Joe Cardoso

Joe Cardoso asked about customer behavior and interesting trends regarding the adoption of the AI Era Plan, specifically whether it's being purchased in isolation or if customers are expanding their spending in other areas of the portfolio simultaneously.

Answer

CEO Rick Smith explained that the AI Era Plan is often bought in tandem with other capabilities, including newer versions of OSP with more new products. He noted that Axon's customer success team is focused on driving adoption of new products within the plan, and he is bullish on future AI adoption as new capabilities are unlocked and integrated into the plan over the coming months and next year.

Joe Cardoso inquired about Wolfspeed's current positioning within the EV market, particularly after a turbulent period and recent announcements such as the Toyota partnership. He sought incremental color on customer conversations and dialogues regarding Wolfspeed's role.

Answer

CEO Robert Feurle highlighted the Toyota partnership as a testament to global diversification and quality. He emphasized the perfect fit of silicon carbide for 800-volt EV battery platforms and noted customer appreciation for Wolfspeed's lean, controlled, and domestic manufacturing footprint across North Carolina, Mohawk Valley, and Arkansas, which offers supply chain resilience. Feurle confirmed ongoing sampling with various key customers for new programs.

Joe Cardoso, on behalf of Samik Chatterjee from JPMorgan Chase & Co., asked about Wolfspeed's current positioning in the EV market, particularly after a turbulent period and recent announcements like the Toyota partnership. He sought insights into ongoing customer conversations and dialogues, and any additional color on this front.

Answer

Robert Feurle, CEO of Wolfspeed, highlighted the Toyota partnership as a testament to global diversification and quality. He emphasized the perfect fit of silicon carbide for 800-volt battery platforms in traction motors and noted that Wolfspeed's domestic, vertically integrated manufacturing footprint across North Carolina, Mohawk Valley, and Arkansas is a key differentiator for customers concerned about supply chain security and material restrictions (like rare earth and gallium). He confirmed active sampling with various key customers for new programs.

Joe Cardoso inquired about Calix's 2026 revenue growth outlook, specifically if the 10%-15% range (excluding BEAD) is still valid, and sought an update on BEAD program contributions for 2026 and 2027. He also asked about the tangibility and contribution of new market expansion, including international opportunities, to the 2026 growth story.

Answer

CFO Cory Sindelar stated confidence in the 10%-15% range, not at the low end, with high visibility. President and CEO Michael Weening added that details on growth rates and BEAD contributions would be discussed at Investor Day. Weening explained that new market expansion and large customer opportunities with private clouds are enabled by the successful launch of the third-generation platform, with over 300 customers already migrated. He noted that international revenue isn't yet built into 2026 numbers but highlighted Calix's groundbreaking AI work and his keynote at Mobile World Congress as indicators of future attention and opportunity.

Joe Cardoso asked about Calix's 2026 revenue growth outlook, specifically if the 10%-15% range (excluding BEAD) is still valid, and for an update on the expected contribution of the BEAD program to financials in 2026 and 2027. He also inquired about the tangibility and contribution of new market expansion, including international opportunities, to the 2026 growth story.

Answer

CFO Cory Sindelar stated confidence in the 10%-15% range, not at the low end, given high visibility and BEAD understanding. President and CEO Michael Weening added that more details on achieving these growth rates would be shared at Investor Day. Weening explained that the successful launch and migration to the third-generation platform (over 300 customers migrated, aiming for all by end of Q1) is a key enabler for international expansion and large customer private clouds. While not yet layered into 2026 revenue numbers, Calix expects significant attention from events like Mobile World Congress due to its groundbreaking AI work.

Joe Cardoso inquired about any broad-based pull-forward demand across Logitech's portfolio due to rising memory costs, and asked about further opportunities to reduce the percentage of U.S. products manufactured in China beyond the recently achieved target, along with the implications for margins.

Answer

Hanneke Faber, CEO, confirmed no observed pull-forward demand in either B2C or B2B segments. Matteo Anversa, CFO, expressed satisfaction with the current manufacturing landscape, having reduced U.S. products from China to less than 10%, and emphasized maintaining flexibility with the China-plus-five strategy. He reiterated that pricing actions and manufacturing diversification successfully offset tariff impacts, contributing to strong gross margins.

Joe Cardoso followed up on the potential for pull-forward demand across Logitech's broad portfolio due to rising memory costs, beyond just video conferencing. He also asked about further opportunities to reduce the percentage of US products manufactured in China (currently below 10%) and the implications of manufacturing diversification and pricing actions on future margins.

Answer

CEO Hanneke Faber reiterated that no pull-forward demand was observed across Logitech's B2C or B2B segments. CFO Matteo Anversa stated that Logitech is satisfied with the current manufacturing landscape, having successfully reduced US imports from China to below 10%, and values the flexibility of its "China Plus 5" strategy. He confirmed that pricing actions taken in April, combined with manufacturing diversification, entirely offset tariff impacts, contributing to strong gross margins.

Joe Cardoso asked about HP's conviction regarding Personal Systems (PC) momentum into 2026, particularly as the Windows 11 refresh cycles past its bulk, and the dynamic where pricing is expected to be a larger contributor to growth than units. He also requested insights into the expected seasonality for next year, considering tariffs, Windows 11 refresh, and the dynamic memory pricing environment, specifically regarding first-half versus second-half revenue and margin implications.

Answer

Enrique Lores, CEO, expressed conviction based on an aged PC installed base, the remaining 40% of Windows 11 refresh (especially in SMB and outside North America), and accelerating AI PC adoption (over 30% of shipments this quarter). He noted HP's strategy to focus on premium categories and increase attach rates for peripherals and services, driving revenue growth faster than unit growth. Karen Parkhill, CFO, anticipated stronger revenue in the second half due to normal seasonality and pricing actions. She projected Print operating margins to align with seasonality (Q3 typically lower) and PS operating margins to be 5-6% in H1, potentially dipping below 5% in Q3/Q4 due to memory costs. She also noted EPS might be more evenly weighted throughout the year due to the H2 memory impact. Mr. Lores added that the major memory cost impact is expected in the second half, with almost no impact in the first half due to existing inventory.

Joe Cardoso asked about HP's conviction regarding PC momentum into 2026, particularly as the bulk of the Windows 11 refresh cycles past, and noted that pricing seemed to be a bigger contributor than units for next year. He also inquired about expected seasonality for the upcoming year, considering tariffs, Windows 11, and dynamic memory pricing, and any specific revenue or margin dynamics for the first half versus the second half.

Answer

CEO Enrique Lores expressed conviction based on an aged PC installed base, the remaining 40% Windows 11 conversion opportunity (especially in SMB, Europe, and Asia), and the improving mix of AI PCs. He highlighted the strategy to focus on premium categories, peripherals, and services to drive revenue growth faster than unit growth. CFO Karen Parkhill anticipated stronger second-half revenue due to normal seasonality and pricing. She noted print operating margins would follow typical seasonality, while Personal Systems operating profit rate would be 5-6% in the first half, potentially dipping below 5% in Q3/Q4 due to higher memory costs in the back half, leading to a more evenly weighted EPS throughout the year.

Joe Cardoso of JPMorgan Chase & Co. asked for quantification of the China tariff impact in guidance, details on supply chain shifts, and a ranking of the drivers for the upgraded Personal Systems (PS) growth outlook.

Answer

CFO Karen Parkhill stated that current tariffs are factored into guidance but would not be quantified, noting mitigation through HP's global supply network and cost reductions. CEO Enrique Lores added that HP has built a more resilient supply chain in Southeast Asia and other regions. For PS growth, Lores identified the aging installed base, the Windows 11 refresh, and AI PC adoption as key market drivers, with HP's own innovation and focus on premium segments fueling its outperformance.

Joe Cardoso inquired about the headroom for Optical Communications margins to continue improving, considering the demand pipeline, product mix, and future capacity additions. He also asked about the margin trajectory for the Hemlock (solar) business, the timing of its recovery to prior levels, and the influence of tax credits and subsidies.

Answer

Chairman and Chief Executive Officer Wendell Weeks stated that Optical Communications margin improvement is linked to the value created by innovations and robust growth. Executive Vice President and Chief Financial Officer Ed Schlesinger added that ongoing capacity additions and reduced ramp costs will further enhance margins. For solar, Ed Schlesinger outlined a goal of a $2.5 billion business with margins at or above Corning's overall level, expecting incremental improvements. Wendell Weeks advised waiting until after Q1 for more specific guidance on the factory ramp, given the current focus on scaling wafer production.

Joe Cardoso of JPMorgan Chase & Co., asking on behalf of Samik Chatterjee, requested more detail on the potential upgrade to Corning's 'Springboard' plan and the remaining risks or milestones needed to achieve the full non-risk-adjusted targets.

Answer

Chairman and CEO Wendell Weeks confirmed that the upgraded plan's target would land between the current $3 billion high-confidence plan and the $8 billion non-risk-adjusted plan. He framed remaining challenges as 'milestones' rather than 'risks,' highlighting the need for continued recovery in the carrier business, progress in solar, adoption of new mobile consumer electronics innovations, and hitting key targets in automotive glass.