Cisco Systems Inc.

11/12/2026 | Press release | Distributed by Public on 11/12/2026 15:13

Q1FY27 Income statements and GAAP reconciliation

Income Statements

HISTORICAL FINANCIALS
INCOME STATEMENTS
(in millions, except per-share amounts)
Notes (1) (2) Notes (1) (2)
GAAP NON-GAAP
FY 2027 FY 2027
Quarter Ended Quarter Ended
October 24, 2026 October 24, 2026
REVENUE:
Product $ 14,667 $ 14,667
Services 3,850 3,850
Total Revenue 18,517 18,517
COST OF SALES:
Product (a) - (c) 5,610 5,328
Services (a) & (c) 1,119 1,042
Total cost of sales (a) - (c) 6,729 6,370
GROSS MARGIN (a) - (c) 11,788 12,147
Product gross margin percentage 61.8% 63.7%
Services gross margin percentage 70.9% 72.9%
Total gross margin percentage 63.7% 65.6%
OPERATING EXPENSES:
Research and development (a) & (c) 2,423 1,960
Sales and marketing (a) & (c) 2,831 2,577
General and administrative (a) & (c) 717 603
Amortization of purchased intangible assets (b) 191 -
Restructuring and other charges (d) 28 -
Total operating expenses (a) - (d) 6,190 5,140
Operating expense as a percentage of revenue 33.4% 27.8%
OPERATING INCOME (a) - (d) 5,598 7,007
Operating income as a percentage of revenue 30.2% 37.8%
Interest income 234 234
Interest expense (368) (368)
Other income (loss), net (e) 31 (42)
Interest and other income (loss), net (103) (176)
INCOME BEFORE PROVISION FOR INCOME TAXES (a) - (e) 5,495 6,831
Provision for income taxes (f) - (g) 943 1,264
NET INCOME (a) - (g) $ 4,552 $ 5,567
Net income per share:
Basic (a) - (g) $ 1.15
Diluted (a) - (g) $ 1.14 $ 1.40
Shares used in per-share calculation:
Basic 3,948
Diluted 3,978 3,978
Cash dividends declared per common share $ 0.42
Cisco's non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and maybe different from non-GAAP measures used by other companies. In addition, the above non-GAAP Consolidated Statements of Operations are not based on a comprehensive set of accounting rules or principles.
Amounts may not sum or recalculate and percentages may not recalculate due to rounding.

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GAAP Recon Note 1

INCOME STATEMENTS
Note 1
(in millions)
FY 2027
Quarter Ended
October 24, 2026
A reconciliation between net income on a GAAP basis and non-GAAP net income including items (a) to (g) is as follows:
GAAP net income $ 4,552
(a) Share-based compensation expense 909
(b) Amortization of acquisition-related intangible assets 413
(c) Other acquisition-related/divestiture costs 59
(d) Significant asset impairments and restructurings 28
(e) (Gains) and losses on investments (73)
Total adjustments to GAAP income before provision for income taxes 1,336
(f) Income tax effect (394)
(g) Significant tax matters 73
Total adjustments to GAAP provision for income taxes (321)
Non-GAAP net income $ 5,567

_x000D_&1#&"Calibri"&1&K000000 - &"Arial,Regular"&9Cisco Systems, Inc.

GAAP Recon Note 2

INCOME STATEMENTS
Note 2
(in millions)
COGS Operating Expense OI&E
Research and Development Sales and Marketing General and Administrative Amortization of Purchased Intangible Assets Restructuring and Other Charges Other Income (Expense) Total
Product Services
Items (a) to (e) in note 1 are allocated as follows:
Items Q1'27
(a) Share-based compensation expense $ 59 $ 75 $ 419 $ 246 $ 110 $ - $ - $ - $ 909
(b) Amortization of acquisition-related intangible assets 222 - - - - 191 - - 413
(c) Other acquisition-related/divestiture costs 1 2 44 8 4 - - - 59
(d) Significant asset impairments and restructurings - - - - - - 28 - 28
(e) (Gains) and losses on investments - - - - - - - (73) (73)
Total $ 282 $ 77 $ 463 $ 254 $ 114 $ 191 $ 28 $ (73) $ 1,336

_x000D_&1#&"Calibri"&1&K000000 - &"Arial,Regular"&9Cisco Systems, Inc.

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