We trim our 12-month target price by $5 to $50, 14.0x our FY 25 (Jul.) EPS estimate, a slight discount to its three-year forward average P/E at 14.3x, reflecting our slower growth outlook. We lower our FY 24 EPS estimate by $0.02 to $3.70 and cut FY 25’s by $0.28 to $3.56. CSCO reported Apr-Q operating EPS of $0.88 vs. $1.00, $0.06 above the consensus. Apr-Q revenue fell 13%, driven by a 27% drop in Networking as customers continue to drawdown inventory. This is partially offset by 36% growth in Security, driven by the Splunk acquisition and growth in SASE and Zero-Trust offerings, as well as 27% growth in Security, driven by ThousandEyes network services. Customer product inventories are slowly being deployed and CSCO expects customers to finish drawing down inventory by the end of next quarter. Win rates continue to be stable, and we expect to see strength in campus switching, security, and collaboration in FY 25.