Core Insights - The company reported a strong performance in Q2 2025, with Revenue and Adjusted EBITDA increasing by 6% and 8% respectively, while overall EBITDA more than doubled, reflecting the impact of previous consolidation programs and investments in AI-led efficiency [1][9]. Financial Performance - Total Revenue for Q2 2025 reached €147.4 million, up 6% from €138.7 million in Q2 2024 [9]. - Adjusted EBITDA for Q2 2025 was €18.9 million, an increase of 8% compared to €17.5 million in Q2 2024 [9]. - EBITDA for Q2 2025 stood at €14.0 million, showing a significant increase of 109% from €6.7 million in Q2 2024 [9]. - For the first half of 2025, Total Revenue was €275.4 million, a 7% increase from €258.4 million in H1 2024 [9]. - Adjusted EBITDA for H1 2025 was €30.5 million, up 12% from €27.3 million in H1 2024 [9]. - EBITDA for H1 2025 reached €21.8 million, a 91% increase compared to €11.4 million in H1 2024 [9]. Strategic Focus - The company is undergoing a transformation to simplify its structure and focus on core assets, reinforcing digital advertising as its primary business [3][5]. - The divestment of Whow Games for €65 million is part of this strategy, allowing the company to concentrate on its Advertising Platform and enhance profitability through efficiencies and AI [4][6]. - The continuing operations, particularly the Platform segment, have shown record-breaking performance due to recent consolidation and integration efforts [6][8].

RT Sundar Pichai (@sundarpichai)Building on our @GoogleWorkspace offer for federal employees, we’re proud to partner with the @USGSA to launch Gemini for Government. More than a model, it’s our complete AI platform with our latest AI tools, including NotebookLM and Veo, powered by our latest models and our secure cloud infrastructure, at virtually no cost. ...

Financial Data and Key Metrics Changes - Fourth quarter revenue was $480.7 million, exceeding the high end of revised guidance, with non-GAAP EPS of $0.88 [16] - Fiscal year 2025 net revenue was $1.65 billion, up 21% from fiscal year 2024 [19] - Non-GAAP gross margin for the fourth quarter was 37.8%, up 260 basis points sequentially and 1,000 basis points year over year [17] - Non-GAAP operating margin for the fourth quarter was 15%, up 420 basis points sequentially and over 2,000 basis points year on year [17] Business Line Data and Key Metrics Changes - Cloud and networking segment revenue for Q4 was $424.1 million, increasing 16% sequentially and 67% year over year [20] - Industrial tech segment revenue was $56.6 million, down 6% sequentially but up 6% year over year [21] - Cloud and networking segment profit was 23.6%, up 360 basis points sequentially and 1,350 basis points year over year [21] Market Data and Key Metrics Changes - The company expects to surpass $600 million in quarterly revenue by June 2026 or earlier, driven by strong demand in cloud and AI applications [6][7] - Cloud revenue is growing over 20% annually, with expectations for continued strength in components and cloud modules [6][37] Company Strategy and Development Direction - The company is focusing on three significant growth areas: cloud modules, optical circuit switching (OCS), and co-packaged optics (CPO) [10] - The company is positioned to capture significant value from the AI infrastructure market, with technologies projected to become multibillion-dollar markets within five years [6] - The company is expanding its manufacturing capacity to meet high demand, particularly in the cloud and networking segment [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained growth driven by the rapid adoption of AI, highlighting the effectiveness of their strategy and operational resilience [14] - The company anticipates a breakout year for laser chip sales in 2026, with demand expected to outpace supply [9] - Management noted that the tariff situation is fluid but does not expect material changes to business operations due to tariffs [53][56] Other Important Information - The company invested $59 million in CapEx during Q4, primarily focused on manufacturing capacity to support cloud customers [20] - The company is transitioning from three-inch to four-inch wafers to increase capacity [102] Q&A Session Summary Question: Update on OCS award and revenue trajectory - Management indicated that the OCS revenue is ramping better than expected, with significant revenue anticipated in early 2026 and a more meaningful inflection point in the second half of 2026 [29][30] Question: CPO opportunity and competitive landscape - Management feels confident in maintaining a competitive edge in the CPO market due to unique power levels and reliability of their lasers [32] Question: Contributions to the $600 million revenue target - Management expects continued strength in components, significant contributions from cloud modules, and revenue from OCS to help achieve the target [37] Question: Semiconductor tariffs impact - Management believes their products are exempt from new tariffs and does not expect material impacts on operations [53][56] Question: EML wafer fab capacity and pricing dynamics - Management confirmed they are transitioning to larger wafers to increase capacity and anticipate pricing discussions to become more significant due to limited supply and high demand [102][104] Question: Profitability of OCS product offering - Management stated that OCS will be significantly above corporate margin averages and will be accretive to margins as volume ramps up [110]

Microsoft TodayMSFTMicrosoft$519.97 -4.97 (-0.95%) 52-Week Range$344.79▼$555.45Dividend Yield0.64%P/E Ratio38.12Price Target$609.86Add to WatchlistMicrosoft Corporation NASDAQ: MSFT delivered an earnings report that can be considered a blowout, even for a mega-cap company with high expectations. Microsoft beat on revenue and earnings and reiterated its guidance for data center spending for the remainder of the 2025 calendar year. Analysts have taken notice.Get Microsoft alerts:The Microsoft analyst forecas ...

Core Insights - Nokia has been selected to power the Medusa subsea cable system, which aims to enhance connectivity between Europe and North Africa [1][9] - The Medusa cable will connect countries including Morocco, Tunisia, Libya, Algeria, and Egypt, addressing the digital divide in the region [2][9] - The project is designed as an open-access system, facilitating telecom providers' access to advanced connectivity services, supporting 5G, cloud infrastructure, and AI technologies [2][9] Group 1 - The Medusa subsea cable system will create a high-capacity digital corridor, promoting innovation and economic growth across Europe and North Africa [1][4] - The cable utilizes Nokia's 1830 GX Series platform and ICE7 coherent optics, capable of transmitting tens of terabits per second per fiber pair, ensuring high-capacity, low-latency connectivity [2][9] - The initiative is expected to deliver faster and more reliable connectivity to millions, fostering deeper integration into the global digital economy [4][9] Group 2 - The partnership with Nokia is aimed at providing scalable and cost-effective connectivity solutions, meeting current demands while preparing for future infrastructure needs [3][4] - The project is positioned to support the rollout of 5G and the increasing bandwidth demands driven by AI and future technologies [2][9] - Nokia's involvement in the Medusa project underscores its commitment to creating transformative technology that bridges continents and enhances digital services [4][9]

Cybersecurity Threat Landscape - Iran's cyber capabilities are on par with other nation states and are leveraged as a direct extension of military force [2] - DHS and CISA have issued advisories for private sector corporations and government entities to be on high alert for cyber attacks [3] - Iran can inflict substantial damage in the US across manufacturing, supply chain, retail, and critical infrastructure without necessarily crossing the red line of loss of life [4] - Iran typically targets user accounts through phishing or social engineering, directly attacks external perimeters, and increasingly targets cloud infrastructure and SaaS providers [6] - Over 85% of critical infrastructure is privately owned, making it a vulnerable target [7] - Iran has been attempting to conduct operations for this type of event, potentially having undetected footholds in organizations and critical infrastructure [9] - Iran is specifically targeting industry verticals, which is not typical [10] Market Impact - Cybersecurity stocks such as Fortinet, CrowdStrike, and Zscaler are up by about 1.5% to 2.5% [5] - Palo Alto is up about 1.7% [6] Defensive Recommendations - Companies should be on high alert and diligent in putting up defenses and monitoring for specific issues to minimize damage [4][8] - Companies should be very diligent due to the current times [10]

Financial Data and Key Metrics Changes - The company reported revenue of $1,980,000,000 for Q2 2025, representing an 8.1% increase year-over-year [14][25] - Non-GAAP EPS was $1.41, up 7.8% compared to the same period last year [15][25] - Non-GAAP operating margin was 5.6%, up 20 basis points year-over-year [15][25] - Non-GAAP gross margin was 9.1%, an increase of 20 basis points compared to the same period last year [15][25] Business Line Data and Key Metrics Changes - IMS revenue was $1,600,000,000, up 9.8% year-over-year, primarily driven by growth in communication networks and cloud infrastructure [17] - CPS revenue was $411,000,000, up 3.3% year-over-year, with a non-GAAP gross margin of 13.9%, an increase of 100 basis points [17][18] Market Data and Key Metrics Changes - Revenue from industrial, energy, medical, defense, aerospace, and automotive sectors was $1,251,000,000, growing approximately 2.1% year-over-year [26] - Communication networks and cloud infrastructure revenue was $733,000,000, up 20.3% year-over-year [27] Company Strategy and Development Direction - The company aims to invest in faster-growing and higher-margin end markets, focusing on operational execution and customer satisfaction [36][42] - Strategic investments are planned in capacity and technology across the U.S., India, and Mexico to support future growth [21][66] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth opportunities despite geopolitical uncertainties, indicating a solid pipeline of new programs [49][50] - The company expects revenue growth of 6% to 8% for fiscal 2025, with a focus on maintaining stable operating margins [23][36] Other Important Information - The company maintained a strong balance sheet with cash and cash equivalents of $647,000,000 and no outstanding borrowings [19] - Free cash flow for the quarter was $126,000,000, allowing for continued investments and shareholder returns [22] Q&A Session Summary Question: Did you see any pull forward of demand in fiscal 2Q ahead of potential tariff increases? - Management indicated no major changes in customer behavior due to tariffs, but discussions with customers about options were ongoing [46][47] Question: Are you seeing any slowdown in demand in the fiscal second half of 2025? - Management stated they are being prudent in guidance but remain optimistic about future growth, with exciting programs on the horizon [49][50] Question: What drove the increase in gross inventory dollars? - The CFO explained that inventory is being built to support future growth, with a focus on year-over-year improvement [52][54] Question: How is demand trending in the communications end market? - Management reported strong demand across high-end routing, switching, and optical packaging, with expectations for continued strength [56][57] Question: Can you expand on the investments in capacity and technology in India, U.S., and Mexico? - Management highlighted significant growth opportunities in India, with expansions focused on data center demand and high technology printed circuit boards [66][66] Question: How competitive is the environment for new customer wins? - Management emphasized their competitive advantages in technology, quality, and flexibility, which have helped secure new customer contracts [78][80]