Cisco SystemsMEX:CSCO -0.61%67 Gross Margin % is 63.63% as of Apr. 2026, which is 1% above its 10-year median of 62.95. GuruFocus rates MEX:CSCO with a GF Score™ of 67/100 and a GF Value™ of MXN1,163.10 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,450 Hardware companies, Cisco Systems ranks better than 95.47% on this metric.
The historical rank and industry rank for Cisco Systems's Gross Margin % or its related term are showing as below:
MEX:CSCO'
s Gross Margin % Range Over the Past 10 Years
Min: 62.04 Med: 62.95 Max: 64.94
Current: 64.33
During the past 13 years, the highestGross Margin % of Cisco Systems was 64.94%. The lowest was 62.04%. And the median was 62.95%.
MEX:CSCO's Gross Margin % is ranked better than 95.47% of 2450
companies
in the Hardware industry
Industry Median: 24.53
vs MEX:CSCO: 64.33
Cisco Systems had a gross margin of 63.63% for the quarter that ended in Apr. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Cisco Systems was 0.30% per year.
Cisco Systems (MEX:CSCO) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Cisco Systems had a gross margin of 63.63% for the quarter that ended in Apr. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Cisco Systems Gross Margin % Related Terms
Cisco Systems Gross Margin % Historical Data
* Premium members only.
The historical data trend for Cisco Systems's Gross 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.
MEX:CSCO vs CIEN, MSI, LITE: Gross Margin % Comparison
For the Communication Equipment subindustry, Cisco Systems's Gross Margin %, along with its competitors' market caps and Gross 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 Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Gross 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Cisco Systems (MEX:CSCO) has a Gross Margin % of 63.63% as of Apr. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Cisco Systems and its competitors. This is near median its historical median of 62.95. Over the past decade, Cisco Systems' Gross Margin % has ranged from 62.04 to 64.94. According to the industry distribution chart, Cisco Systems ranks #111 out of 2450 companies in the Hardware industry, placing it in the top 4.5%.
Is Cisco Systems' Gross Margin % too high?
Cisco Systems' current Gross Margin % of 63.63% is near median its 10-year median of 62.95. Over the past 10 years, this metric has ranged from a low of 62.04 to a high of 64.94. The Hardware industry median Gross Margin % is 24.53. Cisco Systems' value of 63.63% is 159.4% above this industry median. Based on the distribution chart, Cisco Systems ranks #111 out of 2450 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 67/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Gross Margin % compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #111 out of 2450 companies for Gross Margin %. This places Cisco Systems in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 24.53. Cisco Systems' value of 63.63% is 159.4% above this benchmark. Historically, Cisco Systems' own Gross Margin % has ranged from 62.04 to 64.94 over the past decade. While the company's 10-year median is 62.95 vs. the industry median of 24.53, 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 Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Gross Margin % of 63.63% is 159.4% 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Gross Margin % is 63.63%, which is near median its own 10-year median of 62.95. 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 (MEX:CSCO) is currently considered Significantly Overvalued. The stock's GF Value™ is MXN1,163.10, compared to a current price of MXN2,070.79 — trading 78% above its estimated fair value. The current Gross Margin % is 63.63%, which is near median its 10-year median of 62.95 and 159.4% above the Hardware industry median of 24.53. Cisco Systems' overall GF Score™ is 67/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Cisco Systems (MEX:CSCO), the current Gross Margin % is 63.63% 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 (MEX:CSCO) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of MXN2,070.79 is trading 78% above its estimated GF Value™ of MXN1,163.10.
GuruFocus considers Cisco Systems to be Significantly Overvalued.
Key valuation signals for MEX:CSCO:
Gross Margin %: 63.63% (near median its 10-year median of 62.95)
GF Value™: MXN1,163.10 vs. price of MXN2,070.79 (78% above fair value)
Industry Position: 159.4% above the Hardware median (#111 of 2450)
No single metric tells the full story. See the MEX:CSCO 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.
67GF Score
Get the complete analysis for MEX:CSCO
Gross Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
MEX:CSCO has been successfully added to your 
