How Cisco Systems makes money

Period

FY2026

How does Cisco Systems make money? This Sankey traces every dollar of revenue through the income statement — into cost of revenue, R&D, SG&A, and taxes — and shows what's left as profit. Pick any fiscal year, recent quarter, or the trailing twelve months. Straight from SEC filings.

Cisco Systems Inc. · FY2026 · year ended 2026-07-25

Revenue$63.3BGross profit$40.9B · 65%Cost of revenue$22.5B · 35%Operating income$15.4B · 24%Operating expenses$25.5B · 40%R&D$9.6B · 15%SG&A$2.8B · 4%Selling & marketing$11.6B · 18%Other opex$1.6B · 3%Pre-tax income$16.0B · 25%Other income$641M · 1%Net income$13.3B · 21%Income tax$2.7B · 4%Subscription Revenue Product$18.3B · 29%Service$15.0B · 24%Subscription Revenue Service$13.7B · 22%Security$8.2B · 13%Collaboration$4.3B · 7%Observability$1.1B · 2%Other revenue$2.7B · 4%

Each fiscal year from SEC filings. Percentages are share of revenue, so the green profit nodes read directly as gross / operating / net margin. Line items a company doesn't break out are derived from their siblings so the flows balance; small residuals show as “Other.” For informational purposes only.