Very Conservative Balance SheetExtremely low leverage and meaningful equity growth provide durable financial flexibility. This reduces refinancing risk, supports steady ROE (8.8%–11.6%), and allows management to fund strategic initiatives, dividends and buybacks without relying on debt during industry cycles.
Gross Margin Expansion And Higher‑margin MixSustained gross margin improvement driven by disciplined pricing and a shift toward software/cloud increases durable profitability. Higher‑margin software growth supports recurring revenues and lessens reliance on low‑margin hardware, improving medium‑term margin sustainability and earnings quality.
Strong Liquidity And Capital Returns OptionalityA large cash position plus active buybacks/dividends gives strategic optionality to invest in AI/cloud priorities, absorb restructurings, and return capital. Robust liquidity underpins long‑term resilience and enables opportunistic M&A or tech investments without stressing the balance sheet.