Core Insights - The performance of F5 Networks' international operations is crucial for assessing its financial resilience and growth prospects [1][2] Group 1: International Revenue Performance - F5 Networks reported total revenue of $822.47 million for the quarter, reflecting a 7.3% increase year-over-year [4] - Revenue from the Asia Pacific region was $128.97 million, accounting for 15.7% of total revenue, which was a surprise decrease of -1.64% compared to analyst expectations [5] - The Europe, Middle East, and Africa region contributed $253.71 million, representing 30.9% of total revenue, with a positive surprise of +25.26% over analyst forecasts [7] - The "Other" category generated $26.59 million, making up 3.2% of total revenue, exceeding expectations by +17.2% [6] Group 2: Future Revenue Forecasts - Analysts project total revenue for the current fiscal quarter to reach $781.41 million, a 6.9% increase from the same quarter last year [8] - For the entire year, total revenue is forecasted at $3.24 billion, indicating a 5% improvement from the previous year [9] - Expected contributions from various regions for the year include Asia Pacific at 16.9% ($547.84 million), Other at 2.9% ($93.37 million), and Europe, Middle East, and Africa at 25.7% ($832.76 million) [9] Group 3: Market Dynamics and Stock Performance - The reliance on international markets presents both opportunities and challenges for F5 Networks, necessitating close monitoring of international revenue trends [10] - The company's stock has gained 0.7% over the past month, contrasting with a 1.5% decrease in the S&P 500 composite [14] - Over the past three months, F5's shares increased by 13.5%, while the S&P 500 saw a modest increase of 0.3% [14]

F5 Networks (FFIV) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a ...

Cisco Stock: How To Find & Own America's Greatest Opportunities | Investor's Business DailyBREAKING: [Tech Futures Climb, Dow Lags As F5, Seagate Rally]Investors.com will undergo scheduled maintenance from 10:00 PM ET to 2:00 AM ET and some features may be unavailable. We apologize for any inconvenience.--- Cisco Systems was one of the greatest-performing stocks of the 1990s, making its name as the leading supplier of computer networking gear. Among its products were routers, bridges, terminal servers and n ...

Management stated that AI solutions are on track to achieve $500 million in ACV in 2025, indicating significant progress toward the $1 billion target in 2026. Now Assist, in particular, outperformed expectations with 12 transactions above $1 million, including one exceeding $10 million. Furthermore, ServiceNow experienced tremendous growth across industries. Transportation and logistics led with over 90% YOY growth in net new ACV, followed by retail, hospitality, and education, all of which increased by mor ...

Core Insights - Cisco Systems (CSCO) shares have returned 7.7% over the past three months, outperforming the broader Zacks Computer & Technology sector and peers like Hewlett Packard Enterprise (HPE) and Arista Networks (ANET) due to a strong focus on AI and security [1][6] Stock Performance - CSCO stock has outperformed the tech sector, driven by solid trends in AI and security [6] Valuation - Cisco's aggressive AI initiatives and strong networking growth justify its premium valuation, with a forward 12-month price/sales ratio of 4.77X, higher than the industry average of 4.63X and HPE's 0.72X, but lower than ANET's 14.57X [4] Revenue and Earnings Guidance - For fiscal year 2026, Cisco expects revenues between $60.2 billion and $61 billion, up from $56.7 billion in fiscal 2025, with non-GAAP earnings projected between $4.08 and $4.14 per share [15] - The Zacks Consensus Estimate for fiscal 2026 revenues is $60.59 billion, indicating a 7% growth from fiscal 2025, while earnings are estimated at $4.10 per share, reflecting a year-over-year growth of 7.6% [16] AI Infrastructure and Networking Growth - In Q1 of fiscal 2026, AI infrastructure orders from hyperscalers reached $1.3 billion, with expectations of $3 billion in AI infrastructure revenues for the full fiscal year [8] - The networking product orders have seen high teens growth, marking five consecutive quarters of double-digit growth, driven by demand in hyperscale infrastructure and enterprise solutions [9] Strategic Partnerships - Cisco's partnership with NVIDIA enhances its AI capabilities, integrating Cisco Nexus switches with NVIDIA's Spectrum-X architecture to provide low-latency networking for AI clusters [12] Future Outlook - Cisco anticipates strong growth in its networking revenues, supported by robust demand for AI infrastructure and next-gen campus networking solutions [10][11] - The company expects to benefit from a multi-year refresh opportunity in campus networking as older switch support phases out [10]

Core Insights - Cisco Systems' first-quarter fiscal 2026 networking revenues increased by 15% year-over-year to $7.77 billion, driven by strong demand for AI infrastructure and campus networking solutions [1] - The company anticipates $3 billion in AI infrastructure revenues from hyperscalers in fiscal 2026, with AI infrastructure orders from hyperscalers reaching $1.3 billion [1][9] - Cisco is expanding its AI footprint through its networking portfolio, which includes Silicon One and AI-native security solutions [1][9] Networking Product Demand - Cisco has a growing pipeline of over $2 billion in orders for high-performance networking products across various customer segments, including sovereign, Neocloud, and enterprise [2] - The increasing AI workloads at the network edge and the rise of physical AI are positively impacting Cisco's industrial IoT portfolio [2] Technological Advancements - The integration of Cisco Nexus switches with NVIDIA's Spectrum-X architecture is providing low-latency, high-speed networking for AI clusters, boosting enterprise AI orders [3] - Cisco's upcoming N9100 switch, based on Spectrum-X silicon, is expected to enhance its presence among sovereign and neocloud providers [3] - The launch of Cisco Unified Edge, a converged platform for the network edge, is anticipated to facilitate real-time inferencing for AI workloads, promoting enterprise adoption [3] Competitive Landscape - Cisco faces significant competition from Arista Networks and Hewlett Packard Enterprise in the networking domain [4] - Arista Networks is gaining traction in high-performance switching products and has partnered with Fortinet to enhance security for AI data centers [5] - Hewlett Packard Enterprise is focusing on AI, Industrial IoT, and distributed computing, linking these areas to its networking business, Aruba Networks [6] Stock Performance and Valuation - Cisco shares have appreciated by 30.3% over the past 12 months, outperforming the broader Zacks Computer and Technology sector, which returned 22.6% [7][8] - Cisco's stock is trading at a premium, with a trailing 12-month price/book ratio of 6.58X compared to the industry average of 6.21X [11] - The Zacks Consensus Estimate for Cisco's second-quarter fiscal 2026 earnings is $1.02 per share, indicating an 8.5% growth from the previous year [13]

Core Viewpoint - Ubiquiti Inc. has received a Zacks Rank 1 (Strong Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Ubiquiti's earnings estimates have increased by 7.2% over the past three months, with an expected earnings per share of $12.90 for the fiscal year ending June 2026, showing no year-over-year change [8]. Institutional Investor Influence - Institutional investors utilize earnings estimates to determine the fair value of stocks, and their buying or selling actions based on these estimates can lead to significant price movements [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Ubiquiti's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Cisco Systems (CSCO) shares have increased by 33.8% over the past 12 months, outperforming the broader Zacks Computer & Technology sector and peers like Hewlett Packard Enterprise (HPE) and Arista Networks (ANET) due to a strong focus on AI and security [1][7][19] Financial Performance - Cisco shares closed at $78.25, nearing a 52-week high of $80.82 [1] - Total Annual Recurring Revenues reached $31.4 billion, a 5% year-over-year increase, while remaining performance obligations were $42.9 billion, up 7% year-over-year [6][7] - For fiscal 2026, Cisco expects revenues between $60.2 billion and $61 billion, compared to $56.7 billion in fiscal 2025 [14][15] AI and Networking Growth - AI infrastructure orders from webscale customers reached $2 billion in fiscal 2025, with expectations of $3 billion in fiscal 2026 [6][7] - Networking product orders grew in the high teens for five consecutive quarters, driven by demand in hyperscale infrastructure and enterprise solutions [8][9] - The company anticipates a multi-year refresh opportunity in campus networking solutions, supported by next-gen products [9] Strategic Partnerships - Cisco's collaboration with NVIDIA enhances its AI capabilities, integrating Cisco Nexus switches with NVIDIA's Spectrum-X architecture for improved networking in AI clusters [11] Guidance and Estimates - Cisco projects non-GAAP earnings of $1.01 to $1.03 per share for Q2 fiscal 2026, with revenues expected between $15 billion and $15.2 billion [12] - The Zacks Consensus Estimate for Q2 fiscal 2026 revenues is $15.12 billion, indicating an 8.1% year-over-year growth [13] Valuation Concerns - Cisco shares are considered overvalued, trading at a forward price/sales ratio of 5.03X, higher than the industry average of 4.58X [16] - The company holds a Zacks Rank 3 (Hold), suggesting a cautious approach for investors [21]

Core Viewpoint - Investing in dividend-paying AI companies provides a way to gain passive income while participating in the rapidly expanding AI market [1] Group 1: Company Overview - Three notable AI stocks with attractive dividend yields are IBM, Cisco, and Nokia, offering diversification within the AI ecosystem [2] - IBM has a dividend yield of 2.2% and has shifted its focus to AI and cloud computing, resulting in significant sales growth [4][5] - Cisco's dividend yield is 2.1%, and the company is positioned to meet the demands of AI-driven networking with new products [10][12] - Nokia offers the highest dividend yield at 2.5% and is focusing on AI-supported 6G technology through a partnership with Nvidia [15][16] Group 2: Financial Performance - IBM's revenue rose 9% year-over-year to $16.3 billion in Q3, with its software division growing 10% to $7.2 billion [5] - Cisco reported a 5% year-over-year revenue growth to $56.7 billion for the fiscal year 2025, with an 8% increase in Q1 [12] - Nokia experienced a 4% year-over-year revenue growth to 13.8 billion euros in the first three quarters of 2025, following a decline in 2024 [18] Group 3: Future Prospects - IBM aims to achieve quantum advantage by the end of 2026, which could enhance its AI capabilities significantly [9] - Cisco expects revenue to continue rising in fiscal 2026, forecasting between $60.2 billion and $61 billion [12] - Nokia's partnership with Nvidia is expected to accelerate the development of AI-RAN technology, with testing set to begin in 2026 [16]

Core Insights - Lantronix, Inc. (LTRX) has partnered with Trillium Engineering to provide NDAA/TAA-compliant Edge AI technology, enhancing its position in the growing drone market projected to reach $57.8 billion by 2030 [1][5] Company Developments - The collaboration emphasizes Lantronix's capability to deliver AI-powered edge computing solutions, creating recurring revenue opportunities in both defense and commercial sectors [2][5] - Trillium's imaging systems, powered by Lantronix's technology, support various applications including intelligence, surveillance, reconnaissance, and infrastructure inspection [2][4] - The partnership showcases the scalability of Lantronix's Edge AI platform for military and commercial drone applications, reinforcing its leadership in high-growth markets [3][5] Technology Highlights - A key differentiator is the Open-Q 5165RB System on Module, utilizing Qualcomm Dragonwing processors, which enables advanced AI capabilities such as real-time edge processing and adaptive object detection [4][9] - Lantronix's technology allows for precision targeting in GPS-denied environments and is designed for compact uncrewed systems [4] Financial Outlook - For Q2 of fiscal 2026, Lantronix expects revenue between $28 million and $32 million, with a midpoint of $30 million, and non-GAAP EPS projected between 2 cents and 4 cents [7][9] - The design win with Trillium is seen as a significant milestone in Lantronix's strategy for sustainable, high-margin growth through differentiated Edge AI solutions [5][6] Market Performance - LTRX has a Zacks Rank 2 (Buy) and its shares have increased by 91.3% over the past year, outperforming the Zacks Computer Networking industry's growth of 37.7% [8]