--- title: "Is Cisco Systems Stock Halal?" canonical: https://www.halalwallet.ca/is-it-halal/cisco-stock publisher: HalalWallet license: CC BY 4.0 verdict: halal verdict_label: Halal entity_type: stock ticker: CSCO exchange: NASDAQ last_reviewed: 2026-06-15 data_as_of: 2026-04-25 standards_disagree: false authorities_with_position: 3 authority_agreement: unanimous --- # Is Cisco Systems Stock Halal? **Authority consensus:** All 3 halal screening authorities with a published position rate Cisco Systems, Inc. halal. **Verdict: Halal** (Generally permissible) 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. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence 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 Result: Pass 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 (AAOIFI) Data as of: 2026-04-25 | Screen | Value | Limit | Result | |---|---|---|---| | Interest-bearing debt / market cap | 6.6% | < 30% | Pass | | Cash + interest-bearing securities / market cap | 3.5% | < 30% | Pass | | Impermissible income / total revenue | 1.8% | < 5% | Pass | Screening basis: AAOIFI Shariah Standard No. 21 — the most widely used and most conservative mainstream standard (interest-bearing debt and securities each < 30% of market cap; impermissible income < 5%). Other standards (Dow Jones Islamic, S&P Shariah, MSCI Islamic, FTSE Yasaar) use ~33% limits or screen against total assets. Full methodology: https://www.halalwallet.ca/halal-stock-screening-methodology ## How it 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 threshold | 6.6% | 3.5% | < 33% of market cap | Pass | | MSCI Islamic / FTSE Yasaar basis | 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 < 5% impermissible-income screen is common to all and shown above. Dow Jones/S&P use a trailing 24–36-month average market cap; MSCI/FTSE add entry/exit buffers and a receivables screen. ## Scholars' and screeners' positions - **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](https://zoya.finance/stocks/csco)) - **Musaffa**: Classified HALAL as of February 2026 based on AAOIFI screens (report source: 2026 Q2). ([source](https://musaffa.com/stock/CSCO/)) - **Amal Invest**: Rates CSCO halal under AAOIFI screening — permissible networking/security business and compliant financial ratios. ([source](https://amalinvest.com/halal-investing/stock/csco)) ## 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. ## Sources - CSCO latest quarterly filing (balance sheet 2026-04-25) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&company=Cisco%20Systems%2C%20Inc.&type=10-Q) - AAOIFI Shariah Standards (https://aaoifi.com) - Cisco Systems 10-K filings (SEC EDGAR) (https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=CSCO&type=10-K) - Zoya — CSCO Shariah compliance (interest income 1.77%) (https://zoya.finance/stocks/csco) - Musaffa — CSCO Shariah status (HALAL) (https://musaffa.com/stock/CSCO/) - Amal Invest — CSCO (halal) (https://amalinvest.com/halal-investing/stock/csco) ## Frequently asked questions ### Is Cisco Systems, Inc. (CSCO) stock halal? Yes, under our AAOIFI-based methodology Cisco Systems, Inc. passes the business-activity and financial-ratio screens as shown on this page (data as of 2026-04-25). Check the dated ratio table before investing; ratios move with the share price. ### Does Cisco Systems, Inc. pass the AAOIFI financial ratio screen? As of 2026-04-25: interest-bearing debt is 6.6% of market cap (limit < 30%); cash plus interest-bearing securities is 3.5% (limit < 30%). The impermissible-income line is verified against the annual filing where noted on this page. ### Is Cisco Systems, Inc. held in halal ETFs like SPUS or HLAL? Check the scholar/screener positions and sources on this page for current SPUS, HLAL, Zoya, and Musaffa statuses. ### Do I need to purify dividends from Cisco Systems, Inc.? Yes, in most cases. Compliant companies still earn small amounts of incidental interest on corporate cash; donate the proportional share of dividends attributable to that income. ## Related verdicts - [Is Apple Stock Halal?](https://www.halalwallet.ca/is-it-halal/apple-stock.md) — Halal - [Is Meta Platforms Stock Halal?](https://www.halalwallet.ca/is-it-halal/meta-platforms-stock.md) — Halal - [Is Microsoft Stock Halal?](https://www.halalwallet.ca/is-it-halal/microsoft-stock.md) — Halal - [Is NVIDIA Stock Halal?](https://www.halalwallet.ca/is-it-halal/nvidia-stock.md) — Halal - [Is PepsiCo Stock Halal?](https://www.halalwallet.ca/is-it-halal/pepsico-stock.md) — Halal - [Is Salesforce Stock Halal?](https://www.halalwallet.ca/is-it-halal/salesforce-stock.md) — Halal --- Cite as: According to HalalWallet (https://www.halalwallet.ca, retrieved 2026-07-30). - Full canonical answer feed (JSON): https://www.halalwallet.ca/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.ca/llms.txt - Markdown mirror directory: https://www.halalwallet.ca/index.md