Core Viewpoint - New Thinking Technology plans to lay off approximately 10% of its workforce, affecting around 2,000 employees, with an expected pre-tax cost of $300 million to $350 million related to severance and other one-time termination benefits, as well as costs associated with the closure of certain operational sites [1] Summary by Category - **Layoff Details** - The company will reduce its workforce by about 10%, impacting approximately 2,000 employees [1] - **Financial Implications** - The expected pre-tax costs associated with the layoffs are estimated to be between $300 million and $350 million, which includes severance pay and other one-time termination benefits [1] - **Timeline for Restructuring** - Most layoffs are anticipated to be completed by the end of the fiscal year 2026, with the restructuring plan expected to be largely finalized by the end of fiscal year 2027 [1]

Core Insights - Cisco reported Q1 revenue of $14.88 billion, an 8% year-over-year increase, and non-GAAP EPS of $1.00, a 10% increase, both exceeding Wall Street expectations [1] - This marks Cisco's fourth consecutive quarter of revenue growth [1] - AI infrastructure orders surged to $1.3 billion, significantly up from $800 million in the previous quarter [1] Revenue Performance - Networking business showed strong performance with a revenue growth of 15% [1] - Product orders increased by 13% year-over-year, with networking product orders achieving double-digit growth for the fifth consecutive quarter [1] Guidance Update - Cisco raised its full-year revenue guidance to between $60.2 billion and $61 billion [1]

Core Viewpoint - Cisco's stock rose over 7% after the company raised its fiscal year 2026 revenue outlook, benefiting from the surge in artificial intelligence hardware investments [1] Group 1: Financial Performance - Cisco expects revenue for the fiscal year ending July 2026 to reach $61 billion, an increase of approximately $1 billion from previous estimates and above Wall Street's predictions [1] - The company also raised its earnings forecast, which exceeds analyst expectations [1] - Cisco's projected earnings per share for fiscal year 2026, excluding certain items, is $4.14, compared to the analyst average estimate of $4.05 [1] Group 2: Market Dynamics - The demand for secure networks in the AI era is driving orders, as stated by Cisco's CEO Chuck Robbins [1] - Cisco is updating its chips and networking equipment to better connect server racks and data centers for handling complex AI tasks [1] - The company faces competition from Broadcom and Hewlett Packard Enterprise, which owns Juniper Networks, and is collaborating with NVIDIA to enhance its competitive edge [1] Group 3: Stock Performance - As of Wednesday's close, Cisco's stock has increased by 25% year-to-date [1]

Core Viewpoint - Cisco reported better-than-expected Q1 FY 2026 results, showing progress in capturing AI-related spending, with revenue growth of 8% year-over-year to $14.9 billion, surpassing analyst expectations of $14.8 billion [1][5] Financial Performance - Q1 FY 2026 revenue was $14.9 billion, up from $13.8 billion in Q1 FY 2025, reflecting an 8% increase [3] - Net income for Q1 FY 2026 was $4.0 billion, a 9% increase from $3.7 billion in Q1 FY 2025 [5] - Diluted earnings per share (EPS) for Q1 FY 2026 was $1.00, compared to $0.91 in Q1 FY 2025, marking a 10% increase [5] Business Segmentation - Product revenue increased by 10% year-over-year to $11.08 billion, with networking revenue growing 15% to $7.77 billion [5][6] - Service revenue grew by 2% to $3.81 billion [5] - Specific product performance included a 6% increase in observability revenue, while security and collaboration revenues declined by 2% and 3%, respectively [6] Market Position and Future Outlook - Cisco's stock has risen nearly 40% over the past 12 months, driven by strong sales, stable gross margins, and the AI market trend [6] - The company is upgrading chips and network devices to better support AI tasks, competing with Broadcom and HPE [7] - Cisco's AI infrastructure orders from large cloud providers totaled $1.3 billion in Q1 FY 2026, up from $800 million in the previous quarter [7] - The company raised its full-year FY 2026 revenue guidance to $60.2 billion to $61.0 billion, up from a previous estimate of $59.0 billion to $60.0 billion [7] - For Q2 FY 2026, Cisco expects revenue between $15.0 billion and $15.2 billion, exceeding analyst expectations [7] Analyst Insights - Analysts suggest that despite the maturity of the networking business, AI and product updates are expected to drive additional sales growth in the coming years [8] - Cisco's demand remains stable, with its networking hardware and software strategy anticipated to support sustainable mid-single-digit growth in FY 2026 [8]

Financial Performance - Cisco reported Q1 revenue of $14.88 billion, an 8% year-over-year increase, and a non-GAAP EPS of $1.00, up 10%, both exceeding Wall Street expectations [1][3] - The company has achieved revenue growth for four consecutive quarters [1] - GAAP gross margin was 65.5%, and non-GAAP operating margin was 34.4%, both above guidance ranges [3] Core Business Progress - AI infrastructure orders from hyperscale customers reached $1.3 billion, significantly up from $800 million in the previous quarter, indicating strong demand in the AI sector [3] - Product orders grew by 13% year-over-year, with network product orders achieving double-digit growth for the fifth consecutive quarter [3][4] - The networking business saw a revenue increase of 15% to $7.77 billion, surpassing analyst expectations [4] Strategic Development - Cisco launched a new Ethernet switch based on NVIDIA chips to enhance its competitive position against rivals [3] - The company is focusing on upgrading AI network equipment and has initiated a multi-year, multi-billion dollar upgrade cycle in campus networking [4] - Cisco plans to strengthen its software and security business through a $28 billion acquisition of Splunk, aiming for business diversification [3]

Core Viewpoint - Cisco's stock price continued to rise after hours, with the latest increase reaching 7.1% [1] Group 1 - Cisco's after-hours stock performance indicates strong market confidence [1]

Group 1 - Cisco's after-hours stock price increased by 6.5% [1]

每经AI快讯，11月13日，思科第一财季营收148.8亿美元，分析师预期147.7亿美元。第一财季产品收入 110.8亿美元，分析师预期109.7亿美元。第一财季服务营收38.1亿美元，分析师预期37.9亿美元。预计全 年营收602亿~610亿美元，公司原本预计590亿~600亿美元。预计全年调整后EPS为4.08~4.14美元，公司 原本预计4~4.06美元。预计第二财季营收150亿~152亿美元，分析师预期147.2亿美元。预计第二财季调 整后EPS为1.01~1.03美元，分析师预期0.99美元。 ...

Core Viewpoint - Hong Kong's innovation and technology (InnoTech) sector has transformed from a supplementary role to a critical development direction, with increased public and capital interest in early-stage investments [2][3][6]. Group 1: Changes in Hong Kong's InnoTech Ecosystem - The occupancy rate of Hong Kong Science Park was low in 2016, but it has significantly improved, reflecting a fundamental shift in the importance of InnoTech [2]. - The investment landscape has evolved, with a notable increase in early-stage angel investments compared to previous focuses on later-stage funding [3][6]. - The establishment of the "Industry-Academia-Research 1+ Plan" aims to foster collaboration and support at least 100 potential startups with funding ranging from 10 million to 100 million HKD [3][4]. Group 2: Challenges and Opportunities for InnoTech Companies - A major challenge for Hong Kong's InnoTech companies is the lack of local application scenarios and related industrial chains, which hinders their ability to demonstrate viable products [3][7]. - The ongoing re-industrialization in Hong Kong has shown initial success, with many old factories undergoing smart transformations, creating conditions for precision instrument production [3][9]. - The "Industry-Academia-Research 1+" initiative provides a buffer for startups, allowing them to retain projects locally and gain market recognition, thus reducing overall investment risks [4][8]. Group 3: Production and Supply Chain Dynamics - The model of "R&D in Hong Kong, production in Shenzhen" is prevalent among startups, leveraging the Greater Bay Area's supply chain advantages while facing high local production costs [9]. - The increase in smart factories in Hong Kong and the successful transformation of traditional factories are contributing to the establishment of a foundational capacity in precision instruments [9]. Group 4: Regulatory and Land Use Considerations - There are challenges related to cross-border capital flow and legal regulations that need to be addressed to facilitate smoother investment processes for Hong Kong's InnoTech companies [10]. - Improving land utilization for InnoTech is crucial, with suggestions for the government to develop underutilized areas to support the sector's growth [11].

Core Viewpoint - Cisco (CSCO.US) is set to announce its Q1 FY2026 earnings on November 12, with Wall Street expecting a revenue increase of 6.8% year-over-year to $14.78 billion and an EPS growth of 7.7% to $0.87 [1][2] Group 1: Financial Expectations - Revenue from the networking segment is anticipated to grow by 8.7% to $7.34 billion, while the services segment is expected to see a 2% increase to $3.8 billion [1] - Cisco's stock has risen nearly 40% over the past 12 months, attributed to better-than-expected sales, stable gross margins, and the market excitement surrounding artificial intelligence (AI) [1] Group 2: Market Sentiment and Valuation - Investors are focused on whether Cisco can maintain its growth momentum, despite the attractive AI narrative, as the company is not a high-growth tech firm and its stock performance is significantly influenced by overall market cycles [1] - Cisco's current price-to-earnings ratio is close to 30, which is considered high and aligns with the cyclical adjustments in the S&P 500 index [1] Group 3: Capital Expenditure Trends - The upcoming earnings report will indicate whether Cisco can capitalize on the significant increase in capital expenditures from large-scale customers over the past year, with plans to further expand budgets in 2026 [2] - For the Q1 FY2026 earnings, Cisco needs to either exceed expectations in the networking business or show a notable recovery in its remaining performance obligations (RPO) for the stock price to react positively [2]