Cisco Systems Inc (CSCO)

Gross profit margin

		Jul 31, 2025	Jul 31, 2024	Jul 27, 2024	Jul 31, 2023	Jul 29, 2023
Gross profit	US$ in thousands	36,183,000	34,828,000	34,828,000	35,753,000	35,753,000
Revenue	US$ in thousands	56,654,000	53,803,000	53,861,000	56,998,000	56,682,000
Gross profit margin		63.87%	64.73%	64.66%	62.73%	63.08%

July 31, 2025 calculation

Gross profit margin = Gross profit ÷ Revenue
= $36,183,000K ÷ $56,654,000K
= 63.87%

The gross profit margin of Cisco Systems Inc exhibits a relatively stable yet subtly fluctuating trend over the specified periods. As of July 29, 2023, the gross profit margin was recorded at 63.08%, indicating that approximately 63.08% of revenue remained after deducting the cost of goods sold. By July 31, 2023, this margin slightly decreased to 62.73%, suggesting a marginal reduction in profitability per dollar of sales during that interval.

Looking ahead to July 27, 2024, the gross profit margin increased notably to 64.66%, representing an improvement of approximately 1.93 percentage points from the previous reporting date. This upward movement was sustained, as evidenced by the figure of 64.73% for July 31, 2024, indicating a continued enhancement in gross profitability margins within this period. The increase may reflect improved cost management, favorable product mix, or pricing strategies that contributed to higher gross margins.

However, the latest data point for July 31, 2025, shows a slight decline to 63.87%. While still higher than the initial margin observed in July 2023, this decrease suggests a possible slight compression in gross profit margins, potentially due to increased costs, competitive pressures, or product mix variations.

Overall, the gross profit margin for Cisco Systems Inc demonstrates modest variability over the analyzed periods, with a tendency towards improvement in the mid-term before a slight stabilization or marginal decline. The margin levels consistently hover in the low to mid-60% range, reflecting a relatively healthy profitability level that is typical for a technology hardware and networking firm. The observed fluctuations underscore the importance of ongoing cost control and strategic pricing to sustain or enhance gross profit margins over time.