Question · Q1 2026
Jody Burke asked about the demand profile and visibility for the EMEA region in the December quarter, particularly concerning seasonality. He also inquired about incremental margins now that the total business has returned to year-over-year growth, considering geographic mix, and sought more color on suppliers seeing potential for price increases.
Answer
Phil Gallagher (CEO) indicated positive but modest expectations for EMEA, believing the region is nearing a bottom, with positive bookings and building backlog suggesting modest sequential growth in December. Ken Jacobson (CFO) stated that Americas' year-over-year growth is positive for operating leverage, expecting flat gross margin year-over-year and a seasonal mix shift to the West to positively impact margins. Phil Gallagher (CEO) specified potential price increases in certain technologies like interconnect and power for data centers, memory (HBM), and selective higher-end MCUs, with Ken Jacobson adding that high input costs are helping maintain ASPs.