Shares declined 11.2% following earnings as investors reacted to a notable guidance cut for the second quarter. Despite management’s upbeat commentary on long-term AI-driven tailwinds, the near-term outlook disappointed versus market expectations.

• Q1 revenue and earnings finished above the midpoint of guidance, reflecting solid execution across product and service lines.
• Management highlighted continued momentum and long-term strength in AI-related semiconductor demand, with customer forecasts supporting a sustained WFE cycle.
• Second quarter guidance was the key negative surprise on the call, implying softer-than-anticipated near-term performance.
• Margin expansion and operating leverage remain a focus as volumes ramp, but near-term variability in customer spending and supply chain constraints were cited.
• The long-term multiyear opportunity remains intact, but short-term uncertainty and a weaker Q2 outlook drove the sharp negative market reaction.