Core Insights - Coherent reported $1.53 billion in revenue for the quarter ended June 2025, a year-over-year increase of 16.4% [1] - The EPS for the same period was $1.00, compared to $0.61 a year ago, indicating significant growth [1] - The revenue exceeded the Zacks Consensus Estimate of $1.51 billion, resulting in a surprise of +1% [1] - The company also delivered an EPS surprise of +7.53%, with the consensus EPS estimate being $0.93 [1] Performance Metrics - Coherent's shares have returned +21.3% over the past month, outperforming the Zacks S&P 500 composite's +3.1% change [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for further outperformance in the near term [3] Revenue Breakdown - Networking revenues reached $945.2 million, surpassing the four-analyst average estimate of $930.18 million, with a year-over-year change of +39% [4] - Laser revenues were reported at $348 million, slightly below the four-analyst average estimate of $358.41 million, reflecting a year-over-year decline of -2.1% [4] - Materials revenues totaled $236.2 million, exceeding the four-analyst average estimate of $231.23 million, but showing a year-over-year decrease of -15.4% [4]

Core Insights - Cisco Systems (CSCO) reported $14.67 billion in revenue for the quarter ended July 2025, marking a year-over-year increase of 7.6% and an EPS of $0.99 compared to $0.87 a year ago, exceeding Zacks Consensus Estimates for both revenue and EPS [1] Revenue Breakdown - Revenue from Networking products was $7.63 billion, surpassing the average estimate of $7.19 billion, with a year-over-year change of +12.2% [4] - Revenue from Observability products was $259 million, below the estimated $288.55 million, reflecting a +4.4% change year-over-year [4] - Revenue from Services was $3.79 billion, slightly below the average estimate of $3.88 billion, with a year-over-year change of +0.1% [4] - Revenue from Security products was $1.95 billion, below the estimated $2.2 billion, showing a +9.2% change year-over-year [4] - Total Product revenue was $10.89 billion, exceeding the average estimate of $10.72 billion, with a year-over-year change of +10.4% [4] - Revenue from Collaboration products was $1.04 billion, matching the average estimate, with a +2.3% change year-over-year [4] Gross Margin Insights - Non-GAAP Gross Margin for Services was $2.68 billion, slightly below the average estimate of $2.75 billion [4] - Non-GAAP Gross Margin for Products was $7.35 billion, exceeding the average estimate of $7.18 billion [4] Stock Performance - Cisco shares have returned +6.3% over the past month, outperforming the Zacks S&P 500 composite's +3.1% change, with a Zacks Rank 2 (Buy) indicating potential for further outperformance [3]

Core Insights - Coherent (COHR) is expected to report quarterly earnings of $0.93 per share, reflecting a year-over-year increase of 52.5% [1] - Anticipated revenues for the quarter are projected to be $1.51 billion, representing a 15.2% increase compared to the same quarter last year [1] Earnings Estimates - The consensus EPS estimate has been revised 3.8% higher in the last 30 days, indicating a collective reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts estimate 'Revenues- Materials' at $231.23 million, a decrease of 17.2% from the prior-year quarter [5] - 'Revenues- Networking' is projected at $930.18 million, showing an increase of 36.8% year over year [5] - 'Revenues- Lasers' are expected to reach $358.41 million, indicating a slight increase of 0.9% [5] Market-Specific Revenue Estimates - 'Revenue by Market- Instrumentation' is estimated at $102.65 million, reflecting a year-over-year change of 1.4% [6] - 'Revenue by Market- Communications' is projected at $927.02 million, with a year-over-year increase of 36.7% [6] - 'Revenue by Market- Industrial' is expected to be $422.91 million, indicating a decrease of 2% from the prior-year quarter [6] - 'Revenue by Market- Electronics' is anticipated to reach $64.24 million, reflecting a significant decline of 38.1% from the year-ago quarter [7] Stock Performance - Over the past month, Coherent shares have returned +21.5%, outperforming the Zacks S&P 500 composite's +1.9% change [7] - Coherent currently holds a Zacks Rank 1 (Strong Buy), suggesting potential for outperformance in the near future [7]

Financial Data and Key Metrics Changes - Gross billings increased by 12% year over year, reaching $21.6 billion, with a 11% growth in constant currency [6][13] - Net revenue rose by 7% year over year to $14.9 billion, exceeding guidance [14] - Non-GAAP diluted EPS was $2.99, above the upper end of guidance [18] Business Line Data and Key Metrics Changes - Endpoint Solutions portfolio gross billings grew by 13% year over year, driven by a PC refresh cycle [14] - Advanced Solutions portfolio gross billings increased by 12% year over year, with a 10% growth when excluding Hive [14] - Software billings grew by 20%, supported by cloud, cybersecurity, and infrastructure software [7] Market Data and Key Metrics Changes - All regions and major technologies experienced growth during the quarter, with strong demand from SMB, MSPs, and Public Sector, all growing in double digits [7] - APJ region showed strong performance, particularly in India and Japan, contributing to overall growth [88] Company Strategy and Development Direction - The company aims to unify reach, target new customers, expand distribution markets, diversify offerings, and accelerate services [8] - The strategy includes leveraging digital capabilities to enhance customer operational efficiency and drive sales growth [10] - The company is focused on generating profitable growth and free cash flow while being a valued partner to vendors and customers [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic uncertainties but expressed confidence in strong financial positioning heading into the second half of the year [20] - The company expects non-GAAP gross billings for Q3 to be in the range of $21 billion to $22 billion, representing approximately 6% growth at the midpoint [20] - Management remains cautiously optimistic about demand trends, particularly in the public sector and technology segments [34][56] Other Important Information - Free cash flow generation for the quarter was approximately $543 million, with $186 million returned to shareholders [18] - The company ended the quarter with $767 million in cash and cash equivalents and a gross leverage ratio of 2.4 times [19] Q&A Session Summary Question: Can you provide more details on the demand pull forward mentioned? - Management noted a pull forward in demand, particularly in PCs, estimating a benefit of $100 million to $200 million in sales [23][24] Question: Why is Q3 guidance similar to last year despite the pull forward? - Management indicated that while there was a pull forward, they expect demand to soften in the second half of the year, leading to cautious guidance [31] Question: Are there any weaknesses observed in regions or product lines? - Management stated that current demand is in line with guidance, but uncertainties regarding tariffs and geopolitical issues could impact future performance [58] Question: What is the current status of the PC refresh cycle? - Management believes the company is in the middle of the refresh cycle, which began one to two quarters ago, contributing positively to growth [77] Question: What is driving the sequential margin improvement in the PC business? - Management attributed margin improvement to increased demand and a stronger pricing environment during the refresh cycle, along with favorable product mix [81][84]

Financial Data and Key Metrics Changes - Gross billings increased by 12% year over year, reaching $21.6 billion, with a 11% growth in constant currency [12] - Net revenue rose by 7% year over year to $14.9 billion, exceeding guidance [13] - Non-GAAP diluted EPS was $2.99, above the upper end of guidance [16] - Free cash flow generation for the quarter was approximately $543 million [17] Business Line Data and Key Metrics Changes - Endpoint Solutions portfolio gross billings grew by 13% year over year, driven by the ongoing PC refresh cycle [13] - Advanced Solutions portfolio gross billings increased by 12% year over year, with a 10% growth when excluding Hive [13] - Software billings grew by 20%, driven by cloud, cybersecurity, and infrastructure software [6] Market Data and Key Metrics Changes - All regions and major technologies experienced growth during the quarter, with strong demand from SMB, MSPs, and Public Sector, all growing in double digits [6] - Europe showed strong growth at 17% year over year, while North America also enjoyed solid growth [90] Company Strategy and Development Direction - The company shared five strategic imperatives aimed at delivering above-market growth, including unifying reach, targeting new customers, and expanding distribution markets [7] - The focus on digital capabilities is intended to help new customers scale and improve operational efficiencies [9] - The company aims to generate profitable growth and free cash flow while being a valued partner to vendors and customers globally [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a volatile environment due to global trade developments but expressed confidence in the company's strong financial position [18] - For Q3, the company expects non-GAAP gross billings in the range of $21 billion to $22 billion, representing approximately 6% growth at the midpoint [18] - Management remains cautiously optimistic about demand, particularly in the public sector, despite macroeconomic uncertainties [32] Other Important Information - The company returned $186 million to shareholders in Q2, including $149 million in share repurchases and $37 million in dividends [17] - The Board of Directors approved a cash dividend of $0.44 per common share, payable on July 25, 2025 [18] Q&A Session Summary Question: Can you provide more details on the demand pull forward mentioned? - Management noted a pull forward in demand, particularly in PCs, estimating a benefit of $100 million to $200 million in sales [23][24] Question: Why is Q3 guidance similar to last year despite the pull forward? - Management indicated that while there was a pull forward, they expect demand to soften in the second half of the year, leading to cautious guidance [30] Question: Are you seeing any weakness in any region or product line? - Management stated that current demand is in line with guidance, but they remain cautious due to potential impacts from tariffs and geopolitical issues [60] Question: What is the current status of the PC refresh cycle? - Management believes the company is in the middle of the PC refresh cycle, which began one to two quarters ago [79] Question: What is driving the sequential margin improvement in the Endpoint Solutions business? - Management attributed margin improvement to increased demand and a stronger pricing environment during the refresh cycle [83]

Core Insights - ePlus inc. reported improved gross profit and gross margin for the fourth quarter and full year of fiscal year 2025, with double-digit growth in earnings per share (EPS) for the fourth quarter [3][4][13] Financial Performance - For the fourth quarter ended March 31, 2025, consolidated net sales decreased by 10.2% to $498.1 million from $554.5 million, while technology business net sales decreased by 10.4% to $487.2 million [5][8] - Consolidated gross profit increased by 11.8% to $145.8 million, with a gross margin of 29.3%, compared to 23.5% in the previous year [10][8] - Net earnings rose by 14.6% to $25.2 million, and diluted EPS increased by 15.9% to $0.95 [13][8] Yearly Overview - For the fiscal year ended March 31, 2025, consolidated net sales decreased by 7.0% to $2,068.8 million from $2,225.3 million, with technology business net sales down by 7.7% to $2,009.1 million [14][19] - Consolidated gross profit for the year increased by 3.3% to $569.1 million, with a gross margin of 27.5%, up from 24.8% in fiscal year 2024 [19][21] - Net earnings for the fiscal year decreased by 6.7% to $108.0 million, with diluted EPS down by 6.5% to $4.05 [21][22] Segment Performance - Professional service revenues increased by 48.4% in the fourth quarter to $60.4 million, primarily due to the acquisition of Bailiwick Services, LLC [7][4] - Managed service revenues grew by 16.6% to $44.5 million, driven by growth in Enhanced Maintenance Support and Cloud services [8][17] - The financing business segment saw net sales increase by 4.9% to $10.9 million, attributed to higher transactional gains and portfolio earnings [9][41] Operational Highlights - Operating expenses increased by 9.6% to $111.0 million, mainly due to higher salaries and benefits from increased headcount [11][20] - The company’s headcount rose to 2,199, up by 299 from the previous year, largely due to the acquisition of Bailiwick Services, LLC [11][20] - Cash and cash equivalents as of March 31, 2025, were $389.4 million, up from $253.0 million a year earlier [23][20] Strategic Outlook - ePlus is initiating fiscal year 2026 guidance for net sales growth in low single digits, with gross profit and adjusted EBITDA expected to grow in the mid-single digits [24][25] - The company remains focused on evolving its service and product offerings, particularly in fast-growing areas such as AI, cloud, security, and networking [25][4]

Core Viewpoint - Cisco has signed a Memorandum of Understanding (MoU) to join the Stargate UAE consortium as a preferred technology partner, aiming to develop AI infrastructure in Abu Dhabi, including a data center with a target capacity of 1 GW, starting with an initial 200 MW by 2026 [2][6]. Group 1: Partnership and Collaboration - Cisco will collaborate with major technology firms including G42, OpenAI, Oracle, NVIDIA, and SoftBank Group to enhance AI innovation and infrastructure development [2][4]. - The partnership aims to provide advanced networking, security, and observability solutions to support the deployment of next-generation AI compute clusters [4][6]. Group 2: Strategic Importance - The initiative is part of a broader strategy to foster AI development in the Middle East, leveraging Cisco's expertise in networking and security [5][6]. - Cisco's involvement aligns with recent regional initiatives announced by the company, emphasizing the importance of secure, AI-powered digital infrastructure [5][6]. Group 3: Leadership and Vision - Cisco's Chair and CEO, Chuck Robbins, highlighted the transformative potential of AI in turning data into actionable insights, reinforcing the company's commitment to innovation and infrastructure development [5][6]. - The signing ceremony was attended by key figures, including UAE President His Highness Sheikh Mohammed bin Zayed, indicating the project's significance at a national level [3][6].

Core Insights - Cisco Systems (CSCO) reported third-quarter fiscal 2025 non-GAAP earnings of 96 cents per share, exceeding the Zacks Consensus Estimate by 5.49%, and reflecting a year-over-year increase of 9.1% [1] - Revenues reached $14.15 billion, surpassing the Zacks Consensus Estimate by 0.65%, with an 11.4% year-over-year growth [1] - Cisco shares rose 4.13% in pre-market trading, with a year-to-date gain of 3.6%, outperforming the Zacks Computer & Technology sector's 2.4% decline [1] Revenue Breakdown - Networking revenues for Q3 fiscal 2025 were $7.06 billion, an 8% increase year-over-year [2] - Security revenues surged to $2.01 billion, up 54% year-over-year [2] - Collaboration revenues reached $1.03 billion, growing 4% year-over-year [2] - Observability revenues were $261 million, reflecting a 24% year-over-year growth [2] Product and Service Revenues - Total product revenues were $10.37 billion, accounting for 73.3% of total revenues, with a 15% year-over-year increase [3] - Service revenues amounted to $3.77 billion, making up 26.7% of total revenues, with a 2.6% year-over-year increase [3] - Annualized Recurring Revenues (ARR) for the quarter were $30.6 billion, up 5% year-over-year, with product ARR growth of 8% [3] Regional Performance - Americas revenues increased 14% year-over-year to $8.38 billion [4] - EMEA revenues rose 8% year-over-year to $3.73 billion [4] - APJC revenues climbed 9% year-over-year to $2.03 billion [4] - AI Infrastructure orders from webscale customers exceeded $600 million, surpassing the $1 billion annual target a quarter ahead of schedule [4] Operating Expenses and Margins - Non-GAAP gross margin was 68.6%, expanding 30 basis points year-over-year [5] - Non-GAAP product gross margin increased 200 basis points year-over-year to 49.6%, while service gross margin decreased 170 basis points to 19% [5] - Total non-GAAP operating expenses were $4.82 billion, up 11.5% year-over-year, maintaining 34% of revenues [5] - Non-GAAP operating income was $4.88 billion, up 12.2% year-over-year, with an operating margin of 34.5% [6] Balance Sheet Overview - As of April 26, 2025, cash and cash equivalents and investments totaled $15.6 billion, down from $16.9 billion as of January 25, 2025 [7] - Total debt was $29.2 billion, compared to $31.03 billion at the end of the prior quarter [7] Remaining Performance Obligations - Remaining performance obligations (RPO) at the end of Q3 fiscal 2025 were $41.7 billion, up 7%, with 51% expected to be recognized as revenues over the next 12 months [8] - Product RPO increased by 10%, while services RPO grew by 5% [8] Shareholder Returns - In Q3 fiscal 2025, Cisco returned $3.1 billion to stockholders through share buybacks and dividends, repurchasing approximately 25 million shares of common stock [9] Future Guidance - For Q4 fiscal 2025, Cisco expects non-GAAP earnings between 96 cents and 98 cents per share, with revenues projected in the range of $14.5 billion to $14.7 billion [10] - Non-GAAP gross margins are anticipated to be between 67.5% and 68.5%, and non-GAAP operating margin is expected to be between 33.5% and 34.5% [10] - For fiscal 2025, Cisco forecasts non-GAAP earnings between $3.77 and $3.79 per share, with total revenues expected to be in the range of $56.5 billion to $56.7 billion [11]

Core Insights - Cisco Systems reported revenue of $14.15 billion for the quarter ended April 2025, reflecting an 11.4% increase year-over-year and a surprise of +0.65% over the Zacks Consensus Estimate of $14.06 billion [1] - The earnings per share (EPS) was $0.96, up from $0.88 in the same quarter last year, with a surprise of +5.49% compared to the consensus estimate of $0.91 [1] Revenue Breakdown - Product revenue reached $10.37 billion, exceeding the six-analyst average estimate of $10.08 billion, marking a year-over-year increase of +15% [4] - Service revenue was reported at $3.78 billion, slightly below the $3.82 billion average estimate, with a year-over-year change of +2.6% [4] - Security product revenue was $2.01 billion, lower than the estimated $2.21 billion, but showed a significant year-over-year increase of +54.4% [4] - Observability product revenue was $261 million, compared to the average estimate of $276.09 million [4] - Networking product revenue was $7.07 billion, surpassing the estimated $6.76 billion, with a year-over-year increase of +8.4% [4] - Collaboration product revenue was $1.03 billion, exceeding the five-analyst average estimate of $1 billion, representing a year-over-year change of +4.5% [4] Gross Margin Performance - Non-GAAP gross margin for services was $2.69 billion, slightly below the estimated $2.72 billion [4] - Non-GAAP gross margin for products was $7.01 billion, exceeding the estimated $6.66 billion [4] Stock Performance - Cisco shares have returned +8% over the past month, compared to the Zacks S&P 500 composite's +9.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]