph:957: )%

paragraph:958: % of revenue

paragraph:959: 65.1

paragraph:961: 68.0

paragraph:963: 65.9

paragraph:965: 48.9

paragraph:967: 17.0

paragraph:969: (0.7

paragraph:970: )%

paragraph:971: 19.6

paragraph:972: %

paragraph:973: Adjustments to GAAP amounts:

paragraph:974: Share-based compensation expense

paragraph:975: 57

paragraph:976: 74

paragraph:977: 131

paragraph:978: 679

paragraph:979: 810

paragraph:980: —

paragraph:981: 810

paragraph:982: Amortization of acquisition-related intangible assets

paragraph:983: 319

paragraph:984: —

paragraph:985: 319

paragraph:986: 265

paragraph:987: 584

paragraph:988: —

paragraph:989: 584

paragraph:990: Acquisition/divestiture-related costs

paragraph:991: 5

paragraph:992: 14

paragraph:993: 19

paragraph:994: 285

paragraph:995: 304

paragraph:996: —

paragraph:997: 304

paragraph:998: Significant asset impairments and restructurings

paragraph:999: —

paragraph:1000: —

paragraph:1001: —

paragraph:1002: 665

paragraph:1003: 665

paragraph:1004: —

paragraph:1005: 665

paragraph:1006: (Gains) and losses on investments

paragraph:1007: —

paragraph:1008: —

paragraph:1009: —

paragraph:1010: —

paragraph:1011: —

paragraph:1012: (98

paragraph:1013: )

paragraph:1014: (98

paragraph:1015: )

paragraph:1016: Income tax effect/significant tax matters

paragraph:1017: —

paragraph:1018: —

paragraph:1019: —

paragraph:1020: —

paragraph:1021: —

paragraph:1022: —

paragraph:1023: (1,305

paragraph:1024: )

paragraph:1025: Non-GAAP amount

paragraph:1026: $

paragraph:1027: 6,969

paragraph:1028: $

paragraph:1029: 2,621

paragraph:1030: $

paragraph:1031: 9,590

paragraph:1032: $

paragraph:1033: 4,869

paragraph:1034: 9

paragraph:1035: %

paragraph:1036: $

paragraph:1037: 4,721

paragraph:1038: (12

paragraph:1039: )%

paragraph:1040: $

paragraph:1041: (189

paragraph:1042: )

paragraph:1043: $

paragraph:1044: 3,671

paragraph:1045: (19

paragraph:1046: )%

paragraph:1047: % of revenue

paragraph:1048: 68.9

paragraph:1050: 70.3

paragraph:1052: 69.3

paragraph:1054: 35.2

paragraph:1056: 34.1

paragraph:1058: (1.4

paragraph:1059: )%

paragraph:1060: 26.5

paragraph:1061: %

paragraph:1062: Three Months Ended

paragraph:1063: October 28, 2023

paragraph:1064: Product Gross Margin

paragraph:1065: Services Gross Margin

paragraph:1066: Total Gross Margin

paragraph:1067: Operating Expenses

paragraph:1068: Operating Income

paragraph:1069: Interest and other income (loss), net

paragraph:1070: Net Income

paragraph:1071: GAAP amount

paragraph:1072: $

paragraph:1073: 7,182

paragraph:1074: $

paragraph:1075: 2,375

paragraph:1076: $

paragraph:1077: 9,557

paragraph:1078: $

paragraph:1079: 5,281

paragraph:1080: $

paragraph:1081: 4,276

paragraph:1082: $

paragraph:1083: 166

paragraph:1084: $

paragraph:1085: 3,638

paragraph:1086: % of revenue

paragraph:1087: 64.5

paragraph:1089: 67.3

paragraph:1091: 65.2

paragraph:1093: 36.0

paragraph:1095: 29.2

paragraph:1097: 1.1

paragraph:1099: 24.8

paragraph:1101: Adjustments to GAAP amounts:

paragraph:1102: Share-based compensation expense

paragraph:1103: 42

paragraph:1104: 61

paragraph:1105: 103

paragraph:1106: 550

paragraph:1107: 653

paragraph:1108: —

paragraph:1109: 653

paragraph:1110: Amortization of acquisition-related intangible assets

paragraph:1111: 181

paragraph:1112: —

paragraph:1113: 181

paragraph:1114: 67

paragraph:1115: 248

paragraph:1116: —

paragraph:1117: 248

paragraph:1118: Acquisition/divestiture-related costs

paragraph:1119: —

paragraph:1120: —

paragraph:1121: —

paragraph:1122: 75

paragraph:1123: 75

paragraph:1124: —

paragraph:1125: 75

paragraph:1126: Significant asset impairments and restructurings

paragraph:1127: —

paragraph:1128: —

paragraph:1129: —

paragraph:1130: 123

paragraph:1131: 123

paragraph:1132: —

paragraph:1133: 123

paragraph:1134: Russia-Ukraine war costs

paragraph:1135: —

paragraph:1136: —

paragraph:1137: —

paragraph:1138: (2

paragraph:1139: )

paragraph:1140: (2

paragraph:1141: )

paragraph:1142: —

paragraph:1143: (2

paragraph:1144: )

paragraph:1145: (Gains) and losses on investments

paragraph:1146: —

paragraph:1147: —

paragraph:1148: —

paragraph:1149: —

paragraph:1150: —

paragraph:1151: 51

paragraph:1152: 51

paragraph:1153: Income tax effect/significant tax matters

paragraph:1154: —

paragraph:1155: —

paragraph:1156: —

paragraph:1157: —

paragraph:1158: —

paragraph:1159: —

paragraph:1160: (258

paragraph:1161: )

paragraph:1162: Non-GAAP amount

paragraph:1163: $

paragraph:1164: 7,405

paragraph:1165: $

paragraph:1166: 2,436

paragraph:1167: $

paragraph:1168: 9,841

paragraph:1169: $

paragraph:1170: 4,468

paragraph:1171: $

paragraph:1172: 5,373

paragraph:1173: $

paragraph:1174: 217

paragraph:1175: $

paragraph:1176: 4,528

paragraph:1177: % of revenue

paragraph:1178: 66.5

paragraph:1180: 69.0

paragraph:1182: 67.1

paragraph:1184: 30.5

paragraph:1186: 36.6

paragraph:1188: 1.5

paragraph:1190: 30.9

paragraph:1192: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:1193: 12

paragraph:1194: CISCO SYSTEMS, INC.

paragraph:1195: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1196: EFFECTIVE TAX RATE

paragraph:1197: (In percentages)

paragraph:1198: Three Months Ended

paragraph:1199: October 26, 2024

paragraph:1200: October 28, 2023

paragraph:1201: GAAP effective tax rate

paragraph:1202: (19.6

paragraph:1203: )%

paragraph:1204: 18.1

paragraph:1205: %

paragraph:1206: Total adjustments to GAAP provision for income taxes

paragraph:1207: 38.6

paragraph:1208: %

paragraph:1209: 0.9

paragraph:1210: %

paragraph:1211: Non-GAAP effective tax rate

paragraph:1212: 19.0

paragraph:1213: %

paragraph:1214: 19.0

paragraph:1215: %

paragraph:1216: GAAP TO NON-GAAP GUIDANCE

paragraph:1217: Q2 FY 2025

paragraph:1218: Gross Margin Rate

paragraph:1219: Operating Margin Rate

paragraph:1220: Earnings per Share (1)

paragraph:1221: GAAP

paragraph:1222: 64.5% - 65.5%

paragraph:1223: 20% - 21%

paragraph:1224: $0.51 - $0.56

paragraph:1225: Estimated adjustments for:

paragraph:1226: Share-based compensation expense

paragraph:1227: 1.0%

paragraph:1228: 7.0%

paragraph:1229: $0.18 - $0.19

paragraph:1230: Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

paragraph:1231: 2.5%

paragraph:1232: 6.0%

paragraph:1233: $0.16 - $0.17

paragraph:1234: Significant asset impairments and restructurings

paragraph:1235: —

paragraph:1236: 0.5%

paragraph:1237: $0.01 - $0.02

paragraph:1238: Non-GAAP

paragraph:1239: 68% - 69%

paragraph:1240: 33.5% - 34.5%

paragraph:1241: $0.89 - $0.91

paragraph:1242: FY 2025

paragraph:1243: Earnings per Share (1)

paragraph:1244: GAAP

paragraph:1245: $2.26 - $2.38

paragraph:1246: Estimated adjustments for:

paragraph:1247: Share-based compensation expense

paragraph:1248: $0.73 - $0.75

paragraph:1249: Amortization of acquisition-related intangible assets and acquisition/divestiture-related costs

paragraph:1250: $0.60 - $0.62

paragraph:1251: Significant asset impairments and restructurings

paragraph:1252: $0.18 - $0.20

paragraph:1253: (Gains) and losses on investments

paragraph:1254: ($0.02)

paragraph:1255: Significant tax matters

paragraph:1256: ($0.21)

paragraph:1257: Non-GAAP

paragraph:1258: $3.60 - $3.66

paragraph:1259: (1)

paragraph:1260: Estimated adjustments to GAAP earnings per share are shown after income tax effects.

paragraph:1261: 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.

paragraph:1262: 13

paragraph:1263: Forward Looking Statements, Non-GAAP Information and Additional Information

paragraph:1264: This release may be deemed to 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 our customers’ investments in critical infrastructure to prepare for AI, our position to capitalize on that opportunity given the breadth of our portfolio, and our focus on solid execution and operating discipline while making strategic investments to drive innovation and growth) and the future financial performance of Cisco (including the guidance for Q2 FY 2025 and full year FY 2025) that involve risks and uncertainties. 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, cloud, enterprise 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 services 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 report on Form 10-K filed on September 5, 2024. The financial information contained in this release should be read in conjunction with the consolidated financial statements and notes thereto included in Cisco’s most recent report on Form 10-K as it may be amended from time to time. Cisco’s results of operations for the three months ended October 26, 2024 are not necessarily indicative of Cisco’s operating results for any future periods. Any projections in this release 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 this release.

paragraph:1265: This release includes non-GAAP net income, non-GAAP gross margins, non-GAAP operating expenses, non-GAAP operating income and margin, non-GAAP effective tax rates,

paragraph:1266: non-GAAP interest and other income (loss), net, and non-GAAP net income per share data for the periods presented. It also includes future estimated ranges for gross margin, operating margin, tax provision rate and EPS on a non-GAAP basis.

paragraph:1267: These

paragraph:1268: non-GAAP measures are not in accordance with, or an alternative for, measures prepared in accordance with generally accepted accounting principles (GAAP) and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Cisco believes that non-GAAP measures have limitations in that they do not reflect all of the amounts associated with Cisco’s results of operations as determined in accordance with GAAP and that these measures should only be used to evaluate Cisco’s results of operations in conjunction with the corresponding GAAP measures.

paragraph:1269: 14

paragraph:1270: Cisco believes that the presentation of non-GAAP measures when shown in conjunction with the corresponding GAAP measures, provides useful information to investors and management regarding financial and business trends relating to its financial condition and its historical and projected results of operations.

paragraph:1271: For its internal budgeting process, Cisco’s management uses financial statements that do not include, when applicable, share-based compensation expense, amortization of acquisition-related intangible assets, acquisition/divestiture-related costs, significant asset impairments and restructurings, significant litigation settlements and other contingencies, Russia-Ukraine war costs, gains and losses on investments, the income tax effects of the foregoing and significant tax matters. Cisco’s management also uses the foregoing non-GAAP measures, in addition to the corresponding GAAP measures, in reviewing the financial results of Cisco. In prior periods, Cisco has excluded other items that it no longer excludes for purposes of its non-GAAP financial measures. From time to time in the future there may be other items that Cisco may exclude for purposes of its internal budgeting process and in reviewing its financial results. For additional information on the items excluded by Cisco from one or more of its non-GAAP

paragraph:1272: financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

paragraph:1273: Annualized recurring revenue 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.

paragraph:1274: About Cisco

paragraph:1275: Cisco (Nasdaq: CSCO) is the worldwide technology leader that securely connects everything to make anything possible. Our purpose is to power an inclusive future for all by helping our customers reimagine their applications, power hybrid work, secure their enterprise, transform their infrastructure, and meet their sustainability goals. Discover more at newsroom.cisco.com and follow us on X at @Cisco.

paragraph:1276: Copyright © 2024 Cisco and/or its affiliates. All rights reserved. Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. To view a list of Cisco trademarks, go to: www.cisco.com/go/trademarks. Third-party trademarks mentioned in this document are the property of their respective owners. The use of the word partner does not imply a partnership relationship between Cisco and any other company. This document is Cisco Public Information.

paragraph:1277: RSS Feed for

paragraph:1278: Cisco: https://newsroom.cisco.com/rss-feeds

paragraph:1279: 15

2024-08-14Aug 14, 2024, 12:00 PM EDTSec 8k Exhibit1953 segments

paragraph:1: EX-99.1

paragraph:3: d878533dex991.htm

paragraph:4: EX-99.1

paragraph:5: EX-99.1

paragraph:6: Exhibit 99.1

paragraph:7: Press Contact:

paragraph:8: Investor Relations Contact:

paragraph:9: Robyn Blum

paragraph:10: Sami Badri

paragraph:11: Cisco

paragraph:12: Cisco

paragraph:13: 1 (408) 930-8548

paragraph:14: 1 (469) 420-4834

paragraph:15: rojenkin@cisco.com

paragraph:16: sambadri@cisco.com

paragraph:17: CISCO REPORTS FOURTH QUARTER AND FISCAL YEAR 2024 EARNINGS

paragraph:18: News Summary :

paragraph:20: Product order growth of 14% year over year; up 6% excluding Splunk

paragraph:22: Revenue of $13.6 billion in Q4 FY 2024, above the high end of our guidance range

paragraph:24: Strong margins:

paragraph:26: Q4 FY 2024 GAAP gross margin of 64.4% and Non-GAAP gross margin of 67.9%

paragraph:28: FY 2024 GAAP gross margin of 64.7% and Non-GAAP gross margin of 67.5%, the highest in 20 years

paragraph:30: Solid growth in software and recurring metrics in FY 2024, enhanced by Splunk

paragraph:32: Total subscription revenue of $27.4 billion including Splunk, representing 51% of total revenue

paragraph:34: Total annualized recurring revenue (ARR) at $29.6 billion, including $4.3 billion from Splunk, up 22% year over year

paragraph:36: Total software revenue at $18.4 billion, up 9% year over year, with software subscription revenue of $16.4 billion, up 15% year over year, making up 89% of total software revenue

paragraph:38: Q4 FY 2024 Results:

paragraph:40: Revenue: $13.6 billion

paragraph:42: Decrease of 10% year over year

paragraph:44: Earnings per Share: GAAP: $0.54; Non-GAAP: $0.87

paragraph:46: GAAP EPS decreased 44% year over year

paragraph:48: Non-GAAP EPS decreased 24% year over year

paragraph:50: FY 2024 Results:

paragraph:52: Revenue: $53.8 billion

paragraph:54: Decrease of 6% year over year

paragraph:56: Earnings per Share: GAAP: $2.54; Non-GAAP: $3.73

paragraph:58: GAAP EPS decreased 17% year over year

paragraph:59: •

paragraph:60: Non-GAAP EPS decreased 4% year over year

paragraph:61: •

paragraph:62: Q1 FY 2025 Guidance:

paragraph:63: •

paragraph:64: Revenue: $13.65 billion to $13.85 billion

paragraph:65: •

paragraph:66: Earnings per Share: GAAP: $0.35 to $0.42; Non-GAAP: $0.86 to $0.88

paragraph:67: •

paragraph:68: FY 2025 Guidance:

paragraph:69: •

paragraph:70: Revenue: $55.0 billion to $56.2 billion

paragraph:71: •

paragraph:72: Earnings per Share: GAAP: $1.93 to $2.05; Non-GAAP: $3.52 to $3.58

paragraph:73: 1

paragraph:74: SAN JOSE, Calif. — August 14, 2024 — Cisco today reported fourth quarter and fiscal year results for the period ended July 27, 2024. Cisco reported fourth quarter revenue of $13.6 billion, net income on a generally accepted accounting principles (GAAP) basis of $2.2 billion or $0.54 per share, and non-GAAP net income of $3.5 billion or $0.87 per share.

paragraph:75: “We delivered a strong close to fiscal 2024” said Chuck Robbins, chair and CEO of Cisco. “In our fourth quarter, we saw steady customer demand with order growth across the business as customers rely on Cisco to connect and protect all aspects of their organizations in the era of AI.”

paragraph:76: “Revenue, gross margin and EPS in Q4 were at the high end or above our guidance range, demonstrating our operating discipline” said Scott Herren, CFO of Cisco. “As we look to build on our performance, we remain laser focused on growth and consistent execution as we invest to win in AI, cloud and cybersecurity, while maintaining capital returns.”

paragraph:77: Q4 GAAP Results

paragraph:78: Q4 FY 2024

paragraph:79: Q4 FY 2023

paragraph:80: Vs. Q4 FY 2023

paragraph:81: Revenue

paragraph:82: $

paragraph:83: 13.6 billion

paragraph:84: $

paragraph:85: 15.2 billion

paragraph:86: (10

paragraph:87: )%

paragraph:88: Net Income

paragraph:89: $

paragraph:90: 2.2 billion

paragraph:91: $

paragraph:92: 4.0 billion

paragraph:93: (45

paragraph:94: )%

paragraph:95: Diluted Earnings per Share (EPS)

paragraph:96: $

paragraph:97: 0.54

paragraph:98: $

paragraph:99: 0.97

paragraph:100: (44

paragraph:101: )%

paragraph:102: The acquisition of Splunk, including financing costs, had a negative impact of $0.16 to GAAP EPS, for the fourth quarter of fiscal 2024.

paragraph:103: Q4 Non-GAAP Results

paragraph:104: Q4 FY 2024

paragraph:105: Q4 FY 2023

paragraph:106: Vs. Q4 FY 2023

paragraph:107: Net Income

paragraph:108: $

paragraph:109: 3.5 billion

paragraph:110: $

paragraph:111: 4.7 billion

paragraph:112: (25

paragraph:113: )%

paragraph:114: EPS

paragraph:115: $

paragraph:116: 0.87

paragraph:117: $

paragraph:118: 1.14

paragraph:119: (24

paragraph:120: )%

paragraph:121: The acquisition of Splunk, including financing costs, had a negative impact of $0.04 to

paragraph:122: Non-GAAP EPS, for the fourth quarter of fiscal 2024.

paragraph:123: Fiscal Year GAAP Results

paragraph:124: FY 2024

paragraph:125: FY 2023

paragraph:126: Vs. FY 2023

paragraph:127: Revenue

paragraph:128: $

paragraph:129: 53.8 billion

paragraph:130: $

paragraph:131: 57.0 billion

paragraph:132: (6

paragraph:133: )%

paragraph:134: Net Income

paragraph:135: $

paragraph:136: 10.3 billion

paragraph:137: $

paragraph:138: 12.6 billion

paragraph:139: (18

paragraph:140: )%

paragraph:141: EPS

paragraph:142: $

paragraph:143: 2.54

paragraph:144: $

paragraph:145: 3.07

paragraph:146: (17

paragraph:147: )%

paragraph:148: The acquisition of Splunk, including financing costs, had a negative impact of $0.25 to GAAP EPS, for fiscal 2024.

paragraph:149: Fiscal Year Non-GAAP Results

paragraph:150: FY 2024

paragraph:151: FY 2023

paragraph:152: Vs. FY 2023

paragraph:153: Net Income

paragraph:154: $

paragraph:155: 15.2 billion

paragraph:156: $

paragraph:157: 16.0 billion

paragraph:158: (5

paragraph:159: )%

paragraph:160: EPS

paragraph:161: $

paragraph:162: 3.73

paragraph:163: $

paragraph:164: 3.89

paragraph:165: (4

paragraph:166: )%

paragraph:167: The acquisition of Splunk, including financing costs, had a negative impact of $0.04 to

paragraph:168: Non-GAAP EPS, for fiscal 2024.

paragraph:169: Reconciliations between net income, EPS, and other measures on a GAAP and non-GAAP basis are provided in the tables located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:170: Cisco Declares Quarterly Dividend

paragraph:171: Cisco has declared a quarterly dividend of $0.40 per common share to be paid on October 23, 2024, to all stockholders of record as of the close of business on October 2, 2024. Future dividends will be subject to Board approval.

paragraph:172: 2

paragraph:173: Financial Summary

paragraph:174: All comparative percentages are on a year-over-year basis unless otherwise noted.

paragraph:175: Q4 FY 2024 Highlights

paragraph:176: Revenue —

paragraph:177: Total revenue was $13.6 billion, down 10%, with product revenue down 15% and services revenue up 6%. Splunk contributed approximately $960 million of total revenue for the fourth quarter of fiscal 2024.

paragraph:178: Revenue by geographic segment was: Americas down 11%, EMEA down 11%, and APJC down 6%. Product revenue performance reflected growth in Security up 81% and Observability up 41%. Networking was down 28%. Product revenue in Collaboration was flat. Security and Observability, excluding Splunk, grew 6% and 12%, respectively, in the fourth quarter of fiscal 2024.

paragraph:179: Gross Margin —

paragraph:180: On a GAAP basis, total gross margin, product gross margin, and services gross margin were 64.4%, 63.0%, and 67.8%, respectively, as compared with 64.1%, 63.6%, and 65.7%, respectively, in the fourth quarter of fiscal 2023.

paragraph:181: On a

paragraph:182: non-GAAP basis, total gross margin, product gross margin, and services gross margin were 67.9%, 67.0%, and 70.3%, respectively, as compared with 65.9%, 65.5%, and 67.5%, respectively, in the fourth quarter of fiscal 2023.

paragraph:183: Total gross margins by geographic segment were: 67.7% for the Americas, 69.2% for EMEA and 66.4% for APJC.

paragraph:184: Operating Expenses —

paragraph:185: On a GAAP basis, operating expenses were $6.2 billion, up 12%, and were 45.2% of revenue. Non-GAAP operating expenses were $4.8 billion, up 4%, and were 35.4% of revenue.

paragraph:186: Operating Income — GAAP operating income was $2.6 billion, down 38%, with GAAP operating margin of 19.2%. Non-GAAP operating income was $4.4 billion, down 17%, with

paragraph:187: non-GAAP operating margin at 32.5%.

paragraph:188: Provision for Income Taxes — The GAAP tax provision rate was 9.8%. The non-GAAP tax provision rate was 16.6%.

paragraph:189: Net Income and EPS — On a GAAP basis, net income was $2.2 billion, a decrease of 45%, and EPS was $0.54, a decrease of 44%. On a non-GAAP basis, net income was $3.5 billion, a decrease of 25%, and EPS was $0.87, a decrease of 24%.

paragraph:190: Cash Flow from Operating Activities — $3.7 billion for the fourth quarter of fiscal 2024, a decrease of 37% compared with $6.0 billion for the fourth quarter of fiscal 2023.

paragraph:191: FY 2024 Highlights

paragraph:192: Revenue — Total revenue was $53.8 billion, a decrease of 6%. Splunk contributed approximately $1.4 billion of total revenue for fiscal 2024.

paragraph:193: Net Income and EPS — On a GAAP basis, net income was $10.3 billion, a decrease of 18%, and EPS was $2.54, a decrease of 17%. On a non-GAAP basis, net income was $15.2 billion, a decrease of 5% compared to fiscal 2023, and EPS was $3.73, a decrease of 4%.

paragraph:194: Cash Flow from Operating Activities — $10.9 billion for fiscal 2024, a decrease of 45% compared with $19.9 billion for fiscal 2023.

paragraph:195: Balance Sheet and Other Financial Highlights

paragraph:196: Cash and Cash Equivalents and Investments — $17.9 billion at the end of the fourth quarter of fiscal 2024, compared with $18.8 billion at the end of the third quarter of fiscal 2024, and compared with $26.1 billion at the end of fiscal 2023.

paragraph:197: Remaining Performance Obligations (RPO)

paragraph:198: —

paragraph:199: $41.0 billion, up 18% in total, with 51% of this amount to be recognized as revenue over the next 12 months. Product RPO were up 27% and services RPO were up 10%.

paragraph:200: Deferred Revenue — $28.5 billion, up 11% in total, with deferred product revenue up 15%. Deferred service revenue was up 9%.

paragraph:201: Capital Allocation — In the fourth quarter of fiscal 2024, we returned $3.6 billion to stockholders through share buybacks and dividends. We declared and paid a cash dividend of $0.40 per common share, or $1.6 billion, and repurchased approximately 43 million shares of common stock under our stock repurchase program at an average price of $46.80 per share for an aggregate purchase price of $2.0 billion. The remaining authorized amount for stock repurchases under the program is $5.2 billion with no termination date.

paragraph:202: 3

paragraph:203: Guidance

paragraph:204: Cisco estimates the following results for the first quarter of fiscal 2025:

paragraph:205: Q1 FY 2025

paragraph:206: Revenue

paragraph:207: $

paragraph:208: 13.65 billion - $13.85 billion

paragraph:209: Non-GAAP gross margin

paragraph:210: 67% - 68%

paragraph:211: Non-GAAP operating margin

paragraph:212: 32% - 33%

paragraph:213: Non-GAAP EPS

paragraph:214: $0.86 - $0.88

paragraph:215: Cisco estimates that GAAP EPS will be $0.35 to $0.42 for the first quarter of fiscal 2025.

paragraph:216: Cisco estimates the following results for fiscal 2025:

paragraph:217: FY 2025

paragraph:218: Revenue

paragraph:219: $

paragraph:220: 55.0 billion - $56.2 billion

paragraph:221: Non-GAAP EPS

paragraph:222: $3.52 - $3.58

paragraph:223: Cisco estimates that GAAP EPS will be $1.93 to $2.05 for fiscal 2025.

paragraph:224: Our Q1 FY 2025 and FY 2025 guidance assumes an effective tax provision rate of approximately 17% for GAAP and approximately 19% for non-GAAP results.

paragraph:225: A reconciliation between the guidance on a GAAP and non-GAAP

paragraph:226: basis is provided in the tables entitled “GAAP to non-GAAP Guidance” located in the section entitled “Reconciliations of GAAP to non-GAAP Measures.”

paragraph:227: Editor’s Notes:

paragraph:228: •

paragraph:229: Q4 fiscal year 2024 conference call to discuss Cisco’s results along with its guidance will be held on Wednesday, August 14, 2024 at 1:30 p.m. Pacific Time. Conference call number is 1-888-848-6507 (United States) or 1-212-519-0847 (international).

paragraph:230: •

paragraph:231: Conference call replay will be available from 4:00 p.m. Pacific Time, August 14, 2024 to 4:00 p.m. Pacific Time, August 20, 2024 at 1-866-510-4837 (United States) or

paragraph:232: 1-203-369-1943 (international). The replay will also be available via webcast on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:233: •

paragraph:234: Additional information regarding Cisco’s financials, as well as a webcast of the conference call with visuals designed to guide participants through the call, will be available at 1:30 p.m. Pacific Time, August 14, 2024. Text of the conference call’s prepared remarks will be available within 24 hours of completion of the call. The webcast will include both the prepared remarks and the question-and-answer session. This information, along with the GAAP to non-GAAP

paragraph:235: reconciliation information, will be available on the Cisco Investor Relations website at https://investor.cisco.com.

paragraph:236: 4

paragraph:237: CISCO SYSTEMS, INC.

paragraph:238: CONSOLIDATED STATEMENTS OF OPERATIONS

paragraph:239: (In millions, except per-share amounts)

paragraph:240: (Unaudited)

paragraph:241: Three Months Ended

paragraph:242: Fiscal Year Ended

paragraph:243: July 27, 2024

paragraph:244: July 29, 2023

paragraph:245: July 27, 2024

paragraph:246: July 29, 2023

paragraph:247: REVENUE:

paragraph:248: Product

paragraph:249: $

paragraph:250: 9,858

paragraph:251: $

paragraph:252: 11,650

paragraph:253: $

paragraph:254: 39,253

paragraph:255: $

paragraph:256: 43,142

paragraph:257: Services

paragraph:258: 3,784

paragraph:259: 3,553

paragraph:260: 14,550

paragraph:261: 13,856

paragraph:262: Total revenue

paragraph:263: 13,642

paragraph:264: 15,203

paragraph:265: 53,803

paragraph:266: 56,998

paragraph:267: COST OF SALES:

paragraph:268: Product

paragraph:269: 3,644

paragraph:270: 4,237

paragraph:271: 14,339

paragraph:272: 16,590

paragraph:273: Services

paragraph:274: 1,217

paragraph:275: 1,218

paragraph:276: 4,636

paragraph:277: 4,655

paragraph:278: Total cost of sales

paragraph:279: 4,861

paragraph:280: 5,455

paragraph:281: 18,975

paragraph:282: 21,245

paragraph:283: GROSS MARGIN

paragraph:284: 8,781

paragraph:285: 9,748

paragraph:286: 34,828

paragraph:287: 35,753

paragraph:288: OPERATING EXPENSES:

paragraph:289: Research and development

paragraph:290: 2,179

paragraph:291: 1,953

paragraph:292: 7,983

paragraph:293: 7,551

paragraph:294: Sales and marketing

paragraph:295: 2,841

paragraph:296: 2,579

paragraph:297: 10,364

paragraph:298: 9,880

paragraph:299: General and administrative

paragraph:300: 763

paragraph:301: 690

paragraph:302: 2,813

paragraph:303: 2,478

paragraph:304: Amortization of purchased intangible assets

paragraph:305: 268

paragraph:306: 70

paragraph:307: 698

paragraph:308: 282

paragraph:309: Restructuring and other charges

paragraph:310: 112

paragraph:311: 203

paragraph:312: 789

paragraph:313: 531

paragraph:314: Total operating expenses

paragraph:315: 6,163

paragraph:316: 5,495

paragraph:317: 22,647

paragraph:318: 20,722

paragraph:319: OPERATING INCOME

paragraph:320: 2,618

paragraph:321: 4,253

paragraph:322: 12,181

paragraph:323: 15,031

paragraph:324: Interest income

paragraph:325: 270

paragraph:326: 312

paragraph:327: 1,365

paragraph:328: 962

paragraph:329: Interest expense

paragraph:330: (418

paragraph:331: )

paragraph:332: (111

paragraph:333: )

paragraph:334: (1,006

paragraph:335: )

paragraph:336: (427

paragraph:337: )

paragraph:338: Other income (loss), net

paragraph:339: (74

paragraph:340: )

paragraph:341: 17

paragraph:342: (306

paragraph:343: )

paragraph:344: (248

paragraph:345: )

paragraph:346: Interest and other income (loss), net

paragraph:347: (222

paragraph:348: )

paragraph:349: 218

paragraph:350: 53

paragraph:351: 287

paragraph:352: INCOME BEFORE PROVISION FOR INCOME TAXES

paragraph:353: 2,396

paragraph:354: 4,471

paragraph:355: 12,234

paragraph:356: 15,318

paragraph:357: Provision for income taxes

paragraph:358: 234

paragraph:359: 513

paragraph:360: 1,914

paragraph:361: 2,705

paragraph:362: NET INCOME

paragraph:363: $

paragraph:364: 2,162

paragraph:365: $

paragraph:366: 3,958

paragraph:367: $

paragraph:368: 10,320

paragraph:369: $

paragraph:370: 12,613

paragraph:371: Net income per share:

paragraph:372: Basic

paragraph:374: 0.54

paragraph:376: 0.97

paragraph:378: 2.55

paragraph:380: 3.08

paragraph:381: Diluted

paragraph:383: 0.54

paragraph:385: 0.97

paragraph:387: 2.54

paragraph:389: 3.07

paragraph:390: Shares used in per-share calculation:

paragraph:391: Basic

paragraph:392: 4,018

paragraph:393: 4,071

paragraph:394: 4,043

paragraph:395: 4,093

paragraph:396: Diluted

paragraph:397: 4,035

paragraph:398: 4,093

paragraph:399: 4,062

paragraph:400: 4,105

paragraph:401: 5

paragraph:402: CISCO SYSTEMS, INC.

paragraph:403: REVENUE BY SEGMENT

paragraph:404: (In millions, except percentages)

paragraph:405: July 27, 2024

paragraph:406: Three Months Ended

paragraph:407: Fiscal Year Ended

paragraph:408: Amount

paragraph:409: Y/Y%

paragraph:410: Amount

paragraph:411: Y/Y%

paragraph:412: Revenue:

paragraph:413: Americas

paragraph:414: $

paragraph:415: 8,068

paragraph:416: (11

paragraph:417: )%

paragraph:418: $

paragraph:419: 31,971

paragraph:420: (4

paragraph:421: )%

paragraph:422: EMEA

paragraph:423: 3,511

paragraph:424: (11

paragraph:425: )%

paragraph:426: 14,117

paragraph:427: (7

paragraph:428: )%

paragraph:429: APJC

paragraph:430: 2,064

paragraph:431: (6

paragraph:432: )%

paragraph:433: 7,716

paragraph:434: (8

paragraph:435: )%

paragraph:436: Total

paragraph:437: $

paragraph:438: 13,642

paragraph:439: (10

paragraph:440: )%

paragraph:441: $

paragraph:442: 53,803

paragraph:443: (6

paragraph:444: )%

paragraph:445: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:446: CISCO SYSTEMS, INC.

paragraph:447: GROSS MARGIN PERCENTAGE BY SEGMENT

paragraph:448: (In percentages)

paragraph:449: July 27, 2024

paragraph:450: Three Months Ended

paragraph:451: Fiscal Year Ended

paragraph:452: Gross Margin Percentage:

paragraph:453: Americas

paragraph:454: 67.7%

paragraph:455: 66.8%

paragraph:456: EMEA

paragraph:457: 69.2%

paragraph:458: 69.1%

paragraph:459: APJC

paragraph:460: 66.4%

paragraph:461: 67.2%

paragraph:462: CISCO SYSTEMS, INC.

paragraph:463: REVENUE FOR GROUPS OF SIMILAR PRODUCTS AND SERVICES

paragraph:464: (In millions, except percentages)

paragraph:465: July 27, 2024

paragraph:466: Three Months Ended

paragraph:467: Fiscal Year Ended

paragraph:468: Amount

paragraph:469: Y/Y%

paragraph:470: Amount

paragraph:471: Y/Y%

paragraph:472: Revenue:

paragraph:473: Networking

paragraph:474: $

paragraph:475: 6,804

paragraph:476: (28

paragraph:477: )%

paragraph:478: $

paragraph:479: 29,229

paragraph:480: (15

paragraph:481: )%

paragraph:482: Security

paragraph:483: 1,787

paragraph:484: 81

paragraph:485: %

paragraph:486: 5,075

paragraph:487: 32

paragraph:488: %

paragraph:489: Collaboration

paragraph:490: 1,019

paragraph:491: —

paragraph:492: %

paragraph:493: 4,113

paragraph:494: 2

paragraph:495: %

paragraph:496: Observability

paragraph:497: 248

paragraph:498: 41

paragraph:499: %

paragraph:500: 837

paragraph:501: 27

paragraph:502: %

paragraph:503: Total Product

paragraph:504: 9,858

paragraph:505: (15

paragraph:506: )%

paragraph:507: 39,253

paragraph:508: (9

paragraph:509: )%

paragraph:510: Services

paragraph:511: 3,784

paragraph:512: 6

paragraph:513: %

paragraph:514: 14,550

paragraph:515: 5

paragraph:516: %

paragraph:517: Total

paragraph:518: $

paragraph:519: 13,642

paragraph:520: (10

paragraph:521: )%

paragraph:522: $

paragraph:523: 53,803

paragraph:524: (6

paragraph:525: )%

paragraph:526: Security and Observability, excluding Splunk, grew 6% and 12%, respectively, in the fourth quarter of fiscal 2024, and 4% and 15%, respectively, for fiscal 2024.

paragraph:527: Amounts may not sum and percentages may not recalculate due to rounding.

paragraph:528: 6

paragraph:529: CISCO SYSTEMS, INC.

paragraph:530: CONDENSED CONSOLIDATED BALANCE SHEETS

paragraph:531: (In millions)

paragraph:532: (Unaudited)

paragraph:533: July 27, 2024

paragraph:534: July 29, 2023

paragraph:535: ASSETS

paragraph:536: Current assets:

paragraph:537: Cash and cash equivalents

paragraph:538: $

paragraph:539: 7,508

paragraph:540: $

paragraph:541: 10,123

paragraph:542: Investments

paragraph:543: 10,346

paragraph:544: 16,023

paragraph:545: Accounts receivable, net of allowance of $87 at July 27, 2024 and $85 at July 29, 2023

paragraph:546: 6,685

paragraph:547: 5,854

paragraph:548: Inventories

paragraph:549: 3,373

paragraph:550: 3,644

paragraph:551: Financing receivables, net

paragraph:552: 3,338

paragraph:553: 3,352

paragraph:554: Other current assets

paragraph:555: 5,612

paragraph:556: 4,352

paragraph:557: Total current assets

paragraph:558: 36,862

paragraph:559: 43,348

paragraph:560: Property and equipment, net

paragraph:561: 2,090

paragraph:562: 2,085

paragraph:563: Financing receivables, net

paragraph:564: 3,376

paragraph:565: 3,483

paragraph:566: Goodwill

paragraph:567: 58,660

paragraph:568: 38,535

paragraph:569: Purchased intangible assets, net

paragraph:570: 11,219

paragraph:571: 1,818

paragraph:572: Deferred tax assets

paragraph:573: 6,262

paragraph:574: 6,576

paragraph:575: Other assets

paragraph:576: 5,944

paragraph:577: 6,007

paragraph:578: TOTAL ASSETS

paragraph:579: $

paragraph:580: 124,413

paragraph:581: $

paragraph:582: 101,852

paragraph:583: LIABILITIES AND EQUITY

paragraph:584: Current liabilities:

paragraph:585: Short-term debt

paragraph:586: $

paragraph:587: 11,341

paragraph:588: $

paragraph:589: 1,733

paragraph:590: Accounts payable

paragraph:591: 2,304

paragraph:592: 2,313

paragraph:593: Income taxes payable

paragraph:594: 1,439

paragraph:595: 4,235

paragraph:596: Accrued compensation

paragraph:597: 3,608

paragraph:598: 3,984

paragraph:599: Deferred revenue

paragraph:600: 16,249

paragraph:601: 13,908

paragraph:602: Other current liabilities

paragraph:603: 5,643

paragraph:604: 5,136

paragraph:605: Total current liabilities

paragraph:606: 40,584

paragraph:607: 31,309

paragraph:608: Long-term debt

paragraph:609: 19,621

paragraph:610: 6,658

paragraph:611: Income taxes payable

paragraph:612: 3,985

paragraph:613: 5,756

paragraph:614: Deferred revenue

paragraph:615: 12,226

paragraph:616: 11,642

paragraph:617: Other long-term liabilities

paragraph:618: 2,540

paragraph:619: 2,134

paragraph:620: Total liabilities

paragraph:621: 78,956

paragraph:622: 57,499

paragraph:623: Total equity

paragraph:624: 45,457

paragraph:625: 44,353

paragraph:626: TOTAL LIABILITIES AND EQUITY

paragraph:627: $

paragraph:628: 124,413

paragraph:629: $

paragraph:630: 101,852

paragraph:631: 7

paragraph:632: CISCO SYSTEMS, INC.

paragraph:633: CONSOLIDATED STATEMENTS OF CASH FLOWS

paragraph:634: (In millions)

paragraph:635: (Unaudited)

paragraph:636: Fiscal Year Ended

paragraph:637: July 27, 2024

paragraph:638: July 29, 2023

paragraph:639: Cash flows from operating activities:

paragraph:640: Net income

paragraph:641: $

paragraph:642: 10,320

paragraph:643: $

paragraph:644: 12,613

paragraph:645: Adjustments to reconcile net income to net cash provided by operating activities:

paragraph:646: Depreciation, amortization, and other

paragraph:647: 2,507

paragraph:648: 1,726

paragraph:649: Share-based compensation expense

paragraph:650: 3,074

paragraph:651: 2,353

paragraph:652: Provision for receivables

paragraph:653: 34

paragraph:654: 31

paragraph:655: Deferred income taxes

paragraph:656: (972

paragraph:657: )

paragraph:658: (2,085

paragraph:659: )

paragraph:660: (Gains) losses on divestitures, investments and other, net

paragraph:661: 215

paragraph:662: 206

paragraph:663: Change in operating assets and liabilities, net of effects of acquisitions and divestitures:

paragraph:664: Accounts receivable

paragraph:665: (289

paragraph:666: )

paragraph:667: 734

paragraph:668: Inventories

paragraph:669: 275

paragraph:670: (1,069

paragraph:671: )

paragraph:672: Financing receivables

paragraph:673: 76

paragraph:674: 1,102

paragraph:675: Other assets

paragraph:676: (671

paragraph:677: )

paragraph:678: 5

paragraph:679: Accounts payable

paragraph:680: (90

paragraph:681: )

paragraph:682: 27

paragraph:683: Income taxes, net

paragraph:684: (4,539

paragraph:685: )

paragraph:686: 1,218

paragraph:687: Accrued compensation

paragraph:688: (696

paragraph:689: )

paragraph:690: 651

paragraph:691: Deferred revenue

paragraph:692: 1,220

paragraph:693: 2,326

paragraph:694: Other liabilities

paragraph:695: 416

paragraph:696: 48

paragraph:697: Net cash provided by operating activities

paragraph:698: 10,880

paragraph:699: 19,886

paragraph:700: Cash flows from investing activities:

paragraph:701: Purchases of investments

paragraph:702: (4,230

paragraph:703: )

paragraph:704: (10,871

paragraph:705: )

paragraph:706: Proceeds from sales of investments

paragraph:707: 4,136

paragraph:708: 1,054

paragraph:709: Proceeds from maturities of investments

paragraph:710: 6,367

paragraph:711: 5,978

paragraph:712: Acquisitions, net of cash and cash equivalents acquired

paragraph:713: (25,994

paragraph:714: )

paragraph:715: (301

paragraph:716: )

paragraph:717: Purchases of investments in privately held companies

paragraph:718: (284

paragraph:719: )

paragraph:720: (185

paragraph:721: )

paragraph:722: Return of investments in privately held companies

paragraph:723: 202

paragraph:724: 90

paragraph:725: Acquisition of property and equipment

paragraph:726: (670

paragraph:727: )

paragraph:728: (849

paragraph:729: )

paragraph:730: Other

paragraph:731: (5

paragraph:732: )

paragraph:733: (23

paragraph:734: )

paragraph:735: Net cash used in investing activities

paragraph:736: (20,478

paragraph:737: )

paragraph:738: (5,107

paragraph:739: )

paragraph:740: Cash flows from financing activities:

paragraph:741: Issuances of common stock

paragraph:742: 714

paragraph:743: 700

paragraph:744: Repurchases of common stock - repurchase program

paragraph:745: (5,787

paragraph:746: )

paragraph:747: (4,293

paragraph:748: )

paragraph:749: Shares repurchased for tax withholdings on vesting of restricted stock units

paragraph:750: (992

paragraph:751: )

paragraph:752: (597

paragraph:753: )

paragraph:754: Short-term borrowings, original maturities of 90 days or less, net

paragraph:755: 478

paragraph:756: (602

paragraph:757: )

paragraph:758: Issuances of debt

paragraph:759: 31,818

paragraph:760: —

paragraph:761: Repayments of debt

paragraph:762: (9,826

paragraph:763: )

paragraph:764: (500

paragraph:765: )

paragraph:766: Repayments of Splunk convertible debt, net

paragraph:767: (3,140

paragraph:768: )

paragraph:769: —

paragraph:770: Dividends paid

paragraph:771: (6,384

paragraph:772: )

paragraph:773: (6,302

paragraph:774: )

paragraph:775: Other

paragraph:776: (37

paragraph:777: )

paragraph:778: (32

paragraph:779: )

paragraph:780: Net cash provided by (used in) financing activities

paragraph:781: 6,844

paragraph:782: (11,626

paragraph:783: )

paragraph:784: Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:785: (31

paragraph:786: )

paragraph:787: (105

paragraph:788: )

paragraph:789: Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents

paragraph:790: (2,785

paragraph:791: )

paragraph:792: 3,048

paragraph:793: Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of fiscal year

paragraph:794: 11,627

paragraph:795: 8,579

paragraph:796: Cash, cash equivalents, restricted cash and restricted cash equivalents, end of fiscal year

paragraph:797: $

paragraph:798: 8,842

paragraph:799: $

paragraph:800: 11,627

paragraph:801: Supplemental cash flow information:

paragraph:802: Cash paid for interest

paragraph:803: $

paragraph:804: 583

paragraph:805: $

paragraph:806: 376

paragraph:807: Cash paid for income taxes, net

paragraph:808: $

paragraph:809: 7,426

paragraph:810: $

paragraph:811: 3,571

paragraph:812: 8

paragraph:813: CISCO SYSTEMS, INC.

paragraph:814: REMAINING PERFORMANCE OBLIGATIONS

paragraph:815: (In millions, except percentages)

paragraph:816: July 27, 2024

paragraph:817: April 27, 2024

paragraph:818: July 29, 2023

paragraph:819: Amount

paragraph:820: Y/Y%

paragraph:821: Amount

paragraph:822: Y/Y%

paragraph:823: Amount

paragraph:824: Y/Y%

paragraph:825: Product

paragraph:826: $

paragraph:827: 20,055

paragraph:828: 27

paragraph:829: %

paragraph:830: $

paragraph:831: 18,876

paragraph:832: 29

paragraph:833: %

paragraph:834: $

paragraph:835: 15,802

paragraph:836: 12

paragraph:837: %

paragraph:838: Services

paragraph:839: 20,993

paragraph:840: 10

paragraph:841: %

paragraph:842: 19,898

paragraph:843: 14

paragraph:844: %

paragraph:845: 19,066

paragraph:846: 9

paragraph:847: %

paragraph:848: Total

paragraph:849: $

paragraph:850: 41,048

paragraph:851: 18

paragraph:852: %

paragraph:853: $

paragraph:854: 38,774

paragraph:855: 21

paragraph:856: %

paragraph:857: $

paragraph:858: 34,868

paragraph:859: 11

paragraph:860: %

paragraph:861: We expect 51% of total RPO at July 27, 2024 will be recognized as revenue over the next 12 months.

paragraph:862: CISCO SYSTEMS, INC.

paragraph:863: DEFERRED REVENUE

paragraph:864: (In millions)

paragraph:865: July 27, 2024

paragraph:866: April 27, 2024

paragraph:867: July 29, 2023

paragraph:868: Deferred revenue:

paragraph:869: Product

paragraph:870: $

paragraph:871: 13,219

paragraph:872: $

paragraph:873: 12,856

paragraph:874: $

paragraph:875: 11,505

paragraph:876: Services

paragraph:877: 15,256

paragraph:878: 14,619

paragraph:879: 14,045

paragraph:880: Total

paragraph:881: $

paragraph:882: 28,475

paragraph:883: $

paragraph:884: 27,475

paragraph:885: $

paragraph:886: 25,550

paragraph:887: Reported as:

paragraph:888: Current

paragraph:889: $

paragraph:890: 16,249

paragraph:891: $

paragraph:892: 15,751

paragraph:893: $

paragraph:894: 13,908

paragraph:895: Noncurrent

paragraph:896: 12,226

paragraph:897: 11,724

paragraph:898: 11,642

paragraph:899: Total

paragraph:900: $

paragraph:901: 28,475

paragraph:902: $

paragraph:903: 27,475

paragraph:904: $

paragraph:905: 25,550

paragraph:906: CISCO SYSTEMS, INC.

paragraph:907: DIVIDENDS PAID AND REPURCHASES OF COMMON STOCK

paragraph:908: (In millions, except per-share amounts)

paragraph:909: DIVIDENDS

paragraph:910: STOCK REPURCHASE PROGRAM

paragraph:911: TOTAL

paragraph:912: Quarter Ended

paragraph:913: Per Share

paragraph:914: Amount

paragraph:915: Shares

paragraph:916: Weighted- Average Price per Share

paragraph:917: Amount

paragraph:918: Amount

paragraph:919: Fiscal 2024

paragraph:920: July 27, 2024

paragraph:921: $

paragraph:922: 0.40

paragraph:923: $

paragraph:924: 1,606

paragraph:925: 43

paragraph:926: $

paragraph:927: 46.80

paragraph:928: $

paragraph:929: 2,002

paragraph:930: $

paragraph:931: 3,608

paragraph:932: April 27, 2024

paragraph:933: $

paragraph:934: 0.40

paragraph:935: $

paragraph:936: 1,615

paragraph:937: 26

paragraph:938: $

paragraph:939: 49.22

paragraph:940: $

paragraph:941: 1,256

paragraph:942: $

paragraph:943: 2,871

paragraph:944: January 27, 2024

paragraph:945: $

paragraph:946: 0.39

paragraph:947: $

paragraph:948: 1,583

paragraph:949: 25

paragraph:950: $

paragraph:951: 49.54

paragraph:952: $

paragraph:953: 1,254

paragraph:954: $

paragraph:955: 2,837

paragraph:956: October 28, 2023

paragraph:957: $

paragraph:958: 0.39

paragraph:959: $

paragraph:960: 1,580

paragraph:961: 23

paragraph:962: $

paragraph:963: 54.53

paragraph:964: $

paragraph:965: 1,252

paragraph:966: $

paragraph:967: 2,832

paragraph:968: Fiscal 2023

paragraph:969: July 29, 2023

paragraph:970: $

paragraph:971: 0.39

paragraph:972: $

paragraph:973: 1,589

paragraph:974: 25

paragraph:975: $

paragraph:976: 50.49

paragraph:977: $

paragraph:978: 1,254

paragraph:979: $

paragraph:980: 2,843

paragraph:981: April 29, 2023

paragraph:982: $

paragraph:983: 0.39

paragraph:984: $

paragraph:985: 1,593

paragraph:986: 25

paragraph:987: $

paragraph:988: 49.45

paragraph:989: $

paragraph:990: 1,259

paragraph:991: $

paragraph:992: 2,852

paragraph:993: January 28, 2023

paragraph:994: $

paragraph:995: 0.38

paragraph:996: $

paragraph:997: 1,560

paragraph:998: 26

paragraph:999: $

paragraph:1000: 47.72

paragraph:1001: $

paragraph:1002: 1,256

paragraph:1003: $

paragraph:1004: 2,816

paragraph:1005: October 29, 2022

paragraph:1006: $

paragraph:1007: 0.38

paragraph:1008: $

paragraph:1009: 1,560

paragraph:1010: 12

paragraph:1011: $

paragraph:1012: 43.76

paragraph:1013: $

paragraph:1014: 502

paragraph:1015: $

paragraph:1016: 2,062

paragraph:1017: 9

paragraph:1018: CISCO SYSTEMS, INC.

paragraph:1019: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1020: GAAP TO NON-GAAP NET INCOME

paragraph:1021: (In millions)

paragraph:1022: Three Months Ended

paragraph:1023: Fiscal Year Ended

paragraph:1024: July 27, 2024

paragraph:1025: July 29, 2023

paragraph:1026: July 27, 2024

paragraph:1027: July 29, 2023

paragraph:1028: GAAP net income

paragraph:1029: $

paragraph:1030: 2,162

paragraph:1031: $

paragraph:1032: 3,958

paragraph:1033: $

paragraph:1034: 10,320

paragraph:1035: $

paragraph:1036: 12,613

paragraph:1037: Adjustments to cost of sales:

paragraph:1038: Share-based compensation expense

paragraph:1039: 133

paragraph:1040: 103

paragraph:1041: 514

paragraph:1042: 396

paragraph:1043: Amortization of acquisition-related intangible assets

paragraph:1044: 331

paragraph:1045: 168

paragraph:1046: 936

paragraph:1047: 630

paragraph:1048: Acquisition-related/divestiture costs

paragraph:1049: 21

paragraph:1050: 14

paragraph:1051: 34

paragraph:1052: 18

paragraph:1053: Supplier component remediation charge (adjustment), net

paragraph:1054: —

paragraph:1055: (9

paragraph:1056: )

paragraph:1057: —

paragraph:1058: (9

paragraph:1059: )

paragraph:1060: Total adjustments to GAAP cost of sales

paragraph:1061: 485

paragraph:1062: 276

paragraph:1063: 1,484

paragraph:1064: 1,035

paragraph:1065: Adjustments to operating expenses:

paragraph:1066: Share-based compensation expense

paragraph:1067: 660

paragraph:1068: 520

paragraph:1069: 2,537

paragraph:1070: 1,951

paragraph:1071: Amortization of acquisition-related intangible assets

paragraph:1072: 268

paragraph:1073: 70

paragraph:1074: 698

paragraph:1075: 282

paragraph:1076: Acquisition-related/divestiture costs

paragraph:1077: 297

paragraph:1078: 63

paragraph:1079: 700

paragraph:1080: 241

paragraph:1081: Russia-Ukraine war costs

paragraph:1082: —

paragraph:1083: (7

paragraph:1084: )

paragraph:1085: (12

paragraph:1086: )

paragraph:1087: —

paragraph:1088: Significant asset impairments and restructurings

paragraph:1089: 112

paragraph:1090: 203

paragraph:1091: 789

paragraph:1092: 531

paragraph:1093: Total adjustments to GAAP operating expenses

paragraph:1094: 1,337

paragraph:1095: 849

paragraph:1096: 4,712

paragraph:1097: 3,005

paragraph:1098: Adjustments to interest and other income (loss), net:

paragraph:1099: Russia-Ukraine war costs

paragraph:1100: 49

paragraph:1101: —

paragraph:1102: 49

paragraph:1103: —

paragraph:1104: (Gains) and losses on investments

paragraph:1105: (32

paragraph:1106: )

paragraph:1107: (55

paragraph:1108: )

paragraph:1109: 100

paragraph:1110: 133

paragraph:1111: Total adjustments to GAAP interest and other income (loss), net

paragraph:1112: 17

paragraph:1113: (55

paragraph:1114: )

paragraph:1115: 149

paragraph:1116: 133

paragraph:1117: Total adjustments to GAAP income before provision for income taxes

paragraph:1118: 1,839

paragraph:1119: 1,070

paragraph:1120: 6,345

paragraph:1121: 4,173

paragraph:1122: Income tax effect of non-GAAP adjustments

paragraph:1123: (315

paragraph:1124: )

paragraph:1125: (215

paragraph:1126: )

paragraph:1127: (1,360

paragraph:1128: )

paragraph:1129: (838

paragraph:1130: )

paragraph:1131: Significant tax matters

paragraph:1132: (155

paragraph:1133: )

paragraph:1134: (133

paragraph:1135: )

paragraph:1136: (155

paragraph:1137: )

paragraph:1138: 31

paragraph:1139: Total adjustments to GAAP provision for income taxes

paragraph:1140: (470

paragraph:1141: )

paragraph:1142: (348

paragraph:1143: )

paragraph:1144: (1,515

paragraph:1145: )

paragraph:1146: (807

paragraph:1147: )

paragraph:1148: Non-GAAP net income

paragraph:1149: $

paragraph:1150: 3,531

paragraph:1151: $

paragraph:1152: 4,680

paragraph:1153: $

paragraph:1154: 15,150

paragraph:1155: $

paragraph:1156: 15,979

paragraph:1157: 10

paragraph:1158: CISCO SYSTEMS, INC.

paragraph:1159: RECONCILIATIONS OF GAAP TO NON-GAAP MEASURES

paragraph:1160: GAAP TO NON-GAAP EPS

paragraph:1161: Three Months Ended

paragraph:1162: Fiscal Year Ended

paragraph:1163: July 27, 2024

paragraph:1164: July 29, 2023

paragraph:1165: July 27, 2024

paragraph:1166: July 29, 2023

paragraph:1167: GAAP EPS

paragraph:1169: 0.54

paragraph:1171: 0.97

paragraph:1173: 2.54

paragraph:1175: 3.07

paragraph:1176: Adjustments to GAAP:

paragraph:1177: Share-based compensation expense

paragraph:1178: 0.20

paragraph:1179: 0.15

paragraph:1180: 0.75

paragraph:1181: 0.57

paragraph:1182: Amortization of acquisition-related intangible assets

paragraph:1183: 0.15

paragraph:1184: 0.06

paragraph:1185: 0.40

paragraph:1186: 0.22

paragraph:1187: Acquisition-related/divestiture costs

paragraph:1188: 0.08

paragraph:1189: 0.02

paragraph:1190: 0.18

paragraph:1191: 0.06

paragraph:1192: Russia-Ukraine war costs

paragraph:1193: 0.01

paragraph:1194: —

paragraph:1195: 0.01

paragraph:1196: —

paragraph:1197: Significant asset impairments and restructurings

paragraph:1198: 0.03

paragraph:1199: 0.05

paragraph:1200: 0.19

paragraph:1201: 0.13

paragraph:1202: (Gains) and losses on investments

paragraph:1203: (0.01