Cisco Systems (CSCO) risk factors, FY2026 10-K

Cisco Systems's FY2026 10-K, filed Sep 02, 2026, lists 33 risk factors in 4 groups. Against the prior year's 34: 1 dropped, 29 substantially reworded.

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Risk factors listed
334 groups
New this year
0vs 34 last year
Dropped
1since the prior 10-K
Substantially reworded
29of those kept
Section length
13k wordsItem 1A

What the changes say

  • Cisco dropped the separate warning about volatile service-provider and cloud orders after orders increased in fiscal 2025.
  • Expansion risks now emphasize legal and regulatory requirements from global direct selling and entering new markets.
  • Cisco added clearer exposure to alliance-partner failures, unpredictable litigation outcomes, and human-authorship limits on U.S. intellectual-property protection.
  • Natural-disaster language now links disruptions directly to component supply, manufacturing, product delivery, and other operations.

What changed since the prior 10-K

Dropped

  • DroppedRisks Related to our Business and Industry

    Sales to the service provider and cloud market are especially volatile, and weakness in orders from this industry may harm our operating results and financial condition

Reworded

  • 90% rewrittenRisks Related to our Business and Industry

    Our business and operations are especially subject to the risks of earthquakes, floods, and other natural catastrophic events (including as a result of global climate change)

    Natural disasters are tied more explicitly to disrupted component supply, manufacturing, product delivery, and other operations; climate change may increase frequency or severity.

  • 90% rewrittenRisks Related to our Business and Industry

    Entrance into new or developing markets exposes us to additional competition and will likely increase demands on our service and support operations

    Expansion now expressly includes operational, legal, regulatory, and market risks, plus new requirements from expanding global direct sales.

  • 89% rewrittenRisks Related to our Business and Industry

    Our results of operations may be negatively impacted and damage to our reputation may occur due to the production and sale of counterfeit versions of our products

    The text now expressly warns that counterfeit products could damage Cisco’s reputation, not only displace legitimate sales.

    Was: Our operating results may be negatively impacted and damage to our reputation may occur due to the production and sale of counterfeit versions of our products

  • 87% rewrittenRisks Related to our Business and Industry

    If we do not successfully manage our strategic alliances, we may not realize the expected benefits from such alliances, and we may experience increased competition or delays in product development

    Cisco added risks that alliance or joint-venture partners may fail to perform, causing product-development delays or other operational difficulties.

  • 83% rewrittenRisks Related to our Business and Industry

    We have made and expect to continue to make acquisitions that could disrupt our operations and harm our results of operations

    Acquisition language replaces the specific Splunk reference with broader emphasis on large global or complex operations and post-acquisition complexity.

    Was: We have made and expect to continue to make acquisitions that could disrupt our operations and harm our operating results

  • 83% rewrittenRisks Related to our Business and Industry

    Adverse resolution of claims, litigation or governmental investigations may harm our results of operations or financial condition

    Cisco now emphasizes unpredictable outcomes, changing management assessments, and potential material harm to the business, results, or financial condition.

    Was: Adverse resolution of claims, litigation or governmental investigations may harm our operating results or financial condition

  • 81% rewrittenRisks Related to Intellectual Property

    Our proprietary rights may prove difficult to enforce

    The risk now includes positions that U.S. copyright and patent protection may cover only human-created works and inventions.

  • 80% rewrittenRisks Related to our Business and Industry

    We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows

    Currency wording emphasizes extreme volatility in emerging markets and broadens foreign-currency cost exposure to components and raw materials.

  • 80% rewrittenRisks Related to our Business and Industry

    We are exposed to the credit risk of some of our customers and to credit exposures in weakened markets, which could result in material losses

  • 77% rewrittenRisks Related to our Business and Industry

    We are exposed to fluctuations in the market values of our portfolio investments and in interest rates; impairment of our investments could harm our earnings

  • 75% rewrittenRisks Related to our Business and Industry

    We expect gross margin to vary over time, and our level of product gross margin may not be sustainable

  • 73% rewrittenRisks Related to Intellectual Property

    We rely on the availability of third-party licenses

  • 70% rewrittenRisks Related to our Business and Industry

    Due to the global nature of our operations, political or economic changes or other factors in a specific country or region could harm our results of operations or financial condition

    Was: Due to the global nature of our operations, political or economic changes or other factors in a specific country or region could harm our operating results and financial condition

  • 68% rewrittenRisks Related to our Business and Industry

    Product quality problems could lead to reduced revenue, gross margins, and net income

  • 68% rewrittenRisks Related to our Business and Industry

    Failure to retain and recruit key personnel would harm our ability to meet key objectives

  • 63% rewrittenRisks Related to our Business and Industry

    Our results of operations may be negatively impacted by unfavorable economic and market conditions and the uncertain geopolitical environment

    Was: Our operating results may be negatively impacted by unfavorable economic and market conditions and the uncertain geopolitical environment

  • 63% rewrittenRisks Related to Intellectual Property

    We may be found to infringe on intellectual property rights of others

  • 62% rewrittenRisks Related to our Business and Industry

    Changes in our provision for income taxes or adverse outcomes resulting from examination of our income tax returns could negatively impact our results

  • 61% rewrittenRisks Related to our Business and Industry

    Our operations can be difficult to predict because our results of operations may fluctuate in future periods

    Was: Our operations can be difficult to predict because our operating results may fluctuate in future periods

  • 60% rewrittenRisks Related to our Business and Industry

    Inventory management relating to our sales to our two-tier distribution channel is complex, and excess inventory may harm our gross margins

  • 56% rewrittenRisks Related to our Business and Industry

    Our revenue for a particular period is difficult to predict, and a shortfall in revenue may harm our results of operations

    Was: Our revenue for a particular period is difficult to predict, and a shortfall in revenue may harm our operating results

  • 54% rewrittenRisks Related to our Business and Industry

    The markets in which we compete are intensely competitive, which could negatively impact our achievement of revenue growth

  • 46% rewrittenRisks Related to Cybersecurity, Privacy, and Regulatory Requirements

    Our actual or perceived failure to adequately protect and appropriately use data could result in claims of legal and/or regulatory action against us, damage our reputation, or otherwise materially harm our business

  • 43% rewrittenRisks Related to our Business and Industry

    We depend upon the development of new products and services, and enhancements to existing products and services, and if we fail to predict and respond to emerging technological trends and customers’ changing needs, our results of operations and market share may suffer

    Was: We depend upon the development of new products and services, and enhancements to existing products and services, and if we fail to predict and respond to emerging technological trends and customers’ changing needs, our operating results and market share may suffer

  • 37% rewrittenRisks Related to our Business and Industry

    Terrorism, war, and other events may harm our business, results of operations or financial condition

    Was: Terrorism, war, and other events may harm our business, operating results and financial condition

  • 30% rewrittenRisks Related to our Business and Industry

    Issues related to the development and use of artificial intelligence (AI) could give rise to legal and/or regulatory action, damage our reputation or otherwise materially harm our business

  • 29% rewrittenRisks Related to Cybersecurity, Privacy, and Regulatory Requirements

    Our business, results of operations, or financial condition could be materially harmed by evolving regulatory uncertainty or obligations applicable to our products and services

    Was: Our business, operating results, and financial condition could be materially harmed by evolving regulatory uncertainty or obligations applicable to our products and services

  • 26% rewrittenRisks Related to our Business and Industry

    There can be no assurance that our results of operations or financial condition will not be negatively impacted by our incurrence of debt

    Was: There can be no assurance that our operating results and financial condition will not be negatively impacted by our incurrence of debt

  • 26% rewrittenRisks Related to our Business and Industry

    Our reputation and/or business could be negatively impacted by matters relating to environmental, social, and governance and/or our reporting of such matters

All 33 risk factors

Headings as the filing states them, in filing order.

Risks Related to our Business and Industry

  1. 01Our operations can be difficult to predict because our results of operations may fluctuate in future periods61% rewritten
  2. 02Our results of operations may be negatively impacted by unfavorable economic and market conditions and the uncertain geopolitical environment63% rewritten
  3. 03Our revenue for a particular period is difficult to predict, and a shortfall in revenue may harm our results of operations56% rewritten
  4. 04We expect gross margin to vary over time, and our level of product gross margin may not be sustainable75% rewritten
  5. 05Disruption of or changes in our distribution model could harm our sales and margins
  6. 06The markets in which we compete are intensely competitive, which could negatively impact our achievement of revenue growth54% rewritten
  7. 07Inventory management relating to our sales to our two-tier distribution channel is complex, and excess inventory may harm our gross margins60% rewritten
  8. 08Issues related to the development and use of artificial intelligence (AI) could give rise to legal and/or regulatory action, damage our reputation or otherwise materially harm our business30% rewritten
  9. 09We depend upon the development of new products and services, and enhancements to existing products and services, and if we fail to predict and respond to emerging technological trends and customers’ changing needs, our results of operations and market share may suffer43% rewritten
  10. 10Changes in industry structure and market conditions could lead to charges related to discontinuances of certain of our products or businesses, asset impairments and workforce reductions or restructurings
  11. 11Over the long term we intend to invest in engineering, sales, service and marketing activities, and in key priority areas, and these investments may achieve delayed, or lower than expected, benefits which could harm our results of operations
  12. 12We have made and expect to continue to make acquisitions that could disrupt our operations and harm our results of operations83% rewritten
  13. 13Entrance into new or developing markets exposes us to additional competition and will likely increase demands on our service and support operations90% rewritten
  14. 14If we do not successfully manage our strategic alliances, we may not realize the expected benefits from such alliances, and we may experience increased competition or delays in product development87% rewritten
  15. 15Product quality problems could lead to reduced revenue, gross margins, and net income68% rewritten
  16. 16Due to the global nature of our operations, political or economic changes or other factors in a specific country or region could harm our results of operations or financial condition70% rewritten
  17. 17We are exposed to the credit risk of some of our customers and to credit exposures in weakened markets, which could result in material losses80% rewritten
  18. 18We are exposed to fluctuations in the market values of our portfolio investments and in interest rates; impairment of our investments could harm our earnings77% rewritten
  19. 19We are exposed to fluctuations in currency exchange rates that could negatively impact our financial results and cash flows80% rewritten
  20. 20Failure to retain and recruit key personnel would harm our ability to meet key objectives68% rewritten
  21. 21Adverse resolution of claims, litigation or governmental investigations may harm our results of operations or financial condition83% rewritten
  22. 22Our results of operations may be negatively impacted and damage to our reputation may occur due to the production and sale of counterfeit versions of our products89% rewritten
  23. 23Changes in our provision for income taxes or adverse outcomes resulting from examination of our income tax returns could negatively impact our results62% rewritten
  24. 24Our business and operations are especially subject to the risks of earthquakes, floods, and other natural catastrophic events (including as a result of global climate change)90% rewritten
  25. 25Terrorism, war, and other events may harm our business, results of operations or financial condition37% rewritten
  26. 26There can be no assurance that our results of operations or financial condition will not be negatively impacted by our incurrence of debt26% rewritten
  27. 27Our reputation and/or business could be negatively impacted by matters relating to environmental, social, and governance and/or our reporting of such matters26% rewritten

Risks Related to Intellectual Property

  1. 28Our proprietary rights may prove difficult to enforce81% rewritten
  2. 29We may be found to infringe on intellectual property rights of others63% rewritten
  3. 30We rely on the availability of third-party licenses73% rewritten

Risks Related to Cybersecurity, Privacy, and Regulatory Requirements

  1. 31Our actual or perceived failure to adequately protect and appropriately use data could result in claims of legal and/or regulatory action against us, damage our reputation, or otherwise materially harm our business46% rewritten
  2. 32Our business, results of operations, or financial condition could be materially harmed by evolving regulatory uncertainty or obligations applicable to our products and services29% rewritten

Risks Related to Ownership of Our Stock

  1. 33Our stock price may be volatile

Other Cisco Systems 10-Ks

  • FY2025 10-K risk factors
    34 risks

    Operating results face significant quarterly fluctuations driven by unpredictable macroeconomic and geopolitical conditions.

    Filed Sep 03, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.