ORGANIZATION
Cisco Systems
American networking-equipment company founded in December 1984 by Len Bosack and Sandy Lerner, who ran computers at Stanford University. Headquartered in San Jose, California. Building on router technology developed on Stanford's campus network, it sold routers that linked different network protocols and became a leading supplier of the equipment underneath the internet. At the close on 24 March 2000, near the top of the dot-com bubble, its market value passed Microsoft's to make it the world's most valuable company. It bought WebEx in 2007 and Splunk for about US$27 billion in March 2024, raising the weight of software and subscriptions. Revenue for the fiscal year ended July 2026 was US$63.3 billion, with demand rising for data-centre networking for AI.
Organization
- Founded
- 1984
- Status
- Active
- Active
- 1984–
- Appearances
- 00
- Name
- ENCisco SystemsJAシスコシステムズ
Cisco Systems is an American networking-equipment company founded in December 1984 by Len Bosack and Sandy Lerner. Both were on Stanford University's computer support staff: Bosack ran the computer science department's computers and Lerner managed the business school's. According to its 10-K the company was incorporated in California and reincorporated in Delaware in 2021. Headquarters: San Jose. Employees: about 82,400 as of 25 July 2026.
A router born on a campus network
Cisco began with the boxes that joined Stanford's many campus networks. According to a 2001 investigation by the San Jose Mercury News, staff and graduate students had been building boxes to link networks on campus since the early 1980s, and the software at their heart was written by William Yeager, a staff engineer at the medical school. Bosack and Kirk Lougheed reworked that software, and by late 1985 Bosack and Lerner were assembling routers in their living room. On 15 April 1987 Stanford licensed the router software and two computer boards to Cisco. On that history, the article concludes that the founding legend crediting the two founders alone is incomplete.
The designers of TCP/IP called the device that joins one network to another a "gateway". Cisco is the company that turned it into a product sold in volume.
The peak of March 2000
Cisco listed on NASDAQ on 16 February 1990. Both founders left the company that same year.
Near the top of the dot-com bubble, shares in the company selling the internet's plumbing rose steeply. At the close of regular trading on Friday 24 March 2000, Cisco was worth US$579.1 billion, just ahead of Microsoft's US$578.2 billion, making it the world's most valuable company (The Spokesman-Review, 25 March 2000).
From boxes to software
Cisco then moved from selling equipment alone toward software and subscriptions. In May 2007 it bought the web-conferencing company WebEx, whose vice president of engineering, Eric Yuan, later founded Zoom. On 18 March 2024 it completed the acquisition of Splunk, a cybersecurity and observability company, paying US$157 per share in cash, about US$27 billion of merger consideration. The 10-K says acquisitions, including Splunk, accelerated its shift to recurring software and subscription offerings.
| Product category (10-K) | What it includes |
|---|---|
| Networking | Switches, routers, wireless and servers, including Cisco's own Silicon One chips |
| Security | Network security, identity and access management, SASE and more |
| Collaboration | Webex, collaboration devices, contact centre |
| Observability | Monitoring and visibility tools such as Splunk Observability |
Being the vendor whose equipment is everywhere also makes it part of the attack surface. In the SolarWinds compromise uncovered in 2020, Cisco was among the companies affected.
Networks for AI
In its 10-K for the fiscal year ended July 2026, Cisco says AI infrastructure sold to hyperscalers made up about 6% of total revenue, up from less than 2% the year before. The company describes itself as supplying the networks for AI training and inference, while listing as risks that such sales depend on the capital spending of a few large customers, and that those customers have the resources to design their own networking equipment and chips. In the same year, inventory and purchase commitments combined rose 112% from the prior year-end.
Key events
- December 1984: founded by Len Bosack and Sandy Lerner.
- 15 April 1987: Stanford licenses router software and boards to Cisco.
- 16 February 1990: NASDAQ listing. Both founders leave later that year.
- 24 March 2000: passes Microsoft in market value at the close, becoming the world's most valuable company.
- May 2007: WebEx acquired.
- 2021: reincorporated in Delaware.
- 18 March 2024: Splunk acquisition completed (about US$27 bn).
Financials
Fiscal year ended 25 July 2026, per the 10-K.
- Revenue: US$63.3 bn (+12%); product revenue +16%, services flat
- Software revenue: US$23.2 bn (+4%)
- Net income: US$13.3 bn (prior year US$10.2 bn)
- AI infrastructure for hyperscalers: about 6% of revenue (under 2% the year before)
- Employees: about 82,400
Questions this page answers
- When was Cisco founded, and by whom?
- It was founded in December 1984 by two members of Stanford University's computer support staff: Len Bosack, who ran the computer science department's computers, and Sandy Lerner, who managed the business school's. According to its 10-K it was incorporated in California and reincorporated in Delaware in 2021.
- Was Cisco really once the world's most valuable company?
- Yes. At the close of regular trading on Friday 24 March 2000, Cisco was worth US$579.1 billion against Microsoft's US$578.2 billion, near the peak of the dot-com bubble.
- When did Cisco acquire Splunk?
- Cisco completed the acquisition on 18 March 2024, paying US$157 per share in cash, about US$27 billion of merger consideration. Splunk is a cybersecurity and observability company.
- How large is Cisco's business today?
- In the fiscal year ended 25 July 2026, revenue was US$63.3 billion, up 12%, and net income US$13.3 billion. AI infrastructure sold to hyperscale customers made up about 6% of revenue, up from less than 2% the year before.
Sources
Incorporation in California in 1984 and reincorporation in Delaware in 2021, San Jose headquarters, product categories, FY2026 revenue, net income, software revenue and AI-infrastructure share, headcount, and the closing date and consideration of the Splunk acquisition
The December 1984 founding and the founders' jobs, the router developed on Stanford's campus network, the licence agreement with Stanford of 15 April 1987, and the founders' departure in 1990
SecondaryShort reports (Cisco passes Microsoft in market value) — The Spokesman-Review, March 25, 2000
At Friday's close (24 March 2000): Cisco US$579.1 billion, Microsoft US$578.2 billion
TertiaryCisco — Wikipedia
NASDAQ listing on 16 February 1990
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