Is Cisco Systems Stock Halal?
Cisco Systems, Inc. · CSCO · NASDAQ
Cisco Systems, Inc. (CSCO) passes our AAOIFI-based screen. Its core business is permissible, and (data as of 2026-04-25) interest-bearing debt is 6.6% of market cap and cash plus interest-bearing securities 3.5% — both inside the 30% AAOIFI thresholds. Ratios move with the share price, so check the data-as-of date; any incidental interest income should be purified.
Financial data as of 2026-04-25 · Screening basis: AAOIFI · Last reviewed 2026-06-15
Our Analysis
Cisco Systems is the long-standing leader in networking hardware — the routers and switches that move data across enterprise, telecom, and cloud networks — and has increasingly built out cybersecurity, collaboration, and observability software. All of this is permissible technology business, with no alcohol, gambling, tobacco, or conventional-finance lines, which is why Zoya, Musaffa, and Amal Invest all classify CSCO as halal.
The one financial detail worth knowing is interest income. Cisco holds a very large cash and investment portfolio, and Zoya reports the interest it earns at about 1.77% of revenue for fiscal 2025 — comfortably under the 5% AAOIFI limit, but not zero. The standard treatment is purification: donate the proportional share of any dividends attributable to that interest rather than avoiding the stock. Debt and cash ratios sit well within thresholds.
The practical takeaway: CSCO passes the business screen cleanly and the financial screen comfortably. Apply routine dividend purification for the small interest-income component, re-check the ratios after new filings, and avoid margin or options.
Business Activity Screen
Cisco Systems designs and sells networking hardware (routers, switches), cybersecurity, collaboration, and observability software and services to enterprises, telecom carriers, and cloud providers. Per its 10-K, revenue is overwhelmingly from these permissible technology products and recurring software/subscription services.
No prohibited business lines are disclosed. The review point is interest income on Cisco's large cash and investment portfolio — Zoya reports it at 1.77% of revenue for fiscal 2025, under the 5% AAOIFI threshold. Investors following standard purification should donate the proportional share of dividends attributable to that interest income.
Financial Ratio Screen
| Screen | Value | AAOIFI limit | Result |
|---|---|---|---|
| Interest-bearing debt / market cap | 6.6% | < 30% | Pass |
| Cash + interest-bearing securities / market cap | 3.5% | < 30% | Pass |
| Impermissible income / total revenueInterest income $1.00B on $56.65B total revenue (Cisco Systems, Inc. FY2025 (fiscal year ended 2025-07-26, Form 10-K)) = 1.8% — under AAOIFI's 5% limit. | 1.8% | < 5% | Pass |
Spot market cap at research date (consider trailing average for borderline names). Data as of 2026-04-25 · thresholds per AAOIFI Shariah standards.
This verdict uses the AAOIFI standard — the most widely used and, at a 30% debt limit, the most conservative mainstream Shariah standard. Interest-bearing debt and interest-bearing securities each stay under 30% of market cap, and impermissible income under 5% of revenue. Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets, so a borderline company can be rated differently by each. How we screen & why screeners disagree →
How Cisco Systems screens across Shariah standards
All three mainstream bases below reach the same conclusion for this company.
| Standard | Debt | Cash & interest securities | Limit / basis | Result |
|---|---|---|---|---|
| AAOIFI (our standard) | 6.6% | 3.5% | < 30% of market cap | Pass |
| Dow Jones Islamic / S&P Shariah thresholdDow Jones and S&P apply this limit against a trailing 24–36-month average market cap; shown here on the same point-in-time market cap for comparison. | 6.6% | 3.5% | < 33% of market cap | Pass |
| MSCI Islamic / FTSE Yasaar basisTotal-assets denominator. MSCI/FTSE also apply entry/exit buffers and a receivables screen we do not reproduce. | 24.9% | 13.3% | < 33.33% of total assets | Pass |
HalalWallet computation reproducing each standard's threshold and denominator from public filings (balance sheet as of 2026-04-25) — not the providers' licensed index determinations, which can differ. Debt is interest-bearing borrowings (operating leases excluded). The impermissible-income screen (< 5% of revenue) is common to all of these standards and is shown in the ratio table above. Dow Jones and S&P apply their limit against a trailing 24–36-month average market cap; MSCI and FTSE add entry/exit buffers and a receivables screen. Full methodology →
Scholars' & Screeners' Positions
Published positions, cited as stated. Screeners can reach different conclusions on the same company because of ratio timing and methodology differences — we report the disagreement rather than flatten it.
Zoya
Classifies CSCO as Shariah-compliant; reports interest income of $1.0B (1.77% of the revenue+interest base) for FY ending July 26, 2025.
Source →Musaffa
Classified HALAL as of February 2026 based on AAOIFI screens (report source: 2026 Q2).
Source →Amal Invest
Rates CSCO halal under AAOIFI screening — permissible networking/security business and compliant financial ratios.
Source →
Purification
Even Shariah-compliant companies typically earn a small amount of incidental interest on corporate cash. The standard practice is to purify: donate the proportion of your dividends (and, per some scholars, capital gains) attributable to impermissible income. Our purification calculator automates the math from your holding and the company's disclosed figures.
Purification calculatorKeep your portfolio halal
A pass today isn't a pass forever — ratios drift across thresholds between filings. A halal screener monitors holdings continuously.
Related guides
Consider Consulting an Islamic Scholar
Major whether Cisco Systems, Inc. is halal decisions often involve nuances that vary by scholarly opinion and personal circumstance. While HalalWallet provides educational comparisons and tools, we are not scholars or financial advisors. For personal guidance on Shariah compliance, consider speaking with a qualified Islamic scholar, your local imam, or a Shariah-certified financial advisor familiar with your situation.
Important: HalalWallet is an educational comparison platform. We do not provide financial, legal, or religious advice.
Product structures and Shariah-compliance oversight vary by provider. Before applying:
- Verify halal compliance directly with the provider.
- Review the contract structure (Murabaha, Ijara, Musharakah, etc.) and any disclosed Shariah board opinions.
- Consult a qualified Islamic finance advisor or scholar for guidance on your individual circumstances.
Frequently Asked Questions
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-06-01
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