CSCONEUTRAL

CSCO Return on Equity (ROE) Analysis

27.3%

Higher than 33% of TECHNOLOGY sector peers

Updated 269h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates from every dollar of shareholder equity; a 27.3% ROE means CSCO earns $27.30 for each $100 of equity.

Sector Performance

33th percentile

CSCO

27.3%

Sector Median

33.8%

Sector Avg

36.1%

Prior Period

25.2%(Aug 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates from every dollar of shareholder equity; a 27.3% ROE means CSCO earns $27.30 for each $100 of equity.

That level sits below the sector median of 33.8%, placing CSCO in the 33rd percentile among technology peers, so most peers turn equity into profit more efficiently. Year-over-year change is N/A, but quarter-over-quarter ROE rose 8.3%, and the two most recent readings (27.3% then 25.2%) show an improvement from the prior quarter. The combination of a below-median level with a positive quarterly change suggests limited near-term downside pressure on returns, while the absolute gap to peers leaves room for improvement. This metric does not contradict the overall NEUTRAL verdict: it supports it, because the current efficiency is below average yet trending upward, offering neither strong risk nor clear opportunity.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about CSCO?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does CSCO's Return on Equity (ROE) compare to its sector?

CSCO's Return on Equity (ROE) of 27.3% compares to a TECHNOLOGY sector median of 33.8%, placing it in the 33th percentile.

Who are CSCO's closest peers by Return on Equity (ROE)?

The closest TECHNOLOGY peers by Return on Equity (ROE) include: QCOM (33.8%), TXN (35.2%), NOW (14.2%), LRCX (65.1%), INTC (-10.7%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.