CLAIM #17892 · Cisco Systems Inc (CSCO) · 2026Q2 earnings call · Feb 11, 2026

“This dividend increase demonstrates our commitment to returning a minimum of 50% of free cash flow annually to our shareholders.”

Mark Patterson · CFO

How to check this claim

Look at: Total capital returned to shareholders (dividends + share repurchases) as a percentage of free cash flow, fiscal year 2026

It came true if: Capital returned to shareholders / free cash flow (operating cash flow minus capex) >= 50%

Where: Company cash flow statement and shareholder return disclosures (10-K / Q4 FY2026 earnings release)

Knowable after: 2026-09-15

In context

“quarter. Shifting to the balance sheet. We ended Q2 with total cash, cash equivalents and investments of $15.8 billion. Operating cash flow was $1.8 billion, down 19% due to the final transition tax payment of $2.3 billion from the 2017 Tax Cuts and Jobs Act and continued investments to meet growing overall demand as well as specifically for AI infrastructure. From a capital allocation perspective, we returned $3 billion to our shareholders during the quarter, comprised of $1.6 billion for our quarterly cash dividend and $1.4 billion of share repurchases with $10.8 billion remaining under our share repurchase program. Given the confidence we have in our business and the strength of our ongoing cash flows, today, we announced that we are raising our dividend by $0.01 to $0.42 per quarter. This dividend increase demonstrates our commitment to returning a minimum of 50% of free cash flow annually to our shareholders. To summarize, we had another quarter with top and bottom line performance exceeding our expectations, driven by strong order growth and robust margins, all demonstrating the power of our innovation engine to drive strong top line growth as well as operating leverage to fuel profitability. We remain focused on making strategic investments in innovation to capitalize on the significant growth opportunities that we see ahead. This will continue to be underpinned by our commitment to disciplined spend management and this powerful combination that continues to fuel strong cash flow and our ability to return significant value to our shareholders. Turning to guidance. Please note, our Q3 and fiscal year 2026 guide assumes current tariffs and exemptions remain in place through the end of fiscal 2”

Verify independently

SEC filings for CSCO ↗ · Quote is verbatim from the 2026Q2 earnings call.