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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- Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Net Profit Margin since 2005
- Current Ratio since 2005
- Analysis of Revenues
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Segment Profit Margin
Cisco Systems Inc., profit margin by reportable segment
| Jul 25, 2026 | Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Europe, Middle East, and Africa (EMEA) | ||||||
| Asia Pacific, Japan, and China (APJC) |
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 segment profit margin analysis indicates divergent performance trajectories across the three reportable geographic regions. While all regions maintain margins above 63% throughout the period, the Europe, Middle East, and Africa (EMEA) segment demonstrates the most consistent and aggressive expansion, whereas the Americas and Asia Pacific, Japan, and China (APJC) segments exhibit higher volatility.
- Americas Segment Performance
- A fluctuating trend is observed in the Americas, where margins declined from 66.87% in 2021 to a low of 63.83% in 2023. A significant recovery followed, with margins peaking at 68.23% in 2025 before experiencing a contraction to 65.15% by 2026. This suggests a period of instability followed by a temporary optimization of costs or pricing power.
- EMEA Segment Performance
- The EMEA region shows a sustained and positive upward trajectory. Profit margins grew steadily from 65.37% in 2021 to 71.24% in 2026. This consistent growth indicates a strengthening of operational efficiency or a favorable shift in the product mix within this region, eventually making it the highest-margin segment of the three.
- APJC Segment Performance
- The APJC region exhibits the highest degree of stability with minor fluctuations. Starting at 64.22% in 2021, the margin reached a peak of 67.22% in 2024 before settling at 66.56% in 2026. The lack of extreme variance suggests a mature and stable cost structure in these markets.
- Comparative Regional Analysis
- In 2021, the Americas was the leading segment in terms of profitability. However, by 2026, a shift in dominance is evident, with EMEA emerging as the primary driver of segment profitability. By the end of the observed period, EMEA's margin exceeds that of the Americas and APJC by approximately 6.09 and 4.68 percentage points, respectively.
Segment Profit Margin: Americas
Cisco Systems Inc.; Americas; segment profit margin calculation
| Jul 25, 2026 | Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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).
1 2026 Calculation
Segment profit margin = 100 × Gross margin ÷ Revenue
= 100 × ÷ =
The financial performance of the Americas segment is characterized by a general upward trajectory in revenue and gross margin, although segment profit margins have exhibited volatility over the analyzed six-year period.
- Revenue Trends
- Revenue grew from US$ 29,161 million in 2021 to US$ 37,799 million in 2026. While the overall trend is positive, a temporary contraction occurred in 2024, when revenue decreased to US$ 31,971 million from the previous year's US$ 33,447 million, before resuming growth in the subsequent two periods.
- Gross Margin Performance
- Gross margins demonstrated a consistent increase over the long term, rising from US$ 19,499 million in 2021 to US$ 24,625 million by 2026. Aside from a slight decline in 2022, the gross margin expanded steadily, with a notable acceleration in growth between 2024 and 2026.
- Segment Profit Margin Analysis
- The segment profit margin followed a non-linear pattern. An initial decline was observed between 2021 and 2023, with the margin dropping from 66.87% to a low of 63.83%. A subsequent recovery occurred, with the margin peaking at 68.23% in 2025. However, this peak was followed by a contraction to 65.15% in 2026, indicating a period of margin compression despite the increase in absolute revenue and gross margin.
Segment Profit Margin: Europe, Middle East, and Africa (EMEA)
Cisco Systems Inc.; Europe, Middle East, and Africa (EMEA); segment profit margin calculation
| Jul 25, 2026 | Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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).
1 2026 Calculation
Segment profit margin = 100 × Gross margin ÷ Revenue
= 100 × ÷ =
The Europe, Middle East, and Africa (EMEA) segment demonstrates a consistent upward trajectory in profitability margins over the analyzed six-year period. While revenue and gross margin experienced a temporary contraction in 2024, the segment profit margin percentage increased monotonically, indicating enhanced operational efficiency and a possible shift toward higher-margin revenue streams.
- Revenue Performance
- Total revenue grew steadily from US$ 12,951 million in 2021 to a peak of US$ 15,135 million in 2023. A contraction occurred in 2024, with revenue declining to US$ 14,117 million. However, a strong recovery followed, with revenue increasing to US$ 14,824 million in 2025 and reaching a period high of US$ 16,613 million by 2026.
- Gross Margin Trends
- Gross margin movements closely mirrored revenue patterns, rising from US$ 8,466 million in 2021 to US$ 10,016 million in 2023. Following a decline to US$ 9,755 million in 2024, the gross margin resumed its growth, ending the period at US$ 11,835 million in 2026.
- Segment Profit Margin Analysis
- The segment profit margin exhibits a continuous increase, starting at 65.37% in 2021 and rising to 71.24% by 2026. Notably, the most significant margin expansion occurred between 2023 and 2025, where the margin rose from 66.18% to 71.13%. The increase in profit margin during 2024—from 66.18% to 69.10%—is particularly significant as it occurred despite the simultaneous decline in absolute revenue and gross margin, suggesting a successful optimization of the cost structure or a strategic pivot toward more profitable offerings during that fiscal year.
Segment Profit Margin: Asia Pacific, Japan, and China (APJC)
Cisco Systems Inc.; Asia Pacific, Japan, and China (APJC); segment profit margin calculation
| Jul 25, 2026 | Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Gross margin | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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).
1 2026 Calculation
Segment profit margin = 100 × Gross margin ÷ Revenue
= 100 × ÷ =
The Asia Pacific, Japan, and China (APJC) segment exhibits a pattern of overall growth punctuated by a notable contraction in the 2024 fiscal period. While revenue and gross margins experienced a temporary decline, the segment demonstrated a strong recovery by 2026, with profitability margins remaining stable and showing a general upward trajectory.
- Revenue Performance
- Revenue increased steadily from 7,706 million US$ in 2021 to 8,417 million US$ in 2023. A contraction occurred in July 2024, where revenue fell to 7,716 million US$, effectively returning to 2021 levels. However, a robust recovery followed, with revenue reaching a period high of 8,914 million US$ by July 2026.
- Gross Margin Trajectory
- Gross margins closely mirrored revenue movements, rising from 4,949 million US$ in 2021 to 5,424 million US$ in 2023 before dipping to 5,187 million US$ in 2024. The subsequent recovery was significant, culminating in a peak of 5,933 million US$ in 2026, indicating an expansion in absolute gross profit as the segment scaled.
- Segment Profit Margin Analysis
- The segment profit margin displayed resilience and gradual improvement, moving from 64.22% in 2021 to 66.56% in 2026. A peak in efficiency was observed in July 2024, where the margin reached 67.22% despite the decline in total revenue. This inverse relationship suggests a strategic optimization of the cost structure or a shift toward higher-margin product mixes during the revenue downturn.
Revenue
Cisco Systems Inc., revenue by reportable segment
US$ in millions
| Jul 25, 2026 | Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Europe, Middle East, and Africa (EMEA) | ||||||
| Asia Pacific, Japan, and China (APJC) | ||||||
| Segment total |
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).
Total segment revenue displays an overall growth trend from 2021 to 2026, characterized by a period of expansion peaking in 2023, a synchronized contraction across all regions in 2024, and a subsequent strong recovery. Aggregate revenue increased from 49,818 million US dollars in 2021 to a projected 63,326 million US dollars by 2026.
- Americas Region Performance
- The Americas segment serves as the primary revenue contributor, maintaining the largest share of the total portfolio throughout the analyzed period. Revenue grew from 29,161 million US dollars in 2021 to a peak of 33,447 million US dollars in 2023. After a decline to 31,971 million US dollars in 2024, a significant upward trajectory is observed, reaching 37,799 million US dollars by 2026.
- Europe, Middle East, and Africa (EMEA) Performance
- The EMEA region demonstrates consistent, moderate growth. Revenue rose from 12,951 million US dollars in 2021 to 15,135 million US dollars in 2023. Similar to other segments, a dip occurred in 2024, with revenue falling to 14,117 million US dollars, followed by a recovery to 16,613 million US dollars by 2026.
- Asia Pacific, Japan, and China (APJC) Performance
- The APJC segment exhibits the most conservative growth profile and higher relative volatility. Revenue increased slightly from 7,706 million US dollars in 2021 to 8,417 million US dollars in 2023. A notable contraction occurred in 2024, with revenue dropping to 7,716 million US dollars, effectively erasing gains made since 2021. Growth resumed in the final two years, ending at 8,914 million US dollars in 2026.
- Aggregate Revenue Analysis
- Total revenue across all reportable segments grew by approximately 27.1% from 2021 to 2026. The data reveals a uniform cyclical pattern where all three geographic segments experienced growth through 2023, a simultaneous downturn in 2024, and a coordinated recovery through 2026. The Americas region remains the dominant driver of this volatility and subsequent growth.
Gross margin
Cisco Systems Inc., gross margin by reportable segment
US$ in millions
| Jul 25, 2026 | Jul 26, 2025 | Jul 27, 2024 | Jul 29, 2023 | Jul 30, 2022 | Jul 31, 2021 | |
|---|---|---|---|---|---|---|
| Americas | ||||||
| Europe, Middle East, and Africa (EMEA) | ||||||
| Asia Pacific, Japan, and China (APJC) | ||||||
| Segment total |
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 total gross margin across all reportable segments demonstrates a sustained growth trajectory over the analyzed period, increasing from US$ 32,914 million in 2021 to US$ 42,393 million by 2026. While growth remained relatively flat between 2021 and 2022, a more pronounced upward trend emerged from 2023 onwards, reflecting an expansion in overall profitability across geographic regions.
- Americas Regional Performance
- The Americas region remains the primary contributor to the total gross margin. After a marginal decline in 2022 to US$ 19,117 million, the segment exhibited consistent annual growth, reaching US$ 24,625 million by 2026. This region serves as the dominant driver of the overall increase in segment totals.
- Europe, Middle East, and Africa (EMEA) Performance
- The EMEA segment showed an overall positive trend, increasing from US$ 8,466 million in 2021 to US$ 11,835 million in 2026. A temporary contraction was observed in 2024, where margins decreased to US$ 9,755 million from US$ 10,016 million in the prior year, followed by a strong recovery in the final two years of the period.
- Asia Pacific, Japan, and China (APJC) Performance
- The APJC region represents the smallest share of the total gross margin. Growth in this segment was more moderate, rising from US$ 4,949 million in 2021 to US$ 5,933 million in 2026. Similar to the EMEA region, a dip in performance occurred in 2024, with margins falling to US$ 5,187 million from US$ 5,424 million.
- Aggregate Segment Trends
- The total segment gross margin experienced a cumulative increase of approximately 28.8% over the six-year duration. The data indicates a synchronized volatility in 2024 across the EMEA and APJC regions, while the Americas region maintained stability, offsetting the declines in other geographies to ensure continued total growth.