Cisco SystemsXSWX:CSCO -3.87%83 Pretax Margin % is 25.50% as of Apr. 2026, which is 4% below its 10-year median of 26.53. GuruFocus rates XSWX:CSCO with a GF Score™ of 83/100 and a GF Value™ of CHF55.99 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 2,472 Hardware companies, Cisco Systems ranks better than 93.16% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. Cisco Systems's Pre-Tax Income for the
three
months ended in Apr. 2026 was CHF3,181 Mil. Cisco Systems's Revenue for the
three
months ended in Apr. 2026 was CHF12,476 Mil. Therefore, Cisco Systems's pretax margin for the quarter that ended in Apr. 2026 was 25.50%.
The historical rank and industry rank for Cisco Systems's Pretax Margin % or its related term are showing as below:
XSWX:CSCO'
s Pretax Margin % Range Over the Past 10 Years
Min: 19.59 Med: 26.53 Max: 28.34
Current: 23.17
XSWX:CSCO's Pretax Margin % is ranked better than 93.16% of 2472
companies
in the Hardware industry
Industry Median: 3.575
vs XSWX:CSCO: 23.17
Cisco Systems (XSWX:CSCO) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Cisco Systems Pretax Margin % Related Terms
Cisco Systems Pretax Margin % Historical Data
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The historical data trend for Cisco Systems's Pretax 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.
XSWX:CSCO vs CIEN, MSI, LITE: Pretax Margin % Comparison
For the Communication Equipment subindustry, Cisco Systems's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Cisco Systems's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Cisco Systems's Pretax 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 (XSWX:CSCO) has a Pretax Margin % of 25.50% as of Apr. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Cisco Systems and its competitors. This is near median its historical median of 26.53. Over the past decade, Cisco Systems' Pretax Margin % has ranged from 19.59 to 28.34. According to the industry distribution chart, Cisco Systems ranks #169 out of 2472 companies in the Hardware industry, placing it in the top 6.8%.
Is Cisco Systems' Pretax Margin % too high?
Cisco Systems' current Pretax Margin % of 25.50% is near median its 10-year median of 26.53. Over the past 10 years, this metric has ranged from a low of 19.59 to a high of 28.34. The Hardware industry median Pretax Margin % is 3.58. Cisco Systems' value of 25.50% is 613.3% above this industry median. Based on the distribution chart, Cisco Systems ranks #169 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 83/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Cisco Systems' Pretax Margin % compare to CIEN and MSI?
According to the Hardware industry distribution chart, Cisco Systems ranks #169 out of 2472 companies for Pretax Margin %. This places Cisco Systems in the top 7% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 3.58. Cisco Systems' value of 25.50% is 613.3% above this benchmark. Historically, Cisco Systems' own Pretax Margin % has ranged from 19.59 to 28.34 over the past decade. While the company's 10-year median is 26.53 vs. the industry median of 3.58, 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 Pretax Margin % for a Hardware company?
The median Pretax Margin % among Hardware companies is 3.58, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Cisco Systems's current Pretax Margin % of 25.50% is 613.3% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Cisco Systems and its competitors. For the Hardware industry, the median Pretax Margin % is 3.58 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Cisco Systems's current Pretax Margin % is 25.50%, which is near median its own 10-year median of 26.53. 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 (XSWX:CSCO) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF55.99, compared to a current price of CHF93.27 — trading 66.6% above its estimated fair value. The current Pretax Margin % is 25.50%, which is near median its 10-year median of 26.53 and 613.3% above the Hardware industry median of 3.58. Cisco Systems' overall GF Score™ is 83/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Cisco Systems (XSWX:CSCO), the current Pretax Margin % is 25.50% 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 (XSWX:CSCO) Overvalued in 2026?
Based on GuruFocus' analysis, Cisco Systems stock appears to be overvalued.
The current stock price of CHF93.27 is trading 66.6% above its estimated GF Value™ of CHF55.99.
GuruFocus considers Cisco Systems to be Significantly Overvalued.
Key valuation signals for XSWX:CSCO:
Pretax Margin %: 25.50% (near median its 10-year median of 26.53)
GF Value™: CHF55.99 vs. price of CHF93.27 (66.6% above fair value)
Industry Position: 613.3% above the Hardware median (#169 of 2472)
No single metric tells the full story. See the XSWX: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.
83GF Score
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