Cisco Systems Net Income vs. Price To Sales

CSCO Stock  USD 80.89  2.07  2.63%   
Based on Cisco Systems' profitability indicators, Cisco Systems is yielding more profit at this time than in the previous quarter. It has a moderate probability of reporting better profitability numbers in April. Profitability indicators assess Cisco Systems' ability to earn profits and add value for shareholders.
 
Net Income  
 First Reported
1987-10-31
 Previous Quarter
2.9 B
 Current Value
3.2 B
 Quarterly Volatility
1.4 B
Macro event markers
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
Financial indicators imply that Price To Sales Ratio is moving in a growing direction. A year ago, Cisco Systems reported Price To Sales Ratio at 4.69. As of 03/24/2026, EV To Sales is forecasted to advance to 6.46 this year, while Days Sales Outstanding is moving lower toward 48.26. Net Income is evolving in line with broader financial reporting trends. A year ago, Cisco Systems reported Net Income at 12.02 Billion. As of 03/24/2026, Income Tax Expense is forecasted to advance to approximately 1.9 B this year, although Accumulated Other Comprehensive Income is expected to rise to about -815.7 M. The current value of Gross Profit is estimated at 44.42 Billion, reflecting a growing pattern. In the prior fiscal year, Gross Profit was reported at 42.31 Billion. As of 03/24/2026, Pretax Profit Margin is forecasted to advance to 0.29 this year, while Net Profit Margin is moving lower toward 0.14.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.70.6402
Significantly Up
Slightly volatile
Net Profit Margin0.140.2126
Way Down
Slightly volatile
Operating Profit Margin0.280.2576
Significantly Up
Slightly volatile
Pretax Profit Margin0.290.2662
Significantly Up
Slightly volatile
Return On Assets0.140.1086
Significantly Up
Slightly volatile
Return On Equity0.250.2566
Fairly Down
Slightly volatile
This profitability view for Cisco Systems summarizes relationships between earnings and core financial drivers. The dataset reflects how earnings scale across financial statement components.

Revenue Breakdown by Operating Segment

Cisco Systems' top line is composed of 5 product-level revenue streams. At 8.29 Billion, Networking is Cisco Systems' largest segment (54.0%), with Service as the second-largest at 3.71 Billion. While one segment leads, Cisco Systems' remaining product lines provide a degree of revenue balance.
Trending Equities.
Researching Cisco Stock? See our How to Buy Cisco Systems guide. The guide includes approaches for both long-term investing and shorter-term trading of Cisco Stock. The guide provides a structured overview of the trading process for Cisco Systems.EPS projections for Cisco Systems aggregate analyst models into a benchmark against which actual results are measured. Return on equity of 23.75% provides context for how efficiently Cisco Systems generates earnings from shareholder capital. The gap between Cisco Systems' EPS and free cash flow per share signals how much of reported earnings converts to cash. Cisco Systems' EPS estimates are updated as new analyst reports and company disclosures become available. Analyst consensus for Cisco Systems typically uses EPS figures that exclude non-recurring items. All data reflects publicly available financial reports.
Macro event markers
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
 
Interest Hikes
The consensus EPS projection for Cisco Systems is 1.0349 as of 30th of April 2026. Analyst consensus for Cisco Systems is presented with historical volatility context..

Cisco Systems Revenue by Earnings Segment Overview

Cisco Systems' product-level revenue split is shown below, highlighting each segment's share of total revenue. Observability rounds out the mix at 1.8%, representing Cisco Systems' smallest reported product line.
Projected earnings help describe the expected financial trajectory for Cisco Systems. Earnings context for Cisco Systems is presented alongside other analytical inputs.
 Quarterly Earnings Growth
0.312
 Dividend Share
1.64
 Earnings Share
2.78
 Revenue Per Share
14.911
 Quarterly Revenue Growth
0.097
The gap between Cisco Systems' market value and book value reflects how the market perceives future potential versus historical cost.
Cisco Systems' value is shaped by fundamental inputs, whereas price is shaped by supply and demand dynamics. The observed price for Cisco Systems captures the most recent agreement between transacting parties.

Cisco Systems Price To Sales vs. Net Income Fundamental Analysis

Comparative pricing analysis measures Cisco Systems's value against industry norms.
Cisco Systems lands at #3 in net income compared to key competitors. It is rated below average in price to sales compared to key competitors . The spread between Net Income and Price To Sales for Cisco Systems sits at 1,982,137,439 . Net Income is evolving in line with broader financial reporting trends. A year ago, Cisco Systems reported Net Income at 11.71 Billion. Earnings-based multiples benchmark Cisco Systems's market valuation.

Cisco Price To Sales vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Cisco Systems

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
10.45 B
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.

Cisco Systems

P/S

 = 

MV Per Share

Revenue Per Share

 = 
5.27 X
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much the market values every dollar of the company's sales.

Cisco Price To Sales Comparison

Cisco Systems is currently under evaluation in price to sales compared to key competitors.

Cisco Systems Profitability Projections

Lasting profit growth at Cisco Systems depends on the mix of revenue growth, cost control, and pricing power. The direction and pace of Cisco Systems' profit changes give forward-looking signals for investors. Cisco Systems currently maintains a profit margin of 18.8%.
Last ReportedEnd Of Year Estimate
Accumulated Other Comprehensive Income-858.6 M-815.7 M
Operating Income13.5 B7.4 B
Income Before Tax12.8 B7.7 B
Total Other Income Expense Net-759 M-721 M
Net Income12 B12.6 B
Income Tax Expense1.1 B1.9 B
Net Income Applicable To Common Shares11.7 BB
Net Income From Continuing Ops11.7 B10.2 B
Non Operating Income Net Other998.2 M1.1 B
Interest Income1.2 B1.1 B
Net Interest Income-532.8 M-506.2 M
Change To Netincome690 M1.1 B
Net Income Per Share 2.51 2.63
Income Quality 1.46 1.39
Net Income Per E B T 0.80 0.58

Cisco Profitability Driver Comparison

The key profitability drivers of Cisco Systems determine how much profit the company generates over time. External shocks can disrupt Cisco Systems' financial results at any time, adding an inherent layer of unpredictability. Understanding these drivers helps investors separate temporary disruptions from structural changes in Cisco Systems' profits. Track changes in Cisco Systems' profitability drivers to maintain a current view of its investment attractiveness.

Earnings Estimation Breakdown

The forward EPS consensus for Cisco Systems stands at 1.0349, compiled from analyst models tracking Cisco Systems' revenue, margin, and guidance trends. The estimate range spans from 1.0251 to 1.06, capturing uncertainty around the projection. This figure is derived from a 12-month earnings base and strips out one-time items for comparability.
Last Reported EPS
1.04
1.03
Lowest
Expected EPS
1.0349
1.06
Highest

Earnings Projection Consensus

The spread between Cisco Systems' estimated fair value and its market price encodes a directional signal: narrow spreads suggest efficient pricing; wide spreads suggest a potential catalyst or mispricing. Analysts use this gap to identify entry and exit points, though the estimate itself carries model risk. Factor in liquidity, sector context, and macro environment before acting on this comparison.
Number of AnalystsHistorical AccuracyLast Reported EPSEstimated EPS for 30th of April 2026Current EPS (TTM)
2696.66%
1.04
1.0349
2.78

Earnings History

Analyst consensus earnings for Cisco represent the collective market expectation for upcoming reporting periods. When actual EPS exceeds this benchmark, markets typically respond positively; misses often lead to rapid repricing. Comparing consensus to alternative valuation signals adds analytical depth beyond raw EPS numbers.

Cisco Systems Quarterly Gross Profit

9.97 Billion
As of 03/24/2026, Retained Earnings are anticipated to decline to approximately 54.6 M. In addition to that, Retained Earnings Total Equity is forecasted to advance to approximately -1.1 B this year. As of 03/24/2026, Common Stock Shares Outstanding is forecasted to advance to approximately 4.3 B this year, while Net Income Applicable To Common Shares are moving lower toward about 9 B.
Experienced investors tracking Cisco Systems' watch for mean reversion setups where price has deviated from its long-run average. Sentiment extremes, news events, or liquidity shocks are common catalysts for these temporary dislocations in Cisco Systems. Prices periodically overshoot their intrinsic value in both directions, creating mean reversion opportunities in Cisco Systems. The mean reversion signal is most useful when combined with fundamental confirmation for Cisco Systems'.
Hype
Prediction
LowEstimatedHigh
76.5178.6780.83
Details
Intrinsic
Valuation
LowRealHigh
70.9087.2889.44
Details
Naive
Forecast
LowNextHigh
77.5479.7181.87
Details
Analyst
Consensus
LowTargetHigh
80.8288.8198.58
Details
Peer comparison enriches Cisco Systems analysis by revealing how the company ranks against competitors. Cisco Systems's multiples must be compared to direct competitors to determine genuine value. Superior peer-relative performance is one of the strongest justifications for Cisco Systems' valuation premium. Cross-company comparison is essential to validate or challenge any investment thesis on Cisco Systems. Institutional capital in Cisco is highly sensitive to analyst sentiment shifts triggered by EPS surprises. Large funds recalibrate exposure rapidly when reported results deviate from consensus expectations. This collective repositioning is a primary reason why the actual-versus-projected earnings gap drives near-term price action.

Earnings per Share Projection vs Actual

The actual EPS reported by Cisco Systems reflects real earnings performance verified through its financial statements. The expected EPS consensus for Cisco Systems is the result of analyst modeling and represents the market's pre-event benchmark. Weighted share count is used to normalize EPS across periods where the number of outstanding shares changes.

Estimated Months Earnings per Share

Income investors tracking Cisco Systems rely on EPS as a measure of earnings coverage for the dividend. A consistent EPS growth trajectory suggests management has both the intent and capacity to increase shareholder distributions over time. For a rounded view, compare EPS against free cash flow yield and the dividend payout ratios of sector peers.

Quarterly Analyst Estimates and Surprise Metrics

For investors monitoring Cisco Systems, earnings surprise data provides a historical record of how the market has repriced the stock after each quarterly report. Surprise direction and magnitude together determine whether a post-earnings move is likely to be sustained. Analyst EPS estimates evolve through the quarter based on guidance revisions and new sector information.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2026-02-10
2026-01-311.021.040.02
2025-11-12
2025-10-310.981.00.02
2025-08-13
2025-07-310.980.990.01
2025-05-14
2025-04-300.920.960.04
2025-02-12
2025-01-310.910.940.03
2024-11-13
2024-10-310.870.910.04
2024-08-14
2024-07-310.850.870.02
2024-05-15
2024-04-300.820.880.06
2024-02-14
2024-01-310.840.870.03
2023-11-15
2023-10-311.031.110.08
2023-08-16
2023-07-311.061.140.08
2023-05-17
2023-04-300.971.00.03
2023-02-15
2023-01-310.860.880.02
2022-11-16
2022-10-310.840.860.02
2022-08-17
2022-07-310.820.830.01
2022-05-18
2022-04-300.860.870.01
2022-02-16
2022-01-310.810.840.03
2021-11-17
2021-10-310.80.820.02
2021-08-18
2021-07-310.820.840.02
2021-05-19
2021-04-300.820.830.01
2021-02-08
2021-01-310.760.790.03
2020-11-12
2020-10-310.70.760.06
2020-08-12
2020-07-310.740.80.06
2020-05-13
2020-04-300.690.790.114 
2020-02-12
2020-01-310.760.770.01
2019-11-13
2019-10-310.810.840.03
2019-08-14
2019-07-310.820.830.01
2019-05-15
2019-04-300.770.780.01
2019-02-13
2019-01-310.720.730.01
2018-11-14
2018-10-310.720.750.03
2018-08-15
2018-07-310.690.70.01
2018-05-16
2018-04-300.650.660.01
2018-02-14
2018-01-310.590.630.04
2017-11-15
2017-10-310.60.610.01
2017-08-16
2017-07-310.610.610.0
2017-05-17
2017-04-300.580.60.02
2017-02-15
2017-01-310.560.570.01
2016-11-16
2016-10-310.590.610.02
2016-08-17
2016-07-310.60.630.03
2016-05-18
2016-04-300.550.570.02
2016-02-10
2016-01-310.540.570.03
2015-11-12
2015-10-310.560.590.03
2015-08-12
2015-07-310.560.590.03
2015-05-13
2015-04-300.530.540.01
2015-02-11
2015-01-310.510.530.02
2014-11-12
2014-10-310.520.540.02
2014-08-13
2014-07-310.530.550.02
2014-05-14
2014-04-300.480.510.03
2014-02-12
2014-01-310.460.470.01
2013-11-13
2013-10-310.510.530.02
2013-08-14
2013-07-310.510.520.01
2013-05-15
2013-04-300.490.510.02
2013-02-13
2013-01-310.480.510.03
2012-11-13
2012-10-310.460.480.02
2012-08-15
2012-07-310.450.470.02
2012-05-09
2012-04-300.470.480.01
2012-02-08
2012-01-310.430.470.04
2011-11-09
2011-10-310.390.430.0410 
2011-08-10
2011-07-310.380.40.02
2011-05-11
2011-04-300.370.420.0513 
2011-02-09
2011-01-310.350.370.02
2010-11-10
2010-10-310.40.420.02
2010-08-11
2010-07-310.420.430.01
2010-05-12
2010-04-300.390.420.03
2010-02-03
2010-01-310.350.40.0514 
2009-11-04
2009-10-310.310.360.0516 
2009-08-05
2009-07-310.290.310.02
2009-05-06
2009-04-300.240.30.0625 
2009-02-04
2009-01-310.30.320.02
2008-11-05
2008-10-310.390.420.03
2008-08-05
2008-07-310.390.40.01
2008-05-06
2008-04-300.360.380.02
2008-02-06
2008-01-310.380.380.0
2007-11-07
2007-10-310.360.40.0411 
2007-08-07
2007-07-310.350.360.01
2007-05-08
2007-04-300.330.340.01
2007-02-06
2007-01-310.310.330.02
2006-11-08
2006-10-310.290.310.02
2006-08-08
2006-07-310.280.30.02
2006-05-09
2006-04-300.260.290.0311 
2006-02-07
2006-01-310.250.260.01
2005-11-09
2005-10-310.240.250.01
2005-08-09
2005-07-310.250.250.0
2005-05-10
2005-04-300.220.230.01
2005-02-08
2005-01-310.220.220.0
2004-11-09
2004-10-310.210.210.0
2004-08-10
2004-07-310.20.210.01
2004-05-11
2004-04-300.180.190.01
2004-02-03
2004-01-310.170.180.01
2003-11-05
2003-10-310.150.170.0213 
2003-08-05
2003-07-310.150.150.0
2003-05-06
2003-04-300.140.150.01
2003-02-04
2003-01-310.130.150.0215 
2002-11-06
2002-10-310.130.140.01
2002-08-06
2002-07-310.120.140.0216 
2002-05-07
2002-04-300.090.110.0222 
2002-02-06
2002-01-310.050.090.0480 
2001-11-05
2001-10-310.020.040.02100 
2001-08-07
2001-07-310.020.020.0
2001-05-08
2001-04-300.010.030.02200 
2001-02-06
2001-01-310.190.18-0.01
2000-11-06
2000-10-310.170.180.01
2000-08-08
2000-07-310.150.160.01
2000-05-09
2000-04-300.130.140.01
2000-02-08
2000-01-310.120.120.0
1999-11-09
1999-10-310.110.120.01
1999-08-10
1999-07-310.10.110.0110 
1999-05-11
1999-04-300.090.10.0111 
1999-02-02
1999-01-310.090.10.0111 
1998-11-04
1998-10-310.080.090.0112 
1998-08-04
1998-07-310.080.080.0
1998-05-05
1998-04-300.070.080.0114 
1998-02-03
1998-01-310.070.070.0
1997-11-04
1997-10-310.060.070.0116 
1997-08-05
1997-07-310.060.060.0
1997-05-06
1997-04-300.060.060.0
1997-02-04
1997-01-310.060.060.0
1996-11-05
1996-10-310.050.050.0
1996-08-15
1996-07-310.040.050.0125 
1996-05-09
1996-04-300.040.040.0

Use Cisco Systems in pair-trading

A pair strategy built around Cisco Systems is useful when investors want to reduce directional market exposure while still expressing a relative-value idea. A disciplined pair strategy still requires monitoring because correlation can weaken when market regimes change.

Cisco Systems Pair Trading

Cisco Systems Pair Trading Analysis

Tax-loss harvesting on Cisco Systems requires identifying a similar asset for the 30-day wash-sale period. Assets with high correlation to Cisco Systems can serve as substitutes while preserving market exposure. Institutional investors use correlation analysis to build Cisco Systems replacement strategies beyond sector matching. Tax-aware investors benefit from systematic correlation analysis when managing Cisco Systems positions.
Correlation analysis for Cisco Systems reveals which assets move together and which provide hedging benefits. Pairing Cisco Systems with uncorrelated instruments can reduce portfolio volatility without reducing expected returns. Readings above 0.8 indicate strongly correlated pairs with minimal diversification benefit around Cisco Systems. Investors who monitor Cisco Systems correlations can identify regime changes before they impact portfolio risk.
Hedging context for Cisco Systems can be developed through Correlation analysis and pair trading analysis.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Cisco Systems position

At 311.43 Billion in the Communication Equipment space, Cisco Systems large-cap profile gives investors a structured starting point for building sector-aligned themes. Anchoring a Communication Equipment theme around Cisco Systems at 311.43 Billion can be tuned for upside participation or tighter downside control depending on Technology outlook.

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More Resources for Cisco Stock Analysis

A baseline understanding of Cisco Systems is formed through its financial statements and trends. Highlighted below are reports that provide context for Cisco Systems Stock: