Question · Q4 2025
Wei Ong asked for a breakdown of the 8% core business growth expected in fiscal year 2026, specifically how it divides between unit shipments and content step-up, and requested an update on the competitive landscape, particularly concerning new AI systems entering vehicles.
Answer
CFO Tony Rodriquez explained that the 8% core technology growth stems from both license revenue and connected services. Connected services growth is driven by increased billings amortized over subscription periods. License growth is split, with half coming from more variable licenses recognized in-period due to decreased fixed licenses, and the other half from additional price and volume. CEO Brian Krzanich stated that the competitive landscape hasn't dramatically changed, with Google and Amazon remaining key competitors, but noted that the shift towards large language model-based and agentic AI is intensifying competition.
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