Revenue and Income - Total revenue for the first quarter of fiscal 2026 was $14,883 million, an increase of 8% compared to $13,841 million in the same period last year[170]. - Net income for the quarter was $2,860 million, a 5% increase from $2,711 million, with diluted earnings per share rising by 6% to $0.72[170]. - Operating income rose by 43% to $3,363 million in Q1 FY2026, with operating income as a percentage of revenue increasing to 22.6% from 17.0%[239]. Revenue Breakdown - Product revenue increased by 10%, while services revenue grew by 2%, with total software revenue reaching $5.7 billion, up 3%[173]. - Revenue from the Americas increased by $0.7 billion, while EMEA and APJC revenues rose by $0.2 billion and $0.1 billion, respectively[175]. - Product revenue increased by 10% to $11,077 million, while services revenue grew by 2% to $3,806 million[202][204]. - Revenue from the Americas segment was $8,989 million, representing a 9% increase, with product revenue in this segment rising by 12% to $6,706 million[203][208]. - EMEA segment revenue increased by 5% to $3,784 million, with product revenue growing by 6% to $2,846 million[203][209]. - APJC segment revenue rose by 5% to $2,111 million, with product revenue increasing by 7% to $1,525 million[203][210]. Product Performance - Networking product revenue increased by 15% to $7,768 million, driven by growth in Service Provider Routing and AI Infrastructure solutions[212][213]. - Security product revenue decreased by 2% to $1,980 million, impacted by a shift from on-premise deals to cloud subscriptions[212][214]. - Collaboration product revenue declined by 3% to $1,055 million, primarily due to decreases in Devices and Webex Suite offerings[212][215]. Expenses and Margins - Operating income as a percentage of revenue improved by 5.6 percentage points to 22.6% due to lower restructuring charges and revenue growth[174]. - Research and development expenses were $2,400 million, up 5% from $2,286 million, reflecting continued investment in innovation[170]. - The gross margin percentage decreased by 0.4 percentage points to 65.5%, primarily due to product mix and pricing impacts[170]. - Product gross margin decreased to 64.5% in Q1 FY2026 from 65.1% in Q1 FY2025, primarily due to negative impacts from product mix and pricing[221]. - Services gross margin increased by 0.4 percentage points to 68.4% in Q1 FY2026, driven by cost efficiencies[225]. - Total gross margin for the company was 65.5% in Q1 FY2026, down from 65.9% in Q1 FY2025, with total gross margin amounting to $9,745 million compared to $9,121 million[227]. Cash Flow and Investments - Total cash and cash equivalents and investments stood at $15,736 million, a slight decrease from $16,110 million[178]. - Free cash flow for the three months ended October 25, 2025, was $2,889 million, a decrease of approximately 16% from $3,444 million for the same period in 2024[250]. - Cash returned to stockholders included $1.6 billion in dividends and $2.0 billion in stock repurchases, contributing to a net decrease in cash and cash equivalents and investments of $374 million[247]. Tax and Compliance - The effective tax rate for the first quarter of fiscal 2026 was a tax provision of 15.7%, compared to a benefit of 19.6% in the first quarter of fiscal 2025[198]. - The effective tax rate for Q1 FY2026 was 15.7%, up from (19.6)% in Q1 FY2025, primarily due to a prior year tax benefit of $720 million[244]. - The company was in compliance with all debt covenants as of October 25, 2025[266]. Future Outlook and Commitments - The company plans to continue investing in key priority areas to drive long-term profitable growth amid a competitive environment[176]. - The company expects to continue entering into additional purchase commitments in FY2026, increasing supply chain exposure[224]. - The remaining authorized amount for stock repurchases is approximately $12.2 billion, with no termination date[253]. Performance Obligations and Deferred Revenue - Remaining performance obligations totaled $42,873 million, down from $43,533 million[178]. - Total remaining performance obligations as of October 25, 2025, decreased by 2% to $42.873 billion compared to the end of fiscal 2025[270]. - Total deferred revenue decreased by 3% to $27.969 billion, with deferred product revenue down 2% and deferred services revenue down 4%[271].

Core Viewpoint - Cisco's stock has performed well, increasing by 37% over the past year, yet retail investor sentiment has turned negative, with social sentiment dropping to 35/100 despite solid fundamentals and a 2.09% dividend yield [1][6]. Group 1: Investor Sentiment - Mentions of Cisco on Reddit surged in mid-November, with a notable shift from neutral to negative sentiment, as discussions highlighted concerns about historical losses and potential market bubbles [2]. - A specific post on r/investing warned that Cisco's recovery from the dotcom bubble could indicate a potential bubble, resonating with many users [2]. - The decline in sentiment is attributed to profit-taking after a significant annual gain, with the current sentiment at 35/100 [4][6]. Group 2: Valuation Concerns - Cisco's trailing P/E ratio stands at 30, with only 6% year-over-year earnings growth, resulting in a PEG ratio of 5, indicating the stock may be overvalued relative to its growth [3][5]. - The stock's RSI has remained above 70 since November 13, suggesting overbought conditions, which has contributed to the bearish sentiment [4][5]. - Despite strong operational margins (23.6% operating, 17.9% profit) and an 11% monthly gain, concerns about valuation and timing have led investors to lock in profits rather than increase exposure [6].

Core Viewpoint - Cisco shares are currently trading just under $78 per share [1] Company Summary - Cisco's stock price is positioned below $78, indicating a specific valuation point in the market [1]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need to disable them for proper access [1]

Summary of Cisco Systems FY Conference Call Company Overview - **Company**: Cisco Systems (NasdaqGS:CSCO) - **Date of Conference**: November 18, 2025 - **Speaker**: Mark Paterson, CFO Key Industry Insights - **Growth Drivers**: Cisco identifies several key growth drivers for the upcoming 12 to 24 months, including: - AI networking and infrastructure - Cybersecurity enhancements, particularly following the acquisition of Splunk - A significant campus refresh opportunity due to aging equipment and increased security needs [11][15][17] Financial Performance - **Recent Earnings**: Cisco reported strong earnings with broad-based order growth across geographies and customer markets, indicating a robust demand for its products [15][12] - **Order Growth**: The company achieved $1.3 billion in new orders from top hyperscalers in Q1, significantly exceeding its previous target of $1 billion [20][26] - **Revenue Projections**: Cisco anticipates over $3 billion in revenue from AI-related orders this fiscal year, up from $1 billion last year [28][26] AI and Hyperscaler Engagement - **AI Infrastructure**: Cisco's role in AI has evolved, with a focus on providing critical technology for hyperscalers and enterprise AI applications. The company aims to double its previous year's order growth, targeting $4 billion in AI-related orders [25][26] - **Web Scalers**: Cisco has seen over 100% growth in orders from four different web scalers, indicating strong demand for its AI infrastructure solutions [43][42] Campus Upgrade Cycle - **Multi-Year Opportunity**: The campus upgrade cycle is expected to be a multi-year, multi-billion dollar opportunity driven by aging equipment, security risks, and the need for AI application deployment [80][81] - **Product Innovations**: Cisco has introduced a comprehensive refresh of its campus switches and security products, integrating AI capabilities to meet evolving customer needs [81][82] Competitive Landscape - **Market Position**: Cisco reported a 13% global order growth, with a 9% growth excluding web scale, indicating strong competitive positioning despite a competitive market [93][96] - **Customer Adoption**: The transition to new platforms in campus networking technologies is happening faster than previous launches, showcasing strong customer adoption [96][95] Silicon One Strategy - **Strategic Asset**: Silicon One is highlighted as a critical asset for Cisco, providing technological advantages and cost savings, which are appealing to hyperscalers [102][108] - **Future Plans**: Cisco plans to have all high-powered systems based on Silicon One by FY2029, enhancing control over its supply chain and gross margins [109][108] Security Business Dynamics - **Revenue Trends**: Cisco's security business is experiencing a transition to cloud offerings, which may temporarily impact revenue recognition but is expected to lead to stronger long-term growth [125][126] - **Customer Adoption**: The company has seen a growing customer base for its new security technologies, with 3,000 new customers added recently [127][126] Supply Chain and Pricing Strategy - **Component Costs**: Cisco is facing memory price increases and supply chain challenges but has managed to maintain stable gross margins [145][146] - **Pricing Adjustments**: The company implemented a price increase at the beginning of the quarter to address rising component costs, which has helped mitigate some margin pressures [154][153] Government Exposure - **Public Sector Growth**: Cisco's public sector business, particularly in defense and intelligence, is performing well, with mid to upper single-digit growth expected [160][161] Capital Return Strategy - **Share Buybacks**: Cisco plans to continue its share buyback program, with a run rate of $1 billion per quarter, while also supporting its dividend [169][170] Investor Insights - **Networking Importance**: The critical role of networking in AI and hyperscale environments is emphasized, highlighting the ongoing demand for Cisco's networking solutions [174][175] - **Market Opportunities**: Even amidst concerns about an AI bubble, Cisco sees significant opportunities in networking spend associated with AI growth projections [177][178]

Investment Rating - The report does not provide a specific investment rating for the industry [4] Core Insights - The U.S. Department of Energy has indicated that a significant portion of future funding will be directed towards nuclear power plant construction, highlighting the increasing importance of nuclear energy in the federal energy strategy. This shift is driven by the substantial growth in electricity demand from AI and large-scale data centers, which traditional renewable energy sources and grid expansions cannot meet in the short term. Nuclear power, known for its stability and predictability, is re-emerging as a foundational option in the U.S. energy system [4][16] - The report notes a decline in technology stocks during the week of November 10 to November 14, 2025, with the Hang Seng Technology Index falling by 0.4% and the Philadelphia Semiconductor Index dropping by 2.0% [7][9] - The cryptocurrency market experienced significant outflows, with a total market capitalization of $3.35 trillion as of November 14, 2025, down from $3.37 trillion the previous week. The total trading volume for cryptocurrencies was $219.79 billion, accounting for 6.56% of the total market capitalization [18][22] Summary by Sections 1. Overseas AI - The technology sector saw fluctuations, with the Hang Seng Technology Index closing at 5812.8, down 0.4%, and the Philadelphia Semiconductor Index at 6811.2, down 2.0% [7][9] - The top five gainers included Xpeng Motors (+12%), Cisco (+10%), AMD (+6%), Trip.com Group (+5%), and Tongcheng Travel (+5%), while the top five losers were NUSCALE POWER (-26%), NANO NUCLEAR ENERGY (-16%), CENTRUS ENERGY (-15%), OKLO (-13%), and Blue Doctor Semiconductor (-12%) [9][14] 2. Web3 and Cryptocurrency Market - The cryptocurrency market is currently in a state of panic, with the Fear and Greed Index at 22, indicating a high level of fear among investors [22] - The report highlights that the core assets in the cryptocurrency market experienced significant outflows, totaling $1.112 billion for the week, with major ETFs also recording net outflows [27][34] - The overall sentiment in the cryptocurrency market remains negative, with liquidity tightening and core asset prices dropping below $95,000 [34][36]

Core Insights - Cisco Systems, Inc. is gaining attention as an AI stock, with BofA Securities raising its price target to $95 from $85 while maintaining a "Buy" rating due to strong orders for AI networking and campus refresh demand [1][2] - The company has set a $3 billion AI revenue target for FY26, significantly up from $1 billion recorded in FY25, indicating robust growth potential in the AI sector [2][3] - The networking cycle is expected to continue benefiting Cisco, particularly as AI expands into enterprise environments, with a notable $10 billion of old campus products reaching end-of-service in FY26 [2][3] Financial Performance - Cisco's revenue growth guidance for 2026 has been increased to 7%, compared to the Street's estimate of 5.3%, driven by AI and campus strength [3] - Despite the positive outlook, the security segment has underperformed, showing a 2% year-over-year decline, even with new platform launches and firewall refreshes [3] - The stock is currently trading at a forward EV/FCF multiple of 17x, with updated estimates reflecting a price target increase based on 21x 2027E EV/FCF, up from 19x previously [3]

Cisco acquires translation startup EzDubs https://t.co/KmOZAlcJkS ...

Core Insights - Cisco has acquired EzDubs, a startup specializing in real-time translation services, although the financial details of the deal remain undisclosed [1] - EzDubs was founded in 2023 and has raised $4.2 million in seed funding from notable investors [2] - The acquisition aims to integrate EzDubs' technology into Cisco's communication platform, enhancing features like live translation in Webex [3][4] Company Overview - EzDubs was co-founded by Padmanabhan Krishnamurthy, Amrutavarsh Kinagi, and Kareem Nassar, the latter having prior experience at Cisco [2] - The startup has developed consumer applications that supported call translations for over 30 languages, which will be discontinued by December 15 [5] Industry Context - The translation services market is valued at approximately $40 billion, indicating significant demand and potential for enterprise-focused solutions [10] - Recent acquisitions in the translation space include Palabra AI's acquisition of Talo and TransPerfect's acquisition of Unbabel, highlighting ongoing consolidation in the industry [8][9]

Group 1 - The AGIX index aims to capture the beta and alphas of the AGI era, which is expected to be a significant technological paradigm shift over the next 20 years, similar to the impact of the internet [2] - The article emphasizes the importance of learning from legendary investors like Warren Buffett, Ray Dalio, and Howard Marks to navigate the AGI revolution [2] Group 2 - AGIX has shown a year-to-date return of 26.72% and a return of 74.54% since 2024, outperforming major indices like QQQ and S&P 500 [5] - The performance of AGIX portfolios indicates a slight decline in sectors such as semi & hardware, infrastructure, and application [6] Group 3 - The article discusses the potential of robots reaching a critical point of general intelligence with around 7 billion parameters, similar to the breakthrough seen with GPT-3 [10] - It highlights the advancements in hardware and engineering that are necessary for robots to operate effectively in real-world environments [11] Group 4 - The article outlines the challenges in data collection for robotics, emphasizing the need for diverse and extensive datasets to achieve generality in various tasks [12][13] - It discusses different approaches to data collection, including world models and real-world interactions, to enhance robotic capabilities [17] Group 5 - The article notes that the AI verticals have faced significant sell-offs by hedge funds, particularly in AI technology stocks, leading to a notable market rotation [18] - It highlights the financial relationship between OpenAI and Microsoft, revealing that OpenAI's revenue is significantly impacted by its operational costs [20][21] Group 6 - The article mentions significant investments in AI infrastructure, such as Alphabet's $40 billion investment in Texas data centers and Nvidia's collaboration with Cisco to enhance AI deployment [22][23] - It also covers various acquisitions in the AI space, including Salesforce's acquisition of Doti for $100 million and Snowflake's acquisition of Datometry to improve database migration capabilities [24][25]