Cisco Systems, Inc. stock research
FY2026 Q3
Cisco Systems (CSCO) Gross Margin & Quarterly History
Explore Cisco Systems, Inc. (CSCO) gross margin from 2023 through the latest reported quarter, using SEC-sourced revenue, gross profit, and direct costs.
Gross margin takeaway
Quarter ended Apr 25, 2026 · FY2026 Q3
Gross margin declined as cost of revenue grew faster than revenue. Revenue and gross profit increased compared to both the prior quarter and the same quarter last year.
- The primary driver of the margin change was the disproportionate increase in cost of revenue relative to revenue. Although revenue rose, the cost of revenue rose even more, reducing the gross margin.
- Compared to the prior quarter, revenue and gross profit were higher but gross margin was lower. The same pattern holds when compared to the same quarter a year ago.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
63.6%
Gross profit
$10.1B
Revenue
$15.8B
Cost of revenue
$5.8B
Quarter-over-quarter change
-1.3 pts
Year-over-year change
-1.9 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jul 26, 2025 | $14.7B | $9.3B | $5.4B | 63.2% |
| Oct 25, 2025 | $14.9B | $9.7B | $5.1B | 65.5% |
| Jan 24, 2026 | $15.3B | $10.0B | $5.4B | 65.0% |
| Apr 25, 2026 | $15.8B | $10.1B | $5.8B | 63.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jan 24, 2026
-1.3 pts
Year-over-year change
Apr 26, 2025
-1.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary driver of the margin change was the disproportionate increase in cost of revenue relative to revenue. Although revenue rose, the cost of revenue rose even more, reducing the gross margin.
Compared to the prior quarter, revenue and gross profit were higher but gross margin was lower. The same pattern holds when compared to the same quarter a year ago.
Monitor the trend in inventories, which increased compared to the end of the prior fiscal year as noted in the filing.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Cisco Systems, Inc. (CSCO) | 63.6% |