Feedback from the Road: More Cautious Into Earnings

研报英文原文证据摘录

Feedback from the Road: More Cautious Into Earnings

Update

July 27, 2026 04:01 AM GMT

Morgan Stanley & Co. LLCMTelecom & Networking Equipment / Cybersecurity Meta A Marshall

| North America Equity Analyst

Meta.Marshall@morganstanley.com +1 212 761-0430

Telecom & Networking EquipmentFeedback from the Road: More North America

Cautious Into Earnings Industry View In-Line

After outperformance in cyber over past month, investors

primed for digestion heading into earnings season. On optical /

networking, belief amongst investors setup on earnings more

challenging given category performance on EPS, but also a view

that valuations creating attractive reentry points.

Key Takeaways

With draw down of AI Capex names, generally finding investors positive on

valuations, but unwilling to step in ahead of earnings.

Conversations most positive on CIEN, GLW amongst optical names; KEYS, ANET

on the networking side.

On cyber, believe that there isn't likely to be as much upside to Q2 prints vs

moves over last quarter, with FTNT a potential outlier.

Investor conversations leaning cautious after outperformance YTD; across both

AI capex names and cyber. After talking with investors post early previews, we note

that the tone of investors generally was more cautious. Given recent draw down in

AI Capex names, and the lack of follow-through on EPS prints so far in Q2, that isn't

necessarily surprising. However, given the cautious tone extended to cyber, despite

more recent positive rotation, we generally found less conviction across the board

on earnings as a catalyst. High conviction remains about optical / networking /

cyber opportunities to see growing AI catalysts, but less conviction in EPS as a

catalyst.

Optical valuations viewed as largely washed out, but confidence still lacking