TacticScaleWhat Cisco Systems Does & How It Makes Money (CSCO)
Updated October 2026 · reflects Cisco Systems's latest reported financials
Networking giant making internet, security and collaboration technology. Cisco earns money by selling networking and security hardware and software through perpetual licenses and subscriptions.
How Cisco Systems makes money
Cisco earns money by selling networking and security hardware and software through perpetual licenses and subscriptions. It also earns recurring revenue from technical support, hardware replacement, professional services, and financing, selling directly and through integrators, resellers, service providers, and distributors.
What Cisco Systems does
Cisco Systems is a long-established provider of the technology that runs the internet and corporate networks. Its portfolio spans data center and campus switching, wireline and mobile network interconnection, wireless access, network security (including identity and access management, secure access service edge, and agentic security), Webex collaboration and contact center software, and network assurance and observability tools. The company serves businesses, public institutions, governments, and service providers worldwide. Revenue comes from hardware, software licenses and subscriptions, and a large services business covering technical support, hardware replacement, consulting, financing, and managed network services. Cisco sells directly and through a broad channel of systems integrators, resellers, and distributors. Founded in 1984, it is headquartered in San Jose, California.
Products & services
- Data center and campus switching
- Network security, SASE and identity access
- Webex collaboration suite and contact center
- Wireless (Wi-Fi) networking products
- Network assurance and observability suite
- Technical support and professional services
What is Cisco Systems worth?
On an owner-earnings DCF, Cisco Systems's most-likely value is about $70 versus a recent price near $118 (41% above fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$37) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →