Core Viewpoint - The company reported strong financial performance in Q3 2025, with revenue and profit exceeding guidance, driven by price increases and growth in bit shipments [2][11][15]. Financial Performance - Q3 2025 revenue reached $2.308 billion, up 23% year-over-year and 21% quarter-over-quarter, surpassing the guidance range of $2.1-2.2 billion, primarily due to price increases [2][11]. - Gross margin was 29.9%, down 9 percentage points year-over-year but up 3.5 percentage points quarter-over-quarter, exceeding the guidance of 28.5-29.5% [2][11]. - Non-GAAP EPS was $1.22, above the guidance of $0.70-0.90 [2][11]. Business Segments - The edge computing terminal market generated $1.387 billion in revenue, up 26% quarter-over-quarter, accounting for 60.1% of total revenue [3]. - Consumer revenue was $652 million, up 11% quarter-over-quarter, with significant sales from the Nintendo Switch 2 microSD Express [3][10]. - Data center revenue reached $269 million, also up 26% quarter-over-quarter, with eSSD products entering qualification processes with major clients [3][10]. Q4 2025 Guidance - Q4 2025 revenue is guided at $2.55-2.65 billion, representing a quarter-over-quarter increase of approximately 12.65% [4][12]. - Gross margin is expected to be between 41.0%-43.0%, reflecting price increases and cost improvements [4][12]. Market Outlook - The demand for NAND products is expected to continue exceeding supply until at least the end of 2026, with long-term demand growth projected at 15%-20% [4][12]. - The company anticipates a 25% actual demand growth in 2026, driven by strong market conditions [4][12]. Strategic Focus - The company is focusing on the BiCS8 technology transition and expanding its enterprise SSD market share, emphasizing strategic resource allocation to meet customer needs [7][15]. - The management aims to enhance revenue, expand profit margins, and maintain positive free cash flow, reflecting robust execution in a strengthening demand environment [7][15]. Cash Flow and Financial Health - Adjusted free cash flow for Q3 2025 was $448 million, representing 19.4% of revenue, with operating cash flow at $488 million [11][13]. - The company ended the quarter with $1.442 billion in cash and $1.351 billion in debt, resulting in a net cash position of $91 million [11][13]. Inventory and Capital Expenditure - Inventory days decreased from 135 to 115 days, indicating improved inventory management [11][12]. - Capital expenditures for FY 2026 are expected to remain unchanged, focusing on the BiCS8 transition [4][12]. Industry Trends - The global investment in data centers and AI infrastructure is projected to exceed $1 trillion by 2030, significantly benefiting high-capacity, low-power SSD demand [8][10]. - The company is positioned to leverage its BiCS8 technology to enhance performance, efficiency, and capacity in the data center and enterprise SSD markets [8][10].
【招商电子】闪迪25Q3跟踪报告：25Q3收入及毛利率超指引上限，上修2026年全年需求增速指引