Name: Cisco Systems Inc. (NASDAQ:CSCO) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Cisco Systems Inc., consolidated income statement

US$ in millions

12 months ended:	Jul 25, 2026	Jul 26, 2025	Jul 27, 2024	Jul 29, 2023	Jul 30, 2022	Jul 31, 2021
Product	48,295)	41,608)	39,253)	43,142)	38,018)	36,014)
Services	15,030)	15,046)	14,550)	13,856)	13,539)	13,804)
Revenue	63,325)	56,654)	53,803)	56,998)	51,557)	49,818)
Product	(17,781)	(15,121)	(14,339)	(16,590)	(14,814)	(13,300)
Services	(4,684)	(4,743)	(4,636)	(4,655)	(4,495)	(4,624)
Cost of sales	(22,465)	(19,864)	(18,975)	(21,245)	(19,309)	(17,924)
Gross margin	40,860)	36,790)	34,828)	35,753)	32,248)	31,894)
Research and development	(9,563)	(9,300)	(7,983)	(7,551)	(6,774)	(6,549)
Sales and marketing	(11,559)	(10,966)	(10,364)	(9,880)	(9,085)	(9,259)
General and administrative	(2,761)	(2,992)	(2,813)	(2,478)	(2,101)	(2,152)
Amortization of purchased intangible assets	(916)	(1,028)	(698)	(282)	(313)	(215)
Restructuring and other charges	(693)	(744)	(789)	(531)	(6)	(886)
Operating expenses	(25,492)	(25,030)	(22,647)	(20,722)	(18,279)	(19,061)
Operating income	15,368)	11,760)	12,181)	15,031)	13,969)	12,833)
Interest income	866)	1,001)	1,365)	962)	476)	618)
Interest expense	(1,470)	(1,593)	(1,006)	(427)	(360)	(434)
Other income (loss), net	1,245)	(68)	(306)	(248)	392)	245)
Interest and other income (loss), net	641)	(660)	53)	287)	508)	429)
Income before provision for income taxes	16,009)	11,100)	12,234)	15,318)	14,477)	13,262)
Provision for income taxes	(2,742)	(920)	(1,914)	(2,705)	(2,665)	(2,671)
Net income	13,267)	10,180)	10,320)	12,613)	11,812)	10,591)

Based on: 10-K (reporting date: 2026-07-25), 10-K (reporting date: 2025-07-26), 10-K (reporting date: 2024-07-27), 10-K (reporting date: 2023-07-29), 10-K (reporting date: 2022-07-30), 10-K (reporting date: 2021-07-31).

The financial performance over the analyzed period is characterized by a general upward trajectory in total revenue and gross margin, punctuated by a period of contraction in operating profitability between 2024 and 2025 before a strong recovery in 2026.

Revenue Trends and Composition: Total revenue grew from US$ 49,818 million in 2021 to US$ 63,325 million in 2026. This growth is primarily attributed to the Product segment, which increased from US$ 36,014 million to US$ 48,295 million. In contrast, Services revenue remained relatively stagnant, fluctuating within a narrow range between US$ 13,539 million and US$ 15,046 million throughout the period.
Gross Profitability and Cost Management: Gross margin demonstrated a steady increase, rising from US$ 31,894 million in 2021 to US$ 40,860 million in 2026. While the cost of sales increased in absolute terms, it did not scale proportionally with revenue growth in the final year, contributing to the expanded gross margin.
Operating Expense Analysis: There is a consistent upward trend in operating expenses, which rose from US$ 19,061 million in 2021 to US$ 25,492 million in 2026. Research and development expenditures increased steadily every year, growing from US$ 6,549 million to US$ 9,563 million. Sales and marketing costs followed a similar trajectory, increasing from US$ 9,259 million to US$ 11,559 million, indicating sustained investment in growth and product evolution.
Operating and Net Income Volatility: Operating income increased until 2023, peaking at US$ 15,031 million, before declining to US$ 11,760 million by 2025. A sharp recovery occurred in 2026, with operating income reaching a period high of US$ 15,368 million. Net income mirrored this volatility, ending the period at US$ 13,267 million, up from US$ 10,591 million in 2021.
Financial Costs and Other Income: A significant increase in interest expense is observed, rising from US$ 434 million in 2021 to US$ 1,470 million in 2026. This trend suggests an increase in debt levels or a rise in the cost of borrowing. Interest income peaked in 2024 at US$ 1,365 million before moderating to US$ 866 million in 2026.

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