James Snyder

James Snyder asked for insights into the conditions in China, specifically if there was a reversion in orders or if they performed better than expected, and the real-time outlook for Q4. He also questioned if the slower recovery would lead to CapEx for next year being at the lower end of the previously outlined range.

Answer

CEO Haviv Ilan and Head of Investor Relations Mike Beckman reported that China returned to normal in Q3 and is expected to continue into Q4, with industrial in China not showing sequential growth, suggesting no repeat of Q2's pull-forward. Mr. Ilan indicated that while the CapEx framework is $20-$26B, the lower end is more probable given the moderate recovery, emphasizing readiness for any scenario and providing more color in Q1.

James Snyder asked for insights into the China business, specifically whether the 'pulling activity' observed last quarter reverted or if orders were better than expected, and real-time trends into Q4 2025. He also inquired about the CapEx outlook for 2026, asking if it would be towards the lower end of the previously outlined range given the slower recovery.

Answer

CEO Haviv Ilan and Head of Investor Relations Mike Beckman stated that China returned to normal in Q3 and is expected to continue into Q4, with no evidence of the Q2 pull-forward repeating. CEO Haviv Ilan confirmed that the probability of 2026 CapEx being lower than the $26 billion upper end of the framework is higher, depending on the recovery pace, with more details to follow in Q1 2026.