Financial Data and Key Metrics Changes - Revenue for the first quarter was $6.6 billion, an increase of 4% year over year [6][15] - Adjusted operating margin was 6%, with adjusted EPS reaching a record $0.72, reflecting a more than 40% increase [6][15] - Gross profit totaled $596 million, with gross margin improving to 9.1%, up 130 basis points [15] Business Line Data and Key Metrics Changes - Reliability Solutions revenue was $2.9 billion, down 2% year over year, impacted by macro-related pressures in Automotive and Renewables [16] - Agility Solutions revenue totaled $3.7 billion, up 10% year over year, driven by strong cloud and AI demand [17] - Operating income for Reliability Solutions improved to $172 million, while Agility Solutions saw operating income of $240 million [16][17] Market Data and Key Metrics Changes - Americas revenue rose to 49% in fiscal year 2025, up from 38% in fiscal year 2020, while Asia declined to 30%, down from 41% [12] - The company operates over 49 million square feet globally, with significant manufacturing footprints in the U.S. and Mexico [11] Company Strategy and Development Direction - The company is focusing on high-growth end markets such as data centers and power, positioning itself as a strategic end-to-end partner rather than just a contract manufacturer [14] - Investments are being made in advanced manufacturing capabilities, including AI and automation, to enhance productivity [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite market uncertainties, highlighting a strong start to fiscal year 2026 [14] - The updated fiscal year 2026 guidance anticipates revenue between $25.9 billion and $27.1 billion, with adjusted EPS between $2.86 and $3.06 [21] Other Important Information - Free cash flow for the quarter was $268 million, representing a conversion rate of 98% [17] - The company acquired a new manufacturing site in Poland to double its power capacity in Europe [19] Q&A Session Summary Question: Margin outlook for the year - Management maintained a margin guidance range of 6% to 6.1%, citing tariff impacts and investments as factors affecting margins [28][30] Question: Data center revenue trends - Management confirmed a strong outlook for data center growth, with expectations of 35% year-over-year growth, driven by both cloud and power segments [31][33] Question: Market evolution and internal investments by hyperscalers - Management views the trend of hyperscalers investing in their own capabilities as positive, emphasizing the importance of integrated solutions [38][39] Question: Capacity constraints and investments - Management acknowledged capacity constraints but expressed confidence in new investments to meet demand, particularly in AI infrastructure [50][51] Question: End market growth expectations - Management indicated that automotive and consumer markets are expected to remain weak, while healthcare and industrial sectors are projected to grow [67][68]

Core Insights - The investment landscape is experiencing a shift from path dependency to identity reconstruction, driven by both passive self-rescue and active exploration [1][6] - The primary market is showing signs of recovery, with increased activity in exhibitions and offline meetings, indicating a resurgence in market engagement [1][4] Group 1: Market Dynamics - The primary market is in a delicate state, with some investors becoming more active while others remain cautious, reflecting a divergence in market sentiment [4][5] - New fund establishment in the RMB fund sector is showing signs of recovery, particularly following signals of state-backed funding, which has activated some financing processes [4][5] - Key investment areas include artificial intelligence, semiconductors, and advanced manufacturing, with recent policy advancements regarding the "National Big Fund Phase III" igniting temporary enthusiasm [4][5] Group 2: Investor Behavior - Many General Partners (GPs) are reevaluating their roles, transitioning from traditional capital allocators to content producers and market organizers, indicating a non-linear survival strategy [2][6] - The identity of investors is evolving, with some engaging in side businesses to maintain cash flow, such as becoming advisors for listed companies or operating new media accounts [8][9] - The relationship dynamics between Limited Partners (LPs) and GPs are shifting, with LPs now expecting GPs to take on more active roles in project sourcing and industry engagement [9][10] Group 3: Future Outlook - The current market sentiment is characterized by a "structural recovery" phase, where investors face the dilemma of whether to act or wait, reflecting a broader uncertainty in investment strategies [10][11] - There is a growing trend among investors to explore composite investment paths, focusing on supply chain restructuring and local industry policies to identify investment opportunities [10][11] - The primary market is at a crossroads, with macro policies indicating a bottoming out, yet micro-level confidence remains fragile, leading to a challenging investment environment [11][12]