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    Andrew Gardiner • Citi

    Andrew Gardiner's questions to Arm Holdings PLC (ARM) leadership

    Andrew Gardiner's questions to Arm Holdings PLC (ARM) leadership • Q1 2026

    Question

    Andrew Gardiner of Citigroup inquired about the drivers of the significant step-up in ACV, the royalty rate increase for second-generation CSS, and clarification on a major OEM deal.

    Answer

    CFO Jason Child clarified it was 'a major OEM' and broke down the 28% ACV growth, attributing ~17% to new CSS and other deals, with the remainder from an expanded relationship with SoftBank. He noted that new CSS deals carry a royalty rate 'north of 10%,' exceeding the ~10% rate of the first generation.

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    Andrew Gardiner's questions to Arm Holdings PLC (ARM) leadership • Q4 2025

    Question

    Andrew Gardiner of Citigroup Inc. sought confirmation that the Armv9 adoption rate increased to 30% and asked about the key drivers, such as smartphones or data centers. He also inquired if pricing for new CSS deals remains strong.

    Answer

    CEO Rene Haas confirmed Armv9 adoption rose to over 30%, driven primarily by Compute Subsystems (CSS), which are all v9-based and are becoming a more material part of royalties. CFO Jason Child added that CSS pricing represents a significant step-change in royalty rates, with future generations offering further increases.

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    Andrew Gardiner's questions to Arm Holdings PLC (ARM) leadership • Q3 2025

    Question

    Andrew Gardiner asked about M&A speculation and the potential for Arm to move beyond its pure IP model into silicon, probing what internal or customer discussions might be driving this consideration.

    Answer

    CEO Rene Haas declined to comment on specific rumors but acknowledged that the rapid evolution of AI puts tremendous pressure on the ecosystem to develop products faster. He stated that as a result, Arm is constantly evaluating how to best solve these complex customer problems.

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    Andrew Gardiner's questions to Arm Holdings PLC (ARM) leadership • Q2 2025

    Question

    Andrew Gardiner inquired about the ongoing litigation with Qualcomm, seeking clarity on reports of a canceled license and the potential financial impact on Arm's revenue recognition and operating expenses.

    Answer

    CEO Rene Haas clarified that Arm sent a notification letter regarding the cancellation of Qualcomm's architectural license due to a breach of contract, but the license has not been formally canceled. He stated that Arm's financial forecast has always accounted for the risk of not prevailing in the case. CFO Jason Child confirmed there are no changes to revenue or expense forecasts, as they assume payment at existing royalty rates until the situation is resolved.

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    Andrew Gardiner's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership

    Andrew Gardiner's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership • Q2 2025

    Question

    Andrew Gardiner of Citigroup Inc. followed up on the Americas, asking about the current state of customer inventory levels and the mix of market activity between new deployments and swaps.

    Answer

    CFO Lars Sandström assessed that inventory levels among North American operators appear 'fairly balanced.' He also indicated that the revenue mix will increasingly include more services and rollout activities, but expects the full-year margin development to remain stable and positive.

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    Andrew Gardiner's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership • Q1 2025

    Question

    Andrew Gardiner questioned the Q2 outlook, noting that despite a Q1 demand pull-forward and FX headwinds, the guidance for normal seasonality implies strong underlying organic growth. He asked for the regional drivers of this strength and the potential risk to H2 performance.

    Answer

    CFO Lars Sandstrom clarified that Q1 saw a favorable product mix rather than a significant demand pull-in. He attributed the expected Q2 strength to the continued ramp-up from North American contract wins and normalizing investment levels in India. For the full year, he maintained the view of a flat RAN market (ex-China) with potential for growth in markets like India, though timing remains uncertain.

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    Andrew Gardiner's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership • Q3 2024

    Question

    Andrew Gardiner of Citi sought more detail on the AT&T contract, asking about the current stage of deployment, Ericsson's visibility, and why revenue from this specific contract would not continue to grow into the next year.

    Answer

    CFO Lars Sandstrom clarified that the deployment pace in Q3 was particularly high and is expected to 'calm down' to a more normalized, stable level in Q4. He confirmed that this stabilized rollout pace will continue for many quarters and that the contract will certainly contribute revenue into the next year.

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    Andrew Gardiner's questions to Telefonaktiebolaget LM Ericsson (ERIC) leadership • Q2 2024

    Question

    Andrew Gardiner of Citi followed up on whether the 'selective investment' in the U.S. was from short-term orders with low visibility, and if increased Chinese competition was causing Ericsson to lose market share or sacrifice margins.

    Answer

    CEO Börje Ekholm confirmed the characterization of U.S. investments as being driven by immediate needs like inventory depletion. Regarding competition, he stated that Ericsson prioritizes profitability and gross margin, indicating a willingness to forgo certain deals rather than engage in aggressive pricing, asserting they will not be the 'most aggressive in the market.'

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    Andrew Gardiner's questions to Infineon Technologies AG (IFNNY) leadership

    Andrew Gardiner's questions to Infineon Technologies AG (IFNNY) leadership • Q2 2025

    Question

    Andrew Gardiner asked how Infineon is managing the operational risk of slowing down fabs based on a "guesstimate" of tariff impacts, especially when orders are still increasing.

    Answer

    CEO Jochen Hanebeck acknowledged the challenge, stating they are preparing measures to potentially reduce fab loading over the summer. They will monitor order entry for the next few months and then act, using their high inventory levels as a buffer to manage short-term movements.

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    Andrew Gardiner's questions to Infineon Technologies AG (IFNNY) leadership • Q2 2025

    Question

    Andrew Gardiner questioned how Infineon is operationally managing its fab loading in response to a potential, but not yet realized, tariff impact, given current positive order trends.

    Answer

    CEO Jochen Hanebeck acknowledged the challenge, stating that the company is preparing measures to potentially reduce fab loading further in the summer. He explained they will monitor order entry over the next few months before acting and will use their high inventory levels as a buffer to manage any short-term fluctuations.

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    Andrew Gardiner's questions to STMicroelectronics NV (STM) leadership

    Andrew Gardiner's questions to STMicroelectronics NV (STM) leadership • Q4 2024

    Question

    Andrew Gardiner inquired about the company's plans for fab loadings and underutilization charges, as well as the outlook for net operating expenses beyond the first quarter. He also asked for more detail on why visibility in the automotive market has become particularly weak.

    Answer

    Lorenzo Grandi, President and CFO, explained that the impact of unloading charges in Q1 is over 500 basis points and will remain significant in Q2, though slightly improving. He expects net OpEx to decrease by a low single-digit percentage in 2025 compared to 2024. Jean-Marc Chery, President and CEO, added that automotive visibility is now very short-term (2-3 weeks) and that Q1 is experiencing an inventory adjustment from that sector.

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    Andrew Gardiner's questions to ASML Holding NV (ASML) leadership

    Andrew Gardiner's questions to ASML Holding NV (ASML) leadership • Q4 2024

    Question

    Andrew Gardiner highlighted the low level of logic orders in 2024 and asked if ASML needs to see significant EUV order commitments in the first half of 2025 to meet customer needs for the 2026 ramp. He also asked about the company's tool pre-building strategy.

    Answer

    CFO Roger Dassen agreed it would be 'logical' to see continued good EUV order intake in the first half of 2025 to support 2026 demand, but emphasized that the company has flexibility in its supply chain and manufacturing. He added that the pre-build strategy is continuously reviewed based on customer discussions and is used to ensure level loading of the factory and maintain flexibility.

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