Shares gained 7.0% following a quarter that beat expectations on multiple fronts, driven by broad-based revenue growth, margin expansion, and robust backlog that underpin raised full-year guidance.
- Revenue increased 13%, led by 15% growth in Products and Systems Integration and 10% growth in Software and Services, with strength across all three major technologies.
- Non-GAAP operating margin expanded 330 basis points to 32.9%, excluding tariff refund benefits margin still expanded 140 basis points amid higher material costs.
- Non-GAAP EPS rose 24% year-over-year to $4.41, supported by strong earnings and a $0.25 per share benefit from IEEPA tariff refunds.
- Operating cash flow rose $197 million to $469 million; free cash flow increased $190 million to $414 million despite higher inventory investments.
- Ending backlog reached a record $15.6 billion, up 11% versus last year, signaling sustained demand momentum headed into the second half.
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