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CEO Satish Dhanasekaran explained that the acquisitions are highly complementary, with optical solutions fitting well with Keysight's RF and high-speed digital leadership, and power analysis IP being critical for future designs. On 6G, he noted that while commercialization is years away, R&D activity is growing and will build on an evolutionary path from 5G Advanced.

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CEO Satish Dhanasekaran highlighted software and services as a key strategic focus, noting double-digit growth in the simulation business, which will be bolstered by pending acquisitions. On AI, he explained that Keysight's role extends beyond interconnects to solving mission-critical scale-up and scale-out challenges in digital infrastructure, including software emulation to identify performance bottlenecks in AI data centers.

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CEO Satish Dhanasekaran highlighted software and services as a strategic priority, noting double-digit growth in the simulation business, which is being bolstered by M&A like the ESI acquisition. Regarding AI, he explained that Keysight is addressing mission-critical digital infrastructure challenges, including providing software emulation solutions to help customers identify performance bottlenecks in AI data centers.

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Executive Satish Dhanasekaran explained that while Keysight benefits from government funding, its broad customer base means it is not heavily dependent on any single program like BEAD. Regarding trade policy, he stated that Keysight has proven agile in adapting to restrictions and is prepared to capitalize on potential manufacturing shifts to Southeast Asia if new tariffs are enacted, similar to past reshoring trends.

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CFO Jeremy Parks explained that margins in Smart Infrastructure were primarily impacted by deliberate OpEx investments to build out its solutions capabilities, which should provide operating leverage as the business grows. CEO Ashish Chand described the M&A pipeline as robust, focusing on closing technology gaps in areas like edge and cybersecurity, acquiring customer access, and adding software capabilities.

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CFO Jeremy Parks attributed the strong overall margin to favorable mix and strong performance in the Industrial segment, while the sequential margin dip in Smart Infrastructure was mainly due to lower revenue leverage. CEO Ashish Chand noted that the combined sales force is finding that customers prefer a multi-step journey to IT/OT convergence, which is slower but creates stickier relationships. Parks added that the focus for free cash flow is on EBITDA growth and targeted capital investment, aiming to move free cash flow as a percentage of revenue closer to 10%.

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CEO Ashish Chand explained that the Q1 guide is prudent, reflecting seasonality and short-term uncertainty, which may delay the positive impact of improving macro factors like PMI. CFO Jeremy Parks outlined the typical seasonality, noting Q1 is the annual low point, followed by a significant rebound in Q2, with Q2, Q3, and Q4 revenues being broadly similar, absent any major changes in market conditions.

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CFO Jeremy Parks stated that Belden expects gross margins to improve by 50 to 75 basis points annually, assuming mid-single-digit growth, with the company targeting 25-30% incremental EBITDA margins. CEO Ashish Chand added that Smart Infrastructure is seeing a pickup in activity from cable operators upgrading to DOCSIS 4.0. For the Automation segment, he clarified that excluding the weak discrete vertical, the segment grew in the mid-single digits, driven by strength in the process and energy verticals, while mass transit remained stable.

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CEO Stephan von Schuckmann explained the sales team is now more selective, focusing on Chinese OEMs with strong growth potential both inside and outside of China. He sized the North American and European leak detection markets at ~$150M each. CFO Andrew Lynch added the product is at or near normalized Industrial margins and expects low-to-mid single-digit outgrowth in Q3.

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CEO Rick Cohen explained that the Walmart Robotics solution will be accelerated by applying Symbotic's existing hardware and software, and the combination of the two companies' technologies is what excited Walmart. On the international front, he mentioned recent European tours and time spent in Mexico, where he sees a huge opportunity due to less mature supply chains, creating demand for Symbotic's palletizing solutions for both large and small stores.

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