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CFO Brice Hill responded that while overall ICAPS utilization remains low, there are 'green shoots' of recovery. He noted a pickup in the industrial side and increased investments in rest-of-world ICAPS during the quarter, suggesting it is a 'space to watch' for stabilization and future growth.

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President and CEO John Lee explained that the seasonal growth is driven by consumer products, with AI demand acting as an additive that raises the overall base. He also stated that MKS has not seen customers optimizing inventory to avoid tariffs, believing they are buying to need due to the company's short lead times.

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CEO Phil Gallagher explained that while they are not celebrating, there is more optimism for EMEA due to modestly returning bookings and a year-over-year and sequential increase in backlog. CFO Ken Jacobson added that inventory is expected to see a modest decline in the next quarter, driven by the EC business, even with sales guided slightly up. Phil Gallagher also noted that Avnet is balancing inventory reduction in certain commodities with strategic investments in other areas to service customers, aiming for inventory days in the mid-80s.

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President and CEO Steve Kelley cited several factors for the revised semiconductor outlook: tariff-related shifts in customer ordering, a slowdown in China and trailing-edge logic, and some softness in DRAM. EVP and CFO Paul Oldham added that the tariff impact is expected to persist but is being actively mitigated. He noted that excluding tariffs, gross margin would have been over 39% in Q2.

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President & CEO Rick Wallace explained that instead of a single ramp, there is now a 'compounding of ramps' as multiple designs enter high-volume manufacturing, sustaining high sample rates. He also noted that the high cost of advanced packages is driving 100% inspection, similar to reticles. EVP & CFO Bren Higgins detailed that record reticle revenue is driven by China's mask ecosystem investment, frequent requalification in high-mix fabs, and the need to inspect single-die reticles against a reference.

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President & CEO Rick Wallace explained that unlike traditional nodes with a single ramp, the high mix of designs at the leading edge creates a 'compounding of ramps,' sustaining high sample rates as each new device requires its own debugging and optimization. EVP & CFO Bren Higgins detailed that record reticle revenue is driven by legacy node tool demand in China, requalification needs in high-mix fabs, an increase in single-die reticles, and benefits from print check applications on their broadband plasma platforms.

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CEO Sean Kerins stated that inventory is down over $1 billion from its peak and the company is at an inflection point where it will invest in working capital to support growth. CFO Raj Agrawal clarified that overall margins are expected to be relatively stable, with mix shifts pressuring gross margins but being offset by productivity savings. Mr. Kerins added that as the mass market recovers, which typically lags larger OEMs, gross margins and operating leverage will improve.

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CEO Michael Doogue highlighted positive business momentum with strong bookings and backlog, noting that customer concerns about shortages stem from real demand, not just tariffs. CFO Derek D'Antilio added that any tariff pull-in impact is immaterial. Regarding industrial, Mr. Doogue explained it's a diverse segment where current strength in data center and robotics is offsetting some softness in clean energy.

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CEO Rene Haas stated that share was approximately 18% last year. He attributed the rapid growth to nearly 50% to two factors: continued share gains in general-purpose cloud workloads and Arm's move from zero share to 'almost exclusive share' in NVIDIA's next-generation Grace Blackwell AI systems.

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SVP & CFO John Wall clarified that the increased full-year guidance reflects broad-based strength across all geographies, not just a change in the China outlook. He reiterated that while some China orders were excluded from the Q2 backlog, the company expects to end the year with a record backlog and a book-to-bill above one, driven by global demand.

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CEO Christophe Fouquet and CFO Roger Dassen explained that increased macroeconomic and geopolitical uncertainty, particularly around tariffs, has made customers more cautious about their CapEx timing, reducing short-term visibility for 2026. For gross margin, Roger Dassen cited the dilutive effect of more High-NA system recognitions, lower high-margin upgrade revenue, and the absence of positive one-off items from the first half.

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