SAN JOSE, Calif.--(BUSINESS WIRE)--Super Micro Computer, Inc. (NASDAQ: SMCI) ("Supermicro†or the "Company†), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced unaudited financial results for its second quarter of fiscal year 2026 ended December 31, 2025. Second Quarter Fiscal Year 2026 Highlights Net sales of $12.7 billion versus $5.0 billion in Q1'26 and $5.7 billion in Q2'25 Gross margin of 6.3% versus 9.3% in Q1'26 and 11.8% in Q2'25 Net income of $401 millio. ...

All right, Diane King Hall is with me and we continue to take a look at some of these big tech names and what a week it was for Microsoft in particular, Apple, too. Let's uh hear some details. >> Yeah, we've got uh some analyst activity across the Mag 7 to kick off the week here.Uh and this is Philip Securities taking a look at both Apple and Microsoft and you've got upgrades for both of them. We'll start out with Microsoft. They've upgraded Microsoft to buy from accum accumulate.They are keeping the price ...

Group 1 - Oracle (ORCL) was the leading global mega-cap stock following Punxsutawney Phil's prediction for six more weeks of winter on February 2 [1] - Shares of Oracle have been in a state of hibernation since then, indicating a stagnation in the Systems Software industry within the Information Technology sector [1] Group 2 - The article emphasizes the importance of creating engaging financial content that is relevant and accessible to various audiences [1] - It highlights the role of empirical data and charts in communicating financial narratives effectively [1]

Core Insights - Nokia Corporation reported a 3% increase in comparable net sales for Q4 2025, reaching EUR 6.1 billion, driven by growth in network infrastructure and mobile networks [1] - The company achieved a full-year operating profit of EUR 2.0 billion, slightly exceeding its guidance midpoint of EUR 1.85 billion [2] Financial Overview - In 2025, Nokia experienced a 2% year-on-year rise in net sales on a constant currency and portfolio basis, with a reported increase of 3% [2] - The comparable diluted EPS for Q4 was EUR 0.16, with a free cash flow of EUR 0.2 billion and a net cash balance of EUR 3.4 billion [5] Margin Analysis - The comparable operating margin fell by 90 basis points year-on-year to 17.3%, mainly due to increased investments in network infrastructure and costs from the integration of Infinera [3][9] - The comparable gross margin improved by 90 basis points to 48.1%, supported by a strong product mix, while the reported gross margin decreased by 120 basis points to 44.9% due to higher restructuring costs [4] Networks Overview - Optical networks emerged as a significant growth driver, fueled by strong demand from AI and cloud deployments, while IP networks grew by approximately 3% [6][10] - Fixed networks remained stable, and the company's book-to-bill ratio stayed above 1, indicating ongoing momentum in optical and IP networks [6] Cloud and Network Services - Cloud and network services saw a slight year-on-year decline in Q4, but full-year net sales increased by 6% due to strong demand in core networks [7] - Mobile networks experienced a 6% growth in Q4 net sales, supported by a favorable product mix [7]

For more, let's bring in Western Digital CEO Irving Tan. Irving, it's really great to have you here. Welcome.>> Thanks, Kelly, for having me. >> Can you just describe what it's like running a company through a period like this. >> Uh, it's exciting.It's crazy, but it's exciting, and it's a great opportunity for us to really show what we are able to deliver to our customers and to the market. >> But did were were you ready. At what point did you wake up one day and go, "Wait, whoa, whoa, wait a minute. There ...

Financial Data and Key Metrics Changes - Revenue for the second quarter of fiscal 2026 was $3 billion, up 25% year-over-year, driven by strong demand for Nearline drives [12] - Earnings per share (EPS) was $2.13, an increase of 78% year-over-year, exceeding guidance [15] - Gross margin improved to 46.1%, up 770 basis points year-over-year and 220 basis points sequentially [13][14] - Operating income was slightly above $1 billion, translating into an operating margin of 33.8% [14] Business Line Data and Key Metrics Changes - Cloud segment represented 89% of total revenue at $2.7 billion, up 28% year-over-year [13] - Client segment accounted for 6% of total revenue at $176 million, up 26% year-over-year [13] - Consumer segment represented 5% of revenue at $168 million, down 3% year-over-year [13] Market Data and Key Metrics Changes - The company shipped over 3.5 million units of its latest generation ePMR products, offering capacities up to 32 TB [12][8] - The company delivered 215 exabytes (EB) to customers, up 22% year-over-year [12] Company Strategy and Development Direction - The company is focusing on AI and cloud storage solutions, emphasizing high-capacity drives and partnerships with hyperscale customers [7][9] - A strategic investment in Qolab was announced to advance next-generation nanofabrication processes [10] - The company is hosting an innovation day to share updated roadmaps for HAMR and ePMR products [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued demand for storage solutions driven by AI and cloud growth [5][6] - The company anticipates revenue for Q3 fiscal 2026 to be around $3.2 billion, reflecting approximately 40% year-over-year growth [17] - Management highlighted a stable pricing environment and ongoing cost reductions, projecting further gross margin expansion [22][23] Other Important Information - The company returned $1.4 billion to shareholders through share repurchases and dividends since the launch of its capital return program [16] - The board approved a quarterly cash dividend of $12.50 per share, payable on March 18, 2026 [16] Q&A Session Summary Question: Gross margin guidance and durability of incremental margin - Management confirmed a gross margin of 46.1% and guidance of 47%-48%, with incremental margins around 75% [20][22] Question: Purchase orders and pricing strategy - Management indicated strong demand and stable pricing, with long-term agreements in place with top customers [27][28] Question: Customer engagement and contracts - The company has developed a customer-centric approach, resulting in longer-term contracts and improved relationships with hyperscale customers [34] Question: UltraSMR mix and gross margins - Management noted an increasing mix of UltraSMR drives, which are beneficial for both customers and profitability [42][43] Question: Yields and reliability of products - Yields on ePMR products are in the low 90s%, with positive feedback on reliability from customers [46] Question: HAMR roadmap and investments - The company has pulled in the HAMR qualification timeline and expects it to be neutral to accretive to gross margins once ramped [55][77] Question: Revenue per exabyte and mix changes - Revenue per exabyte is driven by strong demand from the cloud segment, with stable pricing trends [81] Question: Cost reductions and future expectations - Current cost reductions are around 10% year-over-year, with potential for further reductions as higher capacity drives are adopted [87]

Financial Data and Key Metrics Changes - Revenue for Q2 2026 was $3 billion, up 25% year-over-year, driven by strong demand for Nearline drives [10] - Earnings per share (EPS) was $2.13, an increase of 78% year-over-year [12] - Gross margin improved to 46.1%, up 770 basis points year-over-year and 220 basis points sequentially [11] - Operating income was slightly above $1 billion, translating into an operating margin of 33.8% [11] - Operating cash flow for the quarter was $745 million, with capital expenditures of $92 million, resulting in free cash flow of $653 million [12] Business Line Data and Key Metrics Changes - Cloud segment represented 89% of total revenue at $2.7 billion, up 28% year-over-year [11] - Client segment accounted for 6% of total revenue at $176 million, up 26% year-over-year [11] - Consumer segment represented 5% of revenue at $168 million, down 3% year-over-year [11] Market Data and Key Metrics Changes - The company shipped over 3.5 million units of its latest generation ePMR products, offering capacities up to 32 TB [10][11] - The demand for higher capacity storage solutions is driven by the growth of AI and cloud technologies [5][6] Company Strategy and Development Direction - The company is focusing on increasing drive areal density and accelerating HAMR and ePMR roadmaps to meet customer demands [5][6] - A strategic investment in Qolab was announced to advance next-generation nanofabrication processes [9] - The company is hosting an innovation day to share updated roadmaps for HAMR and ePMR products [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing demand for storage solutions driven by AI and cloud growth [4][5] - The company anticipates revenue for Q3 2026 to be $3.2 billion, reflecting approximately 40% year-over-year growth [14] - Gross margin is expected to be between 47%-48% for the next quarter [14] Other Important Information - The company returned $1.4 billion to shareholders through share repurchases and dividends since the launch of its capital return program [13] - A quarterly cash dividend of $12.50 per share was approved, payable on March 18, 2026 [13] Q&A Session Summary Question: Gross margin guidance and durability of incremental margin - Management confirmed a stable pricing environment and effective cost control, leading to an expected gross margin of 47%-48% [16][18] Question: Purchase orders and pricing strategy - Management highlighted the value delivered to customers and the stable pricing environment, allowing for better economics in long-term agreements [24][26] Question: Customer engagement and contracts - The company has developed a customer-centric approach, resulting in longer-term contracts and improved relationships with hyperscale customers [31][33] Question: UltraSMR mix and gross margins - The UltraSMR mix has crossed 50% and is expected to increase, positively impacting gross margins due to its software-based nature [38][40] Question: Yields and reliability of ePMR products - Yields on ePMR products are in the low 90s%, with positive feedback on reliability from customers [44] Question: HAMR roadmap and investments - The qualification process for HAMR has been pulled forward, with expectations of neutral to accretive gross margins once ramped [53][70] Question: Revenue per exabyte and mix changes - Revenue per exabyte is driven by strong demand from cloud customers, with stable pricing contributing to growth [78]

Core Insights - Caterpillar is transforming customer usage of its equipment as demand shifts towards data centers, autonomous operations, and energy reliability [1] - The company reported significant growth in Power and Energy sales, driven by large orders related to AI and cloud workloads [3] Group 1: Data Center Demand - Data center construction is a primary demand driver, with Caterpillar's generator sets and turbines being used as primary power sources for hyperscale and enterprise data centers [3] - Power and Energy sales to users increased by 37% in the fourth quarter, while power generation sales rose by 44% [3] Group 2: On-Site Power Generation - Operators are building on-site power plants to avoid grid constraints and ensure uptime for compute-intensive workloads [4] - The demand for natural gas is increasing as operators rely on it for on-site generation, leading to higher orders for gas compression equipment and turbines [5] Group 3: Autonomous Operations in Mining - In mining and quarry operations, there is an expansion in the use of autonomous hauling systems to enhance productivity and safety [6] - The number of autonomous haul trucks in operation increased to 827, up from 690 the previous year [6] Group 4: Construction Industry Trends - Sales to users in Construction Industries rose by 11% in the quarter, driven by equipment deployment for site preparation and energy projects [8] - Contractors are increasingly relying on rental fleets to support large, capital-intensive builds [8] Group 5: Services and Connectivity - Services revenue reached $24 billion for the year, supported by a connected fleet of over 1.6 million assets [9] - Caterpillar anticipates that these use cases will drive growth towards the upper end of its long-term target range by 2026, with Power and Energy leading the way [9]

Core Insights - Nokia Corporation (NOK) reported stronger-than-expected fourth-quarter 2025 results, with both revenues and earnings exceeding the Zacks Consensus Estimate, driven by growth in optical networks within the Network Infrastructure segment [1][9]. Financial Performance - Nokia's net income for Q4 2025 was €544 million ($633.2 million), or €0.10 (11 cents) per share, down from €813 million or €0.15 in the same quarter last year, primarily due to higher operating expenses [2]. - The comparable profit for Q4 2025 was €882 million ($1.02 billion) or €0.16 (19 cents) per share, a decrease from €977 million or €0.18 in the prior year, but still beating the Zacks Consensus Estimate of 17 cents [2]. - For the full year 2025, net income was €660 million or €0.12 per share, down from €1,284 million or €0.23 in 2024, with comparable profit at €1,595 million or €0.29 per share, down from €2,175 million or €0.39 in 2024 [3]. Revenue Analysis - Quarterly net sales reached €6.13 billion ($7.13 billion), a 2% increase from €5.98 billion in the year-ago quarter, supported by growth in Network Infrastructure despite weaknesses in Cloud and Network Services [4][9]. - For 2025, total revenues were reported at €19.88 billion, reflecting a 3% year-over-year increase [4]. Segment Performance - Net sales from Network Infrastructure totaled €2.4 billion ($2.8 billion), up from €2.03 billion in the previous year, with IP Networks growing 3% year-over-year, driven by demand from AI and cloud customers [5]. - Mobile Networks generated revenues of €2.5 billion ($2.912 billion), down 2% year-over-year on a reported basis but up 6% on a constant currency basis [6]. - Cloud and Network Services reported net sales of €837 million ($974.28 million), down 11% year-over-year on a reported basis [6]. - Nokia Technologies contributed €384 million ($446.9 million), a decrease from €463 million in the year-ago quarter [7]. Regional Performance - EMEA region net sales increased to €2.532 billion from €2.431 billion in the previous year, driven by strong performance in Network Infrastructure and Mobile Networks [8]. - APAC region revenues declined to €1.38 billion, remaining flat year-over-year, with growth in Mobile Networks and Cloud and Network Services offset by weaknesses in Network Infrastructure [8]. - The Americas region saw a 3% growth at constant currency to €2.21 billion, bolstered by Network Infrastructure [10]. Operational Metrics - The comparable gross margin for Q4 was 48.1%, up from 47.2% in the previous year, while the comparable operating profit decreased 3% year-over-year to €1.05 billion ($1.23 billion) [11]. - Nokia generated €373 million ($434 million) in net cash from operating activities in Q4, compared to €209 million in the prior-year quarter [12]. - As of December 31, 2025, Nokia had €5.46 billion ($6.41 billion) in cash and cash equivalents, with long-term interest-bearing liabilities of €2.32 billion ($2.73 billion) [13]. Future Outlook - For 2026, Nokia expects a comparable operating profit in the range of €2-€2.5 billion, with free cash flow estimated at 55-75% of comparable operating profit and capital expenditure projected between €900-€1000 million [14]. - The company anticipates 6-8% sales growth in the Network Infrastructure segment for 2026 [14].

Core Insights - Oracle Corporation has returned a total of $158 billion to shareholders over the past decade, ranking 9th in corporate history for capital returns [2] - The capital return consists of $35 billion in dividends and $123 billion in share buybacks, which is approximately 31.5% of the company's current market capitalization [3] - Oracle's strategy focuses on enhancing earnings per share through aggressive stock repurchases, supported by strong cash flows from its transition to cloud-based services [4] Financial Performance - Oracle's revenue growth stands at 11.1% for the last twelve months (LTM) and an average of 9.8% over the last three years [10] - The company has a free cash flow margin of nearly -21.6% and an operating margin of 31.9% for LTM [10] - The stock trades at a price-to-earnings (P/E) multiple of 32.5 [10] Market Position - While Oracle's capital returns are significant, they are lower than those of industry leaders like Apple and Microsoft, which have returned $847 billion and $368 billion respectively [4] - The total capital returned to shareholders as a percentage of market cap appears inversely proportional to growth potential for reinvestments, with companies like Meta and Microsoft showing higher growth despite lower capital returns [7] Risk Considerations - Oracle has experienced significant stock declines in the past, including a 77% drop during the Dot-Com crash and over 40% during the Global Financial Crisis [8]