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CSCO, Cisco Systems Inc. Common Stock (DE)

Communications Equipment consumer brand Serial acquirer

Cisco makes the gear that moves data through computer networks — the switches and routers that sit in corporate offices, data centers, and the plumbing of the internet — along with the software and security that ride on top. Its customers are businesses, telecom carriers, and governments, and it reaches most of them through resellers and distributors rather than selling direct, on terms that let those distributors return a portion of inventory, take credits for price changes, and share in cooperative marketing. It earns money on the equipment up front and on software and service contracts that recur.

We are incorporating artificial intelligence (AI) into our product portfolios across networking, security, collaboration and observability as well as integrating our products more tightly together.

We are simplifying how our technology is delivered, managed and optimized and helping customers maximize the business value of their technology investments.

Latest annual: FY2025 10-K

CSCO · Cisco Systems Inc. Common Stock (DE)

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$56.7B

+5.3% YoY · 3% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $60.7B 5-yr avg $53.8B

Gross margin 64% 5-yr avg 64%

Operating margin 23.4% 5-yr avg 24.5%

ROIC 19% 5-yr avg 23%

Owner-earnings margin 20% 5-yr avg 26%

Free cash flow margin 19% 5-yr avg 26%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Serial acquirer. Goodwill and acquired intangibles are 56% of assets, with meaningful acquisition spending in 4 of the record's 10 years; much of what this business is was bought, at prices the record carries.
What moves the needle: The question that governs Cisco is whether its hardware is a franchise or a commodity: networking gear can be copied, and the filing's own language stresses a "highly competitive environment." The test of a moat is whether the installed base, the software wrapped around it, and the cost of ripping out a working network let Cisco hold price — and whether it can shift the relationship toward recurring software and service revenue, which is harder for a rival to dislodge. Against that, watch the dependence on a limited number of contract manufacturers, the tariff and trade exposure the filing flags, and the standing risk that a cheaper challenger or a change in how networks are built erodes the position. The margins and returns that show whether the franchise is real are in the record below.
Is it a good business?: Return on capital has run high across the record (median 21%, above 15% in 7 of 10 years). Owner earnings agree: roughly 26% of revenue reaches owners as cash, consistently. Whether these returns reflect real pricing power or an accounting artifact is the judgment the 10-K is for.

Drafted from the company's filings and reviewed by hand; every number is shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2016–2025

realized figures from each filing · older years to the left

2016’16	2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMApr 2026
											Income statement
$49.2B	$48.0B	$49.3B	$51.9B	$49.3B	$49.8B	$51.6B	$57.0B	$53.8B	$56.7B	$60.7B	RevenueRevenue
63%	63%	62%	63%	64%	64%	63%	63%	65%	65%	64%	Gross marginGross mgn
4%	4%	4%	4%	4%	4%	4%	4%	5%	5%	5%	SG&A / revenueSG&A/rev
13%	13%	13%	13%	13%	13%	13%	13%	15%	16%	16%	R&D / revenueR&D/rev
$12.7B	$12.0B	$12.3B	$14.2B	$13.6B	$12.8B	$14.0B	$15.0B	$12.2B	$11.8B	$14.2B	Operating incomeOp. inc.
25.7%	24.9%	25.0%	27.4%	27.6%	25.8%	27.1%	26.4%	22.6%	20.8%	23.4%	Operating marginOp. mgn
$10.7B	$9.6B	$110M	$11.6B	$11.2B	$10.6B	$11.8B	$12.6B	$10.3B	$10.2B	$12.0B	Net incomeNet inc.
17%	22%	—	20%	20%	20%	18%	18%	16%	8%	15%	Effective tax rateTax rate
											Cash flow & returns
$13.6B	$13.9B	$13.7B	$15.8B	$15.4B	$15.5B	$13.2B	$19.9B	$10.9B	$14.2B	$13.0B	Operating cash flowOp. cash
$1.0B	$1.1B	$1.1B	$1.0B	$900M	$800M	$800M	$700M	$700M	$700M	$700M	DepreciationDeprec.
$373M	$1.6B	$10.9B	$1.6B	$1.7B	$2.3B	($1.3B)	$4.2B	($3.2B)	($328M)	($3.5B)	Working capital & otherWC & other
$1.1B	$964M	$834M	$909M	$770M	$692M	$477M	$849M	$670M	$905M	$1.2B	CapexCapex
2.3%	2.0%	1.7%	1.8%	1.6%	1.4%	0.9%	1.5%	1.2%	1.6%	2.0%	Capex / revenueCapex/rev
$12.4B	$12.9B	$12.8B	$14.9B	$14.7B	$14.8B	$12.7B	$19.0B	$10.2B	$13.5B	$12.3B	Owner earningsOwner earn.
25.2%	26.9%	26.0%	28.7%	29.7%	29.6%	24.7%	33.4%	19.0%	23.8%	20.3%	Owner earnings marginOE mgn
$12.4B	$12.9B	$12.8B	$14.9B	$14.7B	$14.8B	$12.7B	$19.0B	$10.2B	$13.3B	$11.8B	Free cash flowFCF
25.2%	26.9%	26.0%	28.7%	29.7%	29.6%	24.7%	33.4%	19.0%	23.5%	19.4%	Free cash flow marginFCF mgn
$3.2B	$3.3B	$3.0B	—	—	—	$373M	$301M	$26.0B	$291M	$46M	AcquisitionsAcquis.
$4.8B	$5.5B	$6.0B	$6.0B	$6.0B	$6.2B	$6.2B	$6.3B	$6.4B	$6.4B	$6.5B	Dividends paidDiv. paid
$3.9B	$3.7B	$17.5B	$20.7B	$2.7B	$2.9B	$7.7B	$4.3B	$5.8B	$6.0B	—	BuybacksBuybacks
12%	11%	10%	27%	27%	23%	27%	29%	18%	17%	19%	ROICROIC
17%	15%	0%	35%	30%	26%	30%	28%	23%	22%	24%	Return on equityROE
9%	6%	−14%	17%	14%	11%	14%	14%	9%	8%	11%	Retained to equityRetained/eq
											Balance sheet
$65.8B	$70.5B	$46.5B	$33.4B	$29.4B	$24.5B	$19.3B	$26.1B	$17.9B	$16.1B	$16.6B	Cash & investmentsCash+inv
$5.8B	$5.1B	$5.6B	$5.5B	$5.5B	$5.8B	$6.6B	$5.9B	$6.7B	$6.7B	$6.5B	ReceivablesReceiv.
$1.2B	$1.6B	$1.8B	$1.4B	$1.3B	$1.6B	$2.6B	$3.6B	$3.4B	$3.2B	$4.7B	InventoryInvent.
$1.1B	$1.4B	$1.9B	$2.1B	$2.2B	$2.4B	$2.3B	$2.3B	$2.3B	$2.5B	$3.0B	Accounts payablePayables
$6.0B	$5.4B	$5.5B	$4.8B	$4.5B	$5.0B	$6.9B	$7.2B	$7.8B	$7.3B	$8.2B	Operating working capitalOper. WC
$78.7B	$83.7B	$61.8B	$47.8B	$43.6B	$39.1B	$36.7B	$43.3B	$36.9B	$35.0B	$36.6B	Current assetsCur. assets
$24.9B	$27.6B	$27.0B	$31.7B	$25.3B	$26.3B	$25.6B	$31.3B	$40.6B	$35.1B	$39.5B	Current liabilitiesCur. liab.
3.2×	3.0×	2.3×	1.5×	1.7×	1.5×	1.4×	1.4×	0.9×	1.0×	0.9×	Current ratioCurr. ratio
$26.6B	$29.8B	$31.7B	$33.5B	$33.8B	$38.2B	$38.3B	$38.5B	$58.7B	$59.1B	$59.3B	GoodwillGoodwill
$121.7B	$129.8B	$108.8B	$97.8B	$94.9B	$97.5B	$94.0B	$101.9B	$124.4B	$122.3B	$125.5B	Total assetsAssets
$28.6B	$30.5B	$25.6B	$20.5B	$14.6B	$11.5B	$8.9B	$8.4B	$20.1B	$24.6B	$22.9B	Total debtDebt
($37.1B)	($40.0B)	($21.0B)	($12.9B)	($14.8B)	($13.0B)	($10.4B)	($17.8B)	$2.3B	$8.5B	$6.2B	Net debt / (cash)Net debt
18.7×	13.9×	13.1×	16.6×	23.3×	29.6×	38.8×	35.2×	12.1×	7.4×	9.7×	Interest coverageInt. cov.
$63.6B	$66.1B	$43.2B	$33.6B	$37.9B	$41.3B	$39.8B	$44.4B	$45.5B	$46.8B	$48.9B	Shareholders’ equityEquity
3.0%	3.2%	3.2%	3.0%	3.2%	3.5%	3.7%	4.1%	5.7%	6.4%	6.3%	Stock comp / revenueSBC/rev
											Per share
5.09B	5.05B	4.88B	4.45B	4.25B	4.24B	4.19B	4.11B	4.06B	4.00B	3.99B	Shares out (diluted)Shares
$9.68	$9.51	$10.11	$11.66	$11.59	$11.76	$12.30	$13.89	$13.25	$14.17	$15.24	Revenue / shareRev/sh
$2.11	$1.90	$0.02	$2.61	$2.64	$2.50	$2.82	$3.07	$2.54	$2.55	$3.00	EPS (diluted)EPS
$2.44	$2.56	$2.63	$3.35	$3.45	$3.48	$3.04	$4.64	$2.51	$3.37	$3.09	Owner earnings / shareOE/sh
$2.44	$2.56	$2.63	$3.35	$3.45	$3.48	$3.04	$4.64	$2.51	$3.32	$2.96	Free cash flow / shareFCF/sh
$0.93	$1.09	$1.22	$1.34	$1.41	$1.45	$1.48	$1.54	$1.57	$1.61	$1.64	Dividends / shareDiv/sh
$0.23	$0.19	$0.17	$0.20	$0.18	$0.16	$0.11	$0.21	$0.16	$0.23	$0.31	Cap. spending / shareCapex/sh
$12.50	$13.10	$8.85	$7.54	$8.91	$9.74	$9.49	$10.80	$11.19	$11.72	$12.26	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	9-yr	5-yr
Revenue / share	+4.3%/yr	+4.1%/yr
Owner earnings / share	+3.7%/yr	−0.4%/yr
EPS	+2.1%/yr	−0.7%/yr
Dividends / share	+6.2%/yr	+2.6%/yr
Capital spending / share	+0.1%/yr	+4.6%/yr
Book value / share	−0.7%/yr	+5.6%/yr

The record, charted

FY2016–2025

Each measure over its full record; the current point and the worst year marked.

Share count

4Bpeak FY2016

ROIC

17%low FY2018

Gross margin

65%low FY2018

Net debt ÷ owner earnings

0.6×peak FY2025

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$13.5Bowner earningsvs.$10.2Bnet incomelow FY2024

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2016FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business earned $13.5B of owner earnings, the operating cash left after the $700M it takes just to hold its position. It put $205M more into growth; free cash flow, after that spending, was $13.3B.

Reported net income$10.2B

Owner earnings$13.5B · 24% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$10.2B	$10.3B	$12.6B	$11.8B	$10.6B
Depreciation & amortizationnon-cash charge added back	+$700M	+$700M	+$700M	+$800M	+$800M
Stock-based compensationreal costnon-cash, but a real cost	+$3.6B	+$3.1B	+$2.4B	+$1.9B	+$1.8B
Working capital & othertiming of cash in and out, other non-cash items	−$328M	−$3.2B	+$4.2B	−$1.3B	+$2.3B
Cash from operations	$14.2B	$10.9B	$19.9B	$13.2B	$15.5B
Maintenance capital expenditurethe spending needed just to hold position and volume	−$700M	−$670M	−$849M	−$477M	−$692M
Owner earnings	$13.5B	$10.2B	$19.0B	$12.7B	$14.8B
Growth capital expenditurediscretionary; spent to get bigger, not to stand still	−$205M	—	—	—	—
Free cash flow	$13.3B	$10.2B	$19.0B	$12.7B	$14.8B
Owner-earnings marginowner earnings ÷ revenue	24%	19%	33%	25%	30%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the maintenance capital it must spend to hold its position (here about $700M, roughly its depreciation, the rate its assets wear out). The other $205M of its capital spending is growth it chose, not upkeep it owed; charged only with the maintenance it must do, the business earns well more than the year's free cash flow shows. The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $3.6B), owner earnings is nearer $9.9B.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 7.4×

Comfortable

Operating income $11.8B ÷ interest expense $1.6B

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? $8.5B · 0.7× operating profit

Modest net debt

Cash $8.3B + ST investments $7.8B − debt $24.6B

What this means
Netting $16.1B of cash and short-term investments against $24.6B of debt leaves $8.5B owed, about 0.7× a year's operating profit (2.1× on the gross debt, before the cash). Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 55d

Tight

DSO 43 + DIO 58 − DPO 46 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital 18%

High through the cycle

10-yr median, range 10%–29%; 17% latest = NOPAT $10.8B ÷ invested capital $63.1B

Industry peers: median 13%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 10 years (it ran 17% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 26%

High through the cycle

10-yr median margin, range 19%–33%; latest $13.5B = operating cash $14.2B − maintenance capex $700M

Industry peers: median 7%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 24% of revenue this year, a 26% median across 10 years. Treating stock comp as the real expense it is (less $3.6B of SBC) leaves $9.9B.
Are earnings backed by cash? 1.39×

Cash-backed

Cash from ops $14.2B ÷ net income $10.2B

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? 92%

Returns most of it

Dividends + buybacks $12.4B ÷ Owner Earnings $13.5B

What this means
Of $13.5B Owner Earnings, $12.4B (92%) went back to shareholders, $6.4B dividends, $6.0B buybacks. Net of $3.6B stock comp, the real buyback was about $2.4B. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 1.29×

Expanding

Capex $905M ÷ depreciation $700M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 4 of 6 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Pass

Revenue ≥ $2B · $56.7B

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.00×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Miss

Debt ≤ working capital · $24.6B vs ($78M) WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Pass

A profit every year (10-yr record) · no losses

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Pass

Uninterrupted dividends · paid every year (10)

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth Pass

Earnings +33% over the record · +62%

What this means
At least a third more earnings than a decade ago, averaging three years at each end. Net income (not per-share), so stock splits don't distort it, buybacks and dilution show up in the share-count line instead.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $2.80/share (latest year $2.58), the averaged base the calculator's gate runs on, and book value is $11.88/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2016–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 10 of 10

What this means
Never lost money over the record, the earnings stability Graham insisted on.
Return on capital ≥ 15% 7 of 10 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin 25% → 23% (3-yr avg ends)

What this means
Through the cycle the operating margin held roughly steady — about 25% early, 23% lately, median 26%.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Owner earnings growth −1%/yr

What this means
Owner earnings shrank about 1% a year over the record.
Worst year 2025 · 20.8% op. margin

What this means
Stayed profitable even in its hardest year, the resilience that survives recessions.
Share count −2.6%/yr

What this means
The share count is shrinking, buybacks are quietly growing your slice of the business.
Dividend record rising

What this means
Paid and raised the dividend across the record, the continuity Graham prized.
How management talks about it Owner’s terms

What this means
Returns have thinned, but the filing discusses it in an owner’s vocabulary rather than selling past it — candor about a hard stretch counts for more than an adjective.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product; it frames AI mainly as a capability.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat, and the company is using it that way.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Apr 25, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$36.6B

Cash & short-term investments$16.6B
Receivables$6.5B
Inventory$4.7B
Other current assets$8.7B

Current liabilities$39.5B

Debt due within a year$3.5B
Accounts payable$3.0B
Other current liabilities$33.1B

Current ratio0.92×all current assets ÷ what's due · Graham looked for 2×

Quick ratio0.81×stricter: inventory excluded

Cash ratio0.42×strictest: cash alone against what's due

Working capital($3.0B)the cushion left after near-term bills

Its current ratio is below 1, which usually reads as strain; here it is likely structural strength. What it owes in the near term is money to suppliers and customers (payables and deferred revenue), not to lenders, so the balance sheet is funded by operating float, the way Costco's and Amazon's are. The low ratio can be the edge, not the risk; the cash-conversion cycle and the debt due above say which.

Debt due this year vs. cash$3.5B due · $16.6B cash covered by cash on hand, no refinancing forced · both figures from the Apr 25, 2026 balance sheet

Revenue, latest quarter vs. a year ago+12.0%the freshest read on whether the business is still growing

Current ratio, recent quarters0.9× → 0.9×

Deeper floors

Tangible book value($18.3B)equity stripped of goodwill & intangibles

Net current asset value($40.1B)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$24.6B$1.7B of it operating leases

Deferred revenue$28.6Bcustomer cash collected before delivery; operating float

From the company's latest filing.

Debt maturity

the debt note, SEC EDGAR →

Not how much it owes, but when it falls due, and against what. The ladder the company files, beside cash on hand and a year's owner earnings.

'26$1.8B

'27$3.5B

'28$1.0B

'29$2.5B

'30$1.0B

later$15.0B

Bars scaled to the largest single year; “later” is everything due after 2030, shown apart since it dwarfs the years.

Due in the next 12 months$1.8Bthe first rung: what must be repaid or rolled over within the year

Within two years$5.3Bthe near wall, the part most exposed to today’s credit conditions

Biggest single year$3.5Bin 2027the lumpiest maturity, where a refinancing, if needed, is largest

Total scheduled principal$24.8Bevery year plus what lies beyond, as the footnote totals it

Against what the business has and earns

Cash & short-term investments, Apr 25, 2026$16.6B

One year of owner earnings (FY2025)$13.5B

Together, against $1.8B due next year17.2×

Cash on hand as of Apr 25, 2026 plus a year’s owner earnings comes to $30.1B against the $1.8B due in the twelve months after the Jul 26, 2025 schedule: 17 times it.

Maturity schedule extracted from the company’s Jul 26, 2025 annual report and reconciled to the total the table states.

How the cash was used, 2016–2025

Over the record, the business generated $146.0B of operating cash; how management split it reads as a cash returner, paying most of what it earns straight back to owners.

Reinvested$8.2B · 6%
Dividends$59.7B · 41%
Buybacks$75.2B · 51%
Retained (debt / cash)$2.9B · 2%

Returned to owners$134.9B
98% of the owner earnings the business produced over the span, $59.7B as dividends and $75.2B as buybacks.
Source of fundingOperating cash
Operating cash covered reinvestment and returns; over the span debt fell $5.8B and cash and short-term investments fell $49.1B.
Average price paid for buybacks$44.34
Across the years where the filing reports a share count, 1695M shares were bought for $75.2B, about $44.34 each. Year to year the price paid ranged from $26.41 (2016) to $57.14 (2025); its heaviest year, 2019, paid $49.56 ($20.7B).
Net change in share count−21.6%
The diluted count fell from 5088M to 3987M, so the buybacks outran the stock issued to staff.
Dividend record$1.61/sh
Paid in 10 of the years on record, the per-share dividend growing about 6% a year. It was never cut over the span.

Buybacks are gross of stock issued to staff; the share-count line above is the net of that, the figure that decides whether owners gained. The average price paid blends a year of purchases (and any accelerated repurchase), so it is close, not exact. The record of where the cash went and on what terms.

Acquisitions & goodwill

from the balance sheet & the 10-year cash-flow record

Goodwill grows only when a company acquires and falls only when it concedes it overpaid. The size of that bet, the cash put into buying rather than building, and how much has already been written off.

Goodwill & intangibles$68.3B56% of all assets; the premium carried on the balance sheet for businesses acquired

Against book equityexceeds itgoodwill alone is larger than the company’s entire book equity; stripped of the acquisition premium, there is no net book worth

Cash spent acquiring$36.5Bover 10 years buying other businesses, against $8.2B of capital spent building

None written down over the record; the goodwill is still carried at full cost. That is the deals holding their value on the books so far; whether they keep doing so is the test an owner watches, since the write-down, when it comes, is the admission the price was too high.

Goodwill, acquired intangibles and equity from the latest balance sheet; acquisition spend and write-downs summed across the 10-year record, from the company's own filings.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	R. Scott Herren	$25.4M	$32.1M	$14.8B
2022	R. Scott Herren	$29.3M	$6.1M	$12.7B
2023	R. Scott Herren	$31.8M	$74.6M	$19.0B
2024	R. Scott Herren	$39.2M	$16.6M	$10.2B
2025	R. Scott Herren	$52.8M	$94.1M	$13.5B

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership<1%
The stake all directors and executive officers hold together, per the 2025 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$3.6B
The slice of the business handed to employees in shares this year, 6% of revenue, equal to 31% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Cisco Systems Inc. Common Stock (DE) is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2016–2025.

2 of the 6 tests turned up something to look into; the other 4 came back clean.

Look hereDid receivables and inventory outpace sales?14% → 18% of sales
Receivables and inventory grew from $7.1B to $11.2B while revenue grew 23%: working capital is climbing faster than sales (14% of revenue then, 18% now). That can mean customers paying slower, stock building up, or revenue pulled forward. The filing's cash-flow and receivables notes say which.
Look hereAre "one-time" charges a yearly habit?6 of 10 years
Management took an impairment or write-down in 6 of the last 10 years, $389M in all. Taken across the majority of the record, the "one-time" label is wearing thin — ask whether these are past deals coming due rather than genuinely isolated events. Read it beside the goodwill the company still carries.

And these came back clean

Is it less profitable than it was?
Did the share count rise anyway?
Did debt outgrow the business?
Did reported profit become cash?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

Peers, Communications Equipment

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
DELLDell Technologies Inc.	$113.5B	23%	4.4%	18%	7%
IBMInternational Business Machines Corp	$67.5B	55%	15.2%	13%	18%
CSCOCisco Systems Inc. Common Stock (DE)	$56.7B	63%	25.7%	21%	26%
HPQHP Inc.	$55.3B	19%	6.6%	64%	6%
HPEHewlett Packard Enterprise Company	$34.3B	56%	4.2%	3%	5%
SMCISuper Micro Computer Inc.	$22.0B	15%	4.3%	12%	2%
ANETArista Networks Inc.	$9.0B	64%	32.4%	33%	33%
JNPRJuniper Networks	$5.1B	59%	9.8%	9%	13%
Group median	—	55%	8.2%	15%	10%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Cisco Systems Inc. Common Stock (DE) has delivered.

Today’s price $

Through the cycle, Cisco Systems Inc. Common Stock (DE) earns about $15.0B on its 26.5% median owner-earnings margin. This year’s 23.8% margin runs in line with that. Normalize, below, values the price on that through-cycle figure rather than the latest year.

Base Normalize · through-cycle ($15.0B) Net of stock comp (−$3.9B) Steady-state · maintenance capex ($12.3B)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25−4%/yr

Owner-earnings growth · ’16→’25−1%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Free cash flow $11.8B on 3941M shares outstanding, per the 10-Q cover, as of 2026-05-14; net debt $6.2B. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. Capex ($1.2B) runs well above depreciation ($700M), so this is a build-out; Steady-state swaps total capex for maintenance (≈ depreciation), lifting the base to about $12.3B, the cash it would throw off if it stopped expanding. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh CSCO against another business →

The owners of CSCO: the meeting and the votes →

Cite: Owner Scorecard, "Cisco Systems Inc. Common Stock (DE) (CSCO), the owner's record," https://ownerscorecard.com/c/CSCO, data as of 2026-07-09.

Manual order: ← CRWV its page in the Manual CSGP →

Industry order: ← CRNT the Communications Equipment chapter DGII →