Cisco Systems, Inc. vs Verkada: Strategic Comparison

This in-depth comparison examines Cisco Systems, Inc. and Verkada across revenue, market value, business model, competitive positioning, and long-term growth strategy. Whether you are researching Cisco Systems, Inc. on its own, evaluating Verkada, or weighing the two companies side by side, the breakdown below highlights where each company leads and where the gap between Cisco Systems, Inc. and Verkada is widest.

On the headline numbers, annual revenue is $63.3B (FY2026) for Cisco Systems, Inc. and $357.0M (unaudited) (FY2024) for Verkada, while their respective market capitalizations stand at $420.7B and N/A. Both Cisco Systems, Inc. and Verkada are headquartered in United States. Their local markets and applicable rules may still differ.

Cisco Systems, Inc.: Cisco Systems built much of the routing and switching hardware that connected the early commercial internet, and in March 2000 it briefly became the world's most valuable public company. Founded in 1984 and based in San Jose, California, it now sells networking, security, observability (Splunk and ThousandEyes), and Webex collaboration products to enterprises, governments, service providers, and cloud companies. After several flat years, AI data center demand pushed Cisco to record FY2026 revenue of $63.3 billion and lifted its market capitalization to about $421 billion by late September 2026.

Verkada: Verkada sells physical security systems that are managed from the cloud. Its six product lines are video security cameras, access control, environmental sensors, alarms, workplace (visitor management) and intercoms, all run through the Verkada Command application. Customers include schools, hospitals, manufacturers, retailers and local governments, and the company said in March 2026 that more than 100 of the Fortune 500 use its products. The company's record includes setbacks. A March 2021 breach of an internal support tool exposed live feeds from customer cameras, and in 2024 the FTC and the Justice Department resolved claims over its data security and marketing emails, including a $2.95 million CAN-SPAM civil penalty and a mandated information security program. Funding continued through 2025, and in 2026 the company reported more than 31,000 customers and signed an investment and technical partnership with NVIDIA. The company is headquartered in San Mateo, California.

Cisco Systems, Inc. and Verkada pursue distinct approaches to generating revenue, and understanding how each company operates is the foundation of any fair comparison between Cisco Systems, Inc. and Verkada.

Cisco Systems, Inc. business model: Cisco makes money in two ways: product sales and services. Products (switches, routers, wireless, Silicon One-based data center and AI networking gear, firewalls, Splunk and other security and observability software, and Webex) made up about $13.5 billion of the $17.3 billion Q4 FY2026 revenue, while services (technical support, advisory, and maintenance contracts) contributed about $3.8 billion. Hardware is increasingly sold with software subscriptions attached, so a growing share of revenue recurs. Most sales go through channel partners and resellers, and large cloud providers now buy Cisco AI networking equipment directly.

Verkada business model: Verkada sells security hardware (cameras, door controllers, environmental sensors, alarm panels, intercoms and visitor management devices) together with per-device Command software licenses sold for multi-year terms. Customers buy directly or through channel partners. The license gives access to cloud management, software updates and AI features, so revenue combines one-time device sales with recurring software income. The company said in March 2026 that 78% of core customers use two or more of its product lines and that the average customer nearly doubles its initial spend within 12 months.

The durability of a company's moat often decides long-term winners. Here is how the competitive advantages of Cisco Systems, Inc. stack up against those of Verkada.

Cisco Systems, Inc. competitive advantage: Cisco's advantage is how deeply its equipment is built into corporate networks. The saying in IT is that 'nobody ever got fired for buying Cisco': large banks and other enterprises choose it for reliability. Replacing an integrated Cisco network with cheaper hardware is a multi-year project with real risk, so most CIOs stay, which gives Cisco a durable installed base.

Verkada competitive advantage: Verkada designs both the devices and the Command software, so cameras, doors, sensors, alarms and intercoms are managed in one application rather than several vendor systems. Cameras record to on-board storage, removing the need for a separate on-site video recorder, and new AI features are delivered through software updates; the company said it shipped more than 174 AI features and product updates in the year to March 2026.

Future prospects matter as much as current results. The growth strategies below explain how Cisco Systems, Inc. and Verkada each plan to expand from here.

Cisco Systems, Inc. growth strategy: Cisco's growth plan rests on three areas. First, AI infrastructure: Silicon One chips, Nexus and Cisco 8000 systems, and optics sold to hyperscalers and, increasingly, to neoclouds, sovereign AI projects, and enterprises building their own AI clusters. Second, campus and branch refresh, as enterprises upgrade switching and Wi-Fi for AI workloads. Third, security and observability, built around the $28 billion Splunk acquisition completed in March 2024 and Cisco's broader security cloud. Cisco funds this partly through restructuring, including about 4,000 job cuts announced in May 2026 to move spending toward AI.

Verkada growth strategy: Verkada grows by selling more product lines into existing customers, by expanding its sales footprint (four new US offices and a Dubai hub in March 2026) and by adding AI software features to installed devices, now including work with NVIDIA on video search models.

A closer look at the financial trajectory of Cisco Systems, Inc. and Verkada rounds out the comparison.

Cisco Systems, Inc.: Cisco's revenue fell 5.6% to $53.8 billion in FY2024 as customers worked through excess inventory, then recovered to $56.7 billion in FY2025 and a record $63.3 billion in FY2026 (up 12%). FY2026 GAAP net income was about $13.3 billion, GAAP EPS was $3.33 (up 31%), and non-GAAP EPS was $4.33. Growth accelerated through the year: Q4 FY2026 revenue was $17.3 billion, up 18%, with product revenue up 24% and total product orders up 35%. Cisco said it recognized about $4 billion of AI infrastructure revenue from hyperscalers in FY2026 and expects about $7.5 billion in FY2027, within total FY2027 revenue guidance of $72.2-73.4 billion. The company also pays a quarterly dividend and buys back stock. Cisco Systems remains a backbone of enterprise networking infrastructure, carrying a market valuation typically around $200 billion.

Verkada: Verkada is private and does not publish audited financial statements. In March 2026 it said revenue grew 30% year over year in its latest fiscal year, without giving a dollar figure, and SiliconANGLE reported that it crossed $1 billion in annualized bookings around the time of its December 2025 round. Disclosed funding milestones include a $205 million Series D in September 2022 at a $3.2 billion valuation led by Linse Capital, a $200 million Series E in February 2025 at $4.5 billion led by General Catalyst (total funding above $700 million, per the company), a CapitalG-led investment in December 2025 at $5.8 billion, and an undisclosed NVIDIA investment announced in July 2026.