Good Tuesday morning from the AO Finance New York City headquarters studios. I'm the AO Finance executive editor Brian Sazi. You are watching Ryman Hospitality Properties ringing the opening bell at the New York Stock Exchange and Octa getting trading underway over at the NASDAQ.Octa uh no stranger to the AO Finance Airways. had a good chat with Todd McKinnon, co-founder and CEO at Dreamforce last week. It's on the podcast opening bid on filter.Check it out. Free plug. All right, it's a morning of big earni ...

An investor group including Black Rockck, Nvidia, XAI, and Microsoft has now agreed to buy Align data centers for about $40 billion. That deal marks the largest data center transaction now on record. Aligned operates and has planned capacity now of more than 5 gawatt across 50 data centers. Transaction expected to close in the first half of 2026. And this is a nice way back into our conversation with you Brad uh Gersner about what is going on here. Yeah, >> the opportunity set >> just a just a small $40 bil ...

Financial Data and Key Metrics Changes - Q2 2025 net sales were €4.55 billion, reflecting a 1% decline on a constant currency and portfolio basis [17] - Gross margin remained stable at 44.7%, while operating margin declined to 6.6% due to negative currency impacts and tariffs [18] - Free cash flow generated in the quarter was €88 million, with a net cash position of €2.9 billion at the end of the quarter [23] Business Line Data and Key Metrics Changes - Network infrastructure grew by 8%, with fixed networks up 17%, optical networks up 6%, and IP networks up 3% [18][19] - Mobile networks saw a 13% decline, primarily due to accelerated revenue recognition from the previous year [20] - Cloud and network services net sales increased by 14%, driven by growth in North America and Asia Pacific [21] - Nokia Technologies net sales increased by 3% on a constant currency basis, maintaining a run rate of approximately €1.4 billion [22] Market Data and Key Metrics Changes - Hyperscalers accounted for 5% of net sales in Q2, with strong demand driving order intake [11] - North America experienced a decline in mobile networks but saw double-digit growth in network infrastructure and cloud services [22] - APAC region showed flat sales in India due to a pause in mobile network investments, while growth was noted in fixed networks [22] Company Strategy and Development Direction - The company is focusing on unifying corporate functions to improve productivity and customer value [6][7] - Investments are being made in optical networking and AI infrastructure to capitalize on market transitions [5][10] - The company plans to discuss its full value creation strategy at the Capital Markets Day on November 19 [7][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future opportunities in connectivity, particularly in the AI super cycle [5] - The demand environment remains consistent, with no major impacts from geopolitical uncertainties [10] - Full-year expectations include strong growth in network infrastructure and stable net sales in mobile networks, with operating profit guidance revised down due to currency and tariff impacts [14][15] Other Important Information - The company is experiencing a €230 million headwind to operating profit due to currency fluctuations [15] - The tariff situation is expected to impact operating profit by €50 million to €80 million for the full year [15][18] Q&A Session All Questions and Answers Question: What is required to win large hyperscaler deals? - Management emphasized the importance of customer relationships and understanding customer needs to increase sales to hyperscalers [34] Question: Will the fiber build programs from U.S. Telcos accelerate into 2026? - Management expressed optimism about growth opportunities in fiber builds due to recent legislative support and customer demand [36] Question: Can you discuss the guidance revision? - Management explained that uncertainties have increased due to currency shifts and tariff impacts, leading to a prudent adjustment of the guidance range [44][46] Question: Can you provide insights on network infrastructure performance in Q2? - Management noted that supply chain constraints affected growth, but they expect strong performance in the second half driven by hyperscale and AI data center customers [50][52] Question: What is the outlook for the optical business? - Management acknowledged that while there is growth, they are still catching up in market share and need to continue product development to compete effectively [86]

Market Outlook & Economic Factors - The speaker turned bullish in late April/early May due to clarity on global tariffs, anticipating a shift towards "fair trade" rather than a "nuclear" approach [2][3] - A potential deal with China is on the horizon, along with progress with Europe, suggesting a favorable outcome on tariffs [4] - The reconciliation bill, expected to pass in early July, will extend current tax regimes and add stimulus through tax breaks on tips, overtime, and social security [4] - Anticipated rate cuts in the latter half of the year could create a "trifecta" for the economy [5] Company Strategy & Performance - The firm is currently at the top 25% of its exposure limits, indicating a high level of confidence in the market [6] Technological Trends - The AI super cycle is driving an acceleration in both topline and earnings [6] - Oracle reported "blockbuster numbers," and 80% of the S&P companies that have reported have beaten expectations [6] - The "Mag 7" companies all beat expectations and accelerated [6]