智通财经网·2025-11-10 04:11Core 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 Performance Expectations - Cisco's network business is projected to grow by 8.7% to $7.34 billion, while the service business is expected to increase by 2% to $3.8 billion [1] - The stock has seen a nearly 40% increase over the past 12 months, attributed to better-than-expected sales, stable gross margins, and the AI market trend [1] Group 2: Market Sentiment and Valuation - Investors are focused on whether Cisco can maintain its growth momentum, despite the company not being a high-growth tech firm and its stock price being influenced by overall market cycles [1] - Cisco's current P/E ratio is close to 30, indicating a high valuation that aligns with the cyclical adjustments of the S&P 500 [1] Group 3: Capital Expenditure Trends - The upcoming earnings report will be crucial for Cisco to demonstrate its ability to capitalize on the significant increase in capital expenditures from large-scale customers, which are expected to expand their budgets in 2026 [2] - For a positive stock reaction, Cisco needs to either exceed expectations in its network business or show a notable recovery in its remaining performance obligations (RPO) [2]