Investor Presentation Fiscal Third Quarter 2026 A Leading Provider of Smart, Connected and Secure Embedded Solutions SAFE HARBOR Forward Looking Statement Safe Harbor: During the course of this presentation, we will make projections or other forward-looking statements regarding the future financial performance of the company (including our guidance) or future events, including our strategy, growth drivers, enhanced profitability, shareholder value creation, scalable bandwidth, enabling disaggregate compute, ...

Financial Performance - GAAP Revenue for Fiscal Second Quarter 2026 was $1,140.4 million, up 6.0% QoQ and down 2.0% YoY[17] - Gross Margin for Fiscal Second Quarter 2026 was 56.7%, increased by 236 basis points QoQ[17] - Operating Margin for Fiscal Second Quarter 2026 was 24.3%, increased by 364 basis points QoQ[17] - Diluted Earnings Per Share for Fiscal Second Quarter 2026 was $0.35, increased by 29.6% QoQ[17] - Adjusted Trailing Twelve Months (TTM) EBITDA was $1,102.9 million, representing 26.2% of TTM sales[17] - Adjusted Free Cash Flow was $38.3 million, representing 3.4% of net sales[17] Capital Allocation - The company paid $245.8 million in common dividends[17] - The company announced a common stock dividend of 45.5 cents per share for Q3FY26[17] - The company has reduced debt 24 out of the last 29 quarters[46] - The company has paid dividends for 92 consecutive quarters[46]

Financial Performance - GAAP Revenue for Q1 FY2026 was $1,075.5 million, up 10.8% QoQ and down 13.4% YoY[18] - Gross Margin for Q1 FY2026 was 54.3%, an increase of approximately 240 basis points QoQ[18] - Operating Margin for Q1 FY2026 was 20.7%, an increase of approximately 670 basis points QoQ[18] - Adjusted Free Cash Flow was $244.4 million, representing 22.7% of net sales[18] - Adjusted TTM EBITDA was $1,166.8 million, or 27.5% of TTM sales[18] Capital Allocation - The company has paid approximately $4.4 billion in dividends[41] - The company has repurchased approximately $2.4 billion in shares[41] - The company has reduced debt by $7.3 billion over the last 28 quarters[41] - Total cash return in FY2025 was $1.07 billion[41] Company Overview - The company reported $4.4 billion in FY25 net sales[7]

Financial Performance & Strategy - The company reported FY25 net sales of $4.4 billion[7] - The company's strategic shift to Megatrend business increased from 33% to 47% of total revenue[20] - The company's GAAP revenue for Fiscal Fourth Quarter 2025 was $970.5 million, a 5.4% QoQ decline and a 26.8% YoY decline[23] - The company's GAAP revenue for Fiscal Year 2025 was $4.402 billion[26] - The company's Adj Free Cash Flow for Fiscal Fourth Quarter 2025 was $182.6 million, representing 18.8% of net sales[23] - The company's Adj Free Cash Flow for Fiscal Year 2025 was $742.5 million, representing 16.9% of revenue[26] Capital Allocation - The company's total cash return in FY2025 was $1.07 billion[46] - The company's dividends paid was ~$4.2 billion[46] - The company's shares repurchased was ~$2.4 billion[46] Future Outlook - The company is targeting inventory reduction of >$350 million by March 31, 2026[32] - The company's Q1 FY26 GAAP Revenue guidance is $1,045.0 million at the mid-point[27]