Financial Data and Key Metrics Changes - Revenue for Q1 Fiscal 2026 was $3.19 billion, representing a 59% increase compared to the same period a year ago [12][13] - Non-GAAP operating margin was 6.0%, up 40 basis points year-over-year [14] - Non-GAAP diluted earnings per share reached $2.38, a 66.1% increase compared to the same period last year [14] Business Line Data and Key Metrics Changes - IMS revenue was $2.79 billion, up 72% year-over-year, driven by growth in communications networks and cloud and AI infrastructure [15][16] - CPS revenue was $434 million, a 4.3% increase year-over-year, with a non-GAAP gross margin of 12.9%, which is lower than recent performance due to investments for new programs [17] Market Data and Key Metrics Changes - Communication networks and cloud infrastructure accounted for approximately 62% of total revenue, with core business growth of about 20% year-over-year [28] - Industrial, energy, medical, defense, aerospace, automotive, and transportation contributed 38% of revenue, slightly down by 3% year-over-year, but expected to stabilize [28] Company Strategy and Development Direction - The company aims to double revenue in the next two years, targeting $16 billion by calendar year 2027, with a strong focus on AI opportunities [34] - Strategic investments are planned in technologies and capabilities to support growth, particularly in AI data centers and energy solutions [21][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for fiscal 2026, with expectations for continued strong demand in AI hardware and core business growth in high single digits [24][38] - The company is focused on maintaining a healthy balance sheet while investing in future growth opportunities [20][36] Other Important Information - Cash flow from operations was $179 million, with capital expenditures of $87 million for the quarter [20] - The company has a strong balance sheet with cash and cash equivalents of $1.42 billion and no outstanding borrowings on its $1.5 billion revolver [18] Q&A Session Summary Question: Can you help parse through the sequential revenue guidance for the March quarter? - Management indicated that the business is improving and that they are guiding one quarter at a time, with expectations for strong performance in both core Sanmina and ZT Systems [42][44] Question: How do you see the transition occurring with ZT Systems? - Management confirmed that the transition is on track and that they are focused on future opportunities, emphasizing the importance of execution and customer relationships [45][49] Question: What is the outlook for the communications market? - Management reported strong demand in the communications market, expecting continued strength in the March quarter and throughout the year [55]

Financial Data and Key Metrics Changes - Revenue for Q1 2026 was $3.19 billion, representing a 59% increase compared to the same period last year [10][13] - Non-GAAP operating margin was 6.0%, up 40 basis points year-over-year [14] - Non-GAAP diluted earnings per share reached $2.38, a 66.1% increase from the previous year [14] Business Line Data and Key Metrics Changes - IMS revenue was $2.79 billion, up 72% year-over-year, driven by growth in communications networks and cloud and AI infrastructure [15] - CPS revenue was $434 million, a 4.3% increase year-over-year, but lower than recent performance due to investments for new programs [16] Market Data and Key Metrics Changes - Communication networks, cloud, and AI infrastructure accounted for approximately 62% of total revenue, with core business growing about 20% year-over-year [28] - Industrial, energy, medical, defense, aerospace, automotive, and transportation represented 38% of revenue, slightly down 3% year-over-year [28] Company Strategy and Development Direction - The company aims to double revenue in the next two years, targeting $16 billion by calendar year 2027, focusing on AI opportunities [35] - Strategic investments are planned in technologies and capabilities to strengthen market position and support growth expectations [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand across most end markets and expects continued growth in fiscal 2026 [29][38] - The company is focused on maintaining a healthy balance sheet while investing in future growth opportunities [20][22] Other Important Information - Cash flow from operations was $179 million, with capital expenditures of $87 million for the quarter [20][21] - The company has a strong balance sheet with cash and cash equivalents of $1.42 billion and no outstanding borrowings [17][19] Q&A Session Summary Question: Can you help me parse through the sequential revenue guidance for the March quarter? - Management indicated that the business is improving and expects core Sanmina to grow quarter-over-quarter and double digits year-over-year [42][44] Question: Can you clarify the revenue contributions from different parts of the ZT business? - Management confirmed that the transition is ongoing and they are focused on future business opportunities, with strong demand expected [47][49] Question: How do you see the communications market recovering? - Management noted strong demand in the communications sector and expects continued strength throughout the year [56][58] Question: Where was the pocket of weakness in the industrial, medical, auto, and defense segments? - Management identified automotive and transportation as areas of recent weakness but expects stabilization and recovery in the future [84][86]

Core Insights - Eos Energy Enterprises, Inc. (NASDAQ:EOSE) experienced a significant rally, increasing by 15.06% to close at $15.59, driven by investor bargain-hunting after previous declines [1][4] - The overall market sentiment was optimistic ahead of the Federal Reserve's final Open Market Committee meeting of the year, with expectations of a 25-basis point rate cut [2] - A looming deadline for 30% tax credits for clean energy customers is approaching, which is expected to boost sales as customers rush to complete installations by December 31 [2][3] Company Performance - In Q3, Eos Energy widened its net loss attributable to shareholders by 87% to $641.39 million, compared to $342.87 million in the same period last year, largely due to a $572.3 million non-cash impact from fair value adjustments [4]

Core Viewpoint - Eos Energy Enterprises, Inc. (NASDAQ:EOSE) is experiencing significant stock price volatility as investors engage in profit-taking ahead of the impending deadline for residential clean energy tax credits, which is expected to negatively impact sales in the future [1][3]. Group 1: Stock Performance - Eos Energy's stock fell by 9.69% on Monday, closing at $13.60, following a four-day rally as investors began to unload their portfolios [1]. - The expiration of the 30% tax credits for battery storage systems by December 31 is anticipated to adversely affect Eos Energy's battery business [2]. Group 2: Financial Performance - In Q3, Eos Energy reported a net loss attributable to shareholders of $641.39 million, an increase of 87% from $342.87 million in the same period last year, largely due to a $572.3 million non-cash impact from fair value adjustments [4]. - Revenues surged by 3,472% to $30.51 million from $854,000 in the same period last year, primarily driven by production efficiencies [5].