Cisco Systems Inc. (NASDAQ:CSCO)

The financial data reveals several notable trends over the reported periods. Revenue demonstrates an overall upward trajectory, increasing from 49,301 million US dollars in 2020 to 56,654 million US dollars in 2025, with a peak observed in 2023 at 56,998 million US dollars. The product segment contributes the majority of revenue, showing growth despite fluctuations, with a notable dip in 2024 followed by recovery in 2025. Services revenue exhibits steady growth across the years.

Cost of sales rises over the time frame, peaking in 2023 at 21,245 million US dollars, subsequently declining in 2024 before increasing again in 2025. Both product and services costs closely follow this pattern, with product costs showing more significant volatility and magnitude. Gross margin reflects these dynamics, improving over the years from 31,683 million US dollars in 2020 to 36,790 million US dollars in 2025, although experiencing a slight dip in 2024.

Operating expenses display a clear increasing trend. Research and development expenses rise significantly, almost reaching 9,300 million US dollars by 2025, indicating a growing focus on innovation. Sales and marketing costs also increase steadily, reaching nearly 11,000 million US dollars in 2025. General and administrative expenses show growth as well, nearly doubling from 1,925 million US dollars in 2020 to 2,992 million US dollars in 2025. Amortization of purchased intangible assets and restructuring charges show variations with a peak in amortization in 2025 and fluctuating restructuring costs throughout the years.

Operating income shows a peak in 2023 at 15,031 million US dollars, but then declines over the next two years, ending at 11,760 million US dollars in 2025. This decline is partially due to rising operating expenses and an unfavorable trend in the cost structure in 2024 and 2025.

Interest income exhibits variability, with a notable increase in 2024 followed by a decline in 2025. In contrast, interest expense grows significantly in 2024 and 2025, more than tripling from the lowest recorded amount in 2022. Other income (loss), net displays erratic behavior, swinging from positive to negative values and culminating in a small negative figure in 2025.

Overall, income before provision for income taxes peaks in 2023 at 15,318 million US dollars, followed by a significant decrease in 2024 and continuing into 2025. The provision for income taxes declines noticeably after 2023, reaching its lowest point in 2025.

Net income mirrors the income before tax trend, with growth until 2023, reaching 12,613 million US dollars, then decreasing in the last two years, down to 10,180 million US dollars in 2025. This decline is influenced by increased operating costs, rising interest expenses, and diminished other income, despite reductions in tax provisions.

Revenue and Gross Margin

Revenue increased overall with a peak in 2023, driven mainly by product sales which show some volatility. Gross margin improved over time but dipped slightly in 2024.

Cost of Sales

Cost of sales rose consistently, especially in product costs, peaking in 2023 but decreasing in 2024 before a slight increase in 2025.

Operating Expenses

Operating expenses trended upward, notably in research and development, sales and marketing, and general and administrative costs, reflecting higher investments and overheads.

Operating Income

Operating income grew until 2023 and then declined in subsequent years due to rising expenses and cost fluctuations.

Interest and Other Income/Expense

Interest income varied with a peak in 2024 whereas interest expense increased markedly in the last two years. Other income showed volatility with negative results at the end.

Income Taxes and Net Income

Provision for income taxes declined notably after 2023. Net income peaked in 2023 but declined afterward due to combined effects of increased costs and diminishing other income offsets.