Shares dropped 16.3% as investors reacted negatively to cautious commentary on the memory pricing environment and tariff headwinds, as well as subtle signs of margin pressure despite revenue and earnings beating prior guidance.
- Revenue reached $3.66 billion, 7% sequential growth and 15% year-over-year, above midpoint guidance.
- Non-GAAP diluted EPS of $1.05 and GAAP EPS of $1.04 came in at upper guidance range.
- Gross margin was 62.4%, near the high end of guidance but offset by challenges in memory pricing and tariffs.
- Operating expenses totaled $682 million, including $399 million in R&D and $283 million in SG&A.
- Free cash flow of $817 million supported $876 million returned to shareholders in the quarter through buybacks and dividends.
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