TMTB: CSCO HUBS APP First Takes; EOD Recap

CSCO -5% inline q (missed product revs/better deferred) but much weaker Q3 and and FY guide. Announced 5% RIF

Will get order number and more commentary on market on the call. Positioning leaned short into the print.

FY GUIDANCE
Guides revenue $51.5B to $52.5B, saw $53.8B to $55.0B, EST $54.33B
Guides ADJ EPS $3.68 to $3.74, saw $3.87 to $3.93, EST $3.87
GUIDANCE: Q3
Guides revenue $12.1B to $12.3B, EST $13.1B
Guides ADJ EPS $0.84 to $0.86, EST $0.92
Guides ADJ gross margin 66% to 67%, EST 65.8%
Guides ADJ operating margin 33.5% to 34.5%, EST 33.8%
RESULTS: Q2
Revenue $12.79B, -5.9% y/y, EST $12.71B
Product revenue $9.23B, -9.1% y/y, EST $9.51B
Networking revenue $7.08B, EST $7.16B
Security revenue $973M, EST $956.8M
Collaboration rev. $989M, EST $966M
Observability revenue $188M, EST $187.7M
Service revenue $3.56B, +3.5% y/y, EST $3.46B
Annual recurring revenue $24.7B, EST $24.47B (2 ESTs)
Remaining performance obligations $35.7B, EST $32.14B (2 ESTs)
ADJ EPS $0.87 vs. $0.88 y/y, EST $0.84
ADJ gross marg…