Financial Data and Key Metrics Changes - In Q1, annual recurring revenue (ARR) growth accelerated to 26% year over year, with ARR reaching over $3.2 billion [5][18] - Remaining performance obligation (RPO) grew approximately 35% year over year to $5.9 billion [19] - Q1 revenue was $788 million, growing 26% year over year and exceeding guidance [18] - Gross margin was 79.9%, slightly down from 80.6% in the previous year [19] - Operating margin was 21.8%, with a free cash flow margin of 52% [20] Business Line Data and Key Metrics Changes - AI Security pillar grew over 80% year over year, exceeding the FY26 target of $400 million ARR three quarters early [6][12] - Data Security Everywhere ARR accelerated to approximately $450 million [16] - Zero Trust Everywhere achieved over 450 enterprise customers, surpassing the goal set three quarters ahead of schedule [13] Market Data and Key Metrics Changes - The Americas accounted for 58% of revenue, EMEA for 27%, and APJ for 15% [18] - The company is one of only five enterprise SaaS companies with over $3 billion in ARR growing at over 25% [5] Company Strategy and Development Direction - The company focuses on three growth pillars: AI Security, Zero Trust Everywhere, and Data Security Everywhere, which are driving strong top-line performance [5][12] - The introduction of the Zflex program is aimed at providing customers with flexibility and driving upsells [16][53] - The company is positioned to exceed $10 billion in ARR by leveraging its leadership in Zero Trust security and comprehensive AI security offerings [18] Management's Comments on Operating Environment and Future Outlook - Management noted that while IT budgets remain tight, there is less pressure on cybersecurity spending, with strong interest in Zero Trust and AI Security solutions [32][34] - The company expects to continue investing aggressively to position itself for long-term growth and profitability [21] Other Important Information - The company announced a leadership transition in Investor Relations, with Kim Watkins joining to lead the team [3] - The acquisition of Red Canary is expected to enhance the company's threat intelligence capabilities [39] Q&A Session Summary Question: About Zero Trust Branch and its adoption - Management indicated that Zero Trust Branch technology is in great shape, with significant demand and a growing customer base [23][24] Question: Growth of the $2 billion ARR segment - Management confirmed that a significant portion of the $2 billion ARR comes from ZIA and ZPA, with a focus on transitioning customers to Zero Trust Everywhere [25][26] Question: Performance of Red Canary - Integration of Red Canary is progressing well, with contributions trending slightly better than previous guidance, though not material to overall business [27][28] Question: Drivers of revenue strength - Management highlighted that all three growth pillars are accelerating, contributing to strong overall performance [29][30] Question: Competitive landscape - The competitive landscape remains stable, with the company's brand recognition growing among large enterprises [31] Question: Customer spending priorities for 2026 - Customers are prioritizing Zero Trust Security and AI Security, with a focus on cost savings and improved cybersecurity [32][34] Question: Demand for Zero Trust Gateway - Management noted that Zero Trust Cloud simplifies deployments and reduces the need for traditional firewalls, enhancing customer buy-in [44][45] Question: SAP RISE migration opportunity - The migration to SAP RISE is expected to provide significant opportunities for the company, similar to past migrations like Microsoft Exchange to Office 365 [50][51] Question: Zflex program impact - Zflex is gaining traction, providing customers with flexibility and longer-term visibility on future ARR [52][53]

Financial Data and Key Metrics Changes - Total revenue reached $27 billion, up 11% year-over-year, with year-to-date revenue up 12% [5][12] - Earnings per share (EPS) increased 17% to $2.59, driven by improved profitability in AI and storage [5][12] - Gross margin rose 4% to $5.7 billion, or 21.1% of revenue, primarily due to a mix shift to AI servers [12][14] - Operating income grew 11% to $2.5 billion, or 9.3% of revenue, supported by higher revenue and lower operating expenses [12][14] Business Line Data and Key Metrics Changes - Infrastructure Solutions Group (ISG) revenue was a record $14.1 billion, up 24%, marking seven consecutive quarters of double-digit growth [13][14] - Client Solutions Group (CSG) revenue increased 3% to $12.5 billion, with commercial revenue up 5% and consumer revenue down 7% [9][14] - AI server orders reached a record $12.3 billion in the quarter, with shipments totaling $5.6 billion [6][13] Market Data and Key Metrics Changes - Demand for traditional servers grew double digits, particularly in EMEA and North America [7][14] - The backlog for AI servers ended the quarter at a record $18.4 billion, indicating strong future demand [6][13] - International growth in CSG accelerated sequentially, up double digits year-over-year [9] Company Strategy and Development Direction - The company aims to capitalize on AI infrastructure buildouts and the ongoing PC refresh cycle [11][19] - Focus on engineering bespoke, high-performance solutions and rapid deployment capabilities in AI [11][36] - Continued emphasis on operational discipline and cash generation to drive shareholder value [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the current commodity supply environment, expecting to secure supply and adjust pricing as needed [10][19] - The outlook for Q4 includes expected revenue between $31 billion and $32 billion, with ISG and CSG combined expected to grow 34% at the midpoint [17][18] - Management remains optimistic about AI demand, with a strong conviction in the AI business supported by a growing backlog and pipeline [18][56] Other Important Information - The company returned $1.6 billion of capital to shareholders, including share repurchases and dividends [15][16] - The core leverage ratio stands at 1.6x, indicating a strong balance sheet [15] Q&A Session Summary Question: Customer reaction to pricing discussions across product categories - Management acknowledged the unprecedented cost increases across various components and emphasized their experience in navigating such cycles [22][25][26] Question: Impact of NVIDIA's vertical integration on AI servers - Management highlighted their differentiation in complex large-scale deployments and their ability to engage with customers early in the technology cycle [33][36] Question: AI server margins and future expectations - Management indicated that AI server margins are expected to remain in the mid-single digits, with a positive customer mix contributing to margin stability [41][42] Question: Outlook on the PC refresh cycle - Management noted that the Windows 11 transition is not complete, with significant opportunities for upgrades remaining [47][49] Question: AI business growth and financing issues - Management expressed confidence in AI demand across various customer segments, with a strong pipeline supporting future growth [55][56] Question: ISG margins and future guidance - Management reported improved ISG margins driven by strong demand for Dell IP storage and disciplined pricing [63][66] Question: Traditional server demand and upgrade cycle - Management indicated that a significant portion of the install base consists of older generation servers, presenting opportunities for modernization [70][71] Question: Commodity cost recovery and pricing strategies - Management discussed their ability to recover costs through strategic pricing and supply chain management, emphasizing their agility in response to market conditions [74][76]

Financial Data and Key Metrics Changes - The net loss for fiscal year 2025 was $2 million, a significant improvement from a net loss of approximately $599 million in fiscal year 2024, resulting in a loss of $0.01 per share compared to a loss of $5 per share [32] - Revenue for fiscal year 2025 totaled $829 million, driven primarily by licensing and collaboration agreements, with $697 million from Sarepta Therapeutics [32][33] - Total operating expenses for fiscal year 2025 were approximately $731 million, an increase from $605 million in fiscal 2024, primarily due to higher R&D and SG&A costs [33][34] - Cash and investments totaled $919 million as of September 30, 2025, up from $681 million a year earlier, reflecting strong cash flow from licensing agreements [35][36] Business Line Data and Key Metrics Changes - The FDA approved Redemplo, Arrowhead's first FDA-approved medicine, marking a major milestone as it transitions into the commercial stage [6][7] - Redemplo is indicated for reducing triglycerides in adults with familial chylomicronemia syndrome (FCS) and can be self-administered at home [19][20] - The One Redemplo pricing model is set at $60,000 annually, aimed at providing consistent pricing across indications [11][25] Market Data and Key Metrics Changes - There are an estimated 6,500 people in the U.S. living with genetic or clinical FCS, with a prescriber base comprising specialists such as lipidologists and endocrinologists [25] - The broader patient population at risk of acute pancreatitis includes approximately 750,000 patients with persistent chylomicronemia [10] Company Strategy and Development Direction - The company is focusing on the cardiometabolic space, with ongoing clinical trials for Zodasiran and ArrowDiamond PA, targeting conditions like homozygous familial hypercholesterolemia and atherosclerotic cardiovascular disease [12][13] - Arrowhead aims to have 20 individual drug candidates in clinical trials by the end of 2025, with a balanced pipeline of wholly owned and partnered programs [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the commercial launch of Redemplo and the encouraging feedback from the FCS community [39] - The company does not anticipate substantial financial impact from Redemplo sales in fiscal year 2026 but believes its cash runway is sufficient to support operations into fiscal year 2028 [38] Other Important Information - Arrowhead received a $200 million upfront payment from Novartis for a licensing agreement and is eligible for up to $2 billion in future milestone payments [36][37] - The company has made significant progress in business development, including a $200 million milestone payment from Sarepta for ARO-DM1 [17][38] Q&A Session Summary Question: What is the plan to show benefit in terms of acute pancreatitis for Plozasiran? - Management indicated that while shots at three and four were powered for triglyceride reduction, there is reasonable power to see a difference in acute pancreatitis, with a specific design for SHASTA-5 to demonstrate benefit [42][44][45] Question: Can you provide details on the upcoming data for obesity programs? - Management confirmed that initial data from the ARO-INHBE program will be shared in early January, with a focus on safety and biomarker data [48][50] Question: What are the estimates on acute pancreatitis events accrual based on patient baseline characteristics? - Management noted that it is challenging to predict due to the adoption of modified Atlanta criteria for adjudication, but they expect a sufficient number of events based on patient history [53][54] Question: Can you discuss the differentiation of ArrowMapT from J&J's failed anti-tau antibody? - Management highlighted that ArrowMapT targets intracellular tau, potentially reducing both intracellular and extracellular tau levels, unlike J&J's approach [57][59] Question: What is the visibility on launching a CBOT study? - Management stated that they expect to have a clearer idea by summer 2026 based on data from ongoing studies, with plans to move into pivotal studies if results are favorable [62][63]

Financial Data and Key Metrics Changes - CleanSpark achieved record revenues of $766 million for fiscal year 2025, representing over 100% year-over-year growth [17] - Gross margin was 55%, a slight decrease of 1% year-over-year, which is notable given it was the first full year post-halving of Bitcoin block rewards [7][17] - Adjusted EBITDA exceeded $800 million, with a normalized adjusted EBITDA from operations of approximately $305 million, translating to a net margin of about 40% [18] - The company reported a significant positive net income of about $365 million [18] Business Line Data and Key Metrics Changes - CleanSpark produced nearly 8,000 Bitcoin during the fiscal year, with an average marginal cost per Bitcoin slightly below $43,000 and average revenue per Bitcoin around $98,000 [17] - The Bitcoin treasury grew by nearly 62% to over 13,000 Bitcoin, generated entirely from the company's own mining operations [8] Market Data and Key Metrics Changes - The company reached an operational hash rate of 50 exahash per second, with 100% U.S.-based infrastructure [7] - The company has secured over a gigawatt of power under contract across its data centers, with nearly 300 megawatts in Texas scheduled to begin energization in early 2027 [10] Company Strategy and Development Direction - CleanSpark is evolving into a digital infrastructure platform, focusing on opportunities in generative AI, grid balancing through Bitcoin mining, and high-performance computing [5][6] - The company aims to diversify revenue streams and enhance margins through a blended approach to growing and monetizing its portfolio [6] - A strategic partnership with Submer aims to enhance energy efficiency and speed to market for AI data center development [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the demand for AI compute and the company's ability to secure tenants for its AI-ready locations [36][39] - The company is focused on operational excellence and leveraging its strong balance sheet to capitalize on growth opportunities in the AI sector [6][33] Other Important Information - CleanSpark completed its largest financing ever with a $1.15 billion upsized 0% convertible note, which included a stock buyback of $460 million, reducing outstanding shares by over 10% [16][30] - The Digital Asset Management (DAM) strategy generated $9.3 million in premiums during the fourth quarter, with an annualized yield of approximately 12% [23][29] Q&A Session Summary Question: Can you provide insights on demand in the HPC AI space? - Management noted strong inquiries about the Sandersville site and additional traction at the Sealy, Texas site, indicating optimism about demand [36] Question: How will Bitcoin mining and HPC campuses be paired? - The company sees potential in blending AI, HPC, and Bitcoin mining to provide power usage versatility, which utilities find appealing [38] Question: What key milestones should investors look for in 2026 regarding HPC? - The focus will be on deployments at the Texas and Sandersville sites, with significant demand for critical IT loads expected [39] Question: What are the expansion plans for the Bitcoin mining business? - The company plans to migrate Bitcoin mining operations to more remote locations while prioritizing HPC AI at sites with quick access to fiber [42] Question: How will the Texas facility energization proceed? - The first 200 megawatts are scheduled to come online in the first half of 2027, with additional tranches in subsequent years [52] Question: What is the CapEx required for the Sandersville site to upgrade to HPC? - The facility is not currently set for HPC but has additional land secured for future construction, allowing for a smooth transition when ready [63]

Financial Data and Key Metrics Changes - For the quarter ended September 30, core net investment income was $0.15 per share compared to total distributions of $0.24 per share [4] - As of September 30, the net asset value (NAV) was $7.11 per share, down 3.4% from $7.36 per share in the prior quarter [14] - The debt-to-equity ratio was 1.6 times, with a target ratio of 1.25-1.3 times [14][15] Business Line Data and Key Metrics Changes - The portfolio totaled $1.3 billion, with 166 companies across 37 different industries [11][15] - The weighted average yield on debt investments was 11%, with 91% of the portfolio being floating rate [15] - The median leverage ratio on debt securities was 4.5 times, and the median interest coverage ratio was 2 times [7][15] Market Data and Key Metrics Changes - The company is encouraged by a steady increase in transaction activity in the private middle-market lending sector, expecting higher loan origination volumes [5][7] - In the core middle market, pricing on high-quality first lien loans is between $475-$525, with reasonable leverage and meaningful covenant protections [7][9] Company Strategy and Development Direction - The company is focused on rotating out of equity positions and redeploying capital into interest-bearing debt investments to increase core net investment income [4][5] - The strategy emphasizes capital preservation and disciplined investment in growing middle-market companies with high free cash flow conversion [12] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about the increase in transaction activity leading to opportunities for equity rotation and new income-producing investments [7] - The current market environment is seen as favorable for lenders with strong private equity sponsor relationships and disciplined underwriting [7][9] Other Important Information - The company has $48 million, or $0.73 per share, of undistributed spillover income, which will be used to cover shortfalls in net investment income versus the dividend [5] - The PSLF joint venture portfolio totaled $1.3 billion, with an average net investment income yield of 17% over the last 12 months [11] Q&A Session Summary Question: Why not right-size the dividend today? - Management is constantly evaluating the dividend and has substantial spillover income that needs to be paid out, balancing this with the equity rotation process [20] Question: Any updates on realization events for equity positions? - Management is seeing more activity and is hopeful for rotation opportunities, with a constructive backdrop for monetizing some equity positions [23] Question: What types of deals are being seen with increased investment activity? - The deals are a combination of add-on delayed draw term loans for existing companies and new platform investments with strong credit quality [45] Question: How does the company view dividend recaps? - Dividend recaps are approached cautiously, with a high bar for participation, focusing on alignment of interests and substantial equity beneath the loans [50] Question: What are the trends in the private equity space? - There is optimism for equity rotation as the M&A market is starting to pick up, with buyers and sellers beginning to find common ground [52][53]

Financial Data and Key Metrics Changes - For the quarter ended September 30, core net investment income was $0.15 per share compared to total distributions of $0.24 per share [4] - As of September 30, the NAV was $7.11 per share, down 3.4% from $7.36 per share in the prior quarter [14] - The debt to equity ratio was 1.6 times as of September 30 [14] Business Line Data and Key Metrics Changes - The portfolio totaled $1.3 billion, with $186 million invested in nine new and 54 existing portfolio companies during the quarter [11] - The weighted average yield on debt investments was 11% [15] - The portfolio comprised 50% first lien secured debt, 2% second lien secured debt, and 12% subordinated notes to PSLF [15] Market Data and Key Metrics Changes - The median leverage ratio on debt securities was 4.5 times, and the median interest coverage ratio was 2 times as of September 30 [7] - The pricing on high-quality first lien loans in the core middle market was several plus $475-$525 [7] Company Strategy and Development Direction - The company is focused on rotating out of equity positions and redeploying capital into interest-bearing debt investments to increase core net investment income [4][5] - The strategy includes providing additional capital to existing portfolio companies to support their growth initiatives [6] - The company aims to maintain its current dividend level in the near term due to a significant balance of spillover income [5] Management's Comments on Operating Environment and Future Outlook - Management is optimistic about an increase in transaction activity leading to higher loan origination volumes [5] - The current environment favors lenders with strong private equity sponsor relationships and disciplined underwriting [7] - The company remains committed to capital preservation and delivering compelling risk-adjusted returns [12] Other Important Information - The PSLF joint venture portfolio totaled $1.3 billion, with an average NII yield on invested capital of 17% over the last 12 months [11] - The company has a demonstrated track record of value creation through financing growing middle market companies in five key sectors [9] Q&A Session Summary Question: Why not right-size the dividend today? - Management is constantly evaluating the dividend and has substantial spillover income to distribute, balancing equity rotation and dividend sustainability [20] Question: Any updates on realization events for equity positions? - Management is seeing more activity and is hopeful for upcoming rotation opportunities, but nothing specific was announced [23] Question: What types of deals are being seen? - The company is seeing a mix of add-on delayed draw term loans and new platform deals, primarily with existing companies [45] Question: How does the company view dividend recaps? - Dividend recaps are approached cautiously, with a high bar for participation, focusing on alignment of interests and substantial equity beneath [50] Question: What are the trends in the private equity space? - Management noted that the M&A market is starting to pick up after a slowdown, with optimism for meaningful equity rotation [52]

Financial Data and Key Metrics Changes - For the quarter ended September 30, core net investment income was $0.15 per share compared to total distributions of $0.24 per share [5] - As of September 30, the NAV was $7.11 per share, down 3.4% from $7.36 per share in the prior quarter [13] - The debt to equity ratio was 1.6 times as of September 30 [13] Business Line Data and Key Metrics Changes - The portfolio totaled $1.3 billion, with $186 million invested in nine new and 54 existing portfolio companies during the quarter [11] - The weighted average yield on debt investments was 11% [14] - The median leverage ratio on debt securities was 4.5 times, and the median interest coverage ratio was 2 times [7][14] Market Data and Key Metrics Changes - The company noted a steady increase in transaction activity in the private middle market lending sector, which is expected to lead to higher loan origination volumes [6] - In the core middle market, pricing on high-quality first lien loans was several plus $475-$525 [7] Company Strategy and Development Direction - The company is focused on rotating out of equity positions and redeploying capital into interest-bearing debt investments to increase core net investment income [5] - The strategy includes maintaining the current dividend level in the near term due to a significant balance of undistributed spillover income [6] - The company aims to find investment opportunities in growing middle market companies with high free cash flow conversion [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the increase in transaction activity leading to opportunities for equity rotation and new income-producing investments [7] - The company remains committed to capital preservation and a disciplined investment approach, aiming for compelling risk-adjusted returns [12] - Management noted that the M&A market is starting to pick up, which could facilitate equity rotation [50] Other Important Information - The company has a significant balance of undistributed spillover income amounting to $48 million or $0.73 per share, which will be used to cover shortfalls in net investment income versus the dividend [6] - The PSLF joint venture portfolio totaled $1.3 billion, contributing significantly to core net investment income [11] Q&A Session Summary Question: Why not right-size the dividend today? - Management is constantly evaluating the dividend and has substantial spillover income that needs to be paid out, balancing equity rotation and dividend policy [19] Question: Any updates on realization events for equity positions? - Management noted increased activity and is hopeful for rotation opportunities, but nothing specific was announced [21] Question: What types of deals are being seen? - The company is seeing a mix of add-on delayed draw term loans and new platform deals, with a focus on existing companies performing well [42] Question: How does the company view dividend recaps? - Dividend recaps are approached cautiously, with a focus on alignment of interests and substantial equity beneath the company [47] Question: What are the trends in the private equity space? - Management indicated that the M&A market is starting to stabilize, which could lead to more equity rotation opportunities [50]

Financial Data and Key Metrics Changes - Revenues for Q3 2025 were $44.5 million, a 10% increase from $40.4 million in Q3 2024, but below the record $47.2 million in Q2 2025 [3][9] - Adjusted net income for Q3 was $14.4 million, slightly above last year's figure, with adjusted earnings per share at $0.39 for the quarter and $0.42 for the nine months of 2025 [3][11] - The company achieved a debt-free status after repaying $86 million in total during 2025 and $350 million over the last three years [3][13] Business Line Data and Key Metrics Changes - The fleet days increased by 7% due to the addition of two vessels, contributing to the revenue growth [9] - Voyage expenses rose to $7.2 million, driven by increased port and bunker expenses, while operational utilization decreased to 90.3% due to idle time [10] - TCE revenues for the quarter were $37.3 million, reflecting seasonal low activity [10] Market Data and Key Metrics Changes - Global LPG exports grew by 5% in the first nine months of 2025, with US exports showing close to 6% growth [15][16] - The European market is expected to see a record import of 8 million metric tons of competitive US LPG in 2025, significantly impacting pricing and demand [16] - Chinese LPG imports recorded a 1% growth in the first eight months of 2025, despite trade tensions affecting overall trade dynamics [17][18] Company Strategy and Development Direction - The company aims to maintain a conservative approach with a visible revenue stream, securing $130 million in contracted revenues [4] - There is a focus on selling older tonnage and replacing it with newer vessels, with a recent agreement to sell the "Eco Invictus" [4] - The company has achieved a cash flow break-even of $6,500-$7,000 daily, enhancing competitiveness even in a declining market [14] Management's Comments on Operating Environment and Future Outlook - The management acknowledged the seasonal weakness in Q3 but expressed optimism for the short term as the market enters a firming mode [23] - There is a positive outlook for sustained market expansion through 2030, driven by US production and demand growth in Asia [18][23] - The geopolitical situation is expected to stabilize, which should improve market sentiment and rates [23] Other Important Information - The company has scheduled dry dockings for two more vessels in Q4, totaling six for the next year [6] - The company maintains strong liquidity with cash of $70 million and zero debt, positioning it well for future opportunities [12][13] Q&A Session Summary - No specific questions or answers were provided in the transcript, indicating a focus on the presentation rather than an interactive Q&A session.

Financial Data and Key Metrics Changes - The preliminary results indicate that all proposals presented at the meeting have been approved by stockholders, which may impact future financial strategies and capital structure [7][8]. Business Line Data and Key Metrics Changes - Specific product portfolio plans for the merged company will be executed by the new leadership team, focusing on commercial electric vehicles (EVs) which are expected to have lower total cost of ownership compared to internal combustion engine (ICE) vehicles [15][16]. Market Data and Key Metrics Changes - The company anticipates a significant demand for new commercial EV markets in classes 4, 5, and 6, indicating a competitive landscape where at least two U.S.-based original equipment manufacturers (OEMs) will be necessary to meet this demand [16]. Company Strategy and Development Direction - The company aims to leverage U.S.-based assembly capabilities and engineering expertise to design robust trucks, emphasizing the importance of domestic production for long-term success and scalability in the commercial EV sector [15][16]. Management's Comments on Operating Environment and Future Outlook - Management has expressed confidence that the proposed Motiv transaction will close in the fourth quarter of 2025, contingent upon meeting Nasdaq's new listing criteria and other customary closing conditions [14][15]. - The CEO highlighted the strategic importance of commercial EVs, noting their cost advantages and the necessity for U.S.-based manufacturing to support future growth [15][16]. Other Important Information - The company has withdrawn two proposals from consideration during the meeting, which may reflect strategic adjustments in response to shareholder feedback [3]. Q&A Session Summary Question: What steps are necessary to complete the proposed Motiv transaction? - The transaction is expected to close in the fourth quarter of 2025, pending the completion of customary closing conditions and meeting Nasdaq listing criteria [14][15]. Question: What are the product portfolio plans for the merged company? - The merged company will focus on commercial EVs, which are seen as having a lower total cost of ownership compared to ICE vehicles, with plans for U.S.-based assembly and engineering [15][16].

Financial Data and Key Metrics Changes - Revenue for fiscal 2025 was just over $11 billion, up 17% from fiscal 2024, with earnings per share (EPS) of $7.79, an increase of 22% year-over-year [15][20] - Gross margin finished at 69.3%, up 140 basis points, while operating margin increased to 41.9%, up 100 basis points [15][20] - Record free cash flow of over $4 billion, representing 39% of revenue, up from 33% in 2024 [19][20] Business Line Data and Key Metrics Changes - Industrial segment represented 46% of Q4 revenue, growing 12% sequentially and 34% year-over-year, with a full-year increase of 15% [15][16] - Automotive segment accounted for 28% of quarterly revenue, up 1% sequentially and 19% year-over-year, with a full-year increase of 16% [15][16] - Communications segment represented 13% of quarterly revenue, up 4% sequentially and 37% year-over-year, with a full-year increase of 26% [15][16] - Consumer segment also represented 13% of quarterly revenue, up 7% sequentially and year-over-year, with a full-year increase of 19% [15][16] Market Data and Key Metrics Changes - Data center segment surpassed a $1 billion run rate, growing more than 50% year-over-year for three consecutive quarters [17] - Wireless revenue was flat for the full year but showed double-digit growth year-over-year for the second straight quarter [17] - Aerospace and Defense achieved record results, with expectations for continued strong growth driven by advanced sensor and power solutions [10][11] Company Strategy and Development Direction - The company is focusing on innovation, with record investments in R&D to enhance leadership in analog, mixed-signal, and power technologies [6][8] - A strong emphasis on software, digital, and AI capabilities to address customer complexity and expedite innovation cycles [6][7] - The acquisition of Maxim has led to over $3 billion in capital expenditures to enhance capacity and resiliency [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in growth for FY 2026 despite macroeconomic challenges, citing strong demand in industrial and communications sectors [14][24] - The company anticipates broad-based growth in 2026, driven by cyclical and idiosyncratic factors [24][26] - Management noted that while the automotive sector has been flat, they expect continued content growth and strong performance in fiscal 2026 [26][31] Other Important Information - The company returned over $4 billion to shareholders through dividends and share repurchases, supporting an 8% dividend increase [5][19] - The company is targeting a 100% free cash flow return over the long term, with 40%-60% allocated for dividends and the remainder for share count reduction [19] Q&A Session Summary Question: Near and medium-term guidance by segment - Management provided insights on Q1 guidance, expecting industrial to be up mid-single digits, automotive down mid-single digits, and communications up 10% above seasonal [22][23] Question: Automotive market dynamics - Management noted that automotive has been resilient, with stronger volumes than expected, but caution remains due to tariff impacts and market volatility [30][31] Question: Gross margin expectations - Management explained that gross margins were impacted by product mix and seasonal factors, with expectations for flat margins in Q1 due to a higher industrial mix [34][36] Question: Update on revenue synergies from acquisitions - Management confirmed that revenue synergies from the Maxim acquisition are on track, with expectations for stronger contributions in 2026 [48][49] Question: R&D spending priorities - Management indicated a focus on power management and digital portfolio areas, emphasizing the need to address customer complexity and speed up innovation cycles [72][74]