CSCO · Q4 FY2026
CISCO SYSTEMS, INC. Q4 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $17.25B | $14.67B (yr ago) | Beat |
| EPS | $0.97 | $0.64 (yr ago) | Beat |
| Free Cash Flow | $5.00B | $4.02B (yr ago) | Beat |
| Gross Margin | 64.1% | 63.2% (yr ago) | Beat |
| Operating Margin | 24.7% | 21.0% (yr ago) | Beat |
What changed
Cisco finished FY2026 with broad year-over-year improvement: Q4 revenue rose 17.6%, EPS increased 51.6%, and free cash flow advanced 24.4%. Gross margin expanded 90 basis points and operating margin gained 370 basis points, showing that the higher revenue translated into materially better quarterly profitability.
Impact on the investment thesis
There is no prior SageNoodle fair value to revise, so we initiate fair value at $101.40 per share. The strong quarter supports better normalized cash flow, but the current 32.2x P/E and 3.0% free-cash-flow yield already discount substantial durability.