Cisco Systems, Inc. stock research
FY2026 Q1
Cisco Systems (CSCO) Gross Margin — Quarter Ended Oct 25, 2025
Revenue grew compared to both the prior quarter and the same quarter last year. Gross profit also increased, while cost of revenue decreased sequentially but increased year over year, resulting in a gross margin that improved sequentially but was slightly lower than the year-ago period.
Gross margin takeaway
Quarter ended Oct 25, 2025 · FY2026 Q1
Revenue grew compared to both the prior quarter and the same quarter last year. Gross profit also increased, while cost of revenue decreased sequentially but increased year over year, resulting in a gross margin that improved sequentially but was slightly lower than the year-ago period.
- The most notable change in the quarter was the reduction in cost of revenue alongside higher revenue, which accompanied the sequential expansion of gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, and cost of revenue was lower, leading to an improved gross margin. Compared to the same quarter a year ago, revenue and gross profit were higher, but cost of revenue was also higher, resulting in a slightly lower gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.5%
Gross profit
$9.7B
Revenue
$14.9B
Cost of revenue
$5.1B
Quarter-over-quarter change
+2.2 pts
Year-over-year change
-0.4 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 |
|---|---|---|---|---|
| Jan 25, 2025 | $14.0B | $9.1B | $4.9B | 65.1% |
| Apr 26, 2025 | $14.1B | $9.3B | $4.9B | 65.6% |
| Jul 26, 2025 | $14.7B | $9.3B | $5.4B | 63.2% |
| Oct 25, 2025 | $14.9B | $9.7B | $5.1B | 65.5% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jul 26, 2025
+2.2 pts
Year-over-year change
Oct 26, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable change in the quarter was the reduction in cost of revenue alongside higher revenue, which accompanied the sequential expansion of gross margin.
Compared to the prior quarter, revenue and gross profit were higher, and cost of revenue was lower, leading to an improved gross margin. Compared to the same quarter a year ago, revenue and gross profit were higher, but cost of revenue was also higher, resulting in a slightly lower gross margin.
Inventory levels rose during the quarter, which may warrant monitoring in future periods.