Question · Q4 2025
Joe Stadwiecz inquired about the potential for a power element related to artificial intelligence (AI) to contribute to growth in fiscal year 2026, and whether capital expenditure (CapEx) levels for fiscal year 2026 would remain similar to the mid-five percent of sales seen in fiscal year 2025 to support continued growth, or if most of that investment has already been made.
Answer
CEO Terrence Curtin confirmed that growth in the DDN business includes power interconnects, such as liquid bus bars and cable connectivity between racks, all contributing to the overall momentum. CFO Heath Mitts stated that CapEx was up by a couple hundred million from FY2024 to FY2025, entirely for AI and cloud programs. He expects CapEx to increase slightly less than the prior year's dollar increase in FY226, remaining around the TE average of just over 5% of sales, with some investments supporting programs for FY2027.