Financial Data and Key Metrics Changes - The company reported revenue in line with expectations for Q3 2025, with operating income impacted by a Brazilian tax matter, which would have exceeded forecasts otherwise [2][10] - Engagement metrics showed record share TV time in Q3 in both the U.S. and the U.K., indicating healthy user engagement [2][17] - The company is on track to more than double ad revenue this year, marking significant growth in its advertising segment [2][12] Business Line Data and Key Metrics Changes - The live offerings and gaming segments are being expanded, with notable events like the Canelo Crawford fight achieving record viewership [3][26] - The K-pop, Demon Hunters film has become a cultural phenomenon, demonstrating the company's ability to create popular content that resonates globally [5][24] - The advertising business is seeing growth, with more than doubling of U.S. upfront commitments and higher rates of growth in programmatic advertising [12][14] Market Data and Key Metrics Changes - The company estimates it currently captures only about 7% of the addressable market in consumer spending and 10% of time spent on TV in its largest market, indicating substantial growth potential [4] - Total view hours grew faster in Q3 2025 compared to the first half of the year, achieving the highest quarterly view share ever in the U.S. and U.K. [17][18] Company Strategy and Development Direction - The company aims to continue focusing on profitable growth and reinvesting in its core business while embracing competition as a driver for improvement [4][32] - There is a strong emphasis on expanding original content and enhancing user engagement through interactive features and gaming [39][50] - The company is cautious about M&A, preferring organic growth and selective acquisitions that align with its strategic goals [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the business and the opportunities ahead, despite challenges such as the Brazilian tax issue [2][10] - The company is excited about its upcoming content slate for Q4 and 2026, which includes returning popular series and new films [20][21] - Management believes that the shift from linear viewing to streaming will continue to benefit the company long-term [19] Other Important Information - The Brazilian tax matter is a unique gross tax on outbound payments, which has been flagged as a potential exposure in previous filings [8][10] - The company is exploring the integration of high-quality video podcasts into its offerings through a partnership with Spotify [22] Q&A Session Summary Question: Health of the business and future opportunities - Management believes the business is healthy and sees significant opportunities for growth ahead [2] Question: Nature of the Brazilian tax expense - The tax is a gross tax on outbound payments, not an income tax, and has impacted operating income for Q3 2025 [7][10] Question: Revenue and operating income growth for 2026 - Full year 2026 guidance will be provided in January, but the company aims to sustain healthy revenue growth and expand margins [11] Question: Advertising growth expectations - The company is excited about doubling ad revenue in 2025 and sees room for growth in programmatic advertising [12][14] Question: Engagement metrics and content performance - Total view hours grew in Q3 2025, with significant engagement from events like the Canelo Crawford fight and the K-pop film [17][18] Question: Strategy regarding M&A and industry consolidation - The company remains focused on organic growth and selective M&A opportunities, viewing industry consolidation as neither a threat nor a significant opportunity [32][33] Question: Impact of AI on content creation - Management sees AI as a tool to enhance creativity rather than replace it, focusing on leveraging AI for better storytelling and productivity [47][50]

Financial Data and Key Metrics Changes - The company reported revenue in line with expectations for Q3 2025, with operating income impacted by a Brazilian tax matter, which would have exceeded forecasts otherwise [2][16] - Engagement metrics remain healthy, achieving record share of TV time in both the US and the UK, with the highest quarterly view share ever recorded [3][26] Business Line Data and Key Metrics Changes - The advertising segment is on track to more than double ad revenue this year, with significant growth in programmatic advertising [3][20] - The company achieved its best ad sales quarter ever, indicating strong performance in the advertising business [3] Market Data and Key Metrics Changes - The company is currently capturing only about 7% of the addressable market in terms of consumer spending and 10% of time spent on TV in its largest markets, indicating substantial growth potential [5][6] - The Canelo Crawford fight was the most viewed men's championship fight this century, demonstrating the impact of live events on engagement [39] Company Strategy and Development Direction - The company focuses on continuous improvement in key areas such as technology and content to build a scalable global streaming business [4][10] - The strategy includes expanding original content and enhancing engagement through interactive features and gaming [62][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the health of the business and the opportunities ahead, emphasizing the importance of innovation and competition [2][5] - The company plans to sustain healthy revenue growth, expand margins, and increase free cash flow in the upcoming years [17][18] Other Important Information - The Brazilian tax matter is a unique gross tax on outbound payments, which has been recorded as a component of cost of revenues, affecting Q3 results [12][14] - The company is excited about upcoming content, including new seasons of popular shows and films, which are expected to drive engagement in 2026 [31][33] Q&A Session Summary Question: Can you talk broadly about the health of the business and the opportunity ahead? - Management believes the business is very healthy, with good progress on key initiatives and a lot of work ahead to fully realize opportunities [2] Question: Can you provide more color on the nature of the tax expense? - The Brazilian tax is a gross tax on outbound payments, not an income tax, and has been recorded as a cost of revenues affecting Q3 results [11][12] Question: Do you have any early views on revenue and operating income growth for 2026? - Full year 2026 guidance will be issued in January, but the financial objectives remain unchanged, focusing on healthy revenue growth and margin expansion [17][18] Question: Should we interpret the doubling of upfront commitments in advertising to mean that full year 2026 advertising could also double? - While the company is excited about the growth trajectory, specific 2026 guidance is not provided at this time [19][20] Question: Are fill rates improving in line with expectations as the Netflix ad suite and new demand partnerships scale up? - Fill rates have improved, and the company believes they will continue to improve as go-to-market capabilities develop [25] Question: Are you seeing a pickup in engagement as expected? - Total view hours grew faster in Q3 2025 than in the previous year, with significant engagement from key events and content [26][28] Question: How should we think about the recent deal with Spotify? - The partnership with Spotify aims to provide more entertainment options for members, integrating high-quality video podcasts into the Netflix offering [34] Question: Do you see potential industry consolidation reshaping the competitive landscape? - The company remains focused on organic growth and selective M&A, viewing industry consolidation as neither a threat nor a significant opportunity [50][56] Question: How do you think gaming could change the time members spend with Netflix each day? - Gaming is seen as a significant opportunity for engagement, with plans to expand interactive features and high-quality games [62][63]

Financial Data and Key Metrics Changes - Organic growth for Q3 2025 was 2.6%, with a year-to-date growth of 3%, aligning with annual guidance [5][10] - Non-GAAP adjusted EBITDA for Q3 2025 was $551.6 million, with an adjusted EBITDA margin of 16.1%, up 10 basis points from the previous year [5][11] - Non-GAAP adjusted net income per share increased by 10.3% to $2.24 compared to Q3 2024 [5][11] - The reported income tax rate was 27.2% in Q3 2025, up from 26.8% in the prior year, primarily due to non-deductible acquisition-related costs [12][13] Business Line Data and Key Metrics Changes - Media and advertising revenues grew by 9%, while creative services were impacted by lower project work due to macroeconomic uncertainty [14] - Precision marketing growth was just under 1%, with solid growth in the U.S. offset by declines in Europe [14] - Public relations declined by 8%, largely due to the absence of U.S. national election-related revenue [15] - Healthcare services saw a 2% organic decline, with new business wins not fully compensating for spending declines [15] - Branding and retail commerce decreased by 17%, and experiential services declined by 18% due to tough comparisons with the previous year [15] Market Data and Key Metrics Changes - U.S. revenue growth was 4.6%, while the UK saw growth of 3.7%, but continental Europe experienced a decline of 3.1% [16] - Non-Euro markets delivered organic growth, but this was offset by declines in the events business [16] Company Strategy and Development Direction - The company is focused on the integration of the proposed acquisition of Interpublic Group, with expectations to close by late November [5][6] - The launch of Omni+, a next-generation marketing operating system, is anticipated to enhance client capabilities and drive growth [7][8] - The company aims to exceed expected synergies from the acquisition, with a disciplined approach to minimize operational disruption [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the business fundamentals, noting that organic growth would have been approximately 4% without the impact of the previous year's Olympic and election-related revenues [32] - The tone of client conversations has improved, with clients showing optimism about project spending in Q4 [70] Other Important Information - The company continues to maintain a strong liquidity position with cash equivalents and short-term investments totaling $3.4 billion [20] - The book value of outstanding debt was $6.3 billion, reflecting a reduction from the previous year [20] Q&A Session Summary Question: Update on pro forma financials post-acquisition - Management plans to disclose future operations and portfolio details shortly after the acquisition closes, likely around CES in January [25] Question: Deceleration in precision marketing - The decline was primarily due to issues in the Cordara consulting business related to government work in Europe, but the overall pipeline remains strong [26] Question: Confirmation of organic growth guidance - Management is comfortable with the original guidance and expects to capture significant project work in Q4 [30][31] Question: Opportunities for revenue synergies post-acquisition - Key opportunities identified include media, healthcare, and precision marketing, with expectations for significant growth in these areas [68] Question: Client sentiment and marketing budgets - Conversations with clients have shifted to include discussions on generative AI, with budgets remaining stable and project spending anticipated in Q4 [70]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $4.7 billion, representing a 7% sequential increase and a 14% year-over-year increase [4] - Gross profit was $2.7 billion, or 57% of revenue, with a sequential decrease of 50 basis points in gross profit margin [7] - Operating profit was $1.7 billion, or 35% of revenue, up 7% from the year-ago quarter [7] - Net income for the quarter was $1.4 billion, translating to $1.48 per share, which included a $0.10 reduction due to restructuring charges [7] - Cash flow from operations was $2.2 billion for the quarter and $6.9 billion on a trailing 12-month basis [8] - Free cash flow on a trailing 12-month basis was $2.4 billion, including $637 million from CHIPS Act incentives [8] Business Line Data and Key Metrics Changes - Analog revenue grew 16% year-over-year, while Embedded Processing grew 9% [4] - The industrial market increased about 25% year-over-year and low single digits sequentially [5] - The automotive market increased upper single digits year-over-year and around 10% sequentially [5] - Personal electronics grew low single digits year-over-year and upper single digits sequentially [5] - Enterprise systems grew about 35% year-over-year and about 20% sequentially [5] - Communications equipment grew about 45% year-over-year and was up about 10% sequentially [5] Market Data and Key Metrics Changes - Customer inventories remain at low levels, with inventory depletion appearing to be behind the company [4] - The overall semiconductor market recovery is continuing, albeit at a slower pace than prior upturns due to macroeconomic dynamics [4] Company Strategy and Development Direction - The company plans to focus on long-term value creation through disciplined capital allocation and strengthening competitive advantages [10] - The company is winding down its 150mm fabs, with a gradual reduction in costs expected through the first half of 2026 [19] - The company aims to continue investing in high-growth areas such as data centers, industrial, and automotive markets [48] Management's Comments on Operating Environment and Future Outlook - Management noted a moderate recovery in the semiconductor market, with hesitancy among customers regarding new investments due to uncertainty in regulations [63] - The company expects revenue for the fourth quarter to be in the range of $4.22 billion to $4.58 billion, with EPS guidance of $1.13 to $1.39 [9] - Management expressed confidence in their inventory position and customer service levels, indicating readiness for various market scenarios [30] Other Important Information - The company returned $6.6 billion to shareholders over the past 12 months, including $1.2 billion in dividends and $119 million in stock repurchases [8] - The balance sheet remains strong with $5.2 billion in cash and short-term investments [9] Q&A Session Summary Question: Can you talk about the linearity of bookings through the quarter? - Management indicated that the quarter came in as expected, contrasting with the previous quarter's volatility [12][13] Question: What is the path to improve cash margins given the current inventory levels? - Management expressed satisfaction with the current inventory position and indicated adjustments in loadings for the fourth quarter to maintain inventory levels [15][16] Question: Can you elaborate on the restructuring and its impact on expenses? - Management explained that the restructuring is related to winding down 150mm fabs and ongoing efficiency improvements, with benefits expected over time [19][21] Question: How are pricing trends and lead times looking? - Management noted no unusual pricing trends, expecting a low single-digit price reduction for the year, and lead times remain competitive [28][30] Question: What is the outlook for the data center market? - Management highlighted strong growth in the data center market, which is expected to continue, with significant investments being made [64][75]

Financial Data and Key Metrics Changes - Organic growth for Q3 2025 was 2.6%, with a year-to-date growth of 3%, aligning with annual guidance [5][10] - Non-GAAP adjusted EBITDA for Q3 2025 was $551.6 million, with an adjusted EBITDA margin of 16.1%, up 10 basis points from the previous year [5][11] - Non-GAAP adjusted net income per share increased by 10.3% to $2.24 compared to Q3 2024 [5][11] - The reported income tax rate for Q3 2025 was 27.2%, up from 26.8% in the prior year, primarily due to non-deductible acquisition-related costs [12][13] Business Line Data and Key Metrics Changes - Media and advertising revenues grew by 9%, while creative services were impacted by lower project work due to macroeconomic uncertainty [14] - Precision marketing growth was just under 1%, with solid growth in the U.S. offset by declines in Europe [14] - Public relations declined by 8%, largely due to the absence of U.S. national election-related revenue [15] - Healthcare revenues decreased by 2% organically, with declines in both U.S. and European agencies [15] - Branding and retail commerce fell by 17%, and experiential services declined by 18% due to tough comparisons with the Summer Olympics [15] Market Data and Key Metrics Changes - U.S. revenue growth was 4.6%, while the U.K. saw growth of 3.7%, but continental Europe experienced a decline of 3.1% [16] - Non-Euro markets delivered organic growth, but this was offset by declines in the events business [16] Company Strategy and Development Direction - The company is focused on the integration of the proposed acquisition of Interpublic, with plans to close the deal by late November [5][6] - The launch of Omni+, a next-generation marketing operating system, is anticipated to enhance client services and operational efficiency [6][8] - The integration planning aims to exceed expected synergies from the acquisition, with a disciplined approach to minimize operational disruption [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth prospects and the value expected from the proposed combination with Interpublic [9][10] - The company remains optimistic about capturing project work in Q4, which could significantly impact year-end results [31][32] - Despite challenges, the fundamentals of the business are strong, with underlying growth projected at approximately 4% when excluding the impact of the previous year's events [32] Other Important Information - The company continues to maintain a strong liquidity position with cash equivalents and short-term investments totaling $3.4 billion [20] - Free cash flow for the nine months ended September 30, 2025, was impacted by acquisition-related costs, but operating capital improved significantly [18][19] Q&A Session Summary Question: When will pro forma financials be available post-acquisition? - Management indicated plans to disclose future operations and portfolio details shortly after the acquisition, likely around CES in January [25] Question: What caused the deceleration in precision marketing? - The decline was primarily due to cutbacks in government work in Europe, particularly in the Cordara consulting business [26] Question: Confirmation of organic growth guidance for the year? - Management confirmed that they are comfortable with the original guidance and expect to remain within the 2.5%-4.5% range [30] Question: Opportunities for revenue synergies post-acquisition? - Key opportunities identified include media, healthcare, and precision marketing, with expectations for significant growth in these areas [68] Question: Client sentiment regarding the business environment? - Conversations with clients indicate a cautious optimism, with budgets remaining stable and project spending expected to increase in Q4 [70]

Financial Data and Key Metrics Changes - Revenue for the third quarter was $4.7 billion, representing a 7% sequential increase and a 14% year-over-year increase [4] - Gross profit was $2.7 billion, or 57% of revenue, with a sequential decrease of 50 basis points in gross profit margin [7] - Operating profit was $1.7 billion, or 35% of revenue, up 7% from the year-ago quarter [7] - Net income was $1.4 billion, translating to $1.48 per share, which included a $0.10 reduction due to restructuring charges [7] - Cash flow from operations was $2.2 billion for the quarter and $6.9 billion on a trailing 12-month basis [8] - Free cash flow on a trailing 12-month basis was $2.4 billion, including $637 million from CHIPS Act incentives [8] - The company returned $6.6 billion to shareholders over the past 12 months [8] Business Line Data and Key Metrics Changes - Analog revenue grew 16% year-over-year, while Embedded Processing grew 9% [4] - The industrial market increased about 25% year-over-year and low single digits sequentially [5] - The automotive market increased upper single digits year-over-year and around 10% sequentially [5] - Personal electronics grew low single digits year-over-year and upper single digits sequentially [5] - Enterprise systems grew about 35% year-over-year and about 20% sequentially [5] - Communications equipment grew about 45% year-over-year and was up about 10% sequentially [5] Market Data and Key Metrics Changes - The overall semiconductor market recovery is ongoing but at a slower pace than previous upturns, influenced by macroeconomic dynamics [4] - Customer inventories remain low, and inventory depletion appears to be behind the company [4] Company Strategy and Development Direction - The company plans to focus on long-term value creation through disciplined capital allocation and strengthening competitive advantages [10] - The company is winding down its 150mm fabs, with a gradual reduction in costs expected through the first half of 2026 [19] - The company aims to grow free cash flow per share over the long term, with a focus on industrial, automotive, and data center markets [49] Management's Comments on Operating Environment and Future Outlook - Management noted a moderate recovery in the semiconductor market, with hesitancy among customers regarding new investments due to uncertainty in regulations [64] - The automotive market is recovering steadily, while the data center market is experiencing strong growth [64] - The company expects fourth-quarter revenue in the range of $4.22-$4.58 billion and EPS between $1.13 and $1.39 [9] Other Important Information - The company announced a 4% increase in dividends, marking the 22nd consecutive year of dividend increases [8] - The effective tax rate is expected to be about 13% for the fourth quarter and 13% to 14% in 2026 [9][10] Q&A Session Summary Question: Can you talk about the linearity of bookings through the quarter? - Management indicated that the quarter came in as expected, with no significant changes compared to Q2 [12][13] Question: What is the path to improve cash margins given the current inventory levels? - Management expressed satisfaction with the current inventory position and indicated adjustments in loadings for the fourth quarter to maintain inventory levels [15][16] Question: Can you elaborate on the restructuring and its impact on expenses? - Management explained that the restructuring is related to winding down 150mm fabs and ongoing efficiency improvements, with benefits expected over time [19][22] Question: How are pricing trends and lead times looking? - Management confirmed no unusual pricing trends, with expectations of low single-digit price declines for the year [29][30] Question: What is the outlook for the enterprise data and communications business? - Management noted strong growth in the data center market, which is expected to continue, and plans to break out data center as a separate market in future reports [76]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $276 million, up 3% year-over-year, with a 7% increase when excluding license and maintenance revenue [18][19] - Cloud revenue increased by 21% to $105 million, slightly better than expected, while services revenue declined by 3% to $133 million [19] - Remaining Performance Obligations (RPO) increased by 23% year-over-year to $2.1 billion [20][21] - Adjusted operating profit was $103 million, with an adjusted operating margin of 37.5%, up about 40 basis points year-over-year [22] - Adjusted earnings per share (EPS) for Q3 was $1.36, up 1%, while GAAP EPS was $0.96, down 7% [22] Business Line Data and Key Metrics Changes - Cloud revenue growth was a significant driver of overall performance, with strong execution in services revenue despite a decline [5][19] - The company experienced a meaningful uptick in conversions and a growing pipeline of future conversion opportunities, particularly in cloud services [5][6] - New logos represented approximately 35% of the pipeline at the end of Q3, indicating a healthy mix of new and existing customer engagements [8] Market Data and Key Metrics Changes - The company reported strong win rates at 70%, with robust demand across diverse end markets including retail, grocery, and pharmaceuticals [5][8] - The macroeconomic environment remains volatile, impacting customer behavior and project timelines, but demand for the company's solutions remains strong [20][24] Company Strategy and Development Direction - The company is focused on strategic investments to drive growth initiatives, including converting on-premise customers to cloud solutions and cross-selling its unified product portfolio [5][29] - The launch of a dedicated renewal team and a conversion program aims to enhance customer engagement and accelerate cloud adoption [10][75] - The introduction of Agentic AI across all solutions is expected to enhance operational efficiency and customer value, with plans for broader deployment in early 2026 [11][96] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving the high end of RPO goals for 2025 and expects cloud revenue to grow by 20% in 2026 [29] - The company anticipates a significant renewal cycle over the next 18 months, which is expected to positively impact RPO levels [32][33] - Management acknowledged the challenges posed by the macro environment but remains confident in the company's fundamentals and growth potential [20][24] Other Important Information - The company ended Q3 with $264 million in cash and zero debt, having invested $50 million in share repurchases during the quarter [23] - The board approved the replenishment of the $100 million share repurchase authority, reflecting confidence in the company's financial position [23] Q&A Session Summary Question: Can you share more on RPO levels and visibility for 2026? - Management highlighted a 23% year-over-year increase in RPO and expressed optimism due to a major renewal cycle coming up [32][33] Question: What are the conversion strategies for on-premise customers? - The company is taking a more proactive approach to conversions, offering fixed-fee, fixed-timeline options to a cohort of similar customers, resulting in a strong pipeline [36][37] Question: How is the fourth quarter shaping up compared to last year? - Management noted that Q4 is off to a strong start, with expectations for a performance similar to the previous year [42] Question: What role will the new COO play in growth initiatives? - The COO will focus on conversions, renewals, and strengthening the partner ecosystem to drive faster pipeline growth [45] Question: How is the company addressing the services momentum heading into 2026? - Management reported a strengthening services pipeline and backlog, indicating optimism for growth in 2026 [56][57] Question: What is the impact of Agentic AI on operations? - Internally, Agentic AI is providing leverage across departments, while externally, it is expected to enhance customer engagement and operational efficiency [92][96]

Manhattan Associates (NasdaqGS:MANH) Q3 2025 Earnings Call October 21, 2025 04:30 PM ET Company ParticipantsGeorge Kurosawa - Equity Research Senior Associate of Back Office SoftwareDennis Story - CFOMark Schappel - Managing DirectorMichael Bauer - Head of Investor RelationsBrian Peterson - Managing Director of Application SoftwareEric Clark - President and CEOTerry Tillman - Managing Director of Application Software and SaaS Equity ResearchConference Call ParticipantsJoe Vruwink - Senior Research Analyst o ...

Intuitive Surgical (NasdaqGS:ISRG) Q3 2025 Earnings Call October 21, 2025 04:30 PM ET Company ParticipantsFrederick Wise - Managing DirectorDan Connally - Head of Investor RelationsTravis Steed - Managing Director, Equity Research, Medical TechnologyDavid Roman - Managing DirectorJamie Samath - CFODave Rosa - CEOConference Call ParticipantsAdam Maeder - Research AnalystPatrick Wood - Managing Director and Lead AnalystLawrence Biegelsen - Senior AnalystRobbie Marcus - Managing Director and Senior AnalystOper ...

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was $4.7 billion, reflecting a 7% sequential increase and a 14% year-over-year increase [3] - Gross profit was $2.7 billion, representing 57% of revenue, with a sequential decrease of 50 basis points in gross profit margin [5] - Operating profit was $1.7 billion, or 35% of revenue, up 7% from the previous year [5] - Net income for the quarter was $1.4 billion, translating to $1.48 per share, which included a $0.10 reduction due to restructuring charges [5][6] - Cash flow from operations was $2.2 billion for the quarter and $6.9 billion on a trailing 12-month basis [6] Business Line Data and Key Metrics Changes - Analog revenue grew 16% year-over-year, while Embedded Processing revenue increased by 9% [3] - The industrial market saw a 25% year-over-year increase and low single-digit growth sequentially [4] - The automotive market increased upper single digits year-over-year and around 10% sequentially [4] - Personal electronics grew low single digits year-over-year and upper single digits sequentially [4] - Enterprise systems grew about 35% year-over-year and 20% sequentially [4] - Communications equipment grew approximately 45% year-over-year and about 10% sequentially [4] Market Data and Key Metrics Changes - Customer inventories remain low, and inventory depletion appears to be behind the company [3] - The overall semiconductor market recovery is ongoing but at a slower pace than previous upturns due to macroeconomic dynamics [3] Company Strategy and Development Direction - The company plans to focus on long-term value creation through disciplined capital allocation and strengthening competitive advantages [9] - The company is winding down its 150mm fabs, with expected cost reductions through the first half of 2026 [15] - The company aims to continue investing in manufacturing, technology, and a broad product portfolio to enhance its market position [9][35] Management's Comments on Operating Environment and Future Outlook - Management noted a moderate recovery in the semiconductor market, with hesitancy among customers regarding new investments due to uncertainty in regulations [44] - The automotive sector is recovering well, while the data center market is experiencing strong growth [46] - The company expects Q4 revenue to be in the range of $4.22 to $4.58 billion, with EPS guidance of $1.13 to $1.39 [8] Other Important Information - The company returned $6.6 billion to shareholders over the past 12 months, including $1.2 billion in dividends and $119 million in stock repurchases [7] - The company has a strong balance sheet with $5.2 billion in cash and short-term investments and total debt of $14 billion [8] Q&A Session Summary Question: Can you talk about the linearity of bookings through the quarter? - Management indicated that Q3 was more stable compared to Q2, with no significant changes in bookings throughout the quarter [11] Question: Can you discuss the restructuring and its impact on expenses? - The restructuring is related to winding down 150mm fabs and consolidating R&D sites, with expected cost reductions in the future [15][16] Question: What are the expectations for gross margins in Q4? - Management indicated that gross margins are expected to decline due to lower revenue and increased depreciation [25][31] Question: How is the company addressing inventory levels? - The company is pleased with its current inventory position and aims to maintain it while ensuring high customer service levels [13][50] Question: What is the outlook for the data center market? - The data center market is growing rapidly, with no signs of slowdown, and the company plans to provide more details in future calls [54][55]