Cisco SystemsFRA:CIS +1.73%81 Net Margin % is 21.29% as of Apr. 2026, which is 1% below its 10-year median of 21.54. 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 2,473 Hardware companies, Cisco Systems ranks better than 93.41% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Cisco Systems's Net Income for the
three
months ended in Apr. 2026 was €2,884 Mil. Cisco Systems's Revenue for the
three
months ended in Apr. 2026 was €13,544 Mil. Therefore, Cisco Systems's net margin for the quarter that ended in Apr. 2026 was 21.29%.
The historical rank and industry rank for Cisco Systems's Net Margin % or its related term are showing as below:
FRA:CIS'
s Net Margin % Range Over the Past 10 Years
Min: 0.22 Med: 21.54 Max: 22.91
Current: 19.69
FRA:CIS's Net Margin % is ranked better than 93.41% of 2473
companies
in the Hardware industry
Industry Median: 2.71
vs FRA:CIS: 19.69
Cisco Systems (FRA:CIS) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Cisco Systems Net Margin % Related Terms
Cisco Systems Net Margin % Historical Data
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The historical data trend for Cisco Systems's Net 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: Net Margin % Comparison
For the Communication Equipment subindustry, Cisco Systems's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Net Margin % distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Net 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 Net Margin % of 21.29% as of Apr. 2026. Net margin is the ratio of total net income to net sales. View historical data on Cisco Systems and its competitors. This is near median its historical median of 21.54. Over the past decade, Cisco Systems' Net Margin % has ranged from 0.22 to 22.91. According to the industry distribution chart, Cisco Systems ranks #163 out of 2473 companies in the Hardware industry, placing it in the top 6.6%.
Is Cisco Systems' Net Margin % too high?
Cisco Systems' current Net Margin % of 21.29% is near median its 10-year median of 21.54. Over the past 10 years, this metric has ranged from a low of 0.22 to a high of 22.91. The Hardware industry median Net Margin % is 2.71. Cisco Systems' value of 21.29% is 685.6% above this industry median. Based on the distribution chart, Cisco Systems ranks #163 out of 2473 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' Net Margin % compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #163 out of 2473 companies for Net Margin %. This places Cisco Systems in the top 7% of its industry — outperforming the majority of peers. The industry median Net Margin % is 2.71. Cisco Systems' value of 21.29% is 685.6% above this benchmark. Historically, Cisco Systems' own Net Margin % has ranged from 0.22 to 22.91 over the past decade. While the company's 10-year median is 21.54 vs. the industry median of 2.71, 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 Net Margin % for a Hardware company?
The median Net Margin % among Hardware companies is 2.71, based on 2,473 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Net Margin % of 21.29% is 685.6% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median Net Margin % is 2.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Net Margin % is 21.29%, which is near median its own 10-year median of 21.54. 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 Net Margin % is 21.29%, which is near median its 10-year median of 21.54 and 685.6% above the Hardware industry median of 2.71. 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 Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Cisco Systems (FRA:CIS), the current Net Margin % is 21.29% 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:
Net Margin %: 21.29% (near median its 10-year median of 21.54)
GF Value™: €57.23 vs. price of €106.96 (86.9% above fair value)
Industry Position: 685.6% above the Hardware median (#163 of 2473)
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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