Financial Data and Key Metrics Changes - The company reported Q4 revenue of $704 million, representing a high single-digit increase year-over-year and exceeding prior guidance [5][11] - Full year 2025 revenue was $2.66 billion, flat compared to the prior year, but showed improving momentum throughout the year [7][12] - Q4 non-GAAP EPS was $0.71, surpassing the guidance range of $0.62-$0.68 [11] - Gross margin for Q4 was 10.6%, up 50 basis points sequentially and 20 basis points year-over-year [11][12] - Operating margin for Q4 was 5.5%, demonstrating leverage in the company's model [5] Business Line Data and Key Metrics Changes - Semi-Cap revenue decreased 8% quarter-over-quarter and 14% year-over-year, but full year revenue grew 2% [12][13] - Industrial revenue was flat for the full year but up 3% year-over-year [13] - A&D revenue grew 17% year-over-year and 19% for the full year [13] - Medical revenue increased 23% year-over-year in Q4, leading to 7% growth for the full year [13] - AC&C revenue rebounded in Q4, up 27% year-over-year, with expectations for continued growth [14] Market Data and Key Metrics Changes - The company noted improved sell-through and healthier end demand across sectors as channel inventory normalized [20] - The semi-cap sector is expected to see a demand inflection in the back half of 2026, with early signs of improvement [21][22] - Industrial sector performance is expected to gradually improve throughout 2026, driven by demand in transportation and HVAC [22] - A&D revenue growth is expected to moderate in 2026 due to program timing, but bookings momentum in space applications is promising [23][24] - Medical sector is anticipated to maintain double-digit growth in 2026, supported by strong bookings in MedTech [24] Company Strategy and Development Direction - The company targets five core high-value markets, focusing on complex, high-mix opportunities while avoiding commoditized markets [8] - Continued investment in global precision technology and production equipment is planned to align with new business wins [10][16] - The company aims to improve working capital efficiency and maintain positive free cash flow while investing in growth [9][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum of bookings and operational execution, particularly in medical and AC&C sectors [9][20] - The company anticipates a strong recovery in the semi-cap sector in 2026, with proactive capacity planning already in place [10][59] - Management remains optimistic about mid-single-digit growth guidance for 2026, with potential for further strengthening as visibility improves [26] Other Important Information - The company generated $85 million in free cash flow for fiscal year 2025 and maintained a net cash positive position of $111 million [15][16] - An $11.1 million non-cash impairment was recorded on certain assets due to program end-of-life [18] - The cash conversion cycle improved to 67 days, with significant improvements in inventory management [17][70] Q&A Session Summary Question: Areas of increased confidence beyond Semi-Cap - Management indicated that medical and AC&C sectors have shown improved momentum, with industrial gradually picking up as well [31][32] Question: Thoughts on gross margins and operating leverage - Management noted that while gross margins are stable, operating margins are where leverage can be realized as revenue accelerates [33][34] Question: Expansion of Total Addressable Market (TAM) in industrial - Management highlighted the broad nature of the industrial segment, with opportunities in HVAC, transportation, and agriculture [41][43] Question: Insights on space applications and bookings - Management expressed excitement about the momentum in space bookings, which is expected to contribute positively to A&D growth [44][45] Question: Details on medical program wins and momentum - Management confirmed ongoing success in medical devices and life sciences, with expectations for continued growth into 2026 [55][56] Question: Timeline for semi-cap recovery - Management indicated that they are prepared to respond to orders within 1-3 months, with proactive capacity planning already in place [58][59] Question: Expectations for cash cycle days and CapEx - Management aims to maintain stability in cash conversion cycle days while anticipating a slight increase in CapEx due to new projects [70][72]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $34.6 billion, a 34% year-over-year increase, with net income rising 42% to $2.5 billion and free cash flow nearly doubling to $2.1 billion [5][6][23] - For Q4 2025, revenue reached $10.3 billion, up 34% year-over-year, with gross margin at 57%, an increase of 290 basis points year-over-year [5][24] Business Segment Data and Key Metrics Changes - Data center segment revenue grew 39% year-over-year to a record $5.4 billion, driven by strong demand for EPYC processors and MI350 products [7][25] - Client and gaming segment revenue increased 37% year-over-year to $3.9 billion, with client revenue at a record $3.1 billion, up 34% year-over-year [16][26] - Embedded segment revenue rose 3% year-over-year to $950 million, supported by demand in test and measurement and aerospace sectors [19][27] Market Data and Key Metrics Changes - In the cloud market, the number of EPYC cloud instances grew over 50% year-over-year to nearly 1,600, with significant adoption among hyperscalers [8][9] - The company noted a meaningful shift in EPYC adoption in the enterprise sector, with over 3,000 solutions now available optimized for major workloads [8] Company Strategy and Development Direction - The company is entering a multi-year demand supercycle for high-performance and AI computing, positioning itself to capture significant growth opportunities across all business segments [20] - The launch of the MI400 series and Helios platform is seen as a major inflection point for the AI business, with expectations of scaling AI revenue to tens of billions by 2027 [15][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory for 2026, anticipating strong demand for EPYC and Instinct products, with a target of over 60% annual growth in the data center segment [22][48] - The company is optimistic about the data center AI revenue potential, with significant customer engagements and a strong order book [33][41] Other Important Information - The company repurchased 12.4 million shares in 2025, returning $1.3 billion to shareholders, and ended the year with $9.4 billion remaining in its share repurchase program [29] - The company is actively working on multi-year agreements with suppliers to ensure adequate supply for future growth [84] Q&A Session Summary Question: Can you discuss customer engagements and demand for MI450 and Helios platforms? - Management confirmed strong customer engagement and progress on MI450 development, with expectations for a second-half launch and significant ramp-up in 2027 [34][35] Question: Can you provide details on March guidance and data center GPU ramp? - Management indicated a sequential decline in client revenue but strong growth in data center, with expectations for a solid ramp in GPU revenue throughout the year [38][40] Question: What is the outlook for data center revenue growth in 2026? - Management expressed bullishness on data center growth, citing strong demand for EPYC and MI450 products, with a long-term target of over 60% growth [45][48] Question: How is the company addressing supply chain challenges for server CPUs? - Management noted increased supply capacity for server CPUs and strong demand, indicating confidence in meeting growth targets [52][53] Question: What is the strategy regarding memory procurement and inflationary costs? - Management highlighted proactive planning for memory procurement, ensuring alignment with demand and ramp-up schedules [82][84] Question: How does the company view the competitive landscape with ARM and x86? - Management emphasized the importance of high-performance x86 CPUs for AI workloads, asserting that EPYC is optimized for current and future demands [79][80]

Amdocs (NasdaqGS:DOX) Q1 2026 Earnings call February 03, 2026 05:00 PM ET Company ParticipantsDan McDermott - Equity ResearchJimmy Hortick - Trusted PartnerMatt Smith - Head of Investor RelationsShlomo Rosenbaum - Managing DirectorShuky Sheffer - President and CEOTamar Rapaport-Dagim - Chief Financial and Operating OfficerOperatorThank you for standing by and welcome to the Amdocs First Quarter 2026 Earnings Conference call. At this time, all participants are in listen-only mode. After the speaker's present ...

Benchmark Electronics (NYSE:BHE) Q4 2025 Earnings call February 03, 2026 05:00 PM ET Company ParticipantsBryan Schumaker - CFODavid Moezidis - PresidentJeff Benck - CEOPaul Manske - Head of Investor RelationsSteven Fox - Founder and CEOConference Call ParticipantsAnja Soderstrom - Senior Equity Research AnalystJim Ricchiuti - Senior AnalystMax Michaelis - Equity Research AnalystOperatorGood afternoon, ladies and gentlemen, and welcome to the Benchmark Q4 and Fiscal Year 2025 Earnings Call and Webcast. At th ...

Super Micro Computer (NasdaqGS:SMCI) Q2 2026 Earnings call February 03, 2026 05:00 PM ET Company ParticipantsCharles Liang - CEODavid Weigand - CFOMichael Staiger - VP of Corporate DevelopmentConference Call ParticipantsAnanda Prosad Baruah - Equity Research AnalystAsiya Merchant - Equity Research AnalystBrandon Nispel - Equity Research AnalystCatherine Murphy - Equity Research AnalystJonathan Tanwanteng - Equity Research AnalystMark Newman - Senior Equity Research AnalystNehal Sushil Chokshi - Senior Equit ...

Key Tronic (NasdaqGM:KTCC) Q2 2026 Earnings call February 03, 2026 05:00 PM ET Speaker3day and welcome to the Key Tronic FY 2026 Q2 investor call. Today's conference is being recorded. After the presentation, we will begin the question-and-answer period. At this time, I'd like to turn the call over to Tony Voorhees. Please go ahead.Speaker0Good afternoon, everyone. I am Tony Voorhees, Chief Financial Officer of Key Tronic. I'd like to thank everyone for joining us today for our investor conference call. Joi ...

Lumentum (NasdaqGS:LITE) Q2 2026 Earnings call February 03, 2026 05:00 PM ET Speaker3Good day, everyone, and welcome to the Lumentum Holdings second quarter fiscal year 2026 earnings call. All participants will be in a listen-only mode. Please also note this event is being recorded for replay purposes. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please raise your hand. If you have dialed into today's call, please press star nine to raise y ...

Lumen Technologies (NYSE:LUMN) Q4 2025 Earnings call February 03, 2026 05:00 PM ET Speaker7Greetings everyone, and welcome to Lumen Technologies' fourth quarter and full year 2025 earnings call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will conduct a question and answer session. At that time, if you have a question, please press the star followed by one on your telephone. If at any time during the conference you need to reach an operator, please press star zero ...

Amdocs (NasdaqGS:DOX) Q1 2026 Earnings call February 03, 2026 05:00 PM ET Speaker1Thank you for standing by and welcome to the Amdocs First Quarter 2026 Earnings Conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again ...

Mercury Systems (NasdaqGS:MRCY) Q2 2026 Earnings call February 03, 2026 05:00 PM ET Speaker7Good day, everyone, and welcome to the Mercury Systems second quarter fiscal 2026 conference call. Today's call is being recorded. At this time, for opening remarks and introductions, I'd like to turn the call over to the company's Vice President of Investor Relations, Tyler Hojo. Please go ahead, Mr. Hojo.Speaker10Good afternoon, and thank you for joining us. With me today is our Chairman and Chief Executive Officer ...