HISTORICAL FINANCIALS

INCOME STATEMENTS
(in millions, except per-share amounts)

Notes (1) (2) Notes (1) (2) Notes (1) (2) Notes (1) (2) Notes (1) (2) Notes (1) (2)
GAAP NON-GAAP GAAP NON-GAAP GAAP NON-GAAP
FY 2024 FY 2024 FY 2024 FY 2024 FY 2024 FY 2024
Quarter Ended Quarter Ended Quarter Ended Quarter Ended Six Months Ended Six Months Ended
October 28, October 28, January 27, January 27, January 27, January 27,
2023 2023 2024 2024 2024 2024
REVENUE:
Product $ 11,139 $ 11,139 $ 9,232 $ 9,232 $ 20,371 $ 20,371
Service 3,529 3,529 3,559 3,559 7,088 7,088
Total revenue 14,668 14,668 12,791 12,791 27,459 27,459
COST OF SALES:
Product (a) - (c) 3,957 3,734 3,443 3,209 7,400 6,943
Service (a) & (c) 1,154 1,093 1,131 1,050 2,285 2,143
Total cost of sales (a) - (c) 5,111 4,827 4,574 4,259 9,685 9,086

GROSS MARGIN (a) - (c) 9,557 9,841 8,217 8,532 17,774 18,373
Product gross margin percentage 64.5% 66.5% 62.7% 65.2% 63.7% 65.9%
Service gross margin percentage 67.3% 69.0% 68.2% 70.5% 67.8% 69.8%
Total gross margin percentage 65.2% 67.1% 64.2% 66.7% 64.7% 66.9%
OPERATING EXPENSES:
Research and development (a) & (c) 1,913 1,593 1,943 1,556 3,856 3,149
Sales and marketing (a), & (c) 2,506 2,319 2,458 2,236 4,964 4,555
General and administrative (a), (c) & (d) 672 556 642 525 1,314 1,081
Amortization of purchased intangible assets (b) 67 - 66 - 133 -
Restructuring and other charges (e) 123 - 12 - 135 -
Total operating expenses (a) - (e) 5,281 4,468 5,121 4,317 10,402 8,785
Operating expense as a percentage of revenue 36.0% 30.5% 40.0% 33.8% 37.9% 32.0%

OPERATING INCOME (a) - (e) 4,276 5,373 3,096 4,215 7,372 9,588
Operating income as a percentage of revenue 29.2% 36.6% 24.2% 33.0% 26.8% 34.9%
Interest income 360 360 324 324 684 684
Interest expense (111) (111) (120) (120) (231) (231)
Other income (loss), net (f) (83) (32) (139) (51) (222) (83)
Interest and other income (loss), net 166 217 65 153 231 370

INCOME BEFORE PROVISION FOR INCOME TAXES (a) - (f) 4,442 5,590 3,161 4,368 7,603 9,958

Provision for income taxes (g) - (h) 804 1,062 527 830 1,331 1,892

NET INCOME (a) - (h) $ 3,638 $ 4,528 $ 2,634 $ 3,538 $ 6,272 $ 8,066

Net income per share:

Basic (a) - (h) $ 0.90 $ 0.65 $ 1.55
Diluted (a) - (h) $ 0.89 $ 1.11 $ 0.65 $ 0.87 $ 1.54 $ 1.98

Shares used in per-share calculation:

Basic 4,057 4,055 4,056
Diluted 4,087 4,087 4,073 4,073 4,079 4,079
Cash dividends declared per common share $ 0.39 $ 0.39 $ 0.78

Cisco's non-GAAP measures are not in accordance with, or an alternative for, generally accepted accounting principles and may be different from non-GAAP measures used by other companies. In addition, the
above non-GAAP Consolidated Statements of Operations are not based on a comprehensive set of accounting rules or principles.

Income Statements and GAAP Reconciliation Cisco Systems, Inc.

 INCOME STATEMENTS
Note 1
(in millions)

FY 2024 FY 2024 FY 2024

Quarter Ended Quarter Ended Six Months Ended
October 28, January 27, January 27,
2023 2024 2024
A reconciliation between net income on a GAAP basis and non-GAAP net income including items (a) to
(h) is as follows:
GAAP net income $ 3,638 $ 2,634 $ 6,272
(a) Share-based compensation expense 653 801 1,454
(b) Amortization of acquisition-related intangible assets 248 241 489
(c) Other acquisition-related/divestiture costs 75 65 140
(d) Russia-Ukraine war costs (2) - (2)
(e) Significant asset impairments and restructurings 123 12 135
(f) Gains and losses on equity investments 51 88 139
Total adjustments to GAAP income before provision for income taxes 1,148 1,207 2,355
(g) Income tax effect (258) (303) (561)
(h) Significant tax matters - - -
Total adjustments to GAAP provision for income taxes (258) (303) (561)

Non-GAAP net income $ 4,528 $ 3,538 $ 8,066

Income Statements and GAAP Reconciliation Cisco Systems, Inc.

 INCOME STATEMENTS
Note 2
(in millions)

COGS Operating Expense OI&E

Total
Amortization of Restructuring
Research and Sales and General and Purchased Intangible and Other Other Income
Product Service Development Marketing Administrative Assets Charges (Expense)
Items (a) to (f) in note 1 are allocated as follows:

Items Q1'24
(a) Share-based compensation expense $ 42 $ 61 $ 274 $ 186 $ 90 $ - $ - $ - $ 653
(b) Amortization of acquisition-related intangible assets 181 - - - - 67 - - 248
(c) Other acquisition-related/divestiture costs - - 46 1 28 - - - 75
(d) Russia-Ukraine war costs - - - - (2) - - - (2)
(e) Significant asset impairments and restructurings - - - - - - 123 - 123
(f) Gains and losses on equity investments - - - - - - - 51 51
Total $ 223 $ 61 $ 320 $ 187 $ 116 $ 67 $ 123 $ 51 $ 1,148

Items Q2'24
(a) Share-based compensation expense $ 58 $ 81 $ 344 $ 221 $ 97 $ - $ - $ - $ 801
(b) Amortization of acquisition-related intangible assets 175 - - - - 66 - - 241
(c) Other acquisition-related/divestiture costs 1 - 43 1 20 - - - 65
(d) Russia-Ukraine war costs - - - - - - - - -
(e) Significant asset impairments and restructurings - - - - - - 12 - 12
(f) Gains and losses on equity investments - - - - - - - 88 88
Total $ 234 $ 81 $ 387 $ 222 $ 117 $ 66 $ 12 $ 88 $ 1,207

Items Q2'24 YTD

(a) Share-based compensation expense $ 100 $ 142 $ 618 $ 407 $ 187 $ - $ - $ - $ 1,454
(b) Amortization of acquisition-related intangible assets 356 - - - - 133 - - 489
(c) Other acquisition-related/divestiture costs 1 - 89 2 48 - - - 140
(d) Russia-Ukraine war costs - - - - (2) - - - (2)
(e) Significant asset impairments and restructurings - - - - - - 135 - 135
(f) Gains and losses on equity investments - - - - - - - 139 139
Total $ 457 $ 142 $ 707 $ 409 $ 233 $ 133 $ 135 $ 139 $ 2,355

Cisco Systems, Inc.

Income Statements and GAAP Reconciliation