CISCO SYSTEMS, INC. (CSCO) Risk Factors

Recent key developments

Concrete developments — dated events, named agreements and instruments, legal proceedings — that CISCO SYSTEMS, INC. surfaced in its latest filing.

• In fiscal 2025 and in the first nine months of fiscal 2026, we entered into additional purchase commitments with contract manufacturers and suppliers related to manufacturing Cisco Silicon One, memory components and other products to meet demand from hyperscalers and other customers.
• On August 26, 2025, we settled a legal dispute with a supplier relating to purchase obligations arising under long-term supply arrangements, which resulted in a charge to product cost of sales in the fourth quarter of fiscal 2025.August 26, 2025
• Manufacturing capacity and component supply constraints, as we saw with memory in the first nine months of fiscal 2026, could be significant issues.
• Product gross margins declined in the third quarter of fiscal 2026.
• Memory cost increases seen in the first nine months of fiscal 2026 and expected to continue.
• The shift to more recurring software and subscription offerings was accelerated by the acquisition of Splunk in the third quarter of fiscal 2024.
• We initiated a restructuring plan in the fourth quarter of fiscal 2026, for which we expect such plan to be substantially completed by the end of fiscal 2027.
• Senior unsecured notes outstanding in an aggregate principal amount of $23.0 billion maturing from calendar year 2026 through 2064.
• Commercial paper program with a maximum aggregate amount outstanding of $15.0 billion, with $8.4 billion outstanding as of April 25, 2026.April 25, 2026
• In September 2021, we announced our goal to achieve net zero across all scopes of greenhouse gas emissions by 2040.September 2021
• The OECD Pillar Two framework imposes a minimum tax rate of 15% in each taxing jurisdiction.
• Ongoing Russia-Ukraine war and Middle East conflicts and wars.
• The European Union's General Data Protection Regulation applies to activities conducted from an establishment in the EU or related to products and services offered in the EU, imposing compliance obligations regarding personal and industrial data.
• The EU Data Act applies to activities, imposing compliance obligations regarding personal and industrial data.
• We are subject to the California Privacy Rights Act.
• We are subject to Singapore's Personal Data Protection Act.