Cash Flow Statement

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Cisco Systems Inc., consolidated cash flow 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
Net income	13,267)	10,180)	10,320)	12,613)	11,812)	10,591)
Depreciation, amortization, and other	2,540)	2,811)	2,507)	1,726)	1,957)	1,862)
Share-based compensation expense	3,830)	3,641)	3,074)	2,353)	1,886)	1,761)
Provision for (benefit from) receivables	23)	24)	34)	31)	55)	(6)
Deferred income taxes	226)	(1,133)	(972)	(2,085)	(309)	(384)
(Gains) losses on divestitures, investments and other, net	(1,358)	(38)	215)	206)	(453)	(354)
Accounts receivable	(832)	(22)	(289)	734)	(1,009)	(107)
Inventories	(2,541)	209)	275)	(1,069)	(1,030)	(244)
Financing receivables	(1,835)	214)	76)	1,102)	1,241)	1,577)
Other assets	(1,032)	(499)	(671)	5)	(1,615)	(797)
Accounts payable	842)	257)	(90)	27)	(55)	(53)
Income taxes, net	(2,304)	(1,839)	(4,539)	1,218)	(690)	(549)
Accrued compensation	457)	(53)	(696)	651)	(427)	643)
Deferred revenue	1,125)	248)	1,220)	2,326)	1,328)	1,560)
Other liabilities	1,769)	193)	416)	48)	535)	(46)
Change in operating assets and liabilities, net of effects of acquisitions and divestitures	(4,351)	(1,292)	(4,298)	5,042)	(1,722)	1,984)
Adjustments to reconcile net income to net cash provided by operating activities	910)	4,013)	560)	7,273)	1,414)	4,863)
Net cash provided by operating activities	14,177)	14,193)	10,880)	19,886)	13,226)	15,454)
Purchases of investments	(8,974)	(4,589)	(4,230)	(10,871)	(6,070)	(9,328)
Proceeds from sales of investments	2,013)	2,643)	4,136)	1,054)	2,660)	3,373)
Proceeds from maturities of investments	6,105)	4,943)	6,367)	5,978)	5,686)	8,409)
Acquisitions, net of cash and cash equivalents acquired and divestitures	(516)	(291)	(25,994)	(301)	(373)	(7,038)
Purchases of non-marketable equity securities	(946)	(383)	(284)	(185)	(186)	(175)
Return of investments in non-marketable equity securities	270)	306)	202)	90)	237)	194)
Acquisition of property and equipment	(1,410)	(905)	(670)	(849)	(477)	(692)
Other	(26)	9)	(5)	(23)	76)	(28)
Net cash (used in) provided by investing activities	(3,484)	1,733)	(20,478)	(5,107)	1,553)	(5,285)
Issuances of common stock	805)	736)	714)	700)	660)	643)
Repurchases of common stock, repurchase program	(6,106)	(6,000)	(5,787)	(4,293)	(7,689)	(2,877)
Shares repurchased for tax withholdings on vesting of restricted stock units	(1,873)	(1,222)	(992)	(597)	(692)	(636)
Short-term borrowings, original maturities of 90 days or less, net	616)	(31)	478)	(602)	606)	(5)
Issuances of debt	13,048)	19,292)	31,818)	—)	1,049)	—)
Repayments of debt	(12,251)	(22,073)	(9,826)	(500)	(3,550)	(3,000)
Repayments of Splunk convertible debt, net of capped call proceeds	—)	—)	(3,140)	—)	—)	—)
Dividends paid	(6,553)	(6,437)	(6,384)	(6,302)	(6,224)	(6,163)
Other	(33)	(80)	(37)	(32)	(122)	(1)
Net cash provided by (used in) financing activities	(12,347)	(15,815)	6,844)	(11,626)	(15,962)	(12,039)
Effect of foreign currency exchange rate changes on cash, cash equivalents, restricted cash and restricted cash equivalents	(29)	(43)	(31)	(105)	(180)	—)
Net increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	(1,683)	68)	(2,785)	3,048)	(1,363)	(1,870)
Cash, cash equivalents, restricted cash and restricted cash equivalents, beginning of fiscal year	8,910)	8,842)	11,627)	8,579)	9,942)	11,812)
Cash, cash equivalents, restricted cash and restricted cash equivalents, end of fiscal year	7,227)	8,910)	8,842)	11,627)	8,579)	9,942)

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 operational cash flow exhibits significant volatility over the analyzed period, though it remains a robust source of liquidity. Net income has fluctuated between a low of 10.18 billion US$ in 2025 and a peak of 13.27 billion US$ in 2026. A consistent upward trend is observed in share-based compensation expenses, which more than doubled from 1.76 billion US$ in 2021 to 3.83 billion US$ in 2026, serving as a persistent non-cash add-back to operating cash flow.

Operating Cash Flow Dynamics: Net cash provided by operating activities reached a peak of 19.89 billion US$ in 2023 before contracting to 10.88 billion US$ in 2024. This volatility is largely driven by substantial swings in the change in operating assets and liabilities, which shifted from a positive 5.04 billion US$ in 2023 to a negative 4.30 billion US$ in 2024 and negative 4.35 billion US$ in 2026.
Investment Strategy and Capital Expenditure: Investing activities are characterized by a massive capital outlay in 2024, where net acquisitions reached 26.00 billion US$. Outside of this event, the company maintains a consistent cycle of purchasing and selling marketable investments. Capital expenditures for property and equipment show a general upward trajectory, increasing from 477 million US$ in 2022 to 1.41 billion US$ in 2026, indicating an expansion in physical infrastructure.
Financing and Capital Return: A disciplined shareholder return policy is evident through steady dividend payments, which grew marginally from 6.16 billion US$ in 2021 to 6.55 billion US$ in 2026. Common stock repurchases remain a primary use of cash, averaging between 4 billion and 7.7 billion US$ annually. The financing profile shifted dramatically in 2024 with the issuance of 31.82 billion US$ in debt, likely to fund the major acquisition in the same period, followed by aggressive debt repayments of 22.07 billion US$ in 2025 and 12.25 billion US$ in 2026.
Liquidity Position: The ending cash and cash equivalents balance has trended downward over the long term, moving from 9.94 billion US$ in 2021 to 7.23 billion US$ in 2026. The net decrease in cash is most pronounced in 2024 and 2026, correlating with periods of high acquisition spending or significant debt repayment.

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Cisco Systems Inc. (NASDAQ:CSCO)

Cash Flow Statement