Cisco Systems, Inc. stock research
FY2026 Q2
Cisco Systems (CSCO) Gross Margin — Quarter Ended Jan 24, 2026
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue increased in both comparisons. Gross margin was slightly lower than the prior quarter but marginally improved relative to the year-ago quarter, reflecting a mixed sequential and annual trend.
Gross margin takeaway
Quarter ended Jan 24, 2026 · FY2026 Q2
Revenue and gross profit both rose compared to the prior quarter and the same quarter last year, while cost of revenue increased in both comparisons. Gross margin was slightly lower than the prior quarter but marginally improved relative to the year-ago quarter, reflecting a mixed sequential and annual trend.
- The relationship among the metrics shows that revenue growth outpaced the increase in cost of revenue on an annual basis, supporting a modest gross margin improvement. Sequentially, cost of revenue grew at a slightly faster pace than revenue, leading to a small decline in gross margin.
- Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased more relative to revenue. Versus the same quarter one year earlier, gross margin improved modestly, with revenue growth exceeding cost growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
65.0%
Gross profit
$10.0B
Revenue
$15.3B
Cost of revenue
$5.4B
Quarter-over-quarter change
-0.5 pts
Year-over-year change
-0.2 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 |
|---|---|---|---|---|
| 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% |
| Jan 24, 2026 | $15.3B | $10.0B | $5.4B | 65.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Oct 25, 2025
-0.5 pts
Year-over-year change
Jan 25, 2025
-0.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The relationship among the metrics shows that revenue growth outpaced the increase in cost of revenue on an annual basis, supporting a modest gross margin improvement. Sequentially, cost of revenue grew at a slightly faster pace than revenue, leading to a small decline in gross margin.
Compared to the immediately preceding quarter, gross margin weakened slightly as cost of revenue increased more relative to revenue. Versus the same quarter one year earlier, gross margin improved modestly, with revenue growth exceeding cost growth.
Monitor the sequential relationship between revenue and cost of revenue, as cost growth outpaced revenue growth in the current quarter.