CISCO SYSTEMS, INC.
For the period ended Apr 25, 2026. Filed May 19, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Apr 25, 2026 · Filed May 19, 2026
CSCO$93.85-2.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-01-24; filed 2026-02-17.
0000858877-26-000021
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-04-25; filed 2026-05-19.
0000858877-26-000078
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 178 previous paragraphs and 183 current paragraphs.
114 unchanged; 60 reworded; 8 added; 4 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 27 previous and 27 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
From a product category perspective, the product revenue increase of 17% was driven by growth in Networking of 25%, particularly within our AI Infrastructure and Campus Networking solutions. We also saw product revenue growth in Observability of 3%. This growth was partially offset by a product revenue decline in Collaboration of 1%. Product revenue in Security was flat.
Current report
Product revenue in the EMEA segment increased by 11%, with growth across each of our customer markets. From a country perspective, product revenue increased in the United Kingdom and Germany by 26% and 7%, respectively.
Current report
Product revenue in the EMEA segment increased by 12%, with growth across each of our customer markets. From a country perspective, product revenue increased in the United Kingdom and Germany by 24% and 11%, respectively.
Current report
U.S. Tariffs
Current report
On February 20, 2026, the U.S. Supreme Court ruled that the tariffs previously imposed under the International Emergency Economic Powers Act (“IEEPA”) were unauthorized. As a result of this ruling, we may be eligible for a refund of tariffs previously paid on imported goods. As the recoverability and timing of any such refund remains uncertain, we have not recorded a benefit for any potential refund and will not until such amounts are realizable. We will continue to monitor these developments and believe that any potential refund will not have a material impact on our business and Consolidated Financial Statements.
Current report
In the fourth quarter of fiscal 2026, we announced a restructuring plan to allow us to invest in key growth opportunities including silicon, optics, security and AI. We expect to recognize approximately $450 million in pre-tax charges in the fourth quarter of fiscal 2026. The total pre-tax charges are estimated to be up to $1 billion, with the plan expected to be substantially completed by the end of fiscal 2027. We expect to reinvest substantially all of the cost savings from this restructuring plan in our key growth opportunities. As a result, the overall cost savings from this restructuring plan are not expected to be material.
Current report
Available Information
Current report
We intend to announce material information to the public through our Investor Relations website at https://investor.cisco.com, SEC filings, press releases, public conference calls, and public webcasts, including those made available or broadcast on our Investor Relations website and through third-party websites, such as our LinkedIn page and YouTube channel. We use these channels, as well as social media (including certain X and LinkedIn accounts held and/or managed by us or our executive officers) and our blog, to communicate with our investors, customers, and the public about us, our products and services, and other matters. It is possible that the information we post on social media and our blog could be deemed to be material information. As such, we encourage investors, the media, and others to follow the channels listed above, including the social media channels listed at the bottom of our Investor Relations website, and to review the information disclosed through such channels.
Removed paragraphs (4)
Previous report
From a product category perspective, the product revenue increase of 14% was driven by growth in Networking of 21%, particularly within our AI Infrastructure and Campus Networking solutions where we expect to continue to see positive business momentum. We saw a decline in Security of 4%, primarily driven by declines in our prior generation products and our Splunk business where we continued to see a change in how our customers consumed Splunk offerings, shifting from fewer on-premise deals to more cloud subscriptions. We expect this trend to continue in the second half of fiscal 2026.
Previous report
Product revenue in the EMEA segment increased by 19%, with growth across each of our customer markets. From a country perspective, product revenue increased in Germany and the United Kingdom by 23% and 41%, respectively.
Previous report
Product revenue in the EMEA segment increased by 13%, with growth across each of our customer markets. From a country perspective, product revenue increased in Germany and the United Kingdom by 12% and 22%, respectively.
Previous report
Product gross margin decreased by 0.2 percentage points primarily driven by negative impacts from product mix and pricing, partially offset by productivity improvements and lower amortization of purchased intangible assets.
Reworded paragraphs (60)
Previous wording
In the second quarter of fiscal 2026, we delivered strong revenue growth and profitability as we saw a continued positive demand environment. Total revenue increased by 10% compared with the second quarter of fiscal 2025. Within total revenue, product revenue increased by 14% and services revenue decreased by 1%. In the second quarter of fiscal 2026, total software revenue was $5.7 billion across all product areas and services, an increase of 2%. Total subscription revenue was flat.
Current wording
In the third quarter of fiscal 2026, we delivered strong revenue growth and profitability as we saw a continued positive demand environment. Total revenue increased by 12% compared with the third quarter of fiscal 2025. Within total revenue, product revenue increased by 17% and services revenue decreased by 1%. In the third quarter of fiscal 2026, total software revenue was $5.7 billion across all product areas and services, an increase of 1%. Total subscription revenue decreased 2%.
Previous wording
Total gross margin decreased by 0.1 percentage points. Product gross margin increased by 0.2 percentage points, primarily driven by productivity improvements and lower amortization of purchased intangible assets, partially offset by negative impacts from product mix and pricing. As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, decreased by 2.3 percentage points. Operating income as a percentage of revenue increased by 2.3 percentage points, primarily driven by revenue growth and lower amortization of purchased intangible assets in the second quarter of fiscal 2026. Diluted earnings per share increased 31%, driven by revenue growth and operating margin improvement.
Current wording
Total gross margin decreased by 2.0 percentage points. Product gross margin decreased by 2.5 percentage points, primarily driven by negative impacts from product mix and higher memory costs, partially offset by productivity improvements and lower amortization of purchased intangible assets. As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, decreased by 3.8 percentage points. Operating income as a percentage of revenue increased by 2.4 percentage points, primarily driven by revenue growth, partially offset by lower gross margin in the third quarter of fiscal 2026. Diluted earnings per share increased 37%, driven by revenue growth and operating margin improvement.
Previous wording
In terms of our geographic segments, revenue from the Americas increased by $0.6 billion, EMEA revenue increased by $0.6 billion and APJC revenue increased by $0.1 billion. From a customer market standpoint, we experienced product revenue growth across all of our customer markets.
Current wording
In terms of our geographic segments, revenue from the Americas increased by $1.2 billion, EMEA revenue increased by $0.3 billion and APJC revenue increased by $0.2 billion. From a customer market standpoint, we experienced product revenue growth across all of our customer markets.
Previous wording
Total revenue increased 9%, with product revenue increasing 12% and services revenue was flat. Total gross margin decreased 0.3 percentage points, primarily driven by negative impacts from product mix and pricing, partially offset by productivity improvements and lower amortization of purchased intangible assets. As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, decreased by 2.0 percentage points. Operating income as a percentage of revenue increased by 3.9 percentage points, primarily driven by higher revenue, lower restructuring and other charges and lower amortization of purchased intangible assets in the first six months of fiscal 2026. Diluted earnings per share increased 18%, driven by revenue growth and operating margin improvement, partially offset by the income tax benefit of $720 million we had in the first six months of fiscal 2025.
Current wording
Total revenue increased 10%, with product revenue increasing 13% and services revenue was flat. Total gross margin decreased 0.8 percentage points, primarily driven by negative impacts from product mix and to a lesser extent pricing, partially offset by productivity improvements and lower amortization of purchased intangible assets. As a percentage of revenue, research and development, sales and marketing, and general and administrative expenses, collectively, decreased by 2.6 percentage points. Operating income as a percentage of revenue increased by 3.4 percentage points, primarily driven by higher revenue, lower restructuring and other charges and lower amortization of purchased intangible assets, partially offset by lower gross margin in the first nine months of fiscal 2026. Diluted earnings per share increased 24%, driven by revenue growth and operating margin improvement, partially offset by the income tax benefit of $720 million we had in the first nine months of fiscal 2025.
Previous wording
The following is a summary of our other key financial measures for the second quarter of fiscal 2026 (in millions):
Current wording
The following is a summary of our other key financial measures for the third quarter of fiscal 2026 (in millions):
Previous wording
Our total provisions for inventory and the liability related to purchase commitments with contract manufacturers and suppliers were $104 million and $357 million for the first six months of fiscal 2026 and 2025, respectively. If there were to be a sudden and significant decrease in demand for our products, or a higher incidence of inventory obsolescence because of rapidly changing technology or customer requirements, then we could be required to increase our inventory write-downs, and our liability for purchase commitments with contract manufacturers and suppliers, and accordingly our profitability, could be adversely affected. We regularly evaluate our exposure for inventory write-downs and the adequacy of our liability for purchase commitments. For further discussion around the supply chain impacts and risks, see “—Results of Operations—Gross Margin—Supply Chain Impacts and Risks” and “—Liquidity and Capital Resources—Inventory Supply Chain.”
Current wording
Our total provisions for inventory and the liability related to purchase commitments with contract manufacturers and suppliers were $187 million and $459 million for the first nine months of fiscal 2026 and 2025, respectively. If there were to be a sudden and significant decrease in demand for our products, or a higher incidence of inventory obsolescence because of rapidly changing technology or customer requirements, then we could be required to increase our inventory write-downs, and our liability for purchase commitments with contract manufacturers and suppliers, and accordingly our profitability, could be adversely affected. We regularly evaluate our exposure for inventory write-downs and the adequacy of our liability for purchase commitments. For further discussion around the supply chain impacts and risks, see “—Results of Operations—Gross Margin—Supply Chain Impacts and Risks” and “—Liquidity and Capital Resources—Inventory Supply Chain.”
Previous wording
In response to changes in industry and market conditions, we could be required to strategically realign our resources and consider restructuring, disposing of, or otherwise exiting businesses, which could result in an impairment of goodwill. There was no impairment of goodwill in each of the first six months of fiscal 2026 and 2025.
Current wording
In response to changes in industry and market conditions, we could be required to strategically realign our resources and consider restructuring, disposing of, or otherwise exiting businesses, which could result in an impairment of goodwill. There was no impairment of goodwill in each of the first nine months of fiscal 2026 and 2025.
Previous wording
We are subject to income taxes in the United States and numerous foreign jurisdictions. Our effective tax rates differ from the statutory rate, primarily due to the tax impact of state taxes, foreign operations, R&D tax credits, foreign-derived intangible income deductions, global intangible low-taxed income, tax audit settlements, nondeductible compensation, and international realignments. Our effective tax rate was 12.9% and 15.9% in the second quarter of fiscal 2026 and 2025, respectively and 14.2% and 0.3% in the first six months of fiscal 2026 and 2025, respectively.
Current wording
We are subject to income taxes in the United States and numerous foreign jurisdictions. Our effective tax rates differ from the statutory rate, primarily due to the tax impact of state taxes, foreign operations, R&D tax credits, foreign-derived intangible income deductions, global intangible low-taxed income, tax audit settlements, nondeductible compensation, and international realignments. Our effective tax rate was 16.5% and 15.5% in the third quarter of fiscal 2026 and 2025, respectively and 15.1% and 5.8% in the first nine months of fiscal 2026 and 2025, respectively.
Previous wording
Total revenue increased by 10%. Product revenue increased by 14% and services revenue decreased by 1%. Our total revenue reflected growth across each of our geographic segments.
Current wording
Total revenue increased by 12%. Product revenue increased by 17% and services revenue decreased by 1%. Our total revenue reflected growth across each of our geographic segments.
Previous wording
Total revenue increased by 9%. Product revenue increased by 12% and services revenue was flat. Our total revenue reflected growth across each of our geographic segments.
Current wording
Total revenue increased by 10%. Product revenue increased by 13% and services revenue was flat. Our total revenue reflected growth across each of our geographic segments.
Previous wording
Product revenue in the Americas segment increased by 12%, with growth across each of our customer markets, led by the Service Provider and Cloud customer market which was largely driven by revenue from our AI Infrastructure solutions. From a country perspective, product revenue increased in the United States, Canada, Mexico and Brazil by 12%, 5%, 36%, and 6%, respectively.
Current wording
Product revenue in the Americas segment increased by 20%, with growth across each of our customer markets, led by the Service Provider and Cloud customer market which was largely driven by revenue from our AI Infrastructure solutions. From a country perspective, product revenue increased in the United States, Canada and Mexico by 22%, 9% and 32%, respectively, partially offset by a decline in Brazil of 10%.
Previous wording
Product revenue in the Americas segment increased by 12%, with growth across each of our customer markets, led by the Service Provider and Cloud customer market which was largely driven by revenue from our AI Infrastructure solutions. From a country perspective, product revenue increased in the United States, Canada and Mexico by 13%, 1%, and 31%, respectively, partially offset by a decline in Brazil of 14%.
Current wording
Product revenue in the Americas segment increased by 15%, with growth across each of our customer markets, led by the Service Provider and Cloud customer market which was largely driven by revenue from our AI Infrastructure solutions. From a country perspective, product revenue increased in the United States, Canada and Mexico by 16%, 4%, and 31%, respectively, partially offset by a decline in Brazil of 13%.
Previous wording
Product revenue in the APJC segment increased by 9%, with growth across each of our customer markets. From a country perspective, product revenue increased in Japan, India and China by 19%, 1%, and 5%, respectively, partially offset by a decline in Australia of 6%.
Current wording
Product revenue in the APJC segment increased by 14%, with growth across each of our customer markets. From a country perspective, product revenue increased in Japan, India, Australia and China by 12%, 22%, 19% and 42%, respectively.
Previous wording
Product revenue in the APJC segment increased by 11%, with growth across each of our customer markets. From a country perspective, product revenue increased in Japan and India by 27% and 2%, respectively, partially offset by declines in Australia and China of 1% and 4%, respectively.
Current wording
Product revenue in the APJC segment increased by 10%, with growth across each of our customer markets. From a country perspective, product revenue increased in Japan, India, Australia and China by 17%, 8%, 2% and 17%, respectively.
Previous wording
The Networking product category consists of our core networking technologies of switching, routing, wireless, and servers. Revenue from the Networking product category increased by 21%, or $1.4 billion primarily driven by our AI Infrastructure and Campus Networking solutions. The increase was primarily driven by double digit revenue growth in Service Provider Routing, Data Center Switching, Campus Switching, Enterprise Routing, Wireless and Compute.
Current wording
The Networking product category consists of our core networking technologies of switching, routing, wireless, and servers. Revenue from the Networking product category increased by 25%, or $1.7 billion primarily driven by our AI Infrastructure and Campus Networking solutions. The increase was primarily driven by growth across the portfolio led by double digit revenue growth in Campus Switching, Data Center Switching, Wireless and Service Provider Routing.
Previous wording
Revenue from the Networking product category increased by 18%, or $2.5 billion. The increase was primarily driven by double digit revenue growth in Service Provider Routing, particularly within our AI Infrastructure solutions, Data Center Switching and Enterprise Routing. We also experienced revenue growth in Campus Switching and Wireless.
Current wording
Revenue from the Networking product category increased by 20%, or $4.2 billion. The increase was primarily driven by double digit revenue growth in Service Provider Routing, particularly within our AI Infrastructure solutions, Data Center Switching, Campus Switching, Wireless and Enterprise Routing.
Previous wording
The Security product category consists of our Network Security, Identity and Access Management, SASE and Threat Intelligence, Detection, and Response offerings. Revenue in our Security product category decreased by 4%, or $93 million. The decline was primarily driven by our prior generation products and Splunk offerings. We continued to see a change in how our customers consumed Splunk offerings, shifting from fewer on-premise deals to more cloud subscriptions. These declines were partially offset by growth in new and refreshed products.
Current wording
The Security product category consists of our Network Security, Identity and Access Management, SASE and Threat Intelligence, Detection, and Response offerings. Revenue in our Security product category was flat, primarily driven by declines in our prior generation products and Splunk offerings. We continued to see a change in how our customers consumed Splunk offerings, shifting from fewer on-premise deals to more cloud subscriptions. These declines were offset by growth in new and refreshed products.
Previous wording
Revenue from the Security product category decreased by 3%, or $131 million, primarily driven by Threat Intelligence, Detection, and Response offerings and our prior generation products, partially offset by growth in SASE and Duo offerings.
Current wording
Revenue from the Security product category decreased by 2%, or $136 million, primarily driven by Threat Intelligence, Detection, and Response offerings and our prior generation products, partially offset by growth in SASE offerings.
Previous wording
The Collaboration product category consists of our Webex Suite, Collaboration Devices, Contact Center and CPaaS offerings. Revenue in our Collaboration product category increased by 6%, or $58 million, primarily driven by double digit revenue growth in our Collaboration Devices, Cloud Contact Center and CPaaS offerings. We also experienced growth in our Webex Suite offerings.
Current wording
The Collaboration product category consists of our Webex Suite, Collaboration Devices, Contact Center and CPaaS offerings. Revenue in our Collaboration product category decreased by 1%, or $7 million, primarily driven by declines in Webex Suite offerings partially offset by growth in Collaboration Devices, Cloud Contact Center and CPaaS offerings.
Previous wording
Revenue from the Collaboration product category increased by 1%, or $28 million, primarily driven by revenue growth in our Collaboration Devices and CPaaS offerings.
Current wording
Revenue from the Collaboration product category increased by 1%, or $21 million, primarily driven by revenue growth in our Collaboration Devices and CPaaS offerings, partially offset by declines in Webex Suite offerings.
Previous wording
The Observability product category consists of our network assurance, monitoring and analytics and observability suite offerings. Revenue in our Observability product category was flat, primarily due to growth in ThousandEyes offset by a decline in Splunk offerings.
Current wording
The Observability product category consists of our network assurance, monitoring and analytics and observability suite offerings. Revenue in our Observability product category increased by 3%, primarily due to growth in ThousandEyes, partially offset by a decline in Splunk offerings.
Previous wording
Revenue from Observability product category increased by 3%, or $15 million, primarily driven by growth in ThousandEyes.
Current wording
Revenue from Observability product category increased by 3%, or $24 million, primarily driven by growth in ThousandEyes, partially offset by a decline in Splunk offerings.
Previous wording
Services revenue decreased by 1% in the second quarter of fiscal 2026 compared with the second quarter of fiscal 2025, with the decline primarily driven by lower revenue from support services, partially offset by higher professional services. Services revenue declined in the Americas segment, partially offset by an increase in the EMEA segment for the second quarter of fiscal 2026. Service revenue in the APJC segment was flat.
Current wording
Services revenue decreased by 1% in the third quarter of fiscal 2026 compared with the third quarter of fiscal 2025, with the decline primarily driven by lower revenue from support services, partially offset by higher professional services. Services revenue declined in the Americas and APJC segments, partially offset by an increase in the EMEA segment for the third quarter of fiscal 2026.
Previous wording
Services revenue was flat in the first six months of fiscal 2026 compared to the first six months of fiscal 2025. Services revenue increased in the EMEA and APJC segments, offset by a decline in the Americas segment.
Current wording
Services revenue was flat in the first nine months of fiscal 2026 compared to the first nine months of fiscal 2025. Services revenue increased in the EMEA segment, offset by a decline in the Americas segment. Services revenue in the APJC segment was flat.
Previous wording
The following table summarizes the key factors that contributed to the change in product gross margin percentage for the second quarter and first six months of fiscal 2026, as compared with the corresponding prior year periods:
Current wording
The following table summarizes the key factors that contributed to the change in product gross margin percentage for the third quarter and first nine months of fiscal 2026, as compared with the corresponding prior year periods:
Previous wording
(1) Productivity includes overall manufacturing-related costs, such as component costs, warranty expense, provisions for inventory and the liability related to the purchase commitments with contract manufacturers and suppliers, freight, logistics, shipment volume, and other items not categorized elsewhere.
Current wording
(1) Productivity includes overall manufacturing-related costs, such as component costs (including memory), warranty expense, provisions for inventory and the liability related to the purchase commitments with contract manufacturers and suppliers, freight, logistics, shipment volume, and other items not categorized elsewhere.
Previous wording
Product gross margin increased by 0.2 percentage points primarily driven by productivity improvements and lower amortization of purchased intangible assets, partially offset by negative impacts from product mix and pricing. Productivity benefits were adversely impacted by higher memory costs. The negative impacts from product mix were primarily due to higher Networking revenue and lower Security revenue.
Current wording
Product gross margin decreased by 2.5 percentage points primarily driven by negative impacts from product mix and to a lesser extent, pricing, partially offset by productivity improvements. The negative impacts from product mix were primarily due to higher Networking revenue. Productivity benefits were adversely impacted by higher memory costs.
Previous wording
Our services gross margin percentage decreased by 0.5 percentage points in the second quarter of fiscal 2026 and decreased by 0.1 percentage points in the first six months of fiscal 2026. For each of the second quarter and first six months of fiscal 2026, the decrease in services gross margin was primarily driven by higher headcount costs and mix of service offerings.
Current wording
Our services gross margin percentage increased by 0.5 percentage points in the third quarter of fiscal 2026 and increased by 0.1 percentage points in the first nine months of fiscal 2026. For each of the third quarter and first nine months of fiscal 2026, the increase in services gross margin was primarily due to cost efficiencies.
Previous wording
We experienced a gross margin percentage decrease in our Americas segment due to negative impacts from product mix, pricing and lower services gross margin, partially offset by positive impacts from productivity improvements.
Current wording
We experienced a gross margin percentage decrease in our Americas segment due to negative impacts from product mix and to a lesser extent pricing, partially offset by positive impacts from productivity improvements.
Previous wording
Gross margin percentage in our EMEA segment increased primarily due to productivity improvements, partially offset by negative impacts from product mix and pricing.
Current wording
Gross margin percentage in our EMEA segment increased slightly primarily due to productivity improvements and to a lesser extent pricing, partially offset by negative impacts from product mix.
Previous wording
The decrease in the APJC segment gross margin percentage was primarily due to product mix and pricing, partially offset by productivity improvements.
Current wording
The decrease in the APJC segment gross margin percentage was primarily due to product mix, pricing and negative impacts from productivity.
Previous wording
R&D expenses increased primarily due to higher headcount-related expenses reflecting our investments in AI and higher discretionary spending, partially offset by lower acquisition-related costs.
Current wording
R&D expenses increased primarily due to higher discretionary spending and higher headcount-related expenses reflecting our investments in AI, partially offset by lower acquisition-related costs and lower contracted services spending.
Previous wording
R&D expenses increased primarily due to higher headcount-related expenses reflecting our investments in AI, higher share-based compensation expense and higher discretionary spending, partially offset by lower acquisition-related costs.
Current wording
R&D expenses increased primarily due to higher share-based compensation expense, higher discretionary spending and higher headcount-related expenses reflecting our investments in AI, partially offset by lower acquisition-related costs and lower contracted services spending.
Previous wording
Sales and marketing expenses increased primarily due to higher headcount-related expenses, higher contracted services and higher discretionary spending.
Current wording
Sales and marketing expenses increased primarily due to higher headcount-related expenses and higher contracted services, partially offset by lower acquisition-related costs and lower discretionary spending.
Previous wording
Sales and marketing expenses increased primarily due to higher headcount-related expenses, higher share-based compensation expense, higher contracted services spending, and higher discretionary spending.
Current wording
Sales and marketing expenses increased primarily due to higher headcount-related expenses, higher share-based compensation expense and higher contracted services spending, partially offset by lower acquisition-related costs.
Previous wording
G&A expenses decreased primarily due to lower headcount-related expenses and lower acquisition-related costs.
Current wording
G&A expenses decreased primarily due to lower headcount-related expenses, lower acquisition-related costs and lower discretionary spending.
Previous wording
G&A expenses decreased primarily due to lower acquisition-related costs and lower headcount-related expenses.
Current wording
G&A expenses decreased primarily due to lower acquisition-related costs and lower headcount-related expenses, partially offset by higher discretionary spending.
Previous wording
In the second quarter of fiscal 2026, foreign currency fluctuations, net of hedging, increased the combined R&D, sales and marketing, and G&A expenses by approximately $56 million, or 1.0%, compared with the second quarter of fiscal 2025.
Current wording
In the third quarter of fiscal 2026, foreign currency fluctuations, net of hedging, increased the combined R&D, sales and marketing, and G&A expenses by approximately $90 million, or 1.6%, compared with the third quarter of fiscal 2025.
Previous wording
In the first six months of fiscal 2026, foreign currency fluctuations, net of hedging, increased the combined R&D, sales and marketing, and G&A expenses by approximately $91 million, or 0.8%, compared with the first six months of fiscal 2025.
Current wording
In the first nine months of fiscal 2026, foreign currency fluctuations, net of hedging, increased the combined R&D, sales and marketing, and G&A expenses by approximately $181 million, or 1.0%, compared with the first nine months of fiscal 2025.
Previous wording
For each of the second quarter and first six months of fiscal 2026, the decrease in amortization of purchased intangible assets was primarily due to certain purchased intangible assets that became fully amortized and impairment charges of $19 million recognized in the corresponding periods of fiscal 2025. Impairment charges were as a result of declines in estimated fair value resulting from the reductions in or the elimination of expected future cash flows associated with certain technology intangible assets.
Current wording
For each of the third quarter and first nine months of fiscal 2026, the decrease in amortization of purchased intangible assets was primarily due to certain purchased intangible assets that became fully amortized and impairment charges of $19 million recognized in the first nine months of fiscal 2025. Impairment charges were as a result of declines in estimated fair value resulting from the reductions in or the elimination of expected future cash flows associated with certain technology intangible assets.
Showing the first 40 of 60 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Product gross margin decreased by 1.0 percentage points primarily driven by negative impacts from product mix and pricing, partially offset by productivity improvements and lower amortization of purchased intangible assets. Productivity benefits were adversely impacted by higher memory costs.