GS TMT TODAY 8.13.26

Good Morning. Futures slightly higher (Nasd +10bps, S&P +20bps), Oil lower (-2%), and Treasury yields slightly lower (although still hovering near local highs) on relatively quiet overnight newsflow. Asia traded well overnight, with tech-heavy KOSPI finishing +3.5%, and Japan finishing +1.1%.

This morning in US TMT, focus is on the long tail of earnings which continue to hit. CBRS - 18% despite better-than-street quarter and guide (focus shifts to upcoming lockup expiry); CSCO -6% on weaker gross margin outlook; COHR -4% despite beat & guide above (stock +60% over past 10 sessions into print); HPQ & DELL each up +4% on a lateral read from Lenovo +20% in HK on earnings. Elsewhere, NFLX +2% on Ackman disclosing stake & bull thesis; and SNDK is hosting Investor day (kicks off at 9am EST).

CSCO: F4Q Revenues accelerate and FY27 guidance raised with strong hyperscaler momentum, but GM outlook misses. Stock -6% in pre.

CSCO's F4Q26 EPS of $1.22 beat GS/consensus of $1.15/$1.17, with strong AI outperformance and the F2027 revenue outlook raised by ~$4-$5 bn (including a $1.5 bn upgrade on AI hyperscale revenue to $7.5 bn). CSCO's FY27 guidance was better than expected with revenue of $72.2-$73.4 bn (v. consensus of $68.8 bn) and non-GAAP EPS of $5.05-$5.11 (v. consensus of $4.78). However, F1Q27 gross margin guidance of 65%-66% was below 66.4% consensus, with management expecting further gross margin pressure in F2Q26 as the concentration of hardware revenue increases due to the networking supercycle. We expect CSCO to trade mixed as the stronger FY27 guide is offset by gross margin concerns. GIR full note.

COHR: Solid print with beat and guide above, against elevated expectations and a pre- earnings rally following LITE’s report. Stock -4% in pre.

F4Q: Revs $2.05Bbn (+34% y/y or +42% y/y ‘pro-forma’) vs cons $1.99bn (+30% y/y). GMs 40.2% (vs cons ~40%) and EPS $1.74 (vs cons $1.62). F1Q Guide: Revs $2.2-2.4bn vs cons $2.149bn (+36% y/y). GMs 39.5-41.5% (vs cons ~40%) and EPS $1.85-2.05 (vs cons $1.79). “We enter fiscal 2027 with exceptional customer demand, expanding production capacity, and multiple new growth platforms beginning to ramp. As AI datacenter architectures increasingly transition from copper to optical connectivity, we believe Coherent’s broad photonic technology portfolio and manufacturing scale uniquely position us to deliver accelerating growth and capitalize on this multi-year opportunity.”

Lenovo’s AI-Driven Revenue Boost Sends Stock to New Record – Bloomberg

Lenovo Group Ltd. expects to grow revenue to $100 billion this fiscal year, boosting its outlook after demand for AI hardware helped its first-quarter results beat analyst estimates by a wide margin. The company’s shares surged as much as 22% in Hong Kong to a fresh record, extending its gains this year to about 280% and cementing its position as the top performer on the Hang Seng China Enterprise Index. Revenue in the quarter ended June jumped 43% while adjusted profit surged 176% from the same period a year ago.