Guy Hardwick

Winters said pricing realization is fairly well split, though EMC takes a bit longer given the project-based deals. The vast majority of the Q2 price increase was for the mobile computing portfolio, roughly half the quarter's increase, with strong realization also in print and other parts of the portfolio. Management expects mobile computing pricing to increase further into the back half of the year.

Winters confirmed the expected pricing benefit against the $120M gross memory headwind rose from $60M to $90M, primarily due to Q2 strength. A key difference this time: the team proactively quoted deals at the higher price starting early in the year, ahead of the late-March price increase, embedding incremental pricing into pipeline projects. That execution gives confidence to deliver the back-half offset and continue increasing it into Q4 and 2027 to fully mitigate the exposure.

Winters said IEEPA elimination largely offset by Section 122. Minimal Q1 P&L impact due to timing and inventory carryover. Small Q2 benefit. Full year assumes replacement rates in H2 (Section 301 or similar). No material change to full-year guidance from tariff regime changes.

Winters said Q2 is the cost inflection point with a step-change from Q1. Modest sequential increases in Q3 and Q4 but mitigated by increasing price realization on Zebra's products. No particular macro or market-driven reason beyond inventory timing and cost flow through the P&L.

Burns cited entering 2026 with momentum from manufacturing recovery, machine vision pipeline, and RFID. Winters added atypical linearity over past two years, no Q4 year-end spending surge, and Elo's more linear revenue pattern all explain Q1 in line with Q4.

Winters said pricing visibility extends through mid-year from supplier quotes, with back-half assumptions incorporated into guidance. Suggested annualizing the Q2-Q4 run rate to approximate the ongoing impact. Not materially different from what 2026 guide reflects.

Burns said AI requires faster processors and more memory for on-device model execution. Combined with cloud AI depending on application. Mobile device base has grown since pre-pandemic. Refresh cycle will be multiyear sustainable growth driver, not a compressed acceleration cycle. Cybersecurity and device health are additional refresh drivers.

Winters said China mix will reach into the teens but faces a floor from sole-source components and service parts. Focus is broader resilience with multiple manufacturing options globally. Learned over past 5 years that disruptions are inevitable, so building a supply chain that can flex across geographies.

Burns attributed above-seasonal performance to broad-based growth, with retail/e-commerce and healthcare leading at double digits, T&L strong, and manufacturing at high single digits.

Burns outlined three revenue streams: premium hardware, market share gains from innovation leadership, and recurring SaaS from AI agents, but noted projections are still being developed.

Burns stated no tariff-driven pre-buying activity was observed; the larger Q4 retail orders were driven by yearend spending, not tariff front-running.

CEO confirmed large project spend is dilutive to gross margin but not to operating margin, and is a revenue tailwind.

CEO said budgets unlikely to change mid-year. Investment decisions based on long-term cause-and-effect, not short-term trading results.

CFO confirmed 5.5% to 6% SG&A growth is the right range for the full year.

DG confirmed higher merchandising and marketing expense is factored into 2026 OpEx to support improved outgrowth.

DG attributed OpEx improvement primarily to Cromwell exit plus leverage improvement in both EA and High Touch segments.

DG attributed warehousing decline entirely to a single customer contract adjustment.

Full year margins up ~60bps led by DI at 105-107bps expansion. A&D not far behind at ~70bps. FLIR improving plus legacy DI recovery driving margin mix.

Corrected misconception, defense orders are way up and expected to accelerate further. Munitions consumption in Middle East driving replacement demand.

Full year FX ~40bps total company. Started negative, ended Q4 at 80bps positive. Not a significant driver.

More encouraged about M&A pipeline for 2026 vs 2025. Range of ~$1B deals coming (PE exits). Q4 buybacks were opportunistic, not systematic. $1.2B total buybacks in 26-year history. Prefer acquisitions and organic investment (CapEx +40%, R&D +10% in 2025).

R&D investment targeted: protocol/oscilloscope convergence, infrared sensor development (supplier to nearly all U.S. drone makers), high-end oscilloscopes. George: 2026 margin mix roughly neutral, MV recovery positive, defense growth slightly negative on mix. Cost reduction benefits carry forward.

~2,000 employees in Canada, ~$500M revenue. ~70-80% commercial, 20-30% government. DoD exemptions apply to Canadian-made unmanned vehicles for U.S. military. Manufacturing spread across Western countries reduces concentration risk.

Rob affirmed 3-4-30 on track for 2027. Not ready for 2028 targets yet. Planning first developer conference as part of Trimble Dimensions in Las Vegas in November, inviting analysts to see company in action.

Rob explained his policy of not raising full-year guide significantly after just Q1. No pull forward. Beat and raise within framework of holding the model for the year. Will update in 3 months.

Rob quantified autonomous procurement as double-digit millions standalone. Broader AI-enabled revenue well over $100 million. Reality capture AI classification highlighted as growth area within Field Systems.

Rob detailed efficiencies across stack: COGS (20% case deflection), R&D (95%+ engineer adoption, double-digit productivity gains), sales (AI call coaching and pipeline creation), G&A (expects more unlocks in next couple of years).

Rob explained continued investment in marketing, systems, and process work to accelerate 2026 bookings. Putting pedal on investments to ensure ARR trajectory aligns with 3-4-30 model.

Phil said current performance improves confidence around 2027 numbers. Still early in 2026 planning but previewed mid- to high single-digit growth. More details at next earnings call.

Norwitt said future architectures remain to be seen but expects hybrids, and claimed CommScope has a seat at the table for scale up optics via Amphenol relationships.

Norwitt explained extended order windows and capacity investment commitments from customers mean Q4 orders will carry through well beyond Q1. Declined to guide on future quarter orders.

Norwitt declined to discuss specific architectures but emphasized multi-decade capability build-up in high-speed and power, with strong position on future platforms across the full AI stack.

Norwitt gave detailed explanation of decentralized tariff management approach, emphasizing product-level tailored responses rather than blanket pricing actions.

Norwitt described broad-based defense growth across space, vehicles, airframe, and communications with particularly strong European performance driven by next-gen electronics spending.

Terrence confirmed enterprise, telecom, and wireless spending is constructive with nice growth, though not at AI's 60% growth rate. Not seeing AI crowding out spending in these adjacent categories. Order trends showing growth in non-AI DDN product categories.

Terrence acknowledged easier comps contributed to 16% growth. China, Europe, and India seeing genuine truck and construction equipment build improvements. Global truck build expected up 200 bps for the year with TE confident in outgrowing that. North America truck still negative, the key wildcard to watch.

Terrence confirmed cloud non-AI revenue doubled from $250M to $500M driven by infrastructure upgrades. May not have as much content per unit as AI but should sustain nice growth. Cascade effect from high-end compute driving broad infrastructure refresh. Next-gen server speeds benefit TE's broad product set.

Heath attributed Q4 softness to timing of investments. Not worried given full-year trajectory. Incrementals from commercial transport recovery plus auto growth would support margin expansion above 20%.