Cisco Systems, Inc.
CSCO Technology Communication Equipment
Cisco Systems, Inc.’s revenue for fiscal 2026 (year ended July 2026) was $63.3 billion, up 11.8% from fiscal 2025. In the quarter to July 2026, revenue grew 17.6%, EPS grew 38.0%, free cash flow grew 24.4% and total debt fell 15.3%, each against the same quarter a year earlier. Member of the S&P 500, Nasdaq 100 and Dow Jones; dividend growth for ten consecutive years.
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Cisco Systems, Inc. (CSCO) Altman Z-score
Cisco Systems, Inc.'s Altman Z-score for fiscal 2026 is 4.34, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2026 | 4.34 | 1.40 |
| FY2025 | 2.93 | 0.71 |
| FY2024 | 2.22 | (1.21) |
| FY2023 | 3.43 | 0.18 |
| FY2022 | 3.25 | (0.34) |
| FY2021 | 3.59 | 0.30 |
| FY2020 | 3.29 | (0.12) |
| FY2019 | 3.41 | 0.31 |
| FY2018 | 3.10 | 0.20 |
| FY2017 | 2.90 | (0.19) |
How fiscal 2026’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | (0.02) | — | −0.03 | |
| Retained earnings / total assets | 0.01 | — | 0.02 | |
| EBIT / total assets | 0.12 | — | 0.39 | |
| Market value of equity / total liabilities | 5.78 | — | 3.47 | |
| Sales / total assets | 0.49 | — | 0.49 | |
| Altman Z-score | Safe zone | 4.34 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Grey zone | 1.36 | ||
Z and Z″ put Cisco Systems, Inc. in different zones: safe zone by Z, grey zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| UI Ubiquiti Inc. compare | 30.4× |
| LITE Lumentum Holdings Inc. compare | 13.9× |
| CIEN Ciena Corporation compare | 5.8× |
| ASTS AST SpaceMobile, Inc. compare | 4.4× |
| CSCO Cisco Systems, Inc. | 4.3× |
| MSI Motorola Solutions, Inc. compare | 3.6× |
| ERIC Ericsson compare | 2.9× |
| NOK Nokia Corporation compare | 2.0× |
| HPE Hewlett Packard Enterprise Company compare | 0.8× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on CSCO
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- Piotroski F-score
- Beneish M-score
- The full statement