Analysis of Reportable Segments
Cisco Systems Inc. operates in 3 segments: Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific, Japan, and China (APJC).
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- Common-Size Balance Sheet: Assets
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Dividend Discount Model (DDM)
- Selected Financial Data since 2005
- Return on Assets (ROA) since 2005
- Price to Operating Profit (P/OP) since 2005
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Segment Profit Margin
Cisco Systems Inc., profit margin by reportable segment
| Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Europe, Middle East, and Africa (EMEA) | ||||||
| Asia Pacific, Japan, and China (APJC) |
Based on: 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), 10-K (reporting date: 2020-07-25).
- Americas Segment Profit Margin
-
The profit margin for the Americas segment started at 66.73% in 2020. It showed a slight increase to 66.87% in 2021, followed by a decline to 64.12% in 2022 and a further slight decrease to 63.83% in 2023. From 2023 onwards, there was a notable upward trend, with margins rising to 66.85% in 2024 and further improving to 68.23% in 2025. This indicates a recovery and strengthening profitability in the later years after a moderate dip in the earlier period.
- Europe, Middle East, and Africa (EMEA) Segment Profit Margin
-
The EMEA segment demonstrated relative stability around the mid-60s percentage range through the 2020 to 2022 period, with margins of 65.6%, 65.37%, and 65.4% respectively. From 2023 onward, a clear upward trend is evident, with margins increasing from 66.18% to 69.1% in 2024 and peaking at 71.13% in 2025. The growth appears consistent and relatively strong, suggesting improving operational efficiency or market conditions in this geographic segment over time.
- Asia Pacific, Japan, and China (APJC) Segment Profit Margin
-
The APJC region’s profit margin began at 63.76% in 2020 and showed a gradual increase to 64.22% in 2021 and 65.29% in 2022. However, in 2023, there was a slight decline to 64.44%. After this dip, the margin rose to 67.22% in 2024 but then experienced a small decrease to 66.44% in 2025. The pattern suggests modest fluctuation with an overall upward trend, indicating some variability in profitability but a general improvement across the timeframe.
- Summary of Trends Across Segments
-
All three geographic segments show profitability in the mid-60% range with an overall upward trajectory by the end of the reported period. EMEA exhibits the strongest and most consistent margin growth, culminating in a profit margin above 71% in 2025. Americas showed a decline in the middle years but recovered substantially by 2025. APJC margins grew steadily with small fluctuations towards the end. Collectively, these trends imply improving profitability across major regions, with particular strength in the EMEA segment.
Segment Profit Margin: Americas
Cisco Systems Inc.; Americas; segment profit margin calculation
| Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 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), 10-K (reporting date: 2020-07-25).
1 2025 Calculation
Segment profit margin = 100 × Gross margin ÷ Revenue
= 100 × ÷ =
The annual data for the Americas segment demonstrates several noteworthy trends across the analyzed periods.
- Gross Margin
- The gross margin shows a generally increasing trend over the years. Starting at 19,547 million USD in 2020, it fluctuated slightly in the following two years, declining to 19,117 million USD in 2022. However, it recovered with a rise to 21,350 million USD in 2023 and continued to increase through 2024 and 2025, reaching 22,962 million USD. This upward trajectory after 2022 suggests improved cost management or pricing power in the segment.
- Revenue
- Revenue exhibited some volatility during the period. Beginning at 29,291 million USD in 2020, it slightly decreased to 29,161 million USD in 2021, then rose to 29,814 million USD in 2022. A notable increase occurred in 2023, reaching 33,447 million USD, followed by a slight dip in 2024 to 31,971 million USD, and then a rebound to 33,656 million USD in 2025. Overall, revenue displays a positive growth trend with fluctuations likely impacted by market conditions or operational factors.
- Segment Profit Margin
- The segment profit margin displayed a downward trend from 66.73% in 2020 to 63.83% in 2023, indicating potential margin pressures or increased costs relative to revenue during this period. However, the margin improved significantly in 2024 to 66.85% and further increased in 2025 to 68.23%, the highest in the analyzed period, demonstrating enhanced profitability or efficiency in recent years.
In summary, while revenue experienced some fluctuations, gross margin and segment profit margin trends reveal an overall improvement in profitability in the latter years. The increased profit margins alongside rising gross margin values indicate a strengthening of the segment's financial performance by 2025.
Segment Profit Margin: Europe, Middle East, and Africa (EMEA)
Cisco Systems Inc.; Europe, Middle East, and Africa (EMEA); segment profit margin calculation
| Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 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), 10-K (reporting date: 2020-07-25).
1 2025 Calculation
Segment profit margin = 100 × Gross margin ÷ Revenue
= 100 × ÷ =
The analysis of the Europe, Middle East, and Africa (EMEA) reportable segment data reveals several key trends in the financial performance from 2020 through 2025.
- Gross Margin
- The gross margin in US dollars exhibited a generally increasing trend over the period. Starting at 8,304 million in 2020, it rose steadily each year with minor fluctuations, reaching a peak of 10,545 million in 2025. This upward movement indicates an improvement in the segment's ability to manage production costs or enhance pricing strategies.
- Revenue
- Revenue also showed an overall growth trend, beginning at 12,659 million in 2020 and increasing to 14,824 million by 2025. There was a consistent rise from 2020 to 2023, with revenue peaking at 15,135 million in 2023. Notably, there was a dip in 2024 to 14,117 million, followed by a recovery in 2025. This suggests some volatility or external pressures impacting sales in 2024, though the segment returned to a growth trajectory subsequently.
- Segment Profit Margin
- The segment profit margin, expressed as a percentage, showed a steady improvement throughout the six-year period. Starting at 65.6% in 2020, it slightly declined in 2021 but then consistently increased each year, reaching 71.13% in 2025. This rising profit margin indicates enhanced operational efficiency or favorable cost structures relative to revenue.
Overall, the data reflects positive momentum in both profitability and revenue generation, with the segment demonstrating resilience despite the observed dip in revenue in 2024. The consistent increase in profit margin alongside growth in gross margin and revenue suggests effective management of costs and potentially improved market conditions or competitive positioning in the EMEA region.
Segment Profit Margin: Asia Pacific, Japan, and China (APJC)
Cisco Systems Inc.; Asia Pacific, Japan, and China (APJC); segment profit margin calculation
| Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
Based on: 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), 10-K (reporting date: 2020-07-25).
1 2025 Calculation
Segment profit margin = 100 × Gross margin ÷ Revenue
= 100 × ÷ =
The financial data for the Asia Pacific, Japan, and China (APJC) segment over the six-year period indicates several notable trends in revenue, gross margin, and segment profit margin.
- Revenue
- Revenue shows an overall upward trajectory with fluctuations over the years. It increased from US$7,352 million in 2020 to a peak of US$8,417 million in 2023. However, in 2024, it declined to US$7,716 million before rising again to US$8,174 million in 2025. This pattern suggests some volatility, possibly reflecting market conditions or operational challenges in certain years.
- Gross Margin
- Gross margin also generally increased from US$4,688 million in 2020 to US$5,431 million in 2025, despite a slight dip in 2024. The margin maintained consistent growth through the middle years, peaking at US$5,424 million in 2023. The subsequent drop in 2024 aligns with the decrease in revenue, but recovery in 2025 indicates resilience in managing cost of goods sold relative to sales.
- Segment Profit Margin
- The segment profit margin remained consistently strong throughout the period, ranging from 63.76% to 67.22%. After starting at 63.76% in 2020, it improved to a high of 67.22% in 2024, before a minor decrease to 66.44% in 2025. This suggests effective cost control and operational efficiency within the segment, even in years where revenue dipped.
Overall, the segment demonstrates solid profitability with a generally positive growth trend in revenue and gross margin, notwithstanding some volatility. The increasing segment profit margin points to sustained operational strength and efficiency in the Asia Pacific, Japan, and China region over the analyzed period.
Revenue
Cisco Systems Inc., revenue by reportable segment
US$ in millions
| Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Europe, Middle East, and Africa (EMEA) | ||||||
| Asia Pacific, Japan, and China (APJC) | ||||||
| Segment total |
Based on: 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), 10-K (reporting date: 2020-07-25).
- Overall Segment Revenue Trend
- The total segment revenue shows a general upward trend from 49,302 million US dollars in July 2020 to 56,654 million US dollars in July 2025, indicating growth over the six-year period. There is a notable peak in July 2023 at 56,999 million US dollars, followed by a slight decline in July 2024 before increasing again in July 2025.
- Americas Region
- The Americas segment demonstrates a fluctuating yet generally increasing revenue pattern. Starting at 29,291 million US dollars in July 2020, revenue slightly decreased in July 2021 but resumed growth reaching a peak of 33,447 million in July 2023. A drop is observed again in July 2024, followed by recovery to 33,656 million in July 2025, the highest value in the period.
- Europe, Middle East, and Africa (EMEA)
- Revenue in the EMEA region increases consistently from 12,659 million US dollars in July 2020 to a peak of 15,135 million in July 2023. However, a decrease occurs in July 2024, bringing revenue down to 14,117 million, before partially recovering to 14,824 million in July 2025. Despite the mid-period dip, the overall trajectory remains positive.
- Asia Pacific, Japan, and China (APJC)
- The APJC segment shows steady growth from 7,352 million US dollars in July 2020 to 8,417 million in July 2023. A notable decline occurs in July 2024, reducing revenue to 7,716 million, with a subsequent moderate increase to 8,174 million by July 2025. This pattern indicates some fluctuation but relative stability in recent years.
- Comparative Regional Insights
- The Americas segment consistently represents the largest share of total revenue, followed by EMEA and then APJC. Both EMEA and APJC segments experience a dip in the year ending July 2024, suggesting possible regional challenges during that period, whereas the Americas show a less pronounced decrease. Recovery in all regions is observed in the following year.
Gross margin
Cisco Systems Inc., gross margin by reportable segment
US$ in millions
| Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | Jul 25, 2020 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Europe, Middle East, and Africa (EMEA) | ||||||
| Asia Pacific, Japan, and China (APJC) | ||||||
| Segment total |
Based on: 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), 10-K (reporting date: 2020-07-25).
- General Trend
- The total segment revenue demonstrates a consistent upward trend over the analyzed period, rising from $32,539 million in July 2020 to $38,938 million in July 2025. This indicates overall growth across all regions combined.
- Americas Region
- The Americas segment shows fluctuating performance with a slight decline from $19,547 million in July 2020 to $19,117 million in July 2022. However, from July 2022 onwards, there is a clear recovery and growth, reaching $22,962 million by July 2025. This suggests a resilient market with some volatility during the early years followed by strengthening revenue.
- Europe, Middle East, and Africa (EMEA)
- The EMEA segment exhibits steady growth from $8,304 million in July 2020 to $10,545 million in July 2025. Although there is a minor dip observed in July 2024 ($9,755 million), the overall trend remains positive, indicating expanding operations or increased market penetration in this region.
- Asia Pacific, Japan, and China (APJC)
- The APJC region shows moderate growth from $4,688 million in July 2020 to $5,431 million by July 2025. There is a slight decline noted in July 2024 to $5,187 million before rebounding to $5,431 million the following year. Growth in this region appears more gradual compared to others, perhaps reflecting market challenges or slower expansion.
- Comparative Analysis
- Among the regions, the Americas segment consistently represents the largest share of segment revenue, although its growth pace is less consistent than EMEA and APJC. The EMEA region demonstrates the most stable upward trajectory, while APJC, despite being the smallest contributor, maintains steady growth with minor fluctuations. The overall segment growth is chiefly driven by increases in Americas and EMEA revenues.