10-K – 2025-09-03 – csco-20250726.htm

FISCAL 2025 PLAN FISCAL 2024 AND
PRIOR PLANS
Employee Severance Other Employee
Severance Other Total
Liability as of July 30, 2022 $ —   $ —   $ 2   $ 7   $ 9  
Charges —   —   465   66   531  
Cash payments —   —   ( 302 ) ( 12 ) ( 314 )
Non-cash items —   —   2   ( 15 ) ( 13 )
Liability as of July 29, 2023 —   —   167   46   213  
Charges —   —   731   58   789  
Cash payments —   —   ( 677 ) ( 14 ) ( 691 )
Non-cash items —   —   —   ( 37 ) ( 37 )
Liability as of July 27, 2024 —   —   221   53   274  
Charges 617   127   —   —   744  
Cash payments ( 582 ) ( 9 ) ( 170 ) ( 9 ) ( 770 )
Non-cash items 31   ( 72 ) ( 29 ) ( 31 ) ( 101 )
Liability as of July 26, 2025 $ 66   $ 46   $ 22   $ 13   $ 147  

7. Balance Sheet and Other Details
The following tables provide details of selected balance sheet and other items (in millions, except percentages):
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents

July 26, 2025 July 27, 2024
Cash and cash equivalents $ 8,346   $ 7,508  
Restricted cash and restricted cash equivalents included in other current assets 564   765  
Restricted cash and restricted cash equivalents included in other assets —   569  
Total $ 8,910   $ 8,842  

Our restricted cash and restricted cash equivalents are funds primarily related to contractual obligations with suppliers.
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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

Inventories

July 26, 2025 July 27, 2024
Raw materials $ 1,744   $ 2,039  
Work in process 261   83  
Finished goods 933   1,027  
Service-related spares 220   216  
Demonstration systems 6   8  
Total $ 3,164   $ 3,373  

Property and Equipment, Net

July 26, 2025 July 27, 2024
Gross property and equipment:
Land, buildings, and building and leasehold improvements $ 4,045   $ 4,247  
Production, engineering, computer and other equipment and related software 5,178   5,160  
Operating lease assets 51   115  
Furniture, fixtures and other 316   351  
Total gross property and equipment 9,590   9,873  
Less: accumulated depreciation and amortization ( 7,477 ) ( 7,783 )
Total $ 2,113   $ 2,090  

Remaining Performance Obligations (RPO)

July 26, 2025 July 27, 2024
Product $ 21,572   $ 20,055  
Services 21,961   20,993  
Total $ 43,533   $ 41,048  

Short-term RPO $ 21,723   $ 20,882  
Long-term RPO 21,810   20,166  
Total $ 43,533   $ 41,048  

Amount to be recognized as revenue over the next 12 months
50   % 51   %

Deferred revenue $ 28,779   $ 28,475  
Unbilled contract revenue 14,754   12,573  
Total $ 43,533   $ 41,048  

Unbilled contract revenue represents noncancelable contracts for which we have not invoiced, have an obligation to perform, and revenue has not yet been recognized in the financial statements.
Deferred Revenue

July 26, 2025 July 27, 2024
Product $ 13,490   $ 13,219  
Services 15,289   15,256  
Total $ 28,779   $ 28,475  
Reported as:
Current $ 16,416   $ 16,249  
Noncurrent 12,363   12,226  
Total $ 28,779   $ 28,475  

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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

Transition Tax Payable
Our income tax payable associated with the one-time U.S. transition tax on accumulated earnings for foreign subsidiaries as a result of the Tax Act is as follows:

July 26, 2025 July 27, 2024
Current $ 1,595   $ 1,819  
Noncurrent —   2,273  
Total $ 1,595   $ 4,092  

Our remaining transition tax payable as of July 26, 2025 has been reduced to reflect the transition tax benefit of the U.S. Tax Court opinion in Varian Medical Systems, Inc. v. Commissioner . See Note 18.

8. Leases
(a) Lessee Arrangements
The following table presents our operating lease balances (in millions):

Balance Sheet Line Item July 26, 2025 July 27, 2024
Operating lease ROU assets Other assets $ 1,301   $ 1,066  

Operating lease liabilities Other current liabilities $ 375   $ 364  
Operating lease liabilities Other long-term liabilities 1,175   906  
Total operating lease liabilities $ 1,550   $ 1,270  

The components of our lease expenses were as follows (in millions):

Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Operating lease expense $ 495   $ 420   $ 425  
Short-term lease expense 77   75   65  
Variable lease expense 191   194   242  
Total lease expense $ 763   $ 689   $ 732  

Supplemental information related to our operating leases is as follows (in millions):

Years Ended July 26, 2025 July 27, 2024
Cash paid for amounts included in the measurement of lease liabilities — operating cash flows $ 457   $ 394  
ROU assets obtained in exchange for operating leases liabilities $ 660   $ 459  

The weighted-average lease term was 5.7 years and 4.9 years as of July 26, 2025 and July 27, 2024, respectively. The weighted-average discount rate was 4.1 % and 4.0 % as of July 26, 2025 and July 27, 2024, respectively.
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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

The maturities of our operating leases (undiscounted) as of July 26, 2025 are as follows (in millions):

Fiscal Year Amount
2026 $ 429  
2027 322  
2028 247  
2029 200  
2030 181  
Thereafter 369  
Total lease payments 1,748  
Less interest ( 198 )
Total $ 1,550  

(b) Lessor Arrangements
Our leases primarily represent sales-type leases with terms of four years on average. We provide leasing of our equipment and complementary third-party products primarily through our channel partners and distributors, for which the income arising from these leases is recognized through interest income. Interest income for fiscal 2025, 2024, and 2023 was $ 66 million, $ 65  million and $ 51  million, respectively, and was included in interest income in the Consolidated Statement of Operations. The net investment of our lease receivables is measured at the commencement date as the gross lease receivable, residual value less unearned income and allowance for credit loss. For additional information, see Note 9.
Future minimum lease payments on our lease receivables as of July 26, 2025 are summarized as follows (in millions):

Fiscal Year Amount
2026 $ 342  
2027 163  
2028 234  
2029 177  
2030 34  
Thereafter 32  
Total 982  
Less: Present value of lease payments 883  
Unearned income $ 99  

Actual cash collections may differ from the contractual maturities due to early customer buyouts, refinancings, or defaults.
We provide financing of certain equipment through operating leases, and the amounts are included in property and equipment in the Consolidated Balance Sheets. Amounts relating to equipment on operating lease assets held by us and the associated accumulated depreciation are summarized as follows (in millions):

July 26, 2025 July 27, 2024
Operating lease assets $ 51   $ 115  
Accumulated depreciation ( 17 ) ( 61 )
Operating lease assets, net $ 34   $ 54  

Our operating lease income for fiscal 2025, 2024, and 2023 was $ 37 million , $ 58  million and $ 73  million, respectively, and was included in product revenue in the Consolidated Statement of Operations.
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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

Minimum future rentals on noncancelable operating leases as of July 26, 2025 are summarized as follows (in millions):

Fiscal Year Amount
2026 $ 16  
2027 7  
2028 2  
Total $ 25  

9. Financing Receivables
(a) Financing Receivables
Financing receivables primarily consist of loan receivables and lease receivables. Loan receivables represent financing arrangements related to the sale of our hardware, software, and services (including technical support and advanced services), and also may include additional funding for other costs associated with network installation and integration of our products and services. Loan receivables have terms of one year to three years on average. Lease receivables represent sales-type leases resulting from the sale of Cisco’s and complementary third-party products and are typically collateralized by a security interest in the underlying assets. Lease receivables consist of arrangements with terms of four years on average.
A summary of our financing receivables is presented as follows (in millions):

July 26, 2025 Loan Receivables Lease Receivables Total
Gross $ 5,628   $ 982   $ 6,610  
Residual value —   66   66  
Unearned income —   ( 99 ) ( 99 )
Allowance for credit loss ( 37 ) ( 13 ) ( 50 )
Total, net $ 5,591   $ 936   $ 6,527  
Reported as:
Current $ 2,715   $ 346   $ 3,061  
Noncurrent 2,876   590   3,466  
Total, net $ 5,591   $ 936   $ 6,527  

July 27, 2024 Loan Receivables Lease Receivables Total
Gross $ 5,858   $ 965   $ 6,823  
Residual value —  67   67  
Unearned income —   ( 111 ) ( 111 )
Allowance for credit loss ( 50 ) ( 15 ) ( 65 )
Total, net $ 5,808   $ 906   $ 6,714  
Reported as:
Current $ 3,071   $ 267   $ 3,338  
Noncurrent 2,737   639   3,376  
Total, net $ 5,808   $ 906   $ 6,714  

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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

(b) Credit Quality of Financing Receivables
The tables below present our gross financing receivables, excluding residual value, less unearned income, categorized by our internal credit risk rating by period of origination (in millions):

July 26, 2025 Fiscal Year
Internal Credit Risk Rating Prior July 31, 2021 July 30, 2022 July 29, 2023 July 27, 2024 July 26, 2025 Total
Loan Receivables:
1 to 4 $ 2   $ 83   $ 236   $ 371   $ 1,258   $ 1,556   $ 3,506  
5 to 6 2   56   53   167   561   1,248   2,087  
7 and Higher —   —   6   9   4   16   35  
Total Loan Receivables $ 4   $ 139   $ 295   $ 547   $ 1,823   $ 2,820   $ 5,628  
Lease Receivables:
1 to 4 $ —   $ 9   $ 23   $ 112   $ 187   $ 207   $ 538  
5 to 6 —   6   25   77   120   103   331  
7 and Higher —   —   1   3   8   2   14  
Total Lease Receivables $ —   $ 15   $ 49   $ 192   $ 315   $ 312   $ 883  
Total $ 4   $ 154   $ 344   $ 739   $ 2,138   $ 3,132   $ 6,511  

July 27, 2024 Fiscal Year
Internal Credit Risk Rating Prior July 25, 2020 July 31, 2021 July 30, 2022 July 29, 2023 July 27, 2024 Total
Loan Receivables:
1 to 4 $ 2   $ 78   $ 341   $ 555   $ 945   $ 1,803   $ 3,724  
5 to 6 2   29   127   130   426   1,314   2,028  
7 and Higher 3   1   10   74   14   4   106  
Total Loan Receivables $ 7   $ 108   $ 478   $ 759   $ 1,385   $ 3,121   $ 5,858  
Lease Receivables:
1 to 4 $ 1   $ 8   $ 38   $ 46   $ 176   $ 341   $ 610  
5 to 6 1   11   22   44   129   21   228  
7 and Higher —   —   1   3   4   8   16  
Total Lease Receivables $ 2   $ 19   $ 61   $ 93   $ 309   $ 370   $ 854  
Total $ 9   $ 127   $ 539   $ 852   $ 1,694   $ 3,491   $ 6,712  

The following tables present the aging analysis of gross receivables as of July 26, 2025 and July 27, 2024 (in millions):

DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
July 26, 2025 31 - 60 61 - 90  91+ Total
Past Due Current Total 120+ Still Accruing Nonaccrual
Financing
Receivables Impaired
Financing
Receivables
Loan receivables $ 18   $ 18   $ 16   $ 52   $ 5,576   $ 5,628   $ 4   $ 5   $ 5  
Lease receivables 7   3   6   16   867   883   4   1   1  
Total $ 25   $ 21   $ 22   $ 68   $ 6,443   $ 6,511   $ 8   $ 6   $ 6  

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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

DAYS PAST DUE
(INCLUDES BILLED AND UNBILLED)
July 27, 2024 31 - 60 61 - 90  91+ Total
Past Due Current Total 120+ Still Accruing Nonaccrual
Financing
Receivables Impaired
Financing
Receivables
Loan receivables $ 34   $ 17   $ 35   $ 86   $ 5,772   $ 5,858   $ 14   $ 7   $ 7  
Lease receivables 14   4   5   23   831   854   1   —   —  
Total $ 48   $ 21   $ 40   $ 109   $ 6,603   $ 6,712   $ 15   $ 7   $ 7  

Past due financing receivables are those that are 31 days or more past due according to their contractual payment terms. The data in the preceding tables is presented by contract, and the aging classification of each contract is based on the oldest outstanding receivable, and therefore past due amounts also include unbilled and current receivables within the same contract.
(c) Allowance for Credit Loss Rollforward
The allowances for credit loss and the related financing receivables are summarized as follows (in millions):

  CREDIT LOSS ALLOWANCES
  Loan
Receivables Lease
Receivables Total
Allowance for credit loss as of July 27, 2024 $ 50   $ 15   $ 65  
Provisions (benefits) ( 6 ) ( 3 ) ( 9 )
Recoveries (write-offs), net ( 9 ) —   ( 9 )
Foreign exchange and other 2   1   3  
Allowance for credit loss as of July 26, 2025 $ 37   $ 13   $ 50  

  CREDIT LOSS ALLOWANCES
  Loan
Receivables Lease
Receivables Total
Allowance for credit loss as of July 29, 2023 $ 53   $ 19   $ 72  
Provisions (benefits) 1   ( 3 ) ( 2 )
Recoveries (write-offs), net ( 4 ) ( 1 ) ( 5 )

Allowance for credit loss as of July 27, 2024 $ 50   $ 15   $ 65  

CREDIT LOSS ALLOWANCES
Loan
Receivables Lease
Receivables Total
Allowance for credit loss as of July 30, 2022 $ 103   $ 23   $ 126  
Provisions (benefits) ( 7 ) ( 1 ) ( 8 )
Recoveries (write-offs), net ( 38 ) ( 3 ) ( 41 )
Foreign exchange and other ( 5 ) —   ( 5 )
Allowance for credit loss as of July 29, 2023 $ 53   $ 19   $ 72  

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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

10. Investments
(a) Summary of Available-for-Sale Debt Investments
The following tables summarize our available-for-sale debt investments (in millions):

July 26, 2025 Amortized
Cost Gross
Unrealized
Gains Gross
Unrealized and Credit Losses Fair
Value
U.S. government securities
$ 1,971   $ 2   $ ( 12 ) $ 1,961  
U.S. government agency securities 67   —   —   67  
Non-U.S. government and agency securities 458   —   —   458  
Corporate debt securities 3,138   13   ( 61 ) 3,090  
U.S. agency mortgage-backed securities 320   —   ( 34 ) 286  
Commercial paper 950   —   —   950  
Certificates of deposit 569   —   —   569  
Total $ 7,473   $ 15   $ ( 107 ) $ 7,381  

July 27, 2024 Amortized
Cost Gross
Unrealized
Gains Gross
Unrealized and Credit Losses Fair
Value
U.S. government securities
$ 2,380   $ 1   $ ( 28 ) $ 2,353  
U.S. government agency securities 223   —   ( 2 ) 221  
Non-U.S. government and agency securities 370   1   —   371  
Corporate debt securities 3,818   5   ( 146 ) 3,677  
U.S. agency mortgage-backed securities 1,959   —   ( 178 ) 1,781  
Commercial paper 1,023   —   —   1,023  
Certificates of deposit 439   —   —   439  
Total $ 10,212   $ 7   $ ( 354 ) $ 9,865  

The following table presents the gross realized gains and gross realized losses related to available-for-sale debt investments (in millions):

Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Gross realized gains $ 10   $ 7   $ 4  
Gross realized losses ( 110 ) ( 74 ) ( 25 )
Total $ ( 100 ) $ ( 67 ) $ ( 21 )

The following tables present the breakdown of the available-for-sale debt investments with gross unrealized losses and the duration that those losses had been unrealized at July 26, 2025 and July 27, 2024 (in millions):

  UNREALIZED LOSSES
LESS THAN 12 MONTHS UNREALIZED LOSSES
12 MONTHS OR GREATER TOTAL
July 26, 2025 Fair Value Gross
Unrealized
Losses Fair Value Gross
Unrealized
Losses Fair Value Gross 
Unrealized 
Losses
U.S. government securities $ 1,076   $ ( 6 ) $ 302   $ ( 6 ) $ 1,378   $ ( 12 )
U.S. government agency securities 8   —   21   —   29   —  
Non-U.S. government and agency securities 292   —   —   —   292   —  
Corporate debt securities 106   —   1,800   ( 35 ) 1,906   ( 35 )
U.S. agency mortgage-backed securities 5   —   279   ( 34 ) 284   ( 34 )
Commercial paper 30   —   —   —   30   —  
Total $ 1,517   $ ( 6 ) $ 2,402   $ ( 75 ) $ 3,919   $ ( 81 )

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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

  UNREALIZED LOSSES
LESS THAN 12 MONTHS UNREALIZED LOSSES
12 MONTHS OR GREATER TOTAL
July 27, 2024 Fair Value Gross
Unrealized
Losses Fair Value Gross
Unrealized
Losses Fair Value Gross 
Unrealized 
Losses
U.S. government securities $ 598   $ ( 2 ) $ 1,399   $ ( 26 ) $ 1,997   $ ( 28 )
U.S. government agency securities 89   —   109   ( 2 ) 198   ( 2 )
Non-U.S. government and agency securities 17   —   —   —   17   —  
Corporate debt securities 276   ( 1 ) 2,818   ( 115 ) 3,094   ( 116 )
U.S. agency mortgage-backed securities 238   ( 1 ) 1,438   ( 177 ) 1,676   ( 178 )
Commercial paper 10   —   —   —   10   —  
Total $ 1,228   $ ( 4 ) $ 5,764   $ ( 320 ) $ 6,992   $ ( 324 )

The following table summarizes the maturities of our available-for-sale debt investments as of July 26, 2025 (in millions):  

Amortized Cost Fair Value
Within 1 year $ 3,959   $ 3,911  
After 1 year through 5 years 3,194   3,184  
Mortgage-backed securities with no single maturity 320   286  
Total $ 7,473   $ 7,381  

Actual maturities may differ from the contractual maturities because borrowers may have the right to call or prepay certain obligations.
(b) Marketable Equity Securities
We held marketable equity securities of $ 383 million and $ 481 million as of July 26, 2025 and July 27, 2024, respectively. We recognized net unrealized gains of $ 108  million, $ 71  million and $ 36  million for fiscal 2025, 2024, and 2023, respectively, on our marketable securities still held as of the reporting date.
(c) Investments in Privately Held Companies
The carrying value of our investments in privately held companies was $ 1.9 billion and $ 1.8  billion as of July 26, 2025 and July 27, 2024, respectively. We have total funding commitments of $ 0.3  billion related to privately held investments. The carrying value of these investments and the additional funding commitments, collectively, represent our maximum exposure related to privately held investments.
Investments in privately held companies measured using the measurement alternative had a carrying value of $ 0.6  billion as of each of July 26, 2025 and July 27, 2024. We recorded adjustments to the carrying value of our investments in privately held companies measured using the measurement alternative as follows (in millions):

July 26, 2025 July 27, 2024
Cumulative upward adjustments $ 195   $ 207  
Cumulative downward adjustments, including impairments ( 597 ) ( 537 )
Net adjustments $ ( 402 ) $ ( 330 )

We held equity interests in certain private equity funds of $ 0.7  billion and $ 0.8  billion as of July 26, 2025 and July 27, 2024, respectively, which are accounted for under the NAV practical expedient.
Of the total carrying value of our investments in privately held companies as of July 26, 2025, $ 0.8  billion of such investments are considered to be in variable interest entities which are unconsolidated.
Certain of our investments in privately held companies are required to be consolidated under the voting interest entity model. The noncontrolling interest attributed to these investments was $ 162  million and $ 99  million as of July 26, 2025 and July 27, 2024, respectively, and is included in the equity section of the Consolidated Balance Sheets. The share of earnings attributable to the noncontrolling interest attributed to these investments is not material for any of the fiscal years presented and is included in other income (loss), net in the Consolidated Statements of Operations.
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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

11. Fair Value
(a) Assets and Liabilities Measured at Fair Value on a Recurring Basis
Assets and liabilities measured at fair value on a recurring basis were as follows (in millions):

JULY 26, 2025 JULY 27, 2024
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Level 1 Level 2 Total
Balance Level 1 Level 2 Total
Balance
Assets:
Cash equivalents:
Money market funds $ 5,885   $ —   $ 5,885   $ 3,334   $ —   $ 3,334  
Commercial paper —   336   336   —   468   468  
Certificates of deposit —   —   —   —   14   14  
Corporate debt securities —   1   1   —   25   25  
Available-for-sale debt investments:
U.S. government securities —   1,961   1,961   —   2,353   2,353  
U.S. government agency securities —   67   67   —   221   221  
Non-U.S. government and agency securities —   458   458   —   371   371  
Corporate debt securities —   3,090   3,090   —   3,677   3,677  
U.S. agency mortgage-backed securities —   286   286   —   1,781   1,781  
Commercial paper —   950   950   —   1,023   1,023  
Certificates of deposit —   569   569   —   439   439  
Equity investments:
Marketable equity securities 383   —   383   481   —   481  
Other current assets:
Money market funds 563   —   563   750   —   750  
Other assets:
Money market funds —   —   —   563   —   563  
Derivative assets —   32   32   —   64   64  
Total $ 6,831   $ 7,750   $ 14,581   $ 5,128   $ 10,436   $ 15,564  
Liabilities:
Derivative liabilities $ —   $ 31   $ 31   $ —   $ 74   $ 74  
Total $ —   $ 31   $ 31   $ —   $ 74   $ 74  

(b) Assets Measured at Fair Value on a Nonrecurring Basis
Our non-marketable equity securities using the measurement alternative are adjusted to fair value on a non-recurring basis. Adjustments are made when observable transactions for identical or similar investments of the same issuer occur, or due to impairment. These securities are classified as Level 3 in the fair value hierarchy because we estimate the value based on valuation methods using the observable transaction price at the transaction date and other unobservable inputs such as volatility, rights, and obligations of the securities we hold.
The fair value for purchased intangible assets measured at fair value on a nonrecurring basis was categorized as Level 3 due to the use of significant unobservable inputs in the valuation. Significant unobservable inputs that were used included expected revenues and net income related to the assets and the expected life of the assets. The difference between the estimated fair value and the carrying value of the assets was recorded as an impairment charge, which was included in product cost of sales and operating expenses as applicable. See Note 5.
(c) Other Fair Value Disclosures
The fair value of our short-term loan receivables approximates their carrying value due to their short duration. The aggregate carrying value of our long-term loan receivables as of July 26, 2025 and July 27, 2024 was $ 2.9 billion and $ 2.7 billion,
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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

respectively. The estimated fair value of our long-term loan receivables approximates their carrying value. We use unobservable inputs in determining discounted cash flows to estimate the fair value of our long-term loan receivables, and therefore they are categorized as Level 3.
As of July 26, 2025 and July 27, 2024, the estimated fair value of our short-term debt approximates its carrying value due to the short maturities. As of July 26, 2025, the fair value of our senior notes was $ 25.0 billion, with a carrying amount of $ 24.6 billion. This compares to a fair value of $ 20.4 billion and a carrying amount of $ 20.1 billion as of July 27, 2024. The fair value of the senior notes was determined based on observable market prices in a less active market and was categorized as Level 2.

12. Borrowings
(a) Short-Term Debt
The following table summarizes our short-term debt (in millions, except percentages):

  July 26, 2025 July 27, 2024
  Amount Effective Rate Amount Effective Rate
Current portion of senior notes $ 1,749   4.15   % $ 488   6.66   %
Commercial paper 3,482   4.37   % 10,853   5.43   %
Current portion of other debt 1   1.13   % —   —  
Total $ 5,232   $ 11,341  

We have a short-term debt financing program of up to $ 15.0 billion through the issuance of commercial paper notes. We use the proceeds from the issuance of commercial paper notes for general corporate purposes.
The effective rates for the short- and long-term debt include the interest on the notes, the accretion of the discount, the issuance costs, and, if applicable, adjustments related to hedging.
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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

(b) Long-Term Debt
The following table summarizes our long-term debt (in millions, except percentages):

  July 26, 2025 July 27, 2024
  Maturity Date Amount Effective Rate Amount Effective Rate
Senior notes:
Fixed-rate notes:
3.50 % June 15, 2025 $ —   — $ 500   6.66 %
4.90 % February 26, 2026 1,000   5.00 % 1,000   5.00 %
2.95 % February 28, 2026 750   3.01 % 750   3.01 %
2.50 % September 20, 2026 1,500   2.55 % 1,500   2.55 %
4.80 % February 26, 2027 2,000   4.90 % 2,000   4.90 %
4.55 % February 24, 2028 1,000   4.61 % —   —
4.85 % February 26, 2029 2,500   4.91 % 2,500   4.91 %
4.75 % February 24, 2030 1,000   4.73 % —   —
4.95 % February 26, 2031 2,500   5.04 % 2,500   5.04 %
4.95 % February 24, 2032 1,000   4.94 % —   —
5.05 % February 26, 2034 2,500   4.97 % 2,500   4.97 %
5.10 % February 24, 2035 1,250   5.11 % —   —
5.90 % February 15, 2039 2,000   6.11 % 2,000   6.11 %
5.50 % January 15, 2040 2,000   5.67 % 2,000   5.67 %
5.30 % February 26, 2054 2,000   5.28 % 2,000   5.28 %
5.50 % February 24, 2055 750   5.49 % —   —
5.35 % February 26, 2064 1,000   5.42 % 1,000   5.42 %
Other debt 3   1.13 % 3   1.13 %
Total 24,753   20,253  
Unaccreted discount/issuance costs ( 142 ) ( 133 )
Hedge accounting fair value adjustments —   ( 11 )
Total $ 24,611   $ 20,109  

Reported as:
Current portion of long-term debt $ 1,750   $ 488  
Long-term debt 22,861   19,621  
Total $ 24,611   $ 20,109  

In February 2025, we issued senior notes for an aggregate principal amount of $ 5.0  billion.
Interest is payable semiannually on each class of the senior fixed-rate notes. Each of the senior fixed-rate notes is redeemable by us at any time, subject to a make-whole premium. The senior notes rank at par with the commercial paper notes that have been issued pursuant to our short-term debt financing program, as discussed above under “(a) Short-Term Debt.” As of July 26, 2025, we were in compliance with all debt covenants.

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As of July 26, 2025, future principal payments for long-term debt, including the current portion, are summarized as follows (in millions):

Fiscal Year Amount
2026 $ 1,751  
2027 3,502  
2028 1,000  
2029 2,500  
2030 1,000  
Thereafter 15,000  
Total $ 24,753  

(c) Credit Facility
On February 2, 2024, we entered into an amended and restated 5 -year $ 5.0  billion unsecured revolving credit agreement. The interest rate for the credit agreement is determined based on a formula using certain market rates. The credit agreement requires that we comply with certain covenants, including that we maintain an interest coverage ratio (defined in the agreement as the ratio of consolidated EBITDA to consolidated interest expense) of not less than 3.0 to 1.0. As of July 26, 2025, we were in compliance with all associated covenants and we had no t borrowed any funds under our credit agreement.

13. Derivative Instruments
(a) Summary of Derivative Instruments
We use derivative instruments primarily to manage exposures to foreign currency exchange rate, interest rate, and equity price risks. Our primary objective in holding derivatives is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates, interest rates, and equity prices. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We seek to mitigate such risks by limiting our counterparties to major financial institutions and requiring collateral in certain cases. In addition, the potential risk of loss with any one counterparty resulting from credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties.
The fair values of our derivative instruments and the line items on the Consolidated Balance Sheets to which they were recorded are summarized as follows (in millions):

  DERIVATIVE ASSETS DERIVATIVE LIABILITIES
  Balance Sheet Line Item July 26, 2025 July 27, 2024 Balance Sheet Line Item July 26, 2025 July 27, 2024
Derivatives designated as hedging instruments:
Foreign currency derivatives Other current assets $ 17   $ 47   Other current liabilities $ 2   $ 1  
Foreign currency derivatives Other assets 10   15   Other long-term liabilities 2   —  
Interest rate derivatives Other current assets —   —   Other current liabilities —   11  
Total 27   62   4   12  
Derivatives not designated as hedging instruments:
Foreign currency derivatives Other current assets 3   2   Other current liabilities 17   47  
Foreign currency derivatives Other assets 2   —   Other long-term liabilities 10   15  
Total 5   2   27   62  
Total $ 32   $ 64   $ 31   $ 74  

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The following amounts were recorded on the Consolidated Balance Sheets related to cumulative basis adjustments for our fair value hedges (in millions):

  CARRYING AMOUNT OF THE HEDGED ASSETS/(LIABILITIES) CUMULATIVE AMOUNT OF FAIR VALUE HEDGING ADJUSTMENT INCLUDED IN THE CARRYING AMOUNT OF THE HEDGED ASSETS/LIABILITIES
Balance Sheet Line Item of Hedged Item July 26,
2025 July 27,
2024 July 26,
2025 July 27,
2024
Short-term debt $ —   $ ( 488 ) $ —   $ 11  

The effect of derivative instruments designated as fair value hedges, recognized in interest and other income (loss), net is summarized as follows (in millions):

GAINS (LOSSES) FOR 
THE YEARS ENDED
July 26, 2025 July 27, 2024 July 29, 2023
Interest rate derivatives:
Hedged items $ ( 11 ) $ ( 30 ) $ 31  
Derivatives designated as hedging instruments 11   30   ( 31 )
Total $ —   $ —   $ —  

The effect on the Consolidated Statements of Operations of derivative instruments not designated as hedges is summarized as follows (in millions):

    GAINS (LOSSES) FOR 
THE YEARS ENDED
Derivatives Not Designated as Hedging Instruments Line Item in Statements of Operations July 26, 2025 July 27, 2024 July 29, 2023
Foreign currency derivatives Other income (loss), net $ 102   $ ( 162 ) $ 1  
Total return swaps—deferred compensation Operating expenses and other 56   91   58  
Equity derivatives Other income (loss), net —   2   13  
Total $ 158   $ ( 69 ) $ 72  

The notional amounts of our outstanding derivatives are summarized as follows (in millions):

July 26, 2025 July 27, 2024
Foreign currency derivatives $ 8,978   $ 7,434  
Interest rate derivatives —   500  
Total return swaps—deferred compensation 1,087   985  
Total $ 10,065   $ 8,919  

(b) Offsetting of Derivative Instruments
We present our derivative instruments at gross fair values in the Consolidated Balance Sheets. However, our master netting and other similar arrangements with the respective counterparties allow for net settlement under certain conditions, which are designed to reduce credit risk by permitting net settlement with the same counterparty.
To further limit credit risk, we also enter into collateral security arrangements related to certain derivative instruments whereby cash is posted as collateral between the counterparties based on the fair market value of the derivative instrument. Under these collateral security arrangements, the net cash provided for collateral was not material as of either July 26, 2025 or July 27, 2024.
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(c) Foreign Currency Exchange Risk
We conduct business globally in numerous currencies. Therefore, we are exposed to adverse movements in foreign currency exchange rates. To limit the exposure related to foreign currency changes, we enter into foreign currency contracts. We do not enter into such contracts for speculative purposes.
We may hedge forecasted foreign currency transactions related to certain revenues, operating expenses and service cost of sales with currency options and forward contracts. These currency options and forward contracts, designated as cash flow hedges, generally have maturities of less than 24 months. The derivative instrument’s gain or loss is initially reported as a component of accumulated other comprehensive income (AOCI) and subsequently reclassified into earnings when the hedged exposure affects earnings.
We enter into foreign exchange forward and option contracts to reduce the short-term effects of foreign currency fluctuations on assets and liabilities such as foreign currency receivables, long-term customer financings and payables. These derivatives are not designated as hedging instruments. Gains and losses on the contracts are included in other income (loss), net, and substantially offset foreign exchange gains and losses from the remeasurement of monetary assets and liabilities denominated in currencies other than the functional currency of the reporting entity.
We hedge certain net investments in our foreign operations with forward contracts to reduce the effects of foreign currency fluctuations on our net investment in those foreign subsidiaries. These derivative instruments generally have maturities of up to six months .
(d) Interest Rate Risk
We periodically enter into treasury lock agreements, designated as cash flow hedges, in order to hedge the impact of changes in the U.S. benchmark interest rate on future interest payments in anticipation of future debt offerings. Changes in the fair value of treasury lock agreements are recorded to AOCI and reclassified into earnings when the hedged exposure affects earnings.
(e) Equity Price Risk
We are exposed to variability in compensation charges related to certain deferred compensation obligations to employees and directors. Although not designated as accounting hedges, we utilize derivatives such as total return swaps to economically hedge this exposure and offset the related compensation expense.

14. Commitments and Contingencies
(a) Purchase Commitments with Contract Manufacturers and Suppliers
We purchase components from a variety of suppliers and use several contract manufacturers to provide manufacturing services for our products. During the normal course of business, in order to manage manufacturing lead times and help ensure adequate component supply, we enter into agreements with contract manufacturers and suppliers that allow them to procure inventory based upon criteria as defined by us or establish the parameters defining our requirements. A significant portion of our reported purchase commitments arising from these agreements consists of firm, noncancelable, and unconditional commitments. Certain of these inventory purchase commitments are directly with suppliers, and relate to fixed-dollar commitments to secure supply and pricing for certain product components for multi-year periods. In certain instances, these agreements allow us the option to cancel, reschedule, and adjust our requirements based on our business needs prior to firm orders being placed.
The following table summarizes our inventory purchase commitments with contract manufacturers and suppliers by period (in millions):

July 26, 2025 July 27, 2024
Less than 1 year $ 7,202   $ 3,952  
1 to 3 years 320   1,085  
3 to 5 years 77   121  
Total $ 7,599   $ 5,158  

The purchase commitments with contract manufacturers and suppliers as of July 26, 2025 has been reduced to give effect to the settlement of a legal dispute with a supplier over purchase obligations arising under certain long-term supply arrangements. See Note 21.
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We record a liability for firm, noncancelable, and unconditional purchase commitments for quantities in excess of our future demand forecasts consistent with the valuation of our excess and obsolete inventory. As of July 26, 2025 and July 27, 2024, the liability for these purchase commitments was $ 206 million and $ 498 million, respectively, and was included in other current liabilities.
(b) Other Commitments
We have certain funding commitments, primarily related to our privately held investments. The funding commitments were $ 0.3 billion and $ 0.2  billion as of July 26, 2025 and July 27, 2024, respectively.
(c) Product Warranties
The following table summarizes the activity related to the product warranty liability (in millions):

July 26, 2025 July 27, 2024 July 29, 2023
Balance at beginning of fiscal year $ 362   $ 329   $ 333  
Provisions for warranties issued 403   425   386  
Adjustments for pre-existing warranties 42   22   18  
Settlements ( 408 ) ( 414 ) ( 408 )
Balance at end of fiscal year $ 399   $ 362   $ 329  

We accrue for warranty costs as part of our cost of sales based on associated material product costs, labor costs for technical support staff, and associated overhead. Our products are generally covered by a warranty for periods ranging from 90 days to five years , and for some products we provide a limited lifetime warranty.
(d) Financing and Other Guarantees
In the ordinary course of business, we provide financing guarantees for various third-party financing arrangements extended to channel partners customers. Payments under these financing guarantee arrangements were not material for the periods presented.
Channel Partner Financing Guarantees   We facilitate arrangements for third-party financing extended to channel partners, consisting of revolving short-term financing, with payment terms generally ranging from 60 to 90 days. These financing arrangements facilitate the working capital requirements of the channel partners, and, in some cases, we guarantee a portion of these arrangements. The volume of channel partner financing was $ 24.9 billion, $ 27.1 billion, and $ 32.1 billion in fiscal 2025, 2024, and 2023, respectively. The balance of the channel partner financing subject to guarantees was $ 1.3 billion and $ 1.2 billion as of July 26, 2025 and July 27, 2024, respectively.
Financing Guarantee Summary    The aggregate amounts of channel partner financing guarantees outstanding at July 26, 2025 and July 27, 2024, representing the total maximum potential future payments under financing arrangements with third parties along with the related deferred revenue, are summarized in the following table (in millions):

July 26, 2025 July 27, 2024
Maximum potential future payments $ 123   $ 127  
Deferred revenue ( 13 ) ( 13 )
Total $ 110   $ 114  

(e) Indemnifications
In the normal course of business, we have indemnification obligations to other parties, including customers, lessors, and parties to other transactions with us, with respect to certain matters. We have agreed to indemnify against losses arising from a breach of representations or covenants or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time or circumstances within which an indemnification claim can be made and the amount of the claim.
It is not possible to determine the maximum potential amount for claims made under the indemnification obligations due to uncertainties in the litigation process, coordination with and contributions by other parties and the defendants in these types of cases, and the unique facts and circumstances involved in each particular case and agreement. Historically, indemnity payments made by us have not had a material effect on our Consolidated Financial Statements.
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In addition, we have entered into indemnification agreements with our officers and directors, and our Amended and Restated Bylaws contain similar indemnification obligations to our agents.
(f) Legal Proceedings
Brazil Brazilian authorities have investigated our Brazilian subsidiary and certain of its former employees, as well as a Brazilian importer of our products, and its affiliates and employees, relating to alleged evasion of import taxes and alleged improper transactions involving the subsidiary and the importer. Brazilian tax authorities have assessed claims against our Brazilian subsidiary based on a theory of joint liability with the Brazilian importer for import taxes, interest, and penalties. In addition to claims asserted by the Brazilian federal tax authorities in prior fiscal years, tax authorities from the Brazilian state of Sao Paulo have asserted similar claims on the same legal basis in prior fiscal years.
The remaining asserted claims by Brazilian federal tax authorities are for calendar years 2004 through 2007, and the remaining asserted claims by the tax authorities from the state of Sao Paulo are for calendar years 2005 through 2007. The total remaining asserted claims by Brazilian state and federal tax authorities aggregate to $ 141 million for the alleged evasion of import and other taxes, $ 816 million for interest, and $ 289 million for various penalties, all determined using an exchange rate as of July 26, 2025.
We have completed a thorough review of the matters and believe the asserted claims against our Brazilian subsidiary are without merit, and we are defending the claims vigorously. While we believe there is no legal basis for the alleged liability, due to the complexities and uncertainty surrounding the judicial process in Brazil and the nature of the claims asserting joint liability with the importer, we are unable to determine the likelihood of an unfavorable outcome against our Brazilian subsidiary and are unable to reasonably estimate a range of loss, if any. We do not expect a final judicial determination for several years.
Centripetal On February 13, 2018, Centripetal Networks, Inc. (“Centripetal”) asserted patent infringement claims against us in the U.S. District Court for the Eastern District of Virginia, alleging that several of our products and services infringe eleven Centripetal U.S. patents. After two bench trials and various administrative actions and appeals, we have been found either to not have infringed any of the patents or the patents have been invalidated. Centripetal appealed one of the invalidity decisions and we are awaiting the decision following the Federal Circuit hearing on that appeal on February 6, 2025. Centripetal's appeal of the non-infringement judgment of the District Court is ongoing.
Between April 2020 and February 2022, Centripetal also filed complaints in the District Court of Dusseldorf in Germany (“German Court”), asserting five patents and one utility model. Centripetal sought damages and injunctive relief in all cases. In various proceedings in 2021, 2022, and 2023, we have been found to have not infringed three patents, one patent was invalidated, and the utility model was invalidated. The infringement action on the final patent is stayed due to an invalidity action heard on June 6, 2024 in the Federal Patent Court, in which all claims, aside from one auxiliary claim, were found invalid, and for which we are awaiting a decision on appeal from the German Federal Court of Justice. Centripetal’s appeals of two of the non-infringement findings remain pending and, on March 27, 2024, the Court of Appeals rejected Centripetal’s appeal of the third non-infringement finding. In an appellate decision on December 11, 2024, the German Federal Court of Justice revoked one of the two patents for which Centripetal appealed the finding of non-infringement, rendering moot the non-infringement appeal of that patent.
On July 10, 2023, Centripetal filed a complaint in the Paris Judiciary Court asserting the French counterpart of a European Patent. Centripetal seeks damages and injunctive relief in the case. Centripetal previously asserted the German counterpart of the same European Patent in Germany and the German Court rejected Centripetal’s complaint finding no infringement. We have filed our response and defenses to the complaint and the case briefing is ongoing. While the Court has not set a final hearing date, we anticipate that it will occur in the third calendar quarter of 2026.
Due to uncertainty surrounding patent litigation processes in the U.S. and Europe, we are unable to reasonably estimate the ultimate outcome of the litigations at this time. If we do not prevail in these litigations, we believe that any damages ultimately assessed would not have a material effect on our Consolidated Financial Statements.
Ramot On June 12, 2019 and on February 26, 2021, Ramot at Tel Aviv University Ltd. (“Ramot”) asserted patent infringement claims against Cisco and Acacia in the U.S. District Court for the Eastern District of Texas (“E.D. Tex.”) and in the District of Delaware (“D. Del.”), respectively. Ramot is seeking damages, including enhanced damages, and a royalty on future sales. Ramot alleges that certain optical transceiver modules and line cards infringe three patents. We challenged the validity of the patents in the U.S. Patent and Trademark Office (“PTO”) and the pending District Court cases have been stayed. On September 28, 2021 and May 24, 2022, Cisco and Acacia filed two declaratory judgment actions of noninfringement against Ramot in D. Del on other Ramot patents and those proceedings are ongoing. The Court set trial in the D. Del. cases for November 3, 2025.
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While we believe that we have strong non-infringement and invalidity arguments in these litigations, and that Ramot’s damages theories in such cases are not supported by prevailing law, we are unable to reasonably estimate the ultimate outcome of these litigations at this time due to uncertainties in the litigation processes. If we do not prevail in court in these litigations, we believe any damages ultimately assessed would not have a material effect on our Consolidated Financial Statements.
Egenera On August 8, 2016, Egenera, Inc. (“Egenera”) asserted infringement claims against us in the U.S. District Court for the District of Massachusetts, alleging that Cisco’s Unified Computing System Manager infringes three patents. Egenera sought damages, including enhanced damages, and an injunction. Two of the asserted patents were dismissed, leaving Egenera’s infringement claim based on one asserted patent. On March 25, 2022, the PTO preliminarily found all of the asserted claims of the remaining patent unpatentable in ex parte reexamination proceedings. On August 15, 2022, after a jury trial for the remaining patent, the jury returned a verdict in favor of Cisco. The District Court denied Egenera’s post-trial motions, and Egenera filed an appeal to the Federal Circuit on January 13, 2023. The Federal Circuit heard oral argument on October 11, 2024 and on July 7, 2025, the Federal Circuit affirmed the final judgment of the District Court that was in Cisco's favor.
In addition to the above matters, we are subject to other legal proceedings, claims, and litigation arising in the ordinary course of business, including intellectual property litigation. While the outcome of these matters is currently not determinable, we do not believe that the ultimate costs to resolve these matters will have a material effect on our Consolidated Financial Statements.
For additional information regarding intellectual property litigation, see “Part I, Item 1A. Risk Factors—We may be found to infringe on intellectual property rights of others” herein.  

15. Stockholders’ Equity
(a) Stock Repurchase Program
In September 2001, our Board of Directors authorized a stock repurchase program. As of July 26, 2025, the remaining authorized amount for stock repurchases under this program was approximately $ 14.2 billion with no termination date.
Our stock repurchase activity under the stock repurchase program, reported based on the trade date, is summarized as follows (in millions, except per-share amounts):

Years Ended Shares Weighted-Average Price per Share Amount
July 26, 2025 105   $ 56.53   $ 5,995  
July 27, 2024 117   $ 49.45   $ 5,764  
July 29, 2023 88   $ 48.49   $ 4,271  

There were $ 20  million, $ 25  million and $ 48  million in stock repurchases that were pending settlement as of July 26, 2025, July 27, 2024 and July 29, 2023, respectively.
The purchase price for the shares of our stock repurchased is reflected as a reduction to stockholders’ equity.
We are required to allocate the purchase price of the repurchased shares as (i) a reduction to retained earnings or an increase to accumulated deficit and (ii) a reduction of common stock and additional paid-in capital.
(b) Dividends Declared
On August 13, 2025, our Board of Directors declared a quarterly dividend of $ 0.41 per common share to be paid on October 22, 2025, to all stockholders of record as of the close of business on October 3, 2025. Future dividends will be subject to the approval of our Board of Directors.
(c) Preferred Stock
Under the terms of our Amended and Restated Certificate of Incorporation, the Board of Directors is authorized to issue preferred stock in one or more series and, in connection with the creation of such series, to fix by resolution the designation, powers (including voting powers (if any)), preferences and relative, participating, optional or other special rights, if any, of such series, and any qualifications, limitations or restrictions thereof, of the shares of such series. As of July 26, 2025, we have not issued any shares of preferred stock.

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16. Employee Benefit Plans
(a) Employee Stock Incentive Plans
We have one stock incentive plan: the 2005 Stock Incentive Plan (the “2005 Plan”). In addition, we have, in connection with our acquisitions of various companies, assumed the share-based awards granted under stock incentive plans of the acquired companies or issued share-based awards in replacement thereof. Share-based awards are designed to reward employees for their long-term contributions to us and provide incentives for them to remain with us. The number and frequency of share-based awards are based on competitive practices, our operating results, government regulations, and other factors.
The 2005 Plan provides for the granting of stock options, stock grants, stock units and stock appreciation rights (SARs), the vesting of which may be time-based or upon satisfaction of performance goals, or both, and/or other conditions. Time-based and performance-based RSUs generally vest over three years with certain awards containing retirement eligible provisions. Employees (including employee directors and executive officers) and consultants of Cisco and its subsidiaries and affiliates and non-employee directors of Cisco are eligible to participate in the 2005 Plan. The 2005 Plan may be terminated by our Board of Directors at any time and for any reason, and is currently set to terminate at the 2030 Annual Meeting unless re-adopted or extended by our stockholders prior to or on such date.
Under the 2005 Plan’s share reserve feature, a distinction is made between the number of shares in the reserve attributable to (i) stock options and SARs and (ii) “full value” awards (i.e., stock grants and stock units). Shares issued as stock grants, pursuant to stock units or pursuant to the settlement of dividend equivalents are counted against shares available for issuance under the 2005 Plan on a 1.5 -to-1 ratio. For each share awarded as restricted stock or a restricted stock unit award under the 2005 Plan, 1.5 shares was deducted from the available share-based award balance. If awards issued under the 2005 Plan are forfeited or terminated for any reason before being exercised or settled, then the shares underlying such awards, plus the number of additional shares, if any, that counted against shares available for issuance under the 2005 Plan at the time of grant as a result of the application of the share ratio described above, will become available again for issuance under the 2005 Plan. As of July 26, 2025, 100 million shares were authorized for future grant under the 2005 Plan.
(b) Employee Stock Purchase Plan
We have an Employee Stock Purchase Plan under which eligible employees are offered shares through a 24 -month offering period, which consists of four consecutive 6 -month purchase periods. Employees may purchase a limited amount of shares of our stock at a discount of up to 15 % of the lesser of the fair market value at the beginning of the offering period or the end of each 6 -month purchase period. The Employee Stock Purchase Plan is scheduled to terminate on the earlier of (i) January 3, 2030 and (ii) the date on which all shares available for issuance under the Employee Stock Purchase Plan are sold pursuant to exercised purchase rights. We issued 18 million, 20 million, and 19 million shares under the Employee Stock Purchase Plan in fiscal 2025, 2024, and 2023, respectively. As of July 26, 2025, 50 million shares were available for issuance under the Employee Stock Purchase Plan.
(c) Summary of Share-Based Compensation Expense
Share-based compensation expense consists of expenses for RSUs, stock purchase rights, and stock options, granted to employees or assumed from acquisitions. The following table summarizes share-based compensation expense (in millions):

Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Cost of sales—product $ 255   $ 214   $ 151  
Cost of sales—services 329   300   245  
Share-based compensation expense in cost of sales 584   514   396  
Research and development 1,625   1,316   1,008  
Sales and marketing 918   846   673  
General and administrative 476   375   270  
Restructuring and other charges 38   23   6  
Share-based compensation expense in operating expenses 3,057   2,560   1,957  
Total share-based compensation expense $ 3,641   $ 3,074   $ 2,353  
Income tax benefit for share-based compensation $ 871   $ 696   $ 449  

As of July 26, 2025, the total compensation cost related to unvested share-based awards not yet recognized was $ 4.5 billion, which is expected to be recognized over approximately 1.9 years on a weighted-average basis.
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(d) Restricted Stock Unit Awards
A summary of the restricted stock and stock unit activity, which includes time-based and performance-based or market-based RSUs, is as follows (in millions, except per-share amounts):

Restricted Stock/
Stock Units Weighted-Average
Grant Date Fair
Value per Share Aggregate Fair  Value
UNVESTED BALANCE AT JULY 30, 2022 97   $ 46.67  
Granted and assumed 72   42.08  
Vested ( 39 ) 46.69   $ 1,746  
Canceled/forfeited/other ( 8 ) 45.17  
UNVESTED BALANCE AT JULY 29, 2023 122   44.04  
Granted and assumed 63   48.97  
Vested ( 58 ) 43.46   $ 2,906  
Canceled/forfeited/other ( 10 ) 45.65  
UNVESTED BALANCE AT JULY 27, 2024 117   46.86  
Granted and assumed 70   55.73  
Vested ( 65 ) 46.95   $ 3,707  
Canceled/forfeited/other ( 9 ) 48.04  
UNVESTED BALANCE AT JULY 26, 2025 113   $ 52.26  

(e) Valuation of Employee Share-Based Awards
Time-based restricted stock units and PRSUs that are based on our financial performance metrics or non-financial operating goals are valued using the market value of our common stock on the date of grant, discounted for the present value of expected dividends. For PRSUs granted, we included a relative total shareholder return (TSR) modifier to determine the number of shares earned at the end of the performance period. The TSR modifier is determined using a Monte Carlo simulation model. The PRSUs granted during the fiscal years presented are contingent on the achievement of our financial performance metrics, our comparative market-based returns, or the achievement of financial and non-financial operating goals.
The assumptions for the valuation of time-based RSUs and PRSUs are summarized as follows:

RESTRICTED STOCK UNITS
Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Number of shares granted (in millions) 65   60   70  
Grant date fair value per share $ 55.93   $ 48.71   $ 42.13  
Weighted-average assumptions/inputs:
   Expected dividend yield 2.7   % 3.0   % 3.4   %
   Range of risk-free interest rates 3.5 % – 4.9 %
4.2 % – 5.6 %
3.7 % – 5.7 %

PERFORMANCE BASED RESTRICTED STOCK UNITS
Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Number of shares granted (in millions) 4   3   2  
Grant date fair value per share $ 54.50   $ 59.31   $ 40.44  

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The assumptions for the valuation of employee stock purchase rights are summarized as follows:

  EMPLOYEE STOCK PURCHASE RIGHTS
Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Weighted-average assumptions:
   Expected volatility 22.5   % 28.3   % 28.7   %
   Risk-free interest rate 5.0   % 2.9   % 2.8   %
   Expected dividend 3.3   % 3.5   % 3.6   %
   Expected life (in years) 1.3 1.2 1.2
Weighted-average estimated grant date fair value per share $ 12.18   $ 11.59   $ 12.40  

The valuation of employee stock purchase rights and the related assumptions are for the employee stock purchases made during the respective fiscal years.
We used the implied volatility for traded options (with contract terms corresponding to the expected life of the employee stock purchase rights) on our stock as the expected volatility assumption required in the Black-Scholes model. The implied volatility is more representative of future stock price trends than historical volatility. The risk-free interest rate assumption is based upon observed interest rates appropriate for the term of our employee stock purchase rights. The dividend yield assumption is based on the history and expectation of dividend payouts at the grant date.
(f) Employee 401(k) Plans
We sponsor the Cisco Systems, Inc. 401(k) Plan (the “Plan”) to provide retirement benefits for our employees. As allowed under Section 401(k) of the Internal Revenue Code, the Plan provides for tax-deferred salary contributions and after-tax contributions for eligible employees. The Plan allows employees to contribute up to 75 % of their annual eligible earnings to the Plan on a pretax and after-tax basis, including Roth contributions. Employee contributions are limited to a maximum annual amount as set periodically by the Internal Revenue Code. We match pretax and Roth employee contributions up to 100 % of the first 4.5 % of eligible earnings that are contributed by employees. Therefore, the maximum matching contribution that we may allocate to each participant’s account will not exceed $ 15,750 for the 2025 calendar year due to the $350,000 annual limit on eligible earnings imposed by the Internal Revenue Code. All matching contributions vest immediately. Our matching contributions to the Plan totaled $ 373 million, $ 358 million, and $ 342 million in fiscal 2025, 2024, and 2023, respectively.
The Plan allows employees who meet the age requirements and reach the Plan contribution limits to make catch-up contributions (pretax or Roth) not to exceed the lesser of 75 % of their annual eligible earnings or the limit set forth in the Internal Revenue Code. Catch-up contributions are not eligible for matching contributions. In addition, the Plan provides for discretionary profit-sharing contributions as determined by the Board of Directors. Such contributions to the Plan are allocated among eligible participants in the proportion of their salaries to the total salaries of all participants. There were no discretionary profit-sharing contributions made in fiscal 2025, 2024, and 2023.
We also sponsor other 401(k) plans as a result of acquisitions of other companies. Our contributions to these plans were not material to Cisco on either an individual or aggregate basis for any of the fiscal years presented.
(g) Deferred Compensation Plans
The Cisco Systems, Inc. Deferred Compensation Plan (the “Deferred Compensation Plan”), a nonqualified deferred compensation plan, became effective in 2007. As required by applicable law, participation in the Deferred Compensation Plan is limited to a select group of our management employees. Under the Deferred Compensation Plan, which is an unfunded and unsecured deferred compensation arrangement, a participant may elect to defer base salary, bonus, and/or commissions, pursuant to such rules as may be established by Cisco, up to the maximum percentages for each deferral election as described in the plan. We may also, at our discretion, make a matching contribution to the employee under the Deferred Compensation Plan. A matching contribution equal to 4.5 % of eligible compensation in excess of the Internal Revenue Code limit for qualified plans for calendar year 2025 that is deferred by participants under the Deferred Compensation Plan (with a $ 1.5 million cap on eligible compensation) will be made to eligible participants’ accounts at the end of calendar year 2025. The total deferred compensation liability under the Deferred Compensation Plan, together with deferred compensation plans assumed from acquired companies, was approximately $ 1.2  billion and $ 1.1 billion as of July 26, 2025 and July 27, 2024, respectively, and was recorded primarily in other long-term liabilities.
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Notes to Consolidated Financial Statements (Continued)

17. Accumulated Other Comprehensive Income (Loss)
The components of AOCI, net of tax, and the other comprehensive income (loss) are summarized as follows (in millions):

Net Unrealized Gains (Losses) on Available-for-Sale Investments Net Unrealized Gains (Losses) Cash Flow Hedging Instruments Cumulative Translation Adjustment and Actuarial Gains (Losses) Accumulated Other Comprehensive Income (Loss)
BALANCE AT JULY 30, 2022 $ ( 379 ) $ 44   $ ( 1,287 ) $ ( 1,622 )
Other comprehensive income (loss) before reclassifications ( 113 ) 29   116   32  
(Gains) losses reclassified out of AOCI 21   ( 63 ) ( 1 ) ( 43 )
Tax benefit (expense) 31   8   19   58  
BALANCE AT JULY 29, 2023 ( 440 ) 18   ( 1,153 ) ( 1,575 )
Other comprehensive income (loss) before reclassifications 193   128   ( 115 ) 206  
(Gains) losses reclassified out of AOCI 67   ( 49 ) ( 2 ) 16  
Tax benefit (expense) ( 61 ) ( 18 ) 2   ( 77 )
BALANCE AT JULY 27, 2024 ( 241 ) 79   ( 1,268 ) ( 1,430 )
Other comprehensive income (loss) before reclassifications 152   29   304   485  
(Gains) losses reclassified out of AOCI 100   ( 47 ) —   53  
Tax benefit (expense) ( 68 ) 4   2   ( 62 )
BALANCE AT JULY 26, 2025 $ ( 57 ) $ 65   $ ( 962 ) $ ( 954 )

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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

18. Income Taxes
(a) Provision for Income Taxes
The provision for income taxes consists of the following (in millions):

Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Federal:
Current $ 956   $ 1,939   $ 3,754  
Deferred ( 838 ) ( 883 ) ( 1,955 )
118   1,056   1,799  
State:
Current 431   388   623  
Deferred ( 250 ) 11   ( 175 )
181   399   448  
Foreign:
Current 665   559   412  
Deferred ( 44 ) ( 100 ) 46  
621   459   458  
Total $ 920   $ 1,914   $ 2,705  

Income before provision for income taxes consists of the following (in millions):

Years Ended July 26, 2025 July 27, 2024 July 29, 2023
United States $ 9,500   $ 10,790   $ 14,074  
International 1,600   1,444   1,244  
Total $ 11,100   $ 12,234   $ 15,318  

The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following:

Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Federal statutory rate 21.0   % 21.0   % 21.0   %
Effect of:
State taxes, net of federal tax benefit 1.3   2.8   2.4  
Foreign income at other than U.S. rates 0.7   ( 0.3 ) ( 0.1 )
Tax credits ( 2.7 ) ( 2.4 ) ( 0.3 )
Foreign-derived intangible income deduction ( 6.0 ) ( 5.5 ) ( 5.8 )
Stock-based compensation 0.7   0.7   1.1  
Impact of the Tax Act ( 6.5 ) —   —  
Other, net ( 0.2 ) ( 0.7 ) ( 0.6 )
Total 8.3   % 15.6   % 17.7   %

On August 26, 2024, the U.S. Tax Court issued an opinion in Varian Medical Systems, Inc. v. Commissioner . The opinion related to the U.S. taxation of deemed foreign dividends in the transition year of the Tax Act (our fiscal 2018). While we were not a party to the case, the opinion resulted in a change to our tax position. As such, we recorded a tax benefit of $ 720  million as a reduction to the provision for income taxes in fiscal 2025 due to this U.S. Tax Court opinion.
During fiscal 2023, we resolved certain items with the Internal Revenue Service (IRS) related to the audit of our federal income tax returns for the fiscal years ended July 26, 2014 through July 30, 2016. As a result of this resolution, we recognized a net benefit to the provision for income taxes of $ 145  million, which included a reduction of interest expense of $ 53  million. During fiscal 2024, we resolved all remaining items with the IRS related to the audit of our federal income tax returns for the fiscal years ended July 26, 2014 through July 30, 2016. As a result of this resolution, we recognized a net benefit to the provision for income taxes of $ 55  million, which included a reduction of interest expense of $ 18  million.
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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

During the fourth quarter of fiscal 2025, we changed our assertion regarding our intent to indefinitely reinvest $ 6.5 billion of undistributed earnings for certain foreign subsidiaries and determined that those earnings are no longer considered permanently reinvested. The deferred income tax impact of this change is not material.
Unrecognized Tax Benefits
The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in millions):

Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Beginning balance $ 2,156   $ 2,137   $ 3,101  
Additions based on tax positions related to the current year 283   205   159  
Additions for tax positions of prior years 81   256   261  
Reductions for tax positions of prior years ( 68 ) ( 344 ) ( 265 )
Settlements ( 75 ) ( 53 ) ( 1,063 )
Lapse of statute of limitations ( 40 ) ( 45 ) ( 56 )
Ending balance $ 2,337   $ 2,156   $ 2,137  

As a result of the resolution of the IRS audit of our federal tax income tax returns for the fiscal years ended July 26, 2014 through July 30, 2016, the amount of gross unrecognized tax benefits was reduced by approximately $ 1.1  billion in fiscal 2023 and $ 245  million in fiscal 2024.
As of July 26, 2025, $ 1.6 billion of the unrecognized tax benefits would affect the effective tax rate if realized. We recognized net interest expense of $ 77 million, $ 21  million and $ 27 million during fiscal 2025, 2024, and 2023, respectively. Our net penalty expense for fiscal 2025, 2024, and 2023 was not material. Our total accrual for interest and penalties was $ 497 million, $ 401 million, and $ 523 million as of the end of fiscal 2025, 2024, and 2023, respectively. We are no longer subject to U.S. federal income tax audit for returns covering tax years through fiscal 2016. We are no longer subject to foreign or state income tax audits for returns covering tax years through fiscal 2003 and fiscal 2008, respectively.
We regularly engage in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. We believe it is reasonably possible that certain federal, foreign, and state tax matters may be concluded in the next 12 months. Specific positions that may be resolved include issues involving transfer pricing and various other matters. We estimate that the unrecognized tax benefits at July 26, 2025 could be reduced by approximately $ 250 million in the next 12 months.
(b) Deferred Tax Assets and Liabilities
The following table presents the breakdown for net deferred tax assets (in millions):

July 26, 2025 July 27, 2024
Deferred tax assets $ 7,356   $ 6,262  
Deferred tax liabilities ( 75 ) ( 76 )
Total net deferred tax assets $ 7,281   $ 6,186  

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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

The following table presents the components of the deferred tax assets and liabilities (in millions):

July 26, 2025 July 27, 2024
ASSETS
Inventory write-downs and capitalization $ 532   $ 530  
Deferred foreign income 221   277  
IPR&D and purchased intangible assets 961   1,039  
Depreciation 242   184  
Deferred revenue 1,933   2,034  
Credits and net operating loss carryforwards 1,350   1,863  
Share-based compensation expense 319   297  
Accrued compensation 175   275  
Lease liabilities 379   308  
Capitalized research expenditures 4,182   3,030  
Other 678   559  
Gross deferred tax assets 10,972   10,396  
Valuation allowance ( 910 ) ( 1,024 )
Total deferred tax assets 10,062   9,372  
LIABILITIES
Goodwill and purchased intangible assets ( 2,288 ) ( 2,808 )
ROU lease assets ( 315 ) ( 259 )
Other ( 178 ) ( 119 )
Total deferred tax liabilities ( 2,781 ) ( 3,186 )
Total net deferred tax assets $ 7,281   $ 6,186  

The changes in the valuation allowance for deferred tax assets are summarized as follows (in millions):

July 26, 2025 July 27, 2024 July 29, 2023
Balance at beginning of fiscal year $ 1,024   $ 754   $ 834  
Additions 33   148   35  
Additions from Splunk —   147   —  
Deductions ( 4 ) ( 4 ) ( 18 )
Write-offs ( 145 ) ( 20 ) ( 93 )
Foreign exchange and other 2   ( 1 ) ( 4 )
Balance at end of fiscal year $ 910   $ 1,024   $ 754  

As of July 26, 2025, our federal, state, and foreign net operating loss carryforwards before valuation allowance for income tax purposes were $ 284 million, $ 2.1 billion, and $ 533 million, respectively. A significant amount of the net operating loss carryforwards relates to acquisitions and, as a result, is limited in the amount that can be recognized in any one year. If not utilized, the federal, state, and foreign net operating loss carryforwards will begin to expire in fiscal 2026. We have provided a valuation allowance of $ 10 million and $ 96  million for deferred tax assets related to state and foreign net operating losses respectively that are not expected to be realized.
As of July 26, 2025, our federal, state, and foreign tax credit carryforwards for income tax purposes before valuation allowance were approximately $ 7 million, $ 1.8 billion, and $ 8 million, respectively. The federal tax credit carryforwards will begin to expire in fiscal 2027. The majority of state and foreign tax credits can be carried forward indefinitely. We have provided a valuation allowance of $ 752 million for deferred tax assets related to state and foreign tax credits carryforwards that are not expected to be realized.

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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

19. Segment Information and Major Customers
(a) Revenue and Gross Margin by Segment
We conduct business globally and are primarily managed on a geographic basis consisting of three segments: the Americas, EMEA, and APJC. Our chief executive officer is the chief operating decision maker (CODM). The CODM reviews certain financial information for each segment, to evaluate performance and allocate resources by comparing actual performance to our annual targets. Performance of each segment is measured based on segment revenue and segment gross margin.
We do not allocate research and development, sales and marketing, or general and administrative expenses to our segments because the CODM does not include this information in our measurement of performance of the operating segments. In addition, we do not allocate amortization and impairment of acquisition-related intangible assets, share-based compensation expense, significant litigation settlements (which includes the supplier-related legal settlement as described in Note 21) and other contingencies, charges related to asset impairments and restructurings, and certain other charges to the cost of sales and gross margin for each segment because the CODM does not include this information in the measurement of the performance of our operating segments.
The following summarizes our revenue and gross margin by segment and the significant expenses by each segment for fiscal 2025, 2024, and 2023 (in millions):

Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Revenue:
Americas $ 33,656   $ 31,971   $ 33,447  
EMEA 14,824   14,117   15,135  
APJC 8,174   7,716   8,417  
Total $ 56,654   $ 53,803   $ 56,998  
Gross margin:
Americas $ 22,962   $ 21,372   $ 21,350  
EMEA 10,545   9,755   10,016  
APJC 5,431   5,187   5,424  
Segment total 38,938   36,312   36,788  
Unallocated corporate items ( 2,148 ) ( 1,484 ) ( 1,035 )
Total $ 36,790   $ 34,828   $ 35,753  

Supplemental information about our significant expenses:
Americas:
Cost of sales — product $ 8,206   $ 8,077   $ 9,479  
Cost of sales — services 2,487   2,523   2,619  
Segment total $ 10,694   $ 10,600   $ 12,097  

EMEA:
Cost of sales — product $ 3,138   $ 3,264   $ 3,998  
Cost of sales — services 1,140   1,098   1,121  
Segment total $ 4,279   $ 4,362   $ 5,119  

APJC:
Cost of sales — product $ 2,010   $ 1,838   $ 2,324  
Cost of sales — services 734   690   668  
Segment total $ 2,743   $ 2,529   $ 2,992  

Amounts may not sum due to rounding.
Revenue in the United States was $ 30.4 billion, $ 28.7 billion, and $ 29.9 billion for fiscal 2025, 2024, and 2023, respectively.
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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

(b) Revenue for Groups of Similar Products and Services
We design and sell IP-based networking and other products related to the communications and IT industry and provide services associated with these products and their use.
The following table presents revenue for groups of similar products and services (in millions):

Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Revenue:
Networking $ 28,304   $ 29,229   $ 34,570  
Security 8,094   5,075   3,859  
Collaboration 4,154   4,113   4,052  
Observability 1,055   837   661  
Total Product 41,608   39,253   43,142  
Services 15,046   14,550   13,856  
Total $ 56,654   $ 53,803   $ 56,998  

Amounts may not sum due to rounding.
(c) Additional Segment Information
No single customer accounted for 10% or more of revenue in fiscal 2025, 2024, and 2023.
Our long-lived assets are based on the physical location of the assets. The following table presents our long-lived assets, which consists of property and equipment, net and operating lease ROU assets information for geographic areas (in millions):

July 26, 2025 July 27, 2024
Long-lived assets:
United States $ 2,370   $ 2,253  
International 1,044   903  
Total $ 3,414   $ 3,156  

20. Net Income per Share
The following table presents the calculation of basic and diluted net income per share (in millions, except per-share amounts):

Years Ended July 26, 2025 July 27, 2024 July 29, 2023
Net income $ 10,180   $ 10,320   $ 12,613  
Weighted-average shares—basic 3,976   4,043   4,093  
Effect of dilutive potential common shares 22   19   12  
Weighted-average shares—diluted 3,998   4,062   4,105  
Net income per share—basic $ 2.56   $ 2.55   $ 3.08  
Net income per share—diluted $ 2.55   $ 2.54   $ 3.07  
Antidilutive employee share-based awards, excluded 78   82   86  

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CISCO SYSTEMS, INC.
Notes to Consolidated Financial Statements (Continued)

21. Subsequent Event
On August 26, 2025, we settled a legal dispute with a supplier over purchase obligations arising under certain long-term supply arrangements entered into to help us mitigate significant supply chain constraints seen in prior periods. Under the terms of the settlement, the parties agreed to the dismissal of all pending actions in exchange for mutual releases of claims related to the long-term supply arrangements with the supplier, the termination of such arrangements between the parties, the release back to us of approximately $ 563  million held in escrow under the arrangements (which is reported as restricted cash within other current assets), and the forfeiture by us of approximately $ 450  million in supplier-held prepayments, after giving effect to certain amounts to be applied against such prepayments. No incremental cash consideration is to be paid in connection with the settlement. As a result of this settlement, we recorded a charge in the fourth quarter of fiscal 2025 of approximately $ 355  million to product cost of sales and a corresponding income tax benefit of approximately $ 82  million.

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Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures

Evaluation of Disclosure Controls and Procedures
Based on our management’s evaluation (with the participation of our principal executive officer and principal financial officer), as of the end of the period covered by this report, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Internal Control over Financial Reporting
Management’s report on our internal control over financial reporting and the report of our independent registered public accounting firm on our internal control over financial reporting are set forth, respectively, on page 55 under the caption “Management’s Report on Internal Control Over Financial Reporting” and on page 53 of this report.
There was no change in our internal control over financial reporting during our fourth quarter of fiscal 2025 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

Rule 10b5-1 Trading Arrangements
On June 20, 2025 , Oliver Tuszik , Cisco's Executive Vice President, Global Sales , adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act. Mr. Tuszik’s trading plan provides for the sale of approximately 49,067 gross shares (with any shares underlying performance-based equity awards being calculated at target), plus any related dividend-equivalent shares earned with respect to such shares and shares from purchases made pursuant to Cisco’s employee stock purchase plan, and excluding, as applicable, any shares withheld to satisfy tax withholding obligations in connection with the net settlement of the equity awards. Mr. Tuszik’s trading plan is scheduled to terminate on December 31, 2025 , subject to early termination for certain specified events set forth therein.

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Not applicable.
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PART III

Item 10. Directors, Executive Officers and Corporate Governance

We have adopted a code of ethics that applies to our principal executive officer and all members of our finance department, including the principal financial officer and principal accounting officer. This code of ethics can be found at the “Financial Officer Code of Ethics” link in the Corporate Governance section of Cisco’s Investor Relations website at investor.cisco.com. We intend to satisfy any disclosure requirement regarding an amendment to, or waiver from, a provision of this code of ethics by posting such information on that website or in a report on Form 8-K.
Insider Trading Arrangements and Policies
We are committed to promoting high standards of ethical business conduct and compliance with applicable laws, rules and regulations. As part of this commitment, we have adopted an Insider Trading Policy governing transactions in our securities by our directors, employees, contractors, consultants and other personnel providing services to Cisco, as well as by Cisco itself, that we believe is reasonably designed to promote compliance with insider trading laws, rules and regulations and The Nasdaq Stock Market listing standards. The foregoing summary of the Insider Trading Policy does not purport to be complete and is qualified in its entirety by reference to the full text of the Insider Trading Policy, which was filed with the Securities and Exchange Commission on September 5, 2024 as Exhibit 19.1 to Cisco's Annual Report on Form 10-K.
The addit ional information required by this item is included in our Proxy Statement related to the 2025 Annual Meeting of Stockholders to be filed with the SEC within 120 days after July 26, 2025 (the “Proxy Statement”) and is incorporated herein by reference.

Item 11. Executive Compensation

The information required by this item is included in our Proxy Statement and is incorporated herein by reference.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

The information required by this item is included in our Proxy Statement and is incorporated herein by reference.

Item 13. Certain Relationships and Related Transactions, and Director Independence

The information required by this item is included in our Proxy Statement and is incorporated herein by reference.

Item 14. Principal Accountant Fees and Services

The information required by this item is included in our Proxy Statement and is incorporated herein by reference.

PART IV

Item 15. Exhibits and Financial Statement Schedules

(a) 1.    Financial Statements
See the “Index to Consolidated Financial Statements” on page 52 of this report.

2. Financial Statement Schedule
All financial statement schedules have been omitted, since the required information is not applicable or is shown in the financial statements or notes herein.

3. Exhibits
See the “Index to Exhibits” beginning on page 104 of this report.

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INDEX TO EXHIBITS
 
Exhibit
Number Exhibit Description Incorporated by Reference Filed
Herewith
    Form File No. Exhibit Filing Date  
2.1 Agreement and Plan of Merger, dated as of September 20, 2023, by and among Cisco Systems, Inc., Spirit Merger Corp. and Splunk Inc.
8-K 001-39940 2.1 9/21/2023
3.1 Amended and Restated Certificate of Incorporation of Cisco Systems, Inc., as currently in effect
8-K12B 001-39940 3.1 1/25/2021
3.2 Amended and Restated Bylaws of Cisco Systems, Inc., as currently in effect
8-K 001-39940 3.2 8/25/2025
4.1 Indenture, dated February 17, 2009, between Cisco Systems, Inc. and the Bank of New York Mellon Trust Company, N.A., as trustee
8-K 000-18225 4.1 2/17/2009
4.2 Indenture, dated November 17, 2009, between Cisco Systems, Inc. and the Bank of New York Mellon Trust Company, N.A., as trustee
8-K 000-18225 4.1 11/17/2009
4.3 Indenture, dated March 3, 2014, between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee
8-K 000-18225 4.1 3/3/2014
4.4 First Supplemental Indenture, dated January 25, 2021 to the Indenture, dated February 17, 2009, between Cisco Systems, Inc. and the Bank of New York Mellon Trust Company, N.A., as trustee
10-Q 001-39940 4.1 2/16/2021
4.5 First Supplemental Indenture, dated January 25, 2021 to the Indenture, dated November 17, 2009, between Cisco Systems, Inc. and the Bank of New York Mellon Trust Company, N.A., as trustee
10-Q 001-39940 4.2 2/16/2021
4.6 First Supplemental Indenture, dated January 25, 2021 to the Indenture, dated March 3, 2014, between the Company and The Bank of New York Mellon Trust Company
10-Q 001-39940 4.3 2/16/2021
4.7 Indenture, dated as of February 26, 2024, between Cisco Systems, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee
8-K 001-39940 4.1 2/26/2024
4.8 First Supplemental Indenture, dated as of February 26, 2024, between Cisco Systems, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, for 4.900% Senior Notes due 2026, 4.800% Senior Notes due 2027, 4.850% Senior Notes due 2029, 4.950% Senior Notes due 2031, 5.050% Senior Notes due 2034, 5.300% Senior Notes due 2054 and 5.350% Senior Notes due 2064
8-K 001-39940 4.2 2/26/2024
4.9 Second Supplemental Indenture, dated as of February 24, 2025 to the Indenture, dated February 26, 2024, between Cisco Systems, Inc. and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to the issuance of the 4.550% Senior Notes due 2028, 4.750% Senior Notes due 2030, 4.950% Senior Notes due 2032, 5.100% Senior Notes due 2035 and 5.500% Senior Notes due 2055
8-K 001-39940 4.2 2/24/2025
4.10 Forms of Global Note for the registrant’s 5.90% Senior Notes due 2039
8-K 000-18225 4.1 2/17/2009
4.11 Forms of Global Note for the registrant’s 4.45% Senior Notes due 2020 and 5.50% Senior Notes due 2040
8-K 000-18225 4.1 11/17/2009
4.12 Form of Officer’s Certificate setting forth the terms of the Fixed and Floating Notes issued in June 2015
8-K 000-18225 4.1 6/18/2015
4.13 Form of Officer’s Certificate setting forth the terms of the Fixed and Floating Notes issued in February 2016
8-K 000-18225 4.1 2/29/2016

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Exhibit
Number Exhibit Description Incorporated by Reference Filed
Herewith
    Form File No. Exhibit Filing Date  
4.14 Form of Officer’s Certificate setting forth the terms of the Fixed and Floating Notes issued in September 2016
8-K 000-18225 4.1 9/20/2016
4.15 Description of Registrant’s Securities
10-K 001-39940 4.13 9/9/2021
10.1* Cisco Systems, Inc. 2005 Stock Incentive Plan (including related form agreements)
10-Q 001-39940 10.1 2/18/2025
10.2* Cisco Systems, Inc. Employee Stock Purchase Plan
10-Q 001-39940 10.1 5/20/2025
10.3* Cisco Systems, Inc. Deferred Compensation Plan, as amended
10-Q 001-39940 10.3 11/22/2022
10.4* Cisco Systems, Inc. Executive Incentive Plan
8-K 000-18225 10.2 12/12/2017
10.5* Form of Indemnity Agreement
8-K12B 001-39940 10.1 1/25/2021
10.6† Third Amended and Restated Credit Agreement, dated as of February 2, 2024, by and among Cisco Systems, Inc., certain lenders party thereto, and Bank of America, N.A., as administrative agent, swing line lender and letter of credit issuer
8-K 001-39940 10.1 2/8/2024
10.7* Letter Agreement, dated May 15, 2024, between Cisco and Gary Steele
8-K 001-39940 10.1 5/15/2024
10.8* Separation Agreement and General Release, by and between Cisco Systems, Inc. and Maria Martinez
10-Q 001-39940 10.2 5/21/2024
10.9* Separation Agreement and General Release, by and between Cisco Systems, Inc. and Jeff Sharritts
8-K 001-39940 10.1 7/19/2024
19.1 Insider Trading Policy
10-K 001-39940 19.1 9/5/2024
21.1 Subsidiaries of the Registrant
X
23.1 Consent of Independent Registered Public Accounting Firm
X
24.1 Power of Attorney (included on page 107 of this Annual Report on Form 10-K)
X
31.1 Rule 13a–14(a)/15d–14(a) Certification of Principal Executive Officer
X
31.2 Rule 13a–14(a)/15d–14(a) Certification of Principal Financial Officer
X
32.1 Section 1350 Certification of Principal Executive Officer
X
32.2 Section 1350 Certification of Principal Financial Officer
X
97.1 Compensation Recovery Policy
10-K
001-39940
97.1 9/5/2024
101.INS Inline XBRL Instance Document X
101.SCH Inline XBRL Taxonomy Extension Schema Document X
101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document X
101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document X
101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document X
101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document X
104 Cover Page Interactive Data File (Embedded within the Inline XBRL document and included in Exhibit 101) X

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† Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). Cisco agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request.
* Indicates a management contract or compensatory plan or arrangement.

 

Item 16. Form 10-K Summary

None.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this Report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.
 

September 3, 2025     CISCO SYSTEMS, INC.

      /S/ C HARLES H . R OBBINS

    Charles H. Robbins
    Chair and Chief Executive Officer

POWER OF ATTORNEY
KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Charles H. Robbins and Mark Patterson, jointly and severally, his attorney-in-fact, each with the full power of substitution, for such person, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorney-in-fact and agent full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he might do or could do in person hereby ratifying and confirming all that each of said attorneys-in-fact and agents, or his substitute, may do or cause to be done by virtue hereof.
Pursuant to the requirements of the Securities Exchange Act of 1934, this Report on Form 10-K has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
 

Signature Title Date

/S/ C HARLES H . R OBBINS
Chair and Chief Executive Officer September 3, 2025
Charles H. Robbins (Principal Executive Officer)

/S/ MARK PATTERSON
Executive Vice President and Chief Financial Officer September 3, 2025
Mark Patterson (Principal Financial Officer)

/S/ M . V ICTORIA W ONG
Senior Vice President and Chief Accounting Officer September 3, 2025
M. Victoria Wong (Principal Accounting Officer)

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Signature Title Date

/S/ W ESLEY G . B USH
Director September 3, 2025
Wesley G. Bush

/S/ M ICHAEL D . C APELLAS
Lead Independent Director September 3, 2025
Michael D. Capellas

/S/ M ARK G ARRETT
Director September 3, 2025
Mark Garrett

/S/ J OHN D. H ARRIS II
Director September 3, 2025
John D. Harris II

/S/ K RISTINA M . J OHNSON
Director September 3, 2025
Dr. Kristina M. Johnson

/S/ S ARAH R AE M URPHY
Director September 3, 2025
Sarah Rae Murphy

/S/ D ANIEL H . S CHULMAN
Director September 3, 2025
Daniel H. Schulman

/S/ M ARIANNA T ESSEL
Director September 3, 2025
Marianna Tessel

Director
Kevin Weil

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