Beat Guidance & Strong Financial Results
Revenue of $1.035B (reported as $1.04B in prepared remarks), non-GAAP EPS of $1.54 (+$0.14 vs midpoint), gross profit $482M with 46.6% gross margin, operating income $252M (24.3% operating margin), net income $232M. Generated $396M operating cash flow and $339M free cash flow (33% FCF margin). Paid $106M in quarterly dividends and ended the quarter with ~$1.6B cash/investments vs $1.0B debt.
Broad Markets Momentum
Broad Markets delivered eighth consecutive quarter of sequential growth; revenue grew +11% year‑over‑year and +4% sequentially. Strength across edge IoT, Wi‑Fi 7, data center, and automotive with strong design‑win activity and healthy backlog. Broad Markets expected to represent ~44% of sales next quarter and to grow high single digits YoY.
Data Center, Timing and Power Strength
Increasing design wins and demand in data center infrastructure (timing and power management) tied to transitions to 800G and emerging 1.6T architectures. Management noted data center-related products are growing faster than the overall Broad Markets segment and carry margins above the corporate average.
Deal Progress and Long‑Term Strategic Upside
Announced combination expected to be transformative with >$500M of synergies over time, targeted combined gross margins in the 50–55% range, and expected net leverage of ~1 at close. Initial regulatory filings completed, shareholder vote scheduled, integration planning underway, and expected close in early calendar 2027 (subject to approvals).