Shares declined 1% on the quarter as solid top-line growth and margin improvement were offset by elevated inventory levels and a cautious consumer backdrop in Connected Living, signaling mixed momentum despite positive execution.
- Q3 revenue rose 12% year-over-year to $8.8 billion, supported by broad-based strength across segments.
- Core operating margin improved to 5.8%, with Intelligent Infrastructure leading margin expansion, up 80 basis points year-over-year.
- Free cash flow came in at $359 million, better than expectations, driven by profitability and spending discipline.
- Inventory days elevated at 84 (net ~68), above target, mainly due to the Intelligent Infrastructure segment’s shipment timing, with normalization expected in Q4.
- Q4 guidance projects 16% revenue growth and further margin expansion, though Connected Living revenue is expected to be flat, reflecting ongoing consumer uncertainty.
Community Discussion