Market Overview - Pre-market futures have improved from early lows, influenced by Q4 earnings reports and private-sector job numbers, with the Dow up 142 points and the S&P 500 up 10 points, while the Nasdaq is down 66 points and the Russell 2000 is up 12 points [1] Private Sector Employment - Private-sector payrolls for January reported by ADP show an increase of only 22K, significantly below expectations, and down from a revised 37K the previous month, marking the first back-to-back monthly job gains since April and May of the previous year [2] - The services sector accounted for most of the job gains, adding 21K jobs, while goods-producing sectors only added 1K jobs. Healthcare Services led with 74K hires, followed by Financial Services with 14K and Construction with 9K. Professional & Business Services lost 57K jobs, and Manufacturing has not seen positive job growth since early 2024 [2][3] - A new ADP methodology indicates a downward revision of 212K fewer hires for the entire year of 2025, reducing total private-sector hires from 771K in 2024 to 398K in 2025 [4] Earnings Reports - Eli Lilly & Co. reported a 7.9% earnings surprise with earnings of $7.54 per share and revenues of $19.29 billion, also exceeding estimates by 7.9%, driven by strong performance in diabetes and weight loss drugs [6][7] - AbbVie reported earnings of $2.71 per share, beating estimates of $2.66, while Novartis reported $2.03 per share, surpassing consensus by 4 cents. Novartis shares rose 1.6%, while AbbVie shares fell 3% [7] - Phillips 66 reported earnings of $2.47 per share, exceeding expectations of $2.11 and significantly improving from a loss of $0.15 per share in the same quarter last year, with shares up 1.3% in pre-market trading [8]

STAMFORD, Conn.--(BUSINESS WIRE)---- $III #AI--Manufacturers are embedding digital systems in design, production and service operations to address business and technology challenges, ISG says. ...

Financial Data and Key Metrics Changes - Revenue for the third quarter was $7.1 billion, an increase of 8% year-over-year, with adjusted operating margin at 6.5%, marking a record for the company [4][10] - Adjusted EPS rose to $0.87, up 13% year-over-year, reflecting strong execution [4][10] - Adjusted gross profit totaled $690 million, with adjusted gross margin improving to 9.8%, up 50 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Reliability Solutions revenue reached $3.2 billion, up 10% year-over-year, with adjusted operating income improving to $233 million and adjusted operating margin at 7.2% [11] - Agility Solutions revenue totaled $3.8 billion, up 6% year-over-year, with adjusted operating income at $239 million and adjusted operating margin unchanged at 6.3% [11][12] Market Data and Key Metrics Changes - Strong growth in data center-related end markets was noted, driven by increasing demand for power and compute solutions [5][11] - Health Solutions saw robust demand for medical devices, while Core Industrial experienced growth in warehouse automation and robotics [7] Company Strategy and Development Direction - The company is focused on expanding its global footprint and investing in advanced technologies to manage complexities across industries [8] - Flex aims to be a strategic enabler for leading brands, helping them navigate complexity and improve performance [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of data centers and the overall business, with expectations for continued strong performance in the coming quarters [10][15] - The company anticipates revenue for the fiscal year to be between $27.2 billion and $27.5 billion, with adjusted EPS guidance between $3.21 and $3.27 [15][16] Other Important Information - Cash flow for the quarter was $275 million, with inventory levels up 5% year-over-year [12][13] - The company repurchased approximately $200 million of stock during the quarter [13] Q&A Session Summary Question: Opportunities in Data Center Growth - Management highlighted strong growth in both power and compute segments, with investments focused on both areas [20][21] Question: Operating Margin Ceiling - Management indicated that margins are expected to continue improving, with a focus on higher-margin segments [24][25][26] Question: Differentiation Between Embedded and Critical Power - Both segments are experiencing strong growth, with Embedded Power benefiting from a technology shift [32][33] Question: Agility Solutions Revenue Guidance - Management noted that growth in Agility is strong, driven by data center-related infrastructure, despite softness in consumer markets [36] Question: Impact of Amazon Warrant Deal - The Amazon warrant deal is not expected to materially impact FY 2026, with growth anticipated to scale over time [40][41] Question: Reliability Segment Margins - Strong margins in the reliability segment are attributed to mix impacts and growth in the power business [42][43] Question: Memory Prices Impact - Management stated that memory price increases are not significantly affecting demand in consumer markets, which are already soft [64]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $7.1 billion, an increase of 8% year-over-year, with adjusted operating margin at 6.5%, marking a record for the company [4][10] - Adjusted EPS rose 13% year-over-year to $0.87, reflecting strong execution [4][10] - Adjusted gross profit was $690 million, with adjusted gross margin improving to 9.8%, up 50 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Reliability Solutions revenue reached $3.2 billion, up 10% year-over-year, with adjusted operating margin at 7.2%, up 50 basis points [11] - Agility Solutions revenue totaled $3.8 billion, up 6% year-over-year, with adjusted operating margin remaining at 6.3% [11][12] - Strong growth in data center-related markets was noted, while consumer-related markets showed softness [11][36] Market Data and Key Metrics Changes - The data center market is experiencing strong growth driven by AI workloads, with Flex positioned to support this demand through integrated solutions [5][6] - Health Solutions and core industrial markets are also seeing robust demand, particularly in medical devices and warehouse automation [7][8] Company Strategy and Development Direction - The company is focused on expanding its global footprint and investing in advanced technologies to manage complexities across industries [8] - Flex aims to be a strategic enabler for brands, helping them navigate complexities and improve performance [9] - The company is shifting towards higher-value, more complex product categories to drive margin improvement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of data centers and the overall business, with expectations for continued strong performance [20][21] - The company anticipates further investments in compute capacity due to upcoming AI programs, while maintaining a balanced approach to power and compute investments [20][21] - Management highlighted the importance of speed, flexibility, and resilience in adapting to market changes [8] Other Important Information - The company expects full-year revenue to be between $27.2 billion and $27.5 billion, with adjusted EPS guidance of $3.21 to $3.27 per share [15] - Cash flow for the quarter was $275 million, with a commitment to maintaining an investment-grade balance sheet [13][14] Q&A Session Summary Question: Opportunities in Data Center Growth - Management noted strong growth in both power and compute segments, with a focus on investments in both areas [20][21] Question: Operating Margin Ceiling - Management indicated that margins are expected to continue improving, with a focus on higher-margin segments [24][25][26] Question: Differentiation Between Embedded and Critical Power - Both segments are experiencing strong growth, with embedded power benefiting from technology shifts [32][33] Question: Agility Solutions Revenue Guidance - Management clarified that growth in agility is strong, driven by data center-related infrastructure, despite softness in consumer markets [36] Question: Impact of Amazon Warrant Deal - Management stated that the Amazon warrant deal is not expected to materially impact FY 2026 results [40][41] Question: Reliability Segment Margins - Strong margins in the reliability segment are attributed to mix impacts and growth in power and core industrial businesses [42][43] Question: U.S. Manufacturing Trends - Management refuted claims of U.S. manufacturing retreat, citing ongoing investments and customer demand [55][56] Question: Automotive Market Trends - Stabilization in the automotive sector is noted, with growth driven by investments in compute platforms rather than unit volume [60][61] Question: Effects of Rising Memory Prices - Management indicated that memory price increases are not significantly affecting demand in consumer markets, as procurement is handled by customers [63][64]

Financial Data and Key Metrics Changes - Revenue for Q3 2026 was $7.1 billion, an increase of 8% year-over-year, with adjusted operating margin at 6.5%, marking a record for the company [4][10] - Adjusted EPS rose to $0.87, up 13% year-over-year, reflecting strong execution [4][10] - Adjusted Gross Profit totaled $690 million, with an adjusted gross margin of 9.8%, up 50 basis points year-over-year [10] Business Line Data and Key Metrics Changes - Reliability Solutions revenue reached $3.2 billion, up 10% year-over-year, driven by strong growth in Power and Core Industrial [11] - Agility Solutions revenue was $3.8 billion, up 6% year-over-year, with data center-related markets driving growth, partially offset by softness in consumer-related markets [11][12] - Adjusted operating income for Reliability Solutions improved to $233 million, with an adjusted operating margin of 7.2%, while Agility Solutions had an adjusted operating income of $239 million, with a margin of 6.3% [11][12] Market Data and Key Metrics Changes - The data center market is experiencing strong growth driven by expanding compute and AI workloads, with Flex positioned to support this demand through integrated solutions [5][6] - Health Solutions and Core Industrial markets are also showing robust momentum, particularly in medical devices and warehouse automation [7][8] Company Strategy and Development Direction - The company is focused on expanding its global footprint and investing in advanced technologies to manage complexities across industries [8] - Flex aims to be a strategic enabler for leading brands, helping them navigate complexity and improve performance [9] - The company is shifting towards higher-value, more complex product categories to drive margin improvement [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth opportunities within data centers, particularly in power and compute segments, and plans to invest accordingly [20][21] - The company anticipates continued strong cash generation and maintains a free cash flow conversion guidance of over 80% for the year [15] - Management noted that they are not seeing a retreat in US manufacturing, with ongoing investments in capacity [55][56] Other Important Information - The company expects full-year revenue to be between $27.2 billion and $27.5 billion, with an adjusted operating margin of approximately 6.3% [15] - The fourth quarter guidance anticipates Reliability Solutions revenue to grow low double digits to mid-teens, while Agility Solutions is expected to grow low- to mid-single digits [14][15] Q&A Session Summary Question: Opportunities in Data Center Growth - Management highlighted strong growth in both power and compute segments, with investments planned in both areas to support AI-related programs [20][21] Question: Operating Margin Ceiling - Management indicated that they expect margins to continue improving across business units, with a focus on higher-margin segments [24][25][26] Question: Differentiation Between Embedded and Critical Power - Management noted that both segments are growing strongly, with Embedded Power benefiting from a technology shift, while Critical Power focuses on lead times and installations [30][33] Question: Impact of Amazon Warrant Deal - Management stated that the Amazon warrant deal is not expected to materially impact FY 2026, with growth anticipated to scale over time [40][41] Question: Reliability Segment Margins - Management attributed strong reliability margins to mix impacts from growth in power and Core Industrial, with expectations for continued performance [43][44] Question: Memory Prices Effect - Management indicated that while memory prices are rising, they do not anticipate significant demand effects in consumer markets, as those markets are already soft [64]

Group 1 - Private sector job creation in January was only 22,000, significantly below economists' expectations of 48,000 jobs [1] - The previous month's job gain was revised down from 41,000 to 37,000 [1] - In 2025, private employers added 398,000 jobs, a decrease from 771,000 in 2024, indicating a continuous slowdown in job creation over the past three years [2] Group 2 - Education and health services led job creation in December with an addition of 74,000 positions, followed by financial activities with 14,000 and construction with 9,000 [2] - Leisure and hospitality, trade, transportation, and utilities each added 4,000 jobs, while hiring in natural resources and mining remained flat [3] - Professional and business services experienced a loss of 57,000 jobs, with other services and manufacturing losing 13,000 and 8,000 jobs respectively [3] Group 3 - Wage growth in December remained stable, with pay for those staying in their roles increasing by 4.5% year-over-year, while pay gains for job changers slightly decreased to 6.4% from 6.6% [4]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Asia Pacific industrial sector**, highlighting its significant role in the global economy, accounting for almost **50% of the world's industrial value-add** and **33% of Asia's GDP** [6][11]. Core Insights - **Industrial Production Growth**: Asia ex China's industrial production growth has reached a **42-month high**, with a **5.1% year-on-year growth** recorded in December 2025, marking the fastest pace since June 2022 [5][10][12]. - **Drivers of Growth**: Key drivers for industrial production growth in 2026 include: - Increased spending on **AI infrastructure**, **energy transition**, and **defense** [36]. - A rise in **non-tech exports** due to increased spending from economies outside Asia [5][6]. - **Broad-Based Improvement**: All economies in Asia ex China are now in expansionary territory, with manufacturing PMI readings above 50 for the first time since April 2022 [10][14]. Economic Indicators - **PMI and Trade Data**: Incoming industrial production, PMI, and trade data indicate a consistent improvement in industrial activity, particularly in Asia ex China [9]. - **Commodity Prices**: Rising industrial commodity prices, with the CRB industrial commodity price index reaching a **3.5-year high**, reflect increased demand and tight supply conditions [9][21]. Export Dynamics - **Non-Tech Exports Recovery**: Non-tech exports have increased by **4% compared to December 2024**, with a **7.6% annualized rebound** in December 2025 [26]. - **New Export Orders**: The new export orders sub-index within PMI rose to a **seven-month high of 52.3** in January 2026, indicating a broadening recovery across the region [26]. Future Projections - **Power Demand Growth**: Global power demand is expected to grow at a **3.8% CAGR** from 2025 to 2030, with Asia's power demand projected to grow at **4.6% CAGR**, necessitating significant investments in energy infrastructure [37][39]. - **AI Infrastructure Spending**: Continued growth in AI infrastructure spending is anticipated, with significant capex required for construction and equipment [42]. - **Defense Spending Increase**: Asia's defense spending is projected to rise to **US$1 trillion annually by 2030**, up from **US$600 billion in 2024**, driven by geopolitical tensions [53]. Conclusion - The industrial cycle in Asia is showing signs of improvement, supported by increased spending in key sectors and a broad-based recovery in manufacturing and exports. The outlook for 2026 appears positive, with several tailwinds expected to drive further growth in the industrial sector [6][36].

Job Market Overview - The job market for the Class of 2026 is stable but selective, with 16% of global companies planning to reduce staffing levels and another 16% expecting to hire more [1] - 40% of companies anticipate maintaining current staffing levels, while 4% are uncertain about their hiring plans [1] Employment Outlook - Net Employment Outlooks have slightly improved from the previous quarter but remain lower than the same period last year, indicating a cautious hiring sentiment among employers [2] - Employers are not in expansion mode despite a recent uptick in hiring sentiment [2] Industries Hiring in 2026 - The finance sector has the strongest Net Employment Outlook at 32%, indicating resilience for business students [3] - The information sector follows with a Net Employment Outlook of 29%, although it has cooled compared to prior periods [4] - Construction and real estate, along with professional, scientific, and technical services, both have a Net Employment Outlook of 27%, driven by different market dynamics [4] Additional Industry Insights - Manufacturing shows a modest rebound with a Net Employment Outlook of 25%, while hospitality (24%) and trade and logistics (23%) are experiencing a softening [6] - Utilities and natural resources maintain stability with a Net Employment Outlook of 22% [6] - The public sector, health, and social services have the lowest overall outlook at 20%, but this sector has seen a notable improvement with hiring sentiment up five points [7]

The manufacturing boom President Trump promised would usher in a golden age for America is going in reverse. https://t.co/xhcJGCwucb https://t.co/pnRndYIput ...

Core Viewpoint - Dover Corporation is a diversified global manufacturer with a strong market presence and positive analyst ratings, indicating a promising outlook for investors [2][5][6] Group 1: Company Overview - Dover Corporation operates in various industries, including energy, engineering, and food equipment, and competes with industrial giants like Emerson Electric and Illinois Tool Works [1] - The company has a market capitalization of approximately $28.89 billion and a trading volume of 534,735 shares on the NYSE, highlighting its significance in the industrial sector [5][6] Group 2: Stock Performance and Analyst Ratings - Seaport Global maintained a "Buy" rating for Dover, increasing the price target from $230 to $245, reflecting confidence in the company's future performance [2][6] - Zacks Investment Research identifies Dover as a top momentum stock, supported by strong Zacks Style Scores, which evaluate stocks based on value, growth, and momentum [3][6] - Dover's stock price is currently $210.67, showing a 1.62% increase or $3.35, indicating positive momentum [3] Group 3: Price Movement and Volatility - The stock has experienced significant price movement, with a trading range between $207.40 and $211.88 during the day, and over the past year, it reached a high of $222.31 and a low of $143.04 [4] - This volatility presents opportunities for investors looking to capitalize on price fluctuations [4]