Financial Data and Key Metrics Changes - The company reported $10.8 million in revenue for Q4 2025, marking its first quarter of material income, primarily from a technology license sale to Reed Societe Generale Group for CAD 10.4 million [5][15] - Operating expenses were reduced to $2.6 million, a decrease of $2.1 million or 44% year-over-year, contributing to improved cash burn [16] - The company ended the quarter with a cash balance of approximately CAD 13 million and an undrawn line of credit of CAD 2.4 million [17] Business Line Data and Key Metrics Changes - The Infinite Loop India facility is expected to produce both virgin quality polyester fiber grade PET and bottle grade PET resin, diversifying customer segments [8] - The CapEx for the India project is estimated at $176 million, which includes all installation costs and financing [44] Market Data and Key Metrics Changes - The company is in advanced discussions with several brand companies to secure off-take supply agreements for the Indian facility, which are crucial for project financing [10] - The European project timeline has advanced, with site selection expected to be completed by late Q3 or early Q4 2025 [36] Company Strategy and Development Direction - The company is focusing on low-cost manufacturing and modular construction to reduce CapEx and construction timelines, enhancing overall project performance [12][14] - The strategy includes securing binding customer contracts to facilitate debt syndication for project financing [22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the 2027 target for commercial operations, emphasizing that securing customer contracts is the key gating item [23] - The company anticipates robust profitability from the joint venture and expects to reinvest cash flow into future facilities [66] Other Important Information - The company has executed a $600,000 engineering services agreement and expects an additional $750,000 in engineering revenue by year-end [6] - The modular construction approach is expected to significantly enhance project delivery and cost-effectiveness [12][14] Q&A Session Summary Question: What is the latest timeline for the India JV? - The facility is expected to break ground in the second half of this year, with customer contracts being the gating item for project financing [22] Question: What is the cash burn and liquidity outlook? - The company has approximately five to six quarters of liquidity on hand and is discussing with strategic partners to close a financing gap [24][25] Question: Can you comment on the land selection process? - The land selection in Gujarat has been finalized, and negotiations with the local government are ongoing [30][32] Question: What is the CapEx for the India plant? - The total CapEx for the India project is $176 million, which includes all costs associated with the project [44] Question: What are the expected margins from the joint venture? - The company expects robust margins from day one, with a 5% licensing fee covering back office expenses [65][66]

Yatra Online (YTRA) Q4 2025 Earnings Call May 30, 2025 08:30 AM ET Company Participants Manish Hemrajani - Vice President of Corporate Development & Investor RelationsDhruv Shringi - Co-Founder, CEO & DirectorAnuj Sethi - CFO Conference Call Participants Scott Buck - Managing Director & Senior Technology Analyst Operator Hello, everyone, and welcome to the Yatra 4Q twenty twenty five and FY twenty twenty five Earnings Conference Call. My name is Ezra, and I will be your coordinator today. I will now hand yo ...

Financial Data and Key Metrics Changes - For FY 2025, the company reported annual revenues of INR 7,900 million (approximately USD 93.1 million), representing a 90% year-over-year increase [4] - Adjusted EBITDA for the year increased by 28% to INR 344 million (approximately USD 4 million), while net profit reached INR 24 million (approximately USD 300,000), a 106.5% improvement from the previous year [28] - In Q4, revenues were INR 2,200 million (approximately USD 25.7 million), up 114% year-over-year, driven by growth in the MICE business and contributions from the Globe Travel acquisition [5][27] Business Line Data and Key Metrics Changes - The corporate travel business remains a key growth engine, adding 35 new corporate clients in Q4, contributing to INR 1,400 million in expected annual volumes [8] - The MICE business showed significant growth and margin expansion, with the combined platform handling over 600 trips and serving more than 80,000 travelers in the last nine months of FY 2025 [11] - The expense management platform, Recap, is gaining traction, with strong cross-sell potential within the existing client base [12] Market Data and Key Metrics Changes - The Indian corporate travel market is projected to grow from USD 42 billion to USD 80 billion by 2033, driven by globalization and rising investments in travel infrastructure [6][7] - The Indian MICE market is estimated at USD 3.3 billion in 2023 and is expected to grow to USD 10 billion by 2030, representing a CAGR of 18% [11] Company Strategy and Development Direction - The company aims to expand its corporate travel and MICE segments while integrating new distribution capabilities (NDC) to enhance the booking experience for corporate travelers [13][15] - The focus is on high-margin growth, operational excellence, and strategic innovation, with preliminary guidance for FY 2026 suggesting 20% growth in revenue and 30% growth in adjusted EBITDA [22] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a temporary disruption in travel demand due to geopolitical tensions but reported a quick recovery in booking volumes following stabilization [23][24] - The company is optimistic about future growth, expecting to achieve 30-40% growth without significant changes to the cost structure [39] Other Important Information - The company has made substantial progress towards share convertibility, with a defined structure in place, although a specific timeline for completion is not yet available [21] - Recent accolades from international airlines highlight the strength of the brand and its operational efficiency [19] Q&A Session Summary Question: How much of the business is tied to the Northern part of India? - Management indicated that approximately 30-35% of overall business volumes are tied to the Northern part of India, which could be impacted by regional tensions [31] Question: What can be said about the proposed corporate structure and share fungibility? - Management confirmed that a structure is in place that works across multiple jurisdictions, and they are focused on implementing the necessary procedures in the coming months [32][34] Question: Are there acquisition opportunities in the MICE segment? - Management is evaluating acquisition opportunities and is in the process of fully integrating a recent acquisition, which will allow them to explore further opportunities [38] Question: How much capacity is there for future revenue growth without significant OpEx investments? - Management believes they can achieve 30-40% growth without needing to change the cost structure significantly, with current operating cost increases primarily due to legal and professional fees [39]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 reached $122.6 million, up 55.3% year over year [8] - Commission income hit a record high of $58.3 million, more than doubling year over year [8] - Net interest income increased to $53.8 million, reflecting a 22.7% year-over-year growth [9] - GAAP net income attributable to the company reached $30.4 million, up 8.4% quarter over quarter and 146.7% year over year [10] - Non-GAAP net income increased to $36 million, an 18.3% sequential increase and a 145% increase year over year [10] Business Line Data and Key Metrics Changes - Total trading volume reached $217 billion, driving significant commission income growth [8] - Marketing financing and securities lending balance increased to $5.2 billion, up 89.4% year over year [8] - The company added 60,900 new funded accounts, representing a 2.9% increase quarter over quarter and a 111.2% growth year over year [11] Market Data and Key Metrics Changes - Client assets reached a record high of $45.9 billion, up 9.9% quarter over quarter and 39.5% year over year [11] - Net inflow of client assets was strong at $3.4 billion for the quarter, primarily driven by retail clients in Singapore and Greater China [11] - Client assets from the Greater China region increased by over 20% quarter over quarter [11] Company Strategy and Development Direction - The company is focusing on enhancing product offerings and improving user experience, including the upgrade of TigerGPT to Tiger AI [12] - The company aims to deepen its presence in the Hong Kong market, which has become a key strategic area [12] - The company plans to continue investing in talent and marketing in Hong Kong to deliver superior product experiences [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second quarter, noting a significant pickup in market volatility and trading volume [23] - Client assets have set another record high, with a strong net asset inflow continuing into the second quarter [25] - The company anticipates a disciplined growth in headcount and expects compensation expenses to grow by 10% to 20% per year [26] Other Important Information - The company enrolled four Hong Kong IPOs in the first quarter, including a record-setting IPO subscription amount [14] - The average net asset inflow of newly acquired clients from the Hong Kong market exceeded $30,000 [12] Q&A Session Summary Question: Impact of market volatility on run rate and early trends - Management noted a significant pickup in trading volume due to market volatility, with monthly trading volume crossing $100 billion for the first time [23] Question: Outlook on costs and customer acquisition - Management expects compensation expenses to grow by 10% to 20% per year and anticipates an increase in customer acquisition costs to around $250 to $300 [26][28] Question: Breakdown of net asset inflows by region - Approximately 60% of net asset inflows came from Greater China, 30% from Singapore, and 10% from the US and Australia/New Zealand [32] Question: Impact of interest rate cuts on net interest income - For every 25 basis points cut by the Federal Reserve, the estimated impact on quarterly net interest income would be about $1 to $1.5 million [33] Question: Regional breakdown of newly funded accounts - About 45% of newly funded accounts came from Singapore and Southeast Asia, while 35% were from Greater China [38] Question: Strategic focus in the Hong Kong market - Management views increased competition in Hong Kong as a validation of the market's attractiveness and plans to invest further in talent and marketing [40]

Financial Data and Key Metrics Changes - The company reported a free cash flow guidance of $1.15 billion for the year, with factors affecting this including final cash tax bills, capital expenditures, and working capital efficiency [82][84] - The company has improved margins significantly, with engine products margins increasing due to a combination of pricing, operating leverage, and improved processes [47][48] Business Line Data and Key Metrics Changes - The aftermarket for engine products has grown from 11% of total revenues in 2019 to approximately 20% in Q1 2025, indicating strong growth in this segment [42][44] - The fastener business has seen margins increase by 400 basis points, despite the anticipated ramp-up in wide-body aircraft production not yet occurring [56][58] Market Data and Key Metrics Changes - The company is optimistic about the narrow-body production market, particularly with Boeing's production rates improving, which is expected to drive demand for parts [4][12] - The company is experiencing a shift in production requirements, with expectations of increased production rates for LEAP engines and geared turbofans as market demand grows [21][22] Company Strategy and Development Direction - The company is focusing on organic growth as the best deployment of capital, emphasizing the importance of high conversion ratios for net income [84][86] - There is a strong emphasis on automation and process improvements across facilities to enhance productivity and reduce labor costs [48][49] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the impact of tariffs, noting that the net effect has trended better than previously expected [5][6] - The company is preparing for increased production in response to anticipated growth in the aerospace market, particularly in narrow-body and wide-body segments [22][23] Other Important Information - The company is expanding its capacity in IGT (Industrial Gas Turbines) and has made technology acquisitions to enhance production capabilities [69][70] - There is ongoing investment in new facilities and equipment to support increased production demands, particularly in the engine products segment [51][52] Q&A Session Summary Question: Can you provide an update on tariffs and their impact? - Management indicated that the net effect of tariffs has trended better than expected, with a potential impact of around €15 million for the year [5][6] Question: How is the production related to Boeing's recovery? - Management noted that production is currently ahead of industry averages and is optimistic about increasing production rates in line with Boeing's recovery [12][20] Question: What is the outlook for the aftermarket in engine products? - The aftermarket has grown significantly, with expectations for continued growth as new engine designs come into service [42][44] Question: Can you comment on margin improvements in the fastener business? - Margins have improved significantly, and management expects further improvements as production ramps up in the wide-body aircraft segment [56][58] Question: What is the company's strategy regarding capital expenditures? - The company prioritizes organic growth and high conversion ratios for net income, with a focus on investing in fixed capital to support growth [84][86]

Financial Data and Key Metrics Changes - Vertex Pharmaceuticals has launched its fifth medicine for cystic fibrosis (CF), ElefTrex, which is now approved in the US and awaiting global approval [5][6] - The company has diversified its revenue streams, with new approvals in sickle cell disease and beta thalassemia through Kaschevi, the first CRISPR Cas9-based therapy approved [6][7] - The pipeline is described as broad and deep, with five programs in or nearing phase three [9] Business Line Data and Key Metrics Changes - The CF business continues to show growth, with more patients being identified and treated due to better medicines and longer patient lifespans [25][26] - ElefTrex is expected to treat a significant number of patients, with over 50% of children aged 6 to 11 achieving normal sweat chloride levels [30] - The acute pain launch of Gernavix is underway, with expectations for increased volumes and revenues as reimbursement and access improve [46] Market Data and Key Metrics Changes - The company has seen a headwind in Russia due to geopolitical issues and unauthorized copies of its medicine, but this situation is limited to Russia [37][38] - In the US, the CF business is expected to continue growing, driven by better treatment options and increased patient identification [25][26] Company Strategy and Development Direction - Vertex aims to replicate its success in CF across other disease areas, focusing on bringing more medicines through phase three and commercialization [12] - The company is committed to a long-term strategy, with a ten-year plan set to 2030 [10][12] - Vertex is focused on executing its current launches while preparing for future phase three readouts [13] Management's Comments on Operating Environment and Future Outlook - The management acknowledges a complicated macro environment with policy uncertainties but remains confident in regulatory science and its ability to navigate these challenges [15][17] - Vertex's exposure to Medicare and Medicaid is noted, with 10% and 23% of its business respectively, and the management is preparing for potential impacts from policy changes [18][19] - The company expects continued growth in its CF business, driven by new patient identification and treatment options [25][26] Other Important Information - Vertex has established offices in the Middle East to capitalize on the high prevalence of sickle cell disease and beta thalassemia in the region [105][106] - The company is focused on maintaining a balance between internal and external innovation, with a current pipeline of 40% external and 60% internal projects [110] Q&A Session Summary Question: How is the launch of ElefTrex going? - The launch is progressing well, with rapid uptake among newly eligible patients and those returning to therapy [32] Question: What is the company's strategy regarding the pain market? - Vertex will maintain a specialty sales force and will not expand into primary care settings, focusing on acute and neuropathic pain [53][56] Question: What are the expectations for the Gernavix launch? - The company anticipates increased volumes and revenues in the second half of the year as reimbursement and access improve [46] Question: How does Vertex view the competitive landscape for its new therapies? - Vertex believes it can achieve best-in-class status despite not being first to market, focusing on efficacy, safety, and breadth of indications [86] Question: What is the company's approach to capital allocation? - Vertex prioritizes innovation, with a focus on both internal and external projects, and has a share buyback program in place [110][111]

Financial Data and Key Metrics Changes - Total revenue for the first quarter of 2025 reached $122.6 million, up 55.3% year over year [8] - Total trading volume reached $217 billion, driving commission income to a record high of $58.3 million, more than doubling year over year [8] - Net interest income increased to $53.8 million, a 22.7% year-over-year increase [9] - Non-GAAP net income attributable to UP Fintech increased to $36 million, reflecting an 18.3% sequential increase and a 145% increase year over year [9] - GAAP net income reached $30.4 million, up 8.4% quarter over quarter and 146.7% year over year [9] Business Line Data and Key Metrics Changes - Commission revenue breakdown: approximately 65% from cash equities, 30% from options, and the remainder from futures and other products [16] - Marketing financing and securities lending balance increased to $5.2 billion, an 89.4% year-over-year increase [8] - The company added 60,900 new funded accounts, representing a 2.9% increase quarter over quarter and a 111.2% growth year over year [10] Market Data and Key Metrics Changes - Client assets reached a record high of $45.9 billion, up 9.9% quarter over quarter and 39.5% year over year [10] - Client assets from the Greater China region increased by over 20% quarter over quarter [11] - Average net asset inflow of newly acquired clients from the Hong Kong market exceeded $30,000 [12] Company Strategy and Development Direction - The company is focusing on enhancing product offerings and improving user experience, including the upgrade of TigerGPT to Tiger AI [12] - The company aims to deepen its presence in the Hong Kong market, which has become a key strategic area [12] - The company plans to continue investing in both talent and marketing in Hong Kong to deliver a superior product experience [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the second quarter, noting a significant pickup in market volatility and trading volume [24] - Client assets have set another record high, with net asset inflow remaining strong [25] - The company expects customer acquisition costs to rise due to increased investment in high-value markets like Hong Kong [28] Other Important Information - The company enrolled four Hong Kong IPOs in the first quarter, including Chip and Go and Nanshan Aluminum [14] - The average customer acquisition cost is expected to rise to around $250 to $300 in the coming quarters [28] Q&A Session Summary Question: Impact of market volatility on run rate and early trends - Management noted a significant pickup in trading volume due to market volatility, with monthly trading volume crossing $100 billion for the first time [24] Question: Outlook on profitability and cost management - Management indicated that overall headcount growth will remain disciplined, with compensation expenses expected to grow about 10% to 20% per year [27] Question: Breakdown of net asset inflows by region - In the first quarter, approximately 60% of net asset inflows came from Greater China, 30% from Singapore, and 10% from the US and Australia/New Zealand [34] Question: Interest income and potential impact of Fed rate cuts - Management estimated that for every 25 basis points cut by the Federal Reserve, quarterly net interest income would be negatively impacted by about $1 to $1.5 million [35] Question: Regional breakdown of newly funded accounts - About 45% of newly funded accounts came from Singapore and Southeast Asia, while 35% were from Greater China [41]

Financial Data and Key Metrics Changes - The company aims for low double-digit growth in the index business, currently experiencing high single-digit growth [3][9] - Growth rates with hedge funds are at 22%, wealth managers at 16%, asset owners at 10%, and broker-dealers at 11% [6] - Active managers, the largest client segment, have seen growth rates decline to slightly below 7% due to outflows and fee pressure [7][8] Business Line Data and Key Metrics Changes - The index business has historically shown double-digit growth, with recent trends indicating a shift towards personalized systematic portfolios [10][12] - Custom indexes and additional content sets are opening new opportunities for growth, particularly in wealth management and trading communities [14][15] - Non-market cap, non-ETF assets have grown at 37% in the first quarter, compared to 16% for market cap mandates [45] Market Data and Key Metrics Changes - The company has captured 45% of flows into developed markets outside the U.S. and emerging market ETFs, totaling approximately $37 billion of the $42 billion in flows in the first quarter [25][26] - There is a noted shift in capital flows towards international investing, which is beneficial for the company [20][28] Company Strategy and Development Direction - The company is focused on expanding its index offerings, particularly in custom indexes, which are seen as a major growth driver [42][44] - The strategy includes enhancing product offerings and maintaining a long-term pricing philosophy that emphasizes value addition over aggressive price hikes [34][35] - The company is also positioning itself to benefit from the ongoing shift from active to passive management, while still supporting active managers with innovative solutions [72][75] Management's Comments on Operating Environment and Future Outlook - Management emphasizes the importance of confidence in the market for driving client buying behavior, particularly in relation to equity market stability [16][17] - There is cautious optimism regarding the recovery of international investing and the potential for increased sales as market conditions stabilize [19][20] - The company acknowledges the current challenges in the ESG space but remains committed to helping clients navigate these complexities [95][98] Other Important Information - The company has seen strong growth in its analytics business, driven by fixed income analytics and factor models [84][86] - The competitive landscape remains stable, with the company maintaining strong market share in institutional and retail markets, particularly in Europe [31][32] Q&A Session Summary Question: What are the key growth drivers for the index business? - The company highlighted the utility of its products and the expansion of licensing to more parts of client organizations as key growth drivers [12][13] Question: How does the strengthening equity market affect new sales? - Management noted that sustained momentum in equity markets generally supports client confidence and buying behavior, although it varies by region and client type [16][17] Question: What are the leading indicators for international investing? - Key indicators include a depreciating U.S. dollar, macroeconomic cycles, and valuation comparisons between U.S. and international markets [22][24] Question: How is the company positioned in the custom index market? - The company sees custom indexes as a significant growth opportunity, particularly as clients seek personalized investment strategies [42][44] Question: What is the impact of the shift from active to passive management? - The company remains agnostic to the shift, believing it can benefit from both active and passive strategies, with a focus on providing tools for both [72][75] Question: What is the company's strategy for fixed income? - The company has invested in fixed income analytics and is focusing on differentiated fixed income indexes, particularly in ESG and climate-related areas [79][81]

Financial Data and Key Metrics Changes - Record revenue for Q4 and fiscal year 2025 was $1,730 million, up 4% year over year and up 6% sequentially [21] - Q4 billings were $2,030 million, up 12% year over year, marking the sixth consecutive quarter of year-over-year revenue and billings growth [21] - Total revenue for fiscal year 2025 was $6,570 million, up 5% year over year, with billings at $6,780 million, up 8% year over year [27] - Q4 operating margin was 28.6%, up 50 basis points year over year, representing the highest for Q4 in the company's history [26] - EPS for Q4 was $1.93, up 7% year over year, driven by lower operating expenses and effective tax rate [26] Business Line Data and Key Metrics Changes - Hybrid cloud revenue for Q4 was $1,570 million, up 3% year over year [22] - Product revenue was $845 million, up 5% year over year, while support revenue was flat at $625 million [23] - Public cloud revenue was $164 million, up 8% year over year; excluding the divested SPOT business, it grew 22% year over year [23][29] - First-party and marketplace cloud storage services grew 44% year over year in Q4, comprising roughly 75% of public cloud segment revenue [12][23] Market Data and Key Metrics Changes - All flash array annualized revenue run rate grew 14% year over year to a record $4,100 million in Q4 [9] - The company gained almost 300 basis points of all flash market share in calendar 2024, more than any other vendor [10] - Public cloud revenue growth was 22% year over year in Q4, excluding the divested SPOT business, indicating strong underlying growth [50] Company Strategy and Development Direction - The company refreshed its entire systems portfolio and sharpened the focus on cloud services to lead in the enterprise AI market [7] - The strategy emphasizes investments in AI and data infrastructure modernization, cloud transformation, and cyber resilience [18][29] - The company plans to make prudent investments in R&D and sales capacity to drive ongoing innovation and capture additional market share [18] Management's Comments on Operating Environment and Future Outlook - The global macroeconomic outlook shows mixed signals with a general slowdown in growth and lingering inflation concerns [17] - The company expects some increased spending caution and ongoing friction in the US public sector and EMEA [17] - Management remains confident in the company's ability to capitalize on significant opportunities in the enterprise AI market [18] Other Important Information - The company exited fiscal year 2025 with $4,540 million in deferred revenue, an increase of 7% year over year [24] - Operating cash flow was $1,510 million, and free cash flow was $1,340 million, both metrics down due to changes in working capital [28] - The company announced an increase in share repurchase authorization by $1,100 million [27] Q&A Session Summary Question: Guidance for Q1 and full year - Management acknowledged Q1 guidance appears light but emphasized strong momentum and large deals in the pipeline for revenue and EPS growth throughout the year [36][39] Question: Execution and timing of deals - Management noted strong Q4 performance and addressed concerns about political instability and macroeconomic factors affecting customer spending [45][46] Question: AI infrastructure deals - Management confirmed ongoing work with large cloud and enterprise providers on data modernization transactions, contributing to FY '26 outlook [55][56] Question: Public cloud revenue performance - Public cloud revenue in Q4, excluding SPOT, was up 22% year on year, with expectations for continued acceleration in FY '26 [50][51] Question: Product gross margins outlook - Management expects product gross margins to improve gradually throughout the fiscal year, with Q1 margins anticipated to be flattish [41][75] Question: Public sector exposure - US public sector accounts for low teens percentage of business, with federal making up 75% to 80% of that, and management is optimistic about upcoming spending bills [104]

Financial Data and Key Metrics Changes - Record revenue for Q4 FY 2025 was $1,730 million, up 4% year over year and up 6% sequentially [20] - Q4 billings were $2,030 million, up 12% year over year, marking the sixth consecutive quarter of year-over-year growth [20] - Total revenue for FY 2025 was $6,570 million, up 5% year over year, with billings at $6,780 million, up 8% year over year [26] - Q4 operating margin was 28.6%, up 50 basis points year over year, representing the highest for Q4 in the company's history [24] - EPS for Q4 was $1.93, up 7% year over year, driven by lower operating expenses and an effective tax rate [24] Business Line Data and Key Metrics Changes - Hybrid cloud revenue for Q4 was $1,570 million, up 3% year over year [20] - Product revenue was $845 million, up 5% year over year, while support revenue was flat at $625 million [21] - Public cloud revenue was $164 million, up 8% year over year, and grew 22% year over year when excluding the recently divested SPOT business [21][28] - First-party and marketplace cloud storage services grew 44% year over year in Q4, comprising roughly 75% of public cloud segment revenue [11][12] Market Data and Key Metrics Changes - All flash array annualized revenue run rate grew 14% year over year to a record $4,100 million in Q4 [8] - The company gained almost 300 basis points of all flash market share in calendar 2024, more than any other vendor [9] - Public cloud revenue growth was driven by strong performance in first-party and marketplace services, which are expected to continue accelerating [47] Company Strategy and Development Direction - The company aims to lead in the enterprise AI market and has positioned itself to capitalize on the growth of all flash systems and public cloud services [6][7] - Focus on modernizing data infrastructure and enhancing cloud transformation to meet customer demands for AI readiness and operational efficiency [7][8] - Plans to make prudent investments in R&D and sales capacity to drive ongoing innovation and capture additional market share [17] Management's Comments on Operating Environment and Future Outlook - The global macroeconomic outlook shows mixed signals, with expectations of increased spending caution and ongoing friction in the US public sector and EMEA [16] - Management remains confident in the company's ability to deliver strong performance despite uncertainties, driven by alignment with key IT priorities [16][17] - The company expects FY 2026 total revenue to be in the range of $6,625 million to $6,875 million, reflecting a cautious outlook due to macroeconomic factors [28][29] Other Important Information - The company exited FY 2025 with $4,540 million in deferred revenue, an increase of 7% year over year [22] - Cash flow from operations was $675 million, and free cash flow was $640 million in Q4 [24] - The company announced an increase in share repurchase authorization by $1,100 million [26] Q&A Session Summary Question: Guidance for Q1 and full year - Management acknowledged Q1 guidance appears light but emphasized strong momentum and large deals in the pipeline for the year [35][38] Question: Execution and macro concerns - Management noted that while there are macro concerns, strong execution in Q4 and a robust pipeline provide confidence in growth [42][44] Question: Public cloud revenue performance - Public cloud revenue in Q4, excluding SPOT, was up 22% year over year, with expectations for continued acceleration in FY 2026 [47] Question: AI infrastructure deals - Management confirmed ongoing negotiations for sizable AI and data infrastructure modernization deals, contributing to FY 2026 outlook [53] Question: Product gross margins outlook - Management expects product gross margins to improve gradually throughout FY 2026, with Q1 margins expected to be flattish [65][70] Question: Public sector exposure - US public sector accounts for low teens percentage of business, with ongoing concerns about budget approvals impacting growth [100][116]