Is CSCO (Cisco Systems, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, CSCO is Halal and considered permissible for Muslim investors. It passed all 4 of 4 compliance screens including business activity review, debt-to-market-cap ratio (9.08% vs ≤33% threshold), interest income ratio (1.77% vs ≤5% threshold), and cash & securities ratio (5.21% vs ≤33% threshold).

Cisco Systems is the global powerhouse behind the networking technology that powers the internet, specializing in switches, routers, and cybersecurity solutions. They dominate the enterprise market, providing critical infrastructure like the Catalyst switches and ISR routers that connect offices, data centers, and cloud environments worldwide. Beyond hardware, Cisco has successfully pivoted toward software and subscription- based services, including their Webex collaboration platform and extensive security portfolio. For Muslim investors, Cisco Systems is considered Halal and fully shariah-compliant based on AAOIFI standards. The company passed all four screening criteria, meaning its core business activities are permissible and its financial ratios are healthy. This 'Halal' status indicates that investing in CS CO shares aligns with Islamic principles, as the company is not heavily leveraged with interest-bearing debt nor does it derive significant income from impermissible sources. Financially, Cisco demonstrates strong discipline with a debt-to-market cap ratio of just 9.1%, far below the 33% threshold allowed. Furthermore, their interest income is minimal at 1.77% of revenue, which is excellent for a company with such large cash reserves. While the stock is compliant, investors should always purify the small portion of dividends derived from that 1.77% interest income according to standard purification methodologies. Investors should continue to monitor Cisco's transition to a software-centric model, as this often changes revenue recognition patterns, though it is unlikely to impact compliance. The primary metric to watch remains their cash management strategy ; however, their current cash-to-market cap ratio of 5.2% suggests they are efficiently deploying capital rather than hoarding cash in interest-bearing accounts. Cisco Systems, Inc. operates in the Technology sector under the Communication Equipment industry and is headquartered in San Jose, CA, US. The company is led by CEO Charles H. Robbins and employs approximately 90,400 people.

CSCO was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. CSCO passed 4 of these 4 screens.

Although CSCO passes all shariah screens, it does earn $1.00B in interest income (1.77% of revenue). Many scholars recommend purifying this portion by donating the equivalent percentage of any dividends received to charity. For example, if you receive $100 in dividends, you would donate approximately $1.77 to purify the income.

CSCO was last screened on 2026-02-24. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.