Core Insights - The company reported Q2 FY26 revenue of $2.006 billion, a 58% year-over-year increase and a 6% quarter-over-quarter increase, with Q3 revenue expected to be $2.06 billion, a 36% year-over-year increase [3] - GAAP gross margin was 50.4%, up 4.2 percentage points year-over-year, while Non-GAAP gross margin was 59.4%, down 2.5 percentage points year-over-year and down 0.4 percentage points quarter-over-quarter [3] - Non-GAAP operating profit reached $699 million, a 111% year-over-year increase, with an operating margin of 34.8%, up 8.7 percentage points year-over-year [3] - The company repurchased $200 million worth of shares and paid $51.7 million in dividends, with $2 billion remaining in the buyback program [3] Business Segments - Data center revenue was $1.491 billion, a 69% year-over-year increase and a 4% quarter-over-quarter increase, accounting for 74% of total revenue, driven primarily by AI and cloud services [5] - The company secured 18 design wins in chip HSM orders, expected to generate $75 billion in lifetime revenue potential [6] - Enterprise networking revenue was $194 million, a 28% year-over-year increase, while communications revenue was $130 million, a 71% year-over-year increase [8] - Automotive/Industrial revenue was $76 million, a slight decline of 0.3% year-over-year, with the sale of automotive Ethernet technology to Infineon valued at $2.5 billion completed [8] Future Outlook - Q3 data center revenue is expected to remain flat at around $1.5 billion, with optical business growth offsetting declines in XPU business [10] - Q3 communications and enterprise networking revenue is projected to grow approximately 30% quarter-over-quarter [10] - The company plans to consolidate non-data center end markets into a new "Communications and Other" segment starting Q4 [10] - The management remains optimistic about future growth but refrains from providing specific performance guidance [12]