Core Insights - OVHcloud reported organic revenue growth of 6.0% in Q1 FY2026, confirming its annual guidance and indicating positive free cash flow generation [3][12]. Revenue by Product Segment - Total revenue for Q1 FY2026 reached €275.3 million, up from €263.5 million in Q1 FY2025, reflecting a 6.0% year-over-year growth on a like-for-like basis [2][29]. - Private Cloud revenue was €167.2 million, a 4.0% increase year-over-year [7][8]. - Public Cloud revenue grew significantly by 15.8% to €58.2 million, driven by new customer acquisitions and upselling strategies [8][9]. - Web Cloud segment revenue increased by 2.3% to €49.8 million [8][9]. Revenue by Region - Revenue from France was €133.9 million, up 5.1% year-over-year, accounting for 48% of total revenue [9][30]. - Revenue from other European countries (excluding France) was €79.3 million, reflecting a 4.1% increase [10][30]. - The Rest of the World generated €62.1 million, marking a 10.5% growth, primarily due to the expansion of Public Cloud services in the United States [11][30]. Strategic Developments - OVHcloud signed contracts with high-security clients, including LCH, and is expanding its cloud regions in Europe, with a new site in Berlin set to open in early 2027 [4][13]. - The company is enhancing its AI capabilities through a partnership with SambaNova, focusing on improving AI inference performance [4][17]. - OVHcloud's supply chain redesign initiated in 2025 is allowing for consistent service delivery while maintaining financial discipline [5][6]. Financial Outlook - The company confirmed its FY2026 targets, including organic revenue growth of 5% to 7%, an adjusted EBITDA margin above FY2025, and capital expenditures representing 30% to 32% of revenue [15][12].

STAMFORD, Conn.--(BUSINESS WIRE)---- $III #AI--U.S. enterprises are implementing AI in public cloud environments to improve the productivity and efficiency of core business operations, ISG says. ...

Summary of Conference Call on Greater China Semiconductors Industry Overview - The conference call focused on the Greater China Semiconductors industry, particularly the cloud and AI segments within the technology sector [1][2]. Key Insights - **Positive CIO Survey Results**: The China CIO Survey for the second half of 2025 indicates overall positive results, with a year-over-year growth of external IT spending on hardware, communication, and network equipment at 3.4% in 2025, up from 1.7% expected in the first half of 2025. This growth is projected to accelerate to 8.1% in 2026 [3][16][18]. - **CIO Spending Priorities**: AI/ML/PA is the top priority for CIOs, followed by digital transformation and data center build-out. The focus on AI is expected to increase its share of IT spending to 13% in 2026, despite a reduction in the 2025 estimate from 11.2% to 7.7% [3][22][25]. - **Public Cloud Migration**: There is an anticipated acceleration in public cloud migration, with 38% of CIOs planning to speed up their adoption in 2026, a 9 percentage point increase from the previous survey [3][32]. Company-Specific Insights - **Capital Expenditure Trends**: The three major Chinese cloud service providers (CSPs) reported a combined capital expenditure of RMB 47.9 billion in the third quarter of 2025, reflecting a 34% year-over-year increase but a 22% decrease quarter-over-quarter. Alibaba (BABA) reported a significant increase in capex of 86% year-over-year, while Tencent's capex decreased by 24% year-over-year [4][10]. - **AI and Cloud Demand**: Despite varying capex trends, all major CSPs remain optimistic about AI and cloud demand. Alibaba's management noted that current capex guidance may not meet customer demand, while Tencent attributed its lower capex to GPU supply chain constraints [4][10]. - **Server Demand Projections**: Aspeed Technology has revised its total addressable market (TAM) for general servers to a compound annual growth rate (CAGR) of 6-8%, up from the previous expectation of 4-5%, driven by a replacement cycle and AI demand [5]. Additional Noteworthy Points - **AI Infrastructure Investment**: Baidu has invested over RMB 100 billion in AI since launching its ERNIE model in March 2023, indicating a strong commitment to AI infrastructure development [11]. - **AI Cloud Revenue Growth**: Baidu's AI Cloud revenue reached RMB 6.2 billion, marking a 21% year-over-year growth, with subscription-based revenue from AI accelerator infrastructure surging by 128% year-over-year [11]. - **Long-term AI Demand Confidence**: GDS expressed confidence in the long-term growth of AI infrastructure, with 65% of new bookings this year being AI-related, primarily focused on AI inferencing [11]. Conclusion - The Greater China Semiconductors industry, particularly in the cloud and AI sectors, is experiencing robust growth and investment. Companies are adapting to changing market demands and are optimistic about future developments, despite some challenges in capital expenditure and supply chain constraints. The focus on AI and cloud migration is expected to drive significant growth in the coming years [2][10][11].

Core Insights - NetApp reported revenue of $1.71 billion for the quarter ended October 2025, reflecting a year-over-year increase of 2.8% and exceeding the Zacks Consensus Estimate of $1.69 billion by 1.09% [1] - Earnings per share (EPS) for the quarter was $2.05, up from $1.87 in the same quarter last year, representing an EPS surprise of 8.47% compared to the consensus estimate of $1.89 [1] Financial Performance Metrics - Gross margin for products was reported at 59.5%, surpassing the average estimate of 56.5% from eight analysts [4] - Gross margin for services was 83.8%, slightly above the estimated 83.3% from seven analysts [4] - Year-over-year revenue change for products was 3%, compared to the estimated 0.6% [4] - Total revenue change was 3%, exceeding the six-analyst average estimate of 2% [4] Geographic Revenue Breakdown - Revenue from the United States, Canada, and Latin America was $863 million, closely aligning with the average estimate of $862.89 million, showing a year-over-year change of 0.1% [4] - Revenue from Asia Pacific reached $270 million, slightly below the average estimate of $274.62 million, with a year-over-year increase of 6.7% [4] - Revenue from Europe, the Middle East, and Africa was $572 million, exceeding the average estimate of $551.06 million, reflecting a year-over-year change of 5.3% [4] Segment Revenue Performance - Net revenues from services amounted to $917 million, compared to the average estimate of $916.66 million, marking a 3% year-over-year increase [4] - Net revenues from products were $788 million, surpassing the average estimate of $769.67 million, with a year-over-year change of 2.6% [4] - Public Cloud revenues were $171 million, slightly below the estimated $174.8 million, representing a year-over-year increase of 1.8% [4] - Hybrid Cloud revenues reached $1.53 billion, exceeding the average estimate of $1.52 billion, with a year-over-year change of 3% [4] - Support revenues were $647 million, slightly above the average estimate of $645.23 million, reflecting a year-over-year change of 1.9% [4] Stock Performance - NetApp's shares have returned -7% over the past month, compared to a -1.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

November 6, 2025 Disclaimer Forward-Looking Statements Rackspace Technology has made statements in this presentation and other reports, filings, and other public written and verbal announcements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included in this presentation are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the ...

Core Insights - OVHcloud achieved a significant milestone by surpassing the €1 billion revenue mark in FY2025, with total revenue reaching €1,084.6 million, reflecting a year-on-year growth of 9.3% [2][5][3] - The company appointed Octave Klaba as Chairman and CEO to align its vision and strategy, with plans to present a new strategic plan for 2026-2030 [4][28] - The adjusted EBITDA margin improved to 40.4%, up 2.0 percentage points from the previous year, indicating strong operational efficiency [17][2] Financial Performance - Revenue for FY2025 was €1,084.6 million, up from €993.1 million in FY2024, marking a 9.2% increase [2][16] - Adjusted EBITDA rose to €437.8 million, with a margin of 40.4%, compared to €381.5 million and a margin of 38.4% in FY2024 [17][16] - Net income improved to €0.4 million in FY2025 from a net loss of €10.3 million in FY2024 [19][16] Revenue Breakdown - The Corporate segment generated over €200 million in revenue, while Public Cloud revenue exceeded €100 million [3][5] - Private Cloud accounted for 62% of total revenue, reaching €671.6 million, up 8.5% year-on-year [8][10] - Public Cloud revenue was €219.2 million, reflecting a 19.9% increase, and Web Cloud revenue was €193.8 million, up 3.8% [9][10] Customer Metrics - OVHcloud has nearly 1,200 customers, each generating more than €100,000 in Annual Recurring Revenue (ARR) [6] - The company leads the SecNumCloud market with an ARR of €24 million, a 63% increase year-on-year [6] - The net revenue retention rate was 105%, indicating growth among existing customers [6] Regional Performance - France accounted for 48% of total revenue, growing by 7.3% year-on-year, while the Rest of the World saw an increase of 14.3% [13][14] - Revenue from Europe (excluding France) grew by 9.7%, driven by strong performance in Central and Northern Europe [14][13] Capital Expenditure and Cash Flow - Total capex for FY2025 was €361.4 million, representing 33.3% of revenue, with unlevered free cash flow increasing to €57.6 million [23][24] - Gross cash flows from operating activities improved to €421.9 million, up from €377.6 million in FY2024 [20][22] Strategic Initiatives - The company plans to enhance its product offerings, including the launch of Managed Kubernetes Service and Public VCF as-a-Service [32][33] - OVHcloud aims to improve its support and performance/price positioning for Digital Starters and strengthen its Corporate segment in Italy and Germany [11][12]

Core Insights - The rise of On-Demand technologies is reshaping business operations, but increasing costs, complexity, and governance gaps are jeopardizing returns [2][4][5] - Organizations are transitioning from capital-intensive IT investments to flexible, consumption-based models, with On-Demand tech expected to grow from 29% to 41% of IT budgets in the next year [3][4] - Despite the benefits of On-Demand technologies, many organizations struggle with cost management and achieving expected returns on investment [5][6] Cost and Complexity Challenges - 82% of executives report significant increases in costs associated with cloud, SaaS, and Gen AI, driven by inflation and digital infrastructure demands [6] - 76% of organizations exceeded their public cloud budgets by an average of 10%, with 68% overspending on Gen AI and 52% on SaaS [6] - Underutilized resources and decentralized procurement are major contributors to budget overruns [6] Governance and Management Issues - 60% of organizations utilize cloud cost management tools, but only 37% assess their effectiveness [7] - 76% of organizations have or plan to establish FinOps teams, yet most remain narrowly focused and operational [7] - Only 2% of organizations with a dedicated FinOps function cover cloud, SaaS, and Gen AI holistically [7] Sustainability Considerations - 53% of organizations acknowledge that suboptimal usage of On-Demand tech leads to excessive energy consumption and increased carbon emissions [8] - Only 36% have a strategy for integrating sustainability into FinOps, despite the potential for cost reduction and carbon footprint minimization [8] Research Methodology - The Capgemini Research Institute conducted a survey of 1,000 executives from global organizations with annual revenues of at least $1 billion, focusing on On-Demand technologies across 12 sectors and 14 countries [9]

Core Viewpoint - Analysts forecast that NetApp (NTAP) will report quarterly earnings of $1.54 per share, reflecting a year-over-year decline of 1.3%, with anticipated revenues of $1.54 billion, a decrease of 0.1% compared to the previous year [1]. Earnings Projections - The consensus EPS estimate for the quarter has not changed over the past 30 days, indicating stability in analysts' projections [2]. - Revisions to earnings projections are crucial for predicting investor behavior, as empirical studies show a strong correlation between earnings estimate trends and short-term stock performance [3]. Revenue Estimates - Analysts predict 'Net revenues- Services' at $884.44 million, a year-over-year increase of 1.4% [5]. - 'Net revenues- Product' is expected to be $654.94 million, indicating a decline of 2.1% year over year [5]. - 'Net revenues- Public Cloud' is projected to reach $170.45 million, reflecting a growth of 7.2% year over year [5]. - 'Net revenues- Hybrid Cloud' is forecasted at $1.37 billion, a decrease of 0.5% from the previous year [6]. Geographic Revenue Insights - The consensus for 'Geographic Revenue- United States, Canada and Latin America' is $782.49 million, suggesting a year-over-year increase of 2.6% [6]. - 'Geographic Revenue- Asia Pacific' is expected to be $235.61 million, indicating a significant decline of 11.1% year over year [6]. - 'Geographic Revenue- Europe, Middle East and Africa' is projected at $517.03 million, reflecting a modest increase of 0.8% year over year [7]. Margin and Change Estimates - Analysts estimate 'Gross margin - Product - Non-GAAP' to be 56.0%, down from 59.9% year over year [7]. - 'Gross margin - Services - Non-GAAP' is expected to reach 82.8%, slightly up from 81.7% year over year [7]. - The estimated 'Product - % Change' is -1.8%, contrasting with the previous year's figure of 13.0% [8]. - 'Total Revenue - % Change' is projected at 0.3%, compared to 8.0% year over year [8]. Stock Performance - NetApp shares have increased by 3% in the past month, outperforming the Zacks S&P 500 composite, which moved up by 1.1% [8].

Financial Data and Key Metrics Changes - Total company GAAP revenue for Q2 2025 was $666 million, down 3% year over year but slightly up sequentially, exceeding guidance due to solid performance across both business units [18] - Non-GAAP operating profit was $27 million, up 34% year over year, driven by operational efficiencies [18] - Non-GAAP loss per share was $0.06, at the lower end of the guided range, primarily due to higher expenses related to data center leases [19] Business Line Data and Key Metrics Changes - Private Cloud bookings grew 24% sequentially and 42% year over year, with revenue at $250 million, down 4% year over year [6][20] - Public Cloud bookings grew 1% year over year, with revenue totaling $417 million, down 2% year over year [11][21] - Non-GAAP gross margin for Private Cloud was 36.8%, down 50 basis points year over year, while Public Cloud's was 9.6%, down 20 basis points year over year [20][21] Market Data and Key Metrics Changes - Private Cloud saw double-digit year-over-year bookings growth in The Americas and EMEA, indicating broad-based strength [6] - Public Cloud services revenue grew 3% sequentially, remaining flat year over year, with a focus on higher-margin services [12][21] Company Strategy and Development Direction - The company is focused on building a sustainable business model that consistently delivers revenue, profit, and cash flow growth [17] - Strategic expansion into mid-market and enterprise segments is underway, with a strong emphasis on private cloud solutions [7][10] - The company is also investing in AI capabilities, with initiatives aimed at becoming a private AI infrastructure provider [50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stability of the private cloud business and the positive trajectory of bookings performance [31] - The company anticipates a flat revenue outlook for private cloud in Q3, while expecting growth in public cloud services [28][34] - Management highlighted the importance of operational discipline and working capital performance in driving free cash flow improvements [29] Other Important Information - The company launched several new products and enhancements, including Rackspace OpenStack and Rackspace CloudOps, aimed at improving service offerings [10][12] - A strategic alliance with Semaphore.ai was announced to enhance AI capabilities across business functions [15][54] Q&A Session Summary Question: Discussion on guidance and free cash flow - Management indicated that Q3 guidance is expected to be flat sequentially for private cloud, with an uptick anticipated in public cloud services [28][29] Question: Insights on private cloud services and public cloud performance - Management noted a favorable mix in private cloud bookings, with a shift towards larger deals and longer contract lengths [32][33] - Public cloud services are expected to grow in the second half of 2025, with a projected year-over-year growth of 10% to 20% in Q4 [34][35] Question: Investments in market traction and AI partnerships - Management stated that investments in mid-market and enterprise segments have already been made, with a focus on success-based CapEx [49] - The company is seeing traction in AI across both private and public cloud, with successful implementations in healthcare and retail sectors [51][54]

Financial Performance - Q2 2025 - Total revenue was $666 million, flat quarter-over-quarter (Q/Q) and down 3% year-over-year (Y/Y) [7] - Non-GAAP gross profit was $132 million, essentially flat Q/Q and down 5% Y/Y [7] - Non-GAAP gross margin was 198%, down 01 percentage points Q/Q and 04 percentage points Y/Y [7] - Non-GAAP operating profit was $27 million, up 7% Q/Q and 34% Y/Y [7] - Non-GAAP operating margin was 41%, up 03 percentage points Q/Q and 11 percentage points Y/Y [7] - Non-GAAP loss per share was ($006), an increase of $003 Y/Y [7] Segment Performance - Q2 2025 - Total Rackspace revenue was $666 million, with Private Cloud at $250 million and Public Cloud at $417 million [8] - Private Cloud revenue decreased by 4% Y/Y, while Public Cloud revenue decreased by 2% Y/Y [8] - Segment operating profit was $78 million, with Private Cloud contributing $62 million and Public Cloud $16 million [8] - Corporate functions resulted in a loss of $50 million [8] Cash Flow and Capital Expenditures - Cash provided by operating activities was $8 million for Q2 2025 [9] - Free cash flow was ($12) million for Q2 2025 [9] - Total capital expenditures were $31 million, with cash capital expenditures at $21 million [9] - As of June 30, 2025, cash and cash equivalents were $104 million, with $310 million available under the revolving credit facility, resulting in total liquidity of $414 million [9] Q3 2025 Guidance - Total revenue is expected to be between $660 million and $674 million [12] - Private Cloud revenue is projected to be between $246 million and $254 million [12] - Public Cloud revenue is expected to be between $414 million and $420 million [12] - Non-GAAP operating profit is guided to be between $30 million and $32 million [12] - Non-GAAP loss per share is expected to be between ($004) and ($006) [12]