Cisco SystemsFRA:CIS +1.73%81 FCF Margin % is 21.10% as of Apr. 2026, which is 20% below its 10-year median of 26.46. GuruFocus rates FRA:CIS with a GF Score™ of 81/100 and a GF Value™ of €57.23 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,469 Hardware companies, Cisco Systems ranks better than 93.32% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Cisco Systems's Free Cash Flow for the
three
months ended in Apr. 2026 was €2,858 Mil. Cisco Systems's Revenue for the
three
months ended in Apr. 2026 was €13,544 Mil. Therefore, Cisco Systems's FCF Margin % for the quarter that ended in Apr. 2026 was 21.10%.
The historical rank and industry rank for Cisco Systems's FCF Margin % or its related term are showing as below:
FRA:CIS'
s FCF Margin % Range Over the Past 10 Years
Min: 18.98 Med: 26.46 Max: 33.4
Current: 19.42
During the past 13 years, the highest FCF Margin % of Cisco Systems was 33.40%. The lowest was 18.98%. And the median was 26.46%.
FRA:CIS's FCF Margin % is ranked better than 93.32% of 2469
companies
in the Hardware industry
Industry Median: 0.63
vs FRA:CIS: 19.42
Cisco Systems FCF Margin % Related Terms
Cisco Systems FCF Margin % Historical Data
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The historical data trend for Cisco Systems's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:CIS vs CIEN, MSI, LITE: FCF Margin % Comparison
For the Communication Equipment subindustry, Cisco Systems's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Cisco Systems FCF Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Cisco Systems's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Cisco Systems (FRA:CIS) has a FCF Margin % of 21.10% as of Apr. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Cisco Systems and its competitors. This is 20% below median its historical median of 26.46. Over the past decade, Cisco Systems' FCF Margin % has ranged from 18.98 to 33.40. According to the industry distribution chart, Cisco Systems ranks #165 out of 2469 companies in the Hardware industry, placing it in the top 6.7%.
Is Cisco Systems' FCF Margin % too high?
Cisco Systems' current FCF Margin % of 21.10% is 20% below median its 10-year median of 26.46. Over the past 10 years, this metric has ranged from a low of 18.98 to a high of 33.40. The Hardware industry median FCF Margin % is 0.63. Cisco Systems' value of 21.10% is 3249.2% above this industry median. Based on the distribution chart, Cisco Systems ranks #165 out of 2469 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Cisco Systems has a GF Score™ of 81/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' FCF Margin % compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #165 out of 2469 companies for FCF Margin %. This places Cisco Systems in the top 7% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 0.63. Cisco Systems' value of 21.10% is 3249.2% above this benchmark. Historically, Cisco Systems' own FCF Margin % has ranged from 18.98 to 33.40 over the past decade. While the company's 10-year median is 26.46 vs. the industry median of 0.63, Cisco Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Hardware company?
The median FCF Margin % among Hardware companies is 0.63, based on 2,469 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current FCF Margin % of 21.10% is 3249.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median FCF Margin % is 0.63 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current FCF Margin % is 21.10%, which is 20% below median its own 10-year median of 26.46. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Cisco Systems stock overvalued right now?
Based on GuruFocus' analysis, Cisco Systems (FRA:CIS) is currently considered Significantly Overvalued. The stock's GF Value™ is €57.23, compared to a current price of €106.96 — trading 86.9% above its estimated fair value. The current FCF Margin % is 21.10%, which is 20% below median its 10-year median of 26.46 and 3249.2% above the Hardware industry median of 0.63. Cisco Systems' overall GF Score™ is 81/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Cisco Systems (FRA:CIS), the current FCF Margin % is 21.10% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Cisco Systems (FRA:CIS) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of €106.96 is trading 86.9% above its estimated GF Value™ of €57.23.
GuruFocus considers Cisco Systems to be Significantly Overvalued.
Key valuation signals for FRA:CIS:
FCF Margin %: 21.10% (20% below median its 10-year median of 26.46)
GF Value™: €57.23 vs. price of €106.96 (86.9% above fair value)
Industry Position: 3249.2% above the Hardware median (#165 of 2469)
No single metric tells the full story. See the FRA:CIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Cisco Systems is the largest provider of networking equipment in the world and one of the largest software companies in the world. Its largest businesses are selling networking hardware and software (where it has leading market shares) and cybersecurity software such as firewalls. It also has collaboration products, like its Webex suite, and observability tools. It primarily outsources its manufacturing to third parties and has a large sales and marketing staff—25,000 strong across 90 countries. Overall, Cisco employs 80,000 people and sells its products globally.
81GF Score
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