How does Cisco (CSCO) make money?

Cisco (CSCO) primarily makes money through Networking, which accounts for 52.1% of total revenue. For TTM through Q1 2026, Cisco generated $59.05B in total revenue with a net profit margin of 18.8%.

What is Cisco (CSCO) gross profit margin?

Cisco (CSCO) reported a gross profit margin of 64.8% for TTM through Q1 2026, equivalent to $38.27B in gross profit. This means Cisco retains 64.8% of each revenue unit after direct costs of production.

What is Cisco (CSCO) operating profit margin?

Cisco (CSCO) reported an operating profit margin of 22.7% for TTM through Q1 2026, equivalent to $13.43B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.

What is Cisco (CSCO) net profit margin?

Cisco (CSCO) reported a net profit margin of 18.8% for TTM through Q1 2026, equivalent to $11.08B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.

How much does Cisco (CSCO) invest in R&D?

Cisco (CSCO) invested $9.47B in research and development in TTM through Q1 2026 (16.0% of total revenue). R&D spending reflects investment in future products, services, and technologies.

How much does Cisco (CSCO) spend on capital expenditures?

Cisco (CSCO) spent $478.00M on capital expenditures in TTM through Q1 2026 (0.8% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.

What is Cisco (CSCO) free cash flow?

Cisco (CSCO) generated $12.85B in free cash flow for TTM through Q1 2026 (21.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.

What is Cisco (CSCO) effective tax rate?

Cisco (CSCO) had an effective tax rate of 14.7% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

How Cisco (CSCO) Makes Money: A Visual Guide

Cisco (CSCO) generated $59.05B in revenue, earning $11.08B in net profit (18.8% margin). Its largest revenue source is Networking (52.1% of revenue). Below is an interactive breakdown of how revenue flows through the income statement.

Cisco (CSCO) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending January 24, 2026 (reported February 17, 2026).

Frequently asked questions

How does Cisco (CSCO) make money?: Cisco (CSCO) primarily makes money through Networking, which accounts for 52.1% of total revenue. For TTM through Q1 2026, Cisco generated $59.05B in total revenue with a net profit margin of 18.8%.
What is Cisco (CSCO) gross profit margin?: Cisco (CSCO) reported a gross profit margin of 64.8% for TTM through Q1 2026, equivalent to $38.27B in gross profit. This means Cisco retains 64.8% of each revenue unit after direct costs of production.
What is Cisco (CSCO) operating profit margin?: Cisco (CSCO) reported an operating profit margin of 22.7% for TTM through Q1 2026, equivalent to $13.43B in operating profit. This reflects profitability after operating expenses such as R&D, sales, and administration, but before taxes and non-operating items.
What is Cisco (CSCO) net profit margin?: Cisco (CSCO) reported a net profit margin of 18.8% for TTM through Q1 2026, equivalent to $11.08B in net profit. This is the share of revenue that remains as profit after all expenses, taxes, and non-operating items.
How much does Cisco (CSCO) invest in R&D?: Cisco (CSCO) invested $9.47B in research and development in TTM through Q1 2026 (16.0% of total revenue). R&D spending reflects investment in future products, services, and technologies.
How much does Cisco (CSCO) spend on capital expenditures?: Cisco (CSCO) spent $478.00M on capital expenditures in TTM through Q1 2026 (0.8% of total revenue). Capital expenditures represent investments in physical assets such as property, equipment, and infrastructure.
What is Cisco (CSCO) free cash flow?: Cisco (CSCO) generated $12.85B in free cash flow for TTM through Q1 2026 (21.8% of total revenue). Free cash flow is the cash remaining after capital expenditures and represents the company's ability to fund growth, pay dividends, or reduce debt.
What is Cisco (CSCO) effective tax rate?: Cisco (CSCO) had an effective tax rate of 14.7% for TTM through Q1 2026. This is the actual percentage of pre-tax income paid as income taxes.

Data & methodology

What is a Sankey diagram?: A Sankey diagram shows how money flows through a company from revenue to net profit. The width of each flow represents its proportion.
How is the data calculated?: We use the income statement from company filings. For TTM (Trailing Twelve Months), we use a pre-aggregated twelve-month view aligned with our latest four quarterly periods. Revenue flows to cost of revenue and gross profit, then to operating expenses (R&D, S&M, G&A) and operating profit.
When was this data last updated?: Based on company filings through TTM through Q1 2026.