Cisco SystemsBSP:CSCO34 +3.91%71 Operating Margin % is 24.99% as of Apr. 2026, which is 7% below its 10-year median of 26.82. GuruFocus rates BSP:CSCO34 with a GF Score™ of 71/100 and a GF Value™ of R$64.57 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,472 Hardware companies, Cisco Systems ranks better than 94.54% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Cisco Systems's Operating Income for the
three
months ended in Apr. 2026 was R$19,929 Mil. Cisco Systems's Revenue for the
three
months ended in Apr. 2026 was R$79,742 Mil. Therefore, Cisco Systems's Operating Margin % for the quarter that ended in Apr. 2026 was 24.99%.
Warning Sign:
Cisco Systems Inc operating margin has been in a 5-year decline. The average rate of decline per year is -4.7%.
The historical rank and industry rank for Cisco Systems's Operating Margin % or its related term are showing as below:
BSP:CSCO34'
s Operating Margin % Range Over the Past 10 Years
Min: 22.07 Med: 26.82 Max: 28.6
Current: 23.72
BSP:CSCO34's Operating Margin % is ranked better than 94.54% of 2472
companies
in the Hardware industry
Industry Median: 3.8
vs BSP:CSCO34: 23.72
Cisco Systems's 5-Year Average Operating Margin % Growth Rate was -4.70% per year.
Cisco Systems's Operating Income for the
three
months ended in Apr. 2026 was R$19,929 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Apr. 2026 was R$76,450 Mil.
Cisco Systems (BSP:CSCO34) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Cisco Systems Operating Margin % Related Terms
Cisco Systems Operating Margin % Historical Data
* Premium members only.
The historical data trend for Cisco Systems's Operating 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.
BSP:CSCO34 vs CIEN, MSI, LITE: Operating Margin % Comparison
For the Communication Equipment subindustry, Cisco Systems's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Cisco Systems's Operating Margin % for the fiscal year that ended in Jul. 2025 is calculated as
* 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 (BSP:CSCO34) has a Operating Margin % of 24.99% as of Apr. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Cisco Systems and its competitors. This is near median its historical median of 26.82. Over the past decade, Cisco Systems' Operating Margin % has ranged from 22.07 to 28.60. According to the industry distribution chart, Cisco Systems ranks #135 out of 2472 companies in the Hardware industry, placing it in the top 5.5%.
Is Cisco Systems' Operating Margin % too high?
Cisco Systems' current Operating Margin % of 24.99% is near median its 10-year median of 26.82. Over the past 10 years, this metric has ranged from a low of 22.07 to a high of 28.60. The Hardware industry median Operating Margin % is 3.80. Cisco Systems' value of 24.99% is 557.6% above this industry median. Based on the distribution chart, Cisco Systems ranks #135 out of 2472 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 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Operating Margin % compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #135 out of 2472 companies for Operating Margin %. This places Cisco Systems in the top 6% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Cisco Systems' value of 24.99% is 557.6% above this benchmark. Historically, Cisco Systems' own Operating Margin % has ranged from 22.07 to 28.60 over the past decade. While the company's 10-year median is 26.82 vs. the industry median of 3.80, 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 Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Operating Margin % of 24.99% is 557.6% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Operating Margin % is 24.99%, which is near median its own 10-year median of 26.82. 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 (BSP:CSCO34) is currently considered Significantly Overvalued. The stock's GF Value™ is R$64.57, compared to a current price of R$129.99 — trading 101.3% above its estimated fair value. The current Operating Margin % is 24.99%, which is near median its 10-year median of 26.82 and 557.6% above the Hardware industry median of 3.80. Cisco Systems' overall GF Score™ is 71/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Cisco Systems (BSP:CSCO34), the current Operating Margin % is 24.99% 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 (BSP:CSCO34) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of R$129.99 is trading 101.3% above its estimated GF Value™ of R$64.57.
GuruFocus considers Cisco Systems to be Significantly Overvalued.
Key valuation signals for BSP:CSCO34:
Operating Margin %: 24.99% (near median its 10-year median of 26.82)
GF Value™: R$64.57 vs. price of R$129.99 (101.3% above fair value)
Industry Position: 557.6% above the Hardware median (#135 of 2472)
No single metric tells the full story. See the BSP:CSCO34 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.
71GF Score
Get the complete analysis for BSP:CSCO34
Operating 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
BSP:CSCO34 has been successfully added to your 
