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CEO Satish Dhanasekaran clarified that for wireline optics, 400G and 800G represent the majority of current volume, while 1.6T and beyond are in the research and early deployment phase. He did not provide a specific customer breakdown but noted that R&D spending and unlocking supply chain constraints are the primary demand drivers.

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CEO Satish Dhanasekaran explained that while the wireline business is still heavily R&D-oriented (roughly 70-30), it is benefiting from the manufacturing ramp for digital infrastructure. He affirmed that Keysight is well-positioned for the shift to silicon-level testing, having invested in silicon photonics capabilities 18 months ago, which combines the company's core strengths in optical and electrical metrology.

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CEO Satish Dhanasekaran estimated the wireline business is still heavily R&D-focused but has seen a ~10-point shift toward manufacturing. He affirmed that as testing moves closer to the silicon level, Keysight is well-positioned due to prior investments in silicon photonics test capabilities, which combine its core electrical and optical expertise to address emerging complexities like co-packaged optics.

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Executive Satish Dhanasekaran expects the semiconductor business to grow, driven by wafer test solutions, and noted that general electronics returned to growth in Q4. Executive Neil Dougherty explained that the operating margin gap is partly due to recent acquisitions that are currently dilutive. He anticipates significant profit leverage as these businesses are integrated into the Keysight operating model, which will help close the gap to the long-term target.

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CFO Csaba Sverha stated the goal is to maintain the target gross margin range despite temporary pressure from new ramps and seasonal Q1 costs, while maintaining OpEx discipline to drive operating leverage. CEO Seamus Grady added that the supply constraints affect a small number of components for 1.6T EML-based products and are expected to be temporary, potentially lasting one to two quarters.

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CEO Seamus Grady clarified that the 1.6T ramp is still ahead, with the bulk expected in the second half of the year, aligning with a customer's product launch. He believes the 800G decline is more likely due to share allocation as Fabrinet converts capacity for the 1.6T ramp, rather than customer inventory issues. Regarding Amazon, he stated the relationship will start with specific product families and expand, with revenue ramping in fiscal 2026. The agreement is not exclusive and covers advanced manufacturing services.

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CEO Seamus Grady stated that Fabrinet is prepared to ramp production according to its customer's schedule and has good visibility. He noted that while the volume ramp is expected to be steep, the price uplift from 800G to 1.6T may be less than traditional due to proactive cost reduction efforts, ensuring the new product is highly cost-competitive at launch.

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CEO Seamus Grady stated that Fabrinet lacks visibility into its customer's decision-making between in-house and merchant transceivers but remains the sole source for their designed products. He confirmed there are no capacity constraints and explained that the robust automotive growth is driven by sustainable market share gains, not inventory adjustments.

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CEO Jim Anderson confirmed strong demand signals for the data center and communications segment, expecting sequential growth driven by 800G, 1.6T, and OCS products. He announced that production on the world's first 6-inch indium phosphide line began in August, providing significant cost and volume advantages. Anderson highlighted the expanded multi-year partnership with Apple for next-generation VCSELs, with revenue expected in H2 2026, as a key proof point of the strategic value of Coherent's U.S. manufacturing footprint.

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CEO James Anderson stated that the 1.6T transceiver ramp is expected to begin this calendar year, with the 400G EML being a key milestone for future 3.2T products. Regarding tariffs, Anderson explained that Coherent does not expect a significant impact due to its diverse global manufacturing footprint of over 60 facilities across 14 countries, with roughly half in the U.S. He noted this provides adaptability, though the company is taking a more cautious near-term view on its industrial business due to general macro uncertainty.

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CEO James Anderson responded that the company's outlook on the telecom market has improved from 'cautious to cautiously optimistic,' citing two consecutive quarters of growth driven by data center interconnect and new product ramps. Regarding OCS, he highlighted its differentiated liquid crystal technology and confirmed the first customer order. Anderson stated that initial revenue is expected in calendar 2025, with a more material contribution in 2026 and beyond, promising more details at the upcoming Investor Day.

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CEO James Anderson stated that the key opportunity with customers is to build more strategic, multi-generational relationships, leveraging Coherent's broad technology portfolio and resilient supply chain. CFO Sherri Luther explained that Q1 gross margin expansion was driven by higher revenue volume, favorable product mix, and yield improvements. She reiterated the long-term goal of achieving a gross margin above 40% through ongoing pricing optimization and product cost reduction initiatives.

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CEO Chuck Robbins expressed confidence in maintaining the growth range, citing the AI revolution as a key driver for network modernization across all segments. He also pointed to multiple refresh cycles beyond the campus, including routing, data center networking, and WiFi 7, and a multi-billion dollar installed base of pre-Cat9k switches.

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CEO Chuck Robbins interpreted the data center switching strength as evidence that customers are modernizing their private cloud infrastructure, partly in preparation for future AI applications, but noted the majority of the enterprise AI build-out is still ahead. Regarding AI revenue, CFO Scott Herren confirmed that while orders are strong, revenue realization is dynamic and dependent on shipment timing, with the majority of AI-related revenue still expected in the second half of the fiscal year.

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President and CEO Michael Hurlston emphasized the guidance included the phrase "or earlier," citing broad-based strength across the portfolio. CFO Wajid Ali addressed tariffs, stating that based on a review of new regulations, Lumentum's products are believed to be exempt and no material impact is anticipated.

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EVP and CFO Wajid Ali confirmed the Cloud & Networking segment is expected to grow by approximately $25 million quarter-over-quarter, driven primarily by both Datacom chips and transceivers, though he noted that supply chain shortages are constraining even higher potential growth. President and CEO Alan Lowe elaborated on EML capacity, reiterating plans for 40% growth from June '24 to June '25 and another 40% by the end of calendar '25. He clarified that the overall indium phosphide chip supply, not just 200G, is constrained and will likely not meet demand until at least calendar year 2026.

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President and CEO Alan Lowe explained that the Q2 growth is primarily driven by a significant pickup in datacom modules, with modest contributions from telecom and datacom chips due to capacity timing. Regarding new customers, Lowe stated that while the opportunity is very large, the ultimate magnitude depends on Lumentum's execution and ability to earn a greater share of business as production ramps in the first half of calendar 2025.

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CFO David Rudow clarified that the reinvestment plan realigns resources to accelerate growth in enterprise and channel while improving SMB efficiency, with the Rule of 40 target for year-end 2026 remaining firm. He explained that Q3 guidance appears to have lower seasonality because certain revenues were pulled into Q2; excluding these, the ramp would be more typical. He also noted Q3 is a seasonally strong quarter for the newly acquired Identity Automation business.

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Chair & CEO Chris Leahy noted that commercial customers are discussing potential CapEx benefits from legislation, while public sector conversations are focused on funding shifts between federal and state agencies. CFO Al Miralles stated the Q4 outlook includes conservatism, particularly for the federal and education segments, and assumes more modest corporate spending than seen in the first half.

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CEO Christine Leahy characterized current demand as 'solid and balanced' across both transactional and project-based work, though the outlook accounts for a later-year slowdown from the pull-forward. CFO Albert Miralles stated that he expects full-year gross margins to be similar to 2024 levels, with the Q1 margin variance almost entirely explained by the mix shift to client devices.

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CEO Christine Leahy attributed the strong Healthcare performance to strategic investments in expertise and a broad portfolio, noting they were also lapping weak comparisons. CFO Al Miralles added that some large, potentially non-recurring transactions contributed. Regarding Microsoft, Miralles stated the policy changes were well-telegraphed and are not expected to have a material impact on 2025 results.

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CEO Christine Leahy responded that the company is accelerating its digital strategy to create a "flywheel" that drives velocity in deals of all sizes, allowing sales professionals to focus on high-value engagements while customers use self-serve options for smaller transactions. Regarding a budget flush, she noted the current election cycle is not normal and the federal government remains paused. CFO Albert Miralles added that the Q4 outlook bakes in appropriate caution around political uncertainty.

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CEO Charles Liang detailed that DCBBS components are shipping now, with higher volumes expected in the December quarter. He affirmed that the 15-17% gross margin range remains the long-term target, driven by higher-margin enterprise business and value-added solutions like DCBBS. CFO David Weigand added that they are already providing these types of services to large customers.

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CEO Charles Liang stated that despite macro and tariff concerns, orders are strong for the June quarter, driven by the Blackwell platform now being in volume production. CFO David Weigand attributed the cautious gross margin guidance to a combination of tariff uncertainty and the technology changeover, where older platforms face more price competition.

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CEO Charles Liang expressed confidence, drawing a parallel between the current Blackwell launch and the successful H100 launch in 2023. He highlighted Super Micro's lead in liquid cooling technology and expanding capacity as key advantages. Liang noted that growth is also expected from expanding market share in Asia and Europe. He asserted that the $40 billion forecast is a conservative estimation, supported by customer demand, backlog, and commitments, and that recent growth was only slowed by the temporary 10-K filing delay.

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CEO Charles Liang explained that new GPU generations typically provide an opportunity to improve profitability and that the company's complete Data Center Building Block Solutions will also help gradually grow margins. He added that as a fast-growing company, they continuously evaluate adding senior management, guided in part by the special committee's recommendations.

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Chairperson & CEO Jayshree Ullal explained that while two AI titan customers are deploying strongly and a third is progressing, the loss of the fifth customer and slowness of the fourth is being offset by the growing aggregate demand from 25-30 enterprise and neo-cloud AI customers. She noted these smaller deployments are collectively making up the difference.

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CEO Jayshree Ullal confirmed Arista has strong visibility for 2025 and is getting 'unofficial visibility' for 2026 as customers plan around long component lead times. She stated that based on current execution and early signals, 2026 is 'looking good' for the AI sector.

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CEO Jayshree Ullal emphasized that high-value GPUs require a mission-critical network. She stated that the AI spine is almost always based on Arista's EOS due to its superior high-availability, routing, and telemetry features, with the 7800 series as a flagship product. While some large customers may experiment with non-EOS solutions on the network leaf, building a resilient system without the robust capabilities and operational support of EOS is a significant challenge.

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CEO Jayshree Ullal explained that visibility is limited to about six months and they prefer a cautious approach, similar to how 2024 began. She noted that large cloud customers are aggressively pivoting to AI, leading to faster growth in AI and campus sectors compared to the 'classic' cloud and data center markets. Ullal stated this is their best current assessment but acknowledged it could improve.

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CEO Tim Cook specified the demand pull-ahead was principally for iPhone and Mac and largely occurred in the United States in April. He cautioned against projecting the September tariff estimate into the December quarter due to potential rate changes, unique inventory builds in the prior quarter, and the fact that Q1 is a seasonally higher volume quarter.

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CEO Tim Cook confirmed that in the March quarter, markets with Apple Intelligence showed stronger year-over-year iPhone 16 family performance. He noted many of the new language rollouts occurred in Q3. Regarding the U.S. consumer, Cook pointed to the company's overall sequential revenue acceleration to 5% and the strong performance of the Americas segment as evidence of positive results in Q2, declining to predict future consumer behavior.

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CEO Tim Cook attributed the 16% Mac growth to new M4 products, positioning the Mac as the 'best AI PC'. Regarding India, he explained that manufacturing there serves both the growing domestic market and export needs to achieve necessary economies of scale.

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CEO Tim Cook stated that it was too early to determine the product mix, as the iPhone 16 Pro and Pro Max models were supply-constrained during October. He declined to comment on the ongoing legal case with the DOJ.

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President & CEO Cristiano Amon explained the data center strategy focuses on CPU assets for head units and building accelerator cards, with AlphaWave providing crucial scale-out connectivity. CFO & COO Akash Palkhiwala addressed the handset questions, noting Q3 had a seasonally weaker mix, which is more than offset by strength in Q4 driven by new flagship launches.

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Akash Palkhiwala explained that IoT growth was strong across consumer, networking, and especially industrial, driven by the market's transition from microcontrollers to microprocessors with AI. Cristiano Amon, President and CEO, added that the acquisitions are consistent with the company's strategy to build out its IoT software platform, particularly for the industrial edge, to scale its technology.

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CEO Cristiano Amon stated Qualcomm is pleased with the PC trajectory, targeting over 100 designs by 2026 and noting over 10% share in the >$800 U.S. retail Windows laptop market. CFO Akash Palkhiwala added that while it's too early to quantify the impact of China's new subsidies, historical precedent suggests they can expand the market, which is not yet factored into guidance.

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CFO Akash Palkhiwala stated that the IoT growth in Q4 and the Q1 forecast was broad-based, with benefits across consumer, industrial, and networking categories. He highlighted that new product launches in PC and XR, along with channel inventory normalization, were key contributors. He deferred longer-term growth sustainability questions to the upcoming Investor Day.

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President & CEO Greg Smith estimated the merchant AI accelerator (GPU) market is potentially more than double the size of the VIP compute TAM, representing a large opportunity. Regarding robotics, he noted some expenses for US manufacturing are being incurred in 2025, with positive revenue impact and operating leverage from higher volumes expected in 2026 as fixed costs are absorbed.

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CEO Greg Smith responded that the company has not seen any competitive losses due to tariffs, stating they have not been a deciding factor in customer decisions. CFO Sanjay Mehta reiterated that the company's long-term business model targets a 59-60% gross margin through product differentiation, and despite short-term mix fluctuations, this remains the goal.

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CFO Sanjay Mehta explained that confidence in the second half comes from tightening capacity utilization in the first half and a strong customer engagement pipeline for compute, auto, and industrial. CEO Greg Smith added that confidence in maintaining 50% VIP share stems from having a differentiated product for leading-edge devices and strong relationships with both design service providers and the hyperscalers themselves.

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CEO Greg Smith updated his view, stating that the compute market will likely get "a bit hotter" and grow from current levels, while the rest of the market improves incrementally underneath a strong AI market. CFO Sanjay Mehta explained that Q1 seasonality is typical, especially in Robotics, and that lower lead times have reduced visibility, though the company is well-positioned to handle unforecasted demand.

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CFO Andrew Lynch explained that new wins in China are aimed at bringing content with local OEMs up to parity with multinational ICE vehicles, neutralizing a historical headwind. CEO Stephan von Schuckmann added that R&D dollars are being selectively focused on Chinese NEV applications, industrial products like gas leak detection, and aerospace growth opportunities.

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Chief Executive Officer Stephan Von Schuckmann stated that the HVOR market outlook has worsened, while the industrial business shows solid stability. He explained that customer decisions are a mixed picture: some electrification projects are being postponed, but in regions like China, EV platform projects are accelerating.

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Chief Financial Officer Brian Roberts clarified that Sensata uses a maquila structure, importing most Mexico-made products into the U.S. before distribution, but could adjust if needed. He reiterated the historical 3-6% outgrowth range remains valid. Chief Executive Officer Stephan Von Schuckmann added that from his perspective, a low-to-mid single-digit outgrowth is the right level to target.

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Executive Martha Sullivan identified North America and Europe as the primary regions for electrification delays. She noted Sensata is hedged by its strong ICE and hybrid content and remains bullish long-term, but is aligning its spending with market timing. For 2025, she stated the company expects no market help through at least the first half of the year.

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CEO Hanneke Faber explained the 1-5% Q2 revenue guidance range reflects uncertainty around consumer reaction to US price increases. CFO Matteo Anversa noted that with the current tariff environment, the net impact on gross margin (0 to -100 bps) could be a proxy for the rest of the year, but he stressed the situation remains fluid. He also expects Europe and APAC to continue performing well, with the guidance range largely dependent on the North American outcome.

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CFO Matteo Anversa clarified that sell-through outpaced sell-in by two points in Q4, which is a normal post-holiday dynamic, leaving channel inventory healthy. CEO Hanneke Faber added that it is too early to speculate on the long-term margin profile due to numerous variables like trade policy and exemptions. Matteo Anversa emphasized that the company is focused on controllable factors like product cost reduction and OpEx discipline.

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CEO Hanneke Faber and CFO Matteo Anversa confirmed the inventory build was an intentional strategy to avoid stockouts and position well for the holidays, with the sell-in versus sell-through dynamic expected to reverse in the second half. Regarding Video Collaboration, Faber highlighted the company's #1 position in units, strong service bookings growth, and product innovation like Smart Switching. For China, she pointed to a robust gaming market and early 'green shoots' from targeted investments that are beginning to yield share gains in key e-commerce channels.

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CEO Wendell Weeks explained that stronger-than-expected new product adoption is offsetting slower areas, such as a delay in foldable device tech. Regarding U.S. manufacturing, he noted confidential negotiations are underway with major customers across several markets, with more details expected in the coming months. He reiterated that the company is hitting or exceeding its critical SpringBoard milestones.

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Chairman & CEO Wendell Weeks stated that while confidential, negotiations are underway with major customers to utilize Corning's 34 U.S. factories. Regarding the SpringBoard plan, he noted that stronger-than-expected new product adoption has more than offset slower areas like foldable device technology, and overall momentum is building.

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Chairman and CEO Wendell Weeks responded that customer talks are centered on increasing demand for Corning's U.S.-made products. EVP and CFO Ed Schlesinger added that the solar business is somewhat insulated from macro trends due to the fundamental need for energy and increasing demand for U.S.-sourced products. He highlighted that capacity is largely sold out with long-term, take-or-pay agreements, providing stability. Weeks emphasized the strategy is focused on import substitution, which is aided by current trade dynamics.

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CEO Wendell Weeks explained that the AT&T deal is an encouraging cyclical trend for the carrier segment, aligning with the Springboard plan, but it's too early to declare a full recovery. He noted that the generative AI opportunity, exemplified by the Lumen deal, is creating demand to interconnect data centers, which is filling fiber links and could become a significant, distinct growth driver.

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CFO Mandeep Chawla clarified that the enterprise AI/ML program is ramping as expected and will return to growth in Q4, while the communications upside is driven by the acceleration of 800g programs. Regarding 2026, he stated it's too early for a full-year number but noted that hyperscaler demand looks strong into H1 2026. President and CEO Rob Mionis added that the company has the capacity to support growth north of 20%.

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President and CEO Rob Mionis explained that the tariff impact on the ATS segment is muted, with the 'minor adjustments' involving some dual-sourced product migration from Asia to Mexico, offset by share gains in Mexico, resulting in a net-flat impact. CFO Mandeep Chawla addressed the Q2 Communications guidance, stating the flat sequential revenue is due to program timing and material availability, not a change in demand, and emphasized the strong year-over-year growth.

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CFO Kevin Krumm explained that while operating profit dollars increased, the margin percentage range was maintained due to the inclusion of low-margin tariff revenue in the forecast and planned investments in the second half. CEO Revathi Advaithi added that the company remains conservative after a strong Q1. Regarding data centers, she confirmed they are on track for the 35% annual growth target and reiterated that Power is expected to have a stronger year than Cloud, but declined to provide specific quarterly breakdowns.

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CFO Kevin Krumm attributed the margin strength to favorable mix from the data center power and services businesses, coupled with ongoing operational efficiencies. CEO Revathi Advaithi confirmed that customer inquiries for North American capacity are extremely high, and Flex's established footprint allows them to strategically select business that aligns with their margin improvement goals.

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CEO Revathi Advaithi explained that the Q4 revenue guidance is in line with typical seasonality, which usually sees a sequential decline from Q3. She noted the EPS guide is down slightly due to a tax rate change but remains up significantly year-over-year. On data center exposure, Advaithi declined to break out the mix between GPU and ASIC to protect customer confidentiality but reiterated that Flex's business is not negatively impacted by recent industry developments. She emphasized that lower-cost AI models will likely drive more applications and infrastructure spend, which is a net positive for Flex.

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CEO Revathi Advaithi responded that while Flex does not provide forward-looking order data, the reported 40% growth rate indicates a very strong backlog and execution pipeline. She expressed high confidence in the current EPS outlook, attributing the company's resilience to its successful business transformation, which enables strong performance through economic cycles via an improved business mix and excellent cost efficiency.

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CEO Amnon Shashua clarified that the imaging radar is a strategic sensor and the one-off deal was to build credibility. He stated the future strategy is to sell it as part of a bundled Eyes-Off system (Chauffeur/DRIVE), not as a standalone component. Regarding 2027, he confirmed a significant ramp but declined to rank the products, while CCO Dan Galves added that the expectation for DRIVE to be a significant contributor in 2027 is a new development.

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President & CEO R. Adam Norwitt clarified that Q2 mobile device strength was due to strong execution, not a pull-ahead like in Q1. He stated there were no other notable pull-aheads and that book-to-bill ratios were clustered near 1.0 across most markets, with defense being slightly stronger and IT Datacom slightly lower due to the outperformance in shipments.

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CEO Adam Norwitt stated that while guidance is limited to one quarter, Amphenol's strong, broad position with customers across the AI stack provides confidence. Regarding technology shifts, he declined to comment on specific customers but emphasized that new architectures are becoming more interconnect-intensive overall, creating opportunities for Amphenol's broad portfolio of copper, power, and fiber optic solutions.

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CEO R. Norwitt explained that increasing complexity is highly beneficial for Amphenol. He noted that AI systems require high-speed, low-latency, and power-efficient interconnects to link processors, which plays directly to Amphenol's strengths. The company's products address both performance and power consumption challenges, positioning Amphenol to capture more than its fair share of the expanding interconnect opportunity in AI, regardless of specific customer architectures.

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CEO R. Norwitt explained that the mesh architecture of AI systems fundamentally increases the role and value of interconnects. He noted that while Amphenol is strong in both copper and fiber, a key value proposition is extending the performance of copper to meet high-speed demands, as it offers significant power consumption advantages over optical solutions.

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CEO Terrence Curtin reiterated the need to engage with the entire ecosystem, including chipmakers, hyperscalers, and contract manufacturers, to succeed in AI. He emphasized the broadness of TE's customer engagement, which he believes creates future market share opportunities, but stressed the current focus is on capitalizing on the massive growth ramp from $300 million to over $800 million in revenue.

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CEO Terrence Curtin stated the guidance increase was driven by real momentum and accelerating program ramps with hyperscaler customers, not initial conservatism. He highlighted that AI-related orders increased 150% in the quarter, giving the company confidence in the higher forecast as they work to meet strong customer demand.

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CFO Heath Mitts noted that while a near-term recovery isn't expected, customer discussions for 2026 are looking positive. CEO Terrence Curtin added a key driver: a 2027 emissions standard change is anticipated to cause a pull-forward of heavy truck demand starting in late 2025 and continuing into 2026, which underpins their confidence in a future recovery.

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CEO Michael Weening explained that RPOs reflect minimum commitments, and revenue from customers exceeding those minimums flows directly to the P&L, causing lumpiness. CFO Cory Sindelar added that Q2 revenue acceleration was driven by strong appliance demand from new customers. Regarding the supply chain, he stated the environment is stable and the move to Mexico will take 9-18 months, with no immediate changes needed.

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CFO Cory Sindelar explained that while the large customer's Q1 run rate is not expected to continue, the demand is being backfilled by broad-based strength across other customer segments. CEO Michael Weening added that the company has strong visibility into customer demand. Regarding BEAD, Sindelar noted that while the front end has slowed, the program is not factored into their forecast, and rules are expected to be finalized soon.

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CFO Cory Sindelar stated that the BEAD approval timeline is in line with their expectations, not a pull-forward. CEO Michael Weening attributed the large deal momentum to a market disruption forcing providers to differentiate beyond speed and become 'experience providers.' Sindelar added that strong RPO growth also reflects successful long-term customers renewing and expanding contracts, often at 2.5x the original value.

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Mark Adams, President & CEO, highlighted that recent strength and interest in Advanced Computing came from the federal, energy, and biotech sectors, with growing inbound signals from the financial sector, in addition to the neo-cloud segment. However, Adams declined to provide any commentary or guidance for fiscal year 2026, citing the dynamic and uncertain business environment, including factors like tariffs.

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CFO Greg Hebard confirmed the Q4 guidance for those segments is prudent due to softness in EV, renewables, and consumer markets. However, CEO Mike Dastoor highlighted future growth drivers in healthcare and digital commerce. Regarding the investment, Dastoor clarified the $500M is a long-term figure and will not change the company's overall CapEx target of 1.5-2% of revenue, and that no major restructuring of its regionalized global footprint is planned.

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Chief Executive Officer Mike Dastoor attributed the Intelligent Infrastructure strength to momentum in semi-cap equipment (automated testing) and cloud data center infrastructure, which he stated is accelerating, not slowing. Regarding Connected Living margins, Dastoor explained that year-over-year comparisons are skewed by the Mobility divestiture and that Q2 reflects typical post-holiday seasonality. He expressed optimism for future growth from digital commerce and automation.

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CEO Mike Dastoor attributed the Intelligent Infrastructure strength to robust demand in semi-cap equipment for automated testing and accelerating momentum in cloud data center infrastructure. Regarding the Connected Living & Digital Commerce segment, Dastoor explained that margins were impacted by the comparison to the prior year which included the divested Mobility business, as well as typical post-holiday seasonality. He highlighted future growth drivers in digital commerce and warehouse automation.

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CEO Mike Dastoor described the margin guidance as "appropriate" rather than conservative. He assessed the potential impact of an EV tax credit repeal as "small," noting Jabil wasn't forecasting huge EV growth to begin with. Dastoor detailed that the $1.5 billion year-over-year increase in AI-driven revenue is composed of approximately $900 million from cloud/data center, $400 million from capital equipment, and $200 million from networking and photonics.

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President and CEO Gary Smith confirmed a "step function" in cloud demand that exceeded expectations and is driving strong order momentum into Q3. He noted this is a long-term trend that will likely cause Ciena to revise its three-year outlook later. CFO Jim Moylan and Executive Advisor Scott McFeely addressed margins, explaining that while new, high-demand products like RLS and pluggables are currently below corporate average margins, they expect costs to decline and mix to improve over time, supporting a return to mid-40s gross margins and mid-teens operating margins.

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CFO Jim Moylan indicated that while order flow is expected to be very strong, the future of the backlog level is uncertain as lead times normalize, making order flow a more important metric to watch. CEO Gary Smith added that less seasonality is expected due to higher cloud exposure. Regarding TAM, management explained the figures are from third-party analysts. They believe Ciena will continue to outgrow the core market by taking share, and that current analyst models may not fully capture the growth from MOFN and other cloud-driven infrastructure builds.

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CFO Jim Moylan clarified that current order flows are predominantly driven by webscalers, with backlog growing to $2.1 billion. He expects improvement from North American service providers soon, with international providers lagging. Executive Adviser Scott McFeely explained that pluggables address the short-reach metro DCI market, which is incremental revenue for Ciena. CEO Gary Smith added that the vast majority of cloud spending will continue to be on complex, high-performance optical systems for core and submarine networks.

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CEO Antonio Neri stated that HPE has not seen a slowdown in North America, noting that monthly order demand was strong. CFO Marie Myers reiterated the path to the 10% server operating margin in Q4, explaining that Q3 margins will be impacted by the mix from a large AI deal, with improvement expected to continue into Q4.

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CEO Antonio Neri described the approach as holistic, utilizing HPE's global supply chain to shift production while also adjusting prices accordingly. He acknowledged uncertainty around the broader market's reaction to tariffs later in the year but reiterated confidence in the company's full-year revenue guidance.

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President and CEO Antonio Neri explained that while orders grew for a third consecutive quarter, revenue appears flattish because growth is concentrated in subscription-based offerings like SASE and Aruba Central on the GreenLake platform, where revenue is recognized over time. He noted that data center networking grew double-digits, but campus switching has yet to fully recover. He sees networking as a major upside for HPE in fiscal 2025, especially with the pending Juniper acquisition.

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CFO Marie Myers explained that year-over-year gross margins were impacted by a lower mix of high-margin networking revenue. Sequentially, the faster conversion of lower-margin AI server revenue was the primary driver. She reiterated a focus on OpEx control and selective deal-making, noting that as enterprise AI adoption grows and the Juniper acquisition closes, the margin profile is expected to improve significantly.

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Jeff Clarke, Vice Chairman and COO, acknowledged that some demand pull-forward likely occurred but was difficult to quantify. He highlighted that while the PC refresh cycle is underway, there was a noticeable slowdown in the final weeks of the quarter across U.S. commercial PCs, traditional servers, and storage. He attributed the cautious outlook to this observed slowdown, which is now reflected in the Q2 guidance, rather than just digestion.

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COO and Vice Chairman Jeffrey Clarke indicated that supply is not seen as the primary issue, noting that Hopper supply is available and Blackwell is ramping. He emphasized that the 'at least $15 billion' figure is a confident baseline given a robust pipeline that is several multiples of the backlog. He suggested growth is driven by accelerating demand from larger models and clearer enterprise use cases, while acknowledging that customer readiness (data center power, cooling) is a factor Dell helps orchestrate.

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Executive Jeffrey Clarke expressed confidence in the recovery's durability, now in its sixth consecutive quarter of sequential growth. He identified the key driver as a modernization cycle where customers consolidate multiple older servers into a single new 16G server to free up power and floor space for AI infrastructure, suggesting the cycle is still in its early stages.

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COO Jeffrey Clarke explained that since enterprises are in the early stages of AI adoption, there is a tremendous opportunity for Dell's professional services to help with strategy, implementation, and scaling complex systems. He explicitly stated that margins on sales to enterprises are better than those to the largest customers due to this value-add, and Dell has created specialized pursuit teams to capture this opportunity.

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CEO George Kurian clarified that the caution is more proactive, based on general political instability and reduced GDP growth forecasts, rather than continued deal slippage from Q3, as most of those deals closed in a strong Q4. He stated that public cloud revenue, excluding SPOT, grew 22% year-over-year in Q4 and 16% for the full year, with the fast-growing first-party and marketplace services expected to continue driving momentum in fiscal 2026.

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CEO George Kurian confirmed good progress on its third-generation disaggregated storage, positioning it to compete with other large NAS incumbents, with more details to be shared later. Regarding hyperscalers, he emphasized that NetApp has been providing high-value, high-margin, full-stack solutions since 2019 and will continue to expand its use cases on their platforms.

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CEO George Kurian clarified that while performance is strong, geopolitical risks and interest rate uncertainty persist. He noted customers are prioritizing strategic projects like AI but are not yet committing to large-scale infrastructure refreshes. For AI, he explained that customers are increasingly using hybrid workflows, and NetApp is well-positioned to capture this demand. He expects the cloud segment to return to consistent growth as subscription headwinds lessen.

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The provided transcript did not contain the full response to this question. However, earlier in the call, CFO Karen Parkhill attributed strong Q2 Print margins to "rigorous cost discipline and pricing actions, as well as the favorable impact of grant funding received in the quarter." This likely forms the basis of the Q2 outperformance.

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CEO Enrique Lores cited the 5% commercial revenue growth in Q4 as evidence of momentum. He noted the slower start to the Windows 11 refresh creates a larger opportunity for 2025, driven by the hard deadline for Windows 10 support. CFO Karen Parkhill added that for Q1, revenue is expected to grow year-over-year, with strength in Personal Systems offsetting a decline in Print, and that the EPS ramp through the year is driven by PC seasonality, margin actions, and higher AI PC penetration in the second half.

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CEO Enrique Lores explained that while AI PC shipments are slightly ahead of forecasts, the material impact is yet to come, with initial adoption expected to be faster in the consumer segment. Regarding Print, he stated that the market recovery was slow, but HP held or grew share by placing profitable units, attributing pricing pressure to competitors leveraging the weak yen rather than a structural loss of position. He noted that supplies performance remains a positive indicator for future demand.

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CEO Paul Bay noted that while SMBs faced headwinds, they were showing year-over-year improvement. He expressed confidence in continued strong demand from large enterprises based on pipeline and partner conversations. Both Bay and CFO Mike Zilis confirmed the Q1 strength in client solutions and a return to low single-digit growth in networking. For Q2, they anticipate continued growth but are taking a conservative view on SMBs, expecting a continued concentration in lower-margin large enterprise customers.

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CEO Paul Bay noted that while Ingram Micro typically passes through tariff costs, the key variable is the impact on end-user demand. CFO Michael Zilis explained that returning to EPS growth is a 'margin story' dependent on improving the business mix toward higher-value SMB customers and Advanced Solutions, alongside ongoing OpEx optimization.

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CEO Paul Bay explained that while Advanced Solutions faced headwinds in Q3, they are projected to return to growth, bolstered by an improving networking segment and continued strength in server storage and cybersecurity. He also highlighted that the cloud business continues its strong growth trajectory, while client and endpoint solutions will be primarily driven by the PC refresh cycle.

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CEO Chuck Treadway stated that the tariff impact is manageable due to CommScope's flexible global footprint, with 80% of U.S. sales being U.S. or USMCA compliant. He estimated a Q2 gross impact of $10-15 million, which will be fully mitigated by Q3 through manufacturing adjustments and supplier base leverage, with minimal order pull-in. CFO Kyle Lorentzen affirmed that the CCS margins are sustainable, supported by fixed cost leverage as revenue grows, and confirmed ongoing capacity investments to meet strong data center demand.

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President and CEO Chuck Treadway noted they shipped ~$50 million of FDX amplifiers in Q4 and could ship up to $300 million in 2025, which would partially cannibalize older products. CFO Kyle Lorentzen clarified the cadence, stating Q1 would be light, followed by a strong ramp in Q2 and Q3, with potential for quarterly fluctuations thereafter based on customer installation schedules.

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CFO Kyle Lorentzen stated that the 17% CCS growth was primarily driven by strong performance in data centers and some growth in the enterprise copper business, while the broadband (carrier) business was relatively flat year-over-year. CEO Chuck Treadway confirmed the new capacity is for data centers. Lorentzen estimated the annual headwind from stranded costs would be approximately $20 million.

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President and COO John Bruno explained the post-sale decline was driven by lower supplies and print volumes from a rationalized machine base, but expects trends to improve as recent installation growth pulls through services. CFO Mirlanda Gecaj quantified the core decline at approximately 4% after adjustments and confirmed this trajectory should improve. Regarding cash flow, Gecaj stated the full-year guidance is maintained, with lower benefits from finance receivables being offset by improved operating income and working capital. She confirmed the full-year expectation for finance receivable benefits is unchanged from prior guidance.

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An executive explained the 2025 revenue headwind is a continuation of prior years' actions and that the focus is now more tactical, with no expected carryover into 2026. President and COO John Bruno added that foundational simplification work is largely complete. CEO Steven Bandrowczak clarified that remaining reinvention efforts will be rolled into the Lexmark integration. Regarding free cash flow, an executive noted the decline is primarily driven by a planned lower inflow from the sale of finance receivables, partially offset by higher working capital and operating net income.

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President and CEO François Locoh-Donou confirmed there was no evidence of a hardware pull-in during Q2. EVP and CFO Cooper Werner added that the decline in perpetual software revenue was in line with normal seasonality, as Q1 is typically stronger due to service provider budget cycles, and does not reflect a change in customer engagement.

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CEO François Locoh-Donou stated definitively that F5 did not see any hardware pull-in during Q2, noting the company recognizes such patterns and none were present. CFO Cooper Werner added that the perpetual software revenue was within the typical range for Q2, explaining that the sequential decline from Q1 was expected as Q1 is seasonally stronger for perpetual purchases, particularly from service providers.

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EVP and CFO Frank Pelzer attributed the Q4 software outperformance to strong expansion within the renewal base and new business from previously delayed projects. SVP of Finance and incoming CFO Cooper Werner added that customers also consumed more new offerings upon renewal. President and CEO François Locoh-Donou explained the FY25 guidance is based on the established hybrid multi-cloud trend, not significant AI contributions, which he views as a fiscal '26 and beyond opportunity. He noted that AI is creating new hardware and software insertion points, but the company remains prudent in its forecast.

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