Steven Fox

Dastoor tied the 6.1% margin to adding ~4M sq ft of capacity and operating leverage, noting margins are back-end loaded on the ramp.

Mike cited InfiniBand, Ethernet, switchgear in India and silicon photonics; expects similar or better networking demand in 2027.

Mike pointed to mix, higher-value II capabilities, operating leverage and Hanley but did not quantify the timeline to better incrementals.

Physical AI in early commercialization with high costs and complexity. Jabil positioned across hardware for retail robots, autonomous vehicles, drones, industrial automation, and humanoids. Capabilities span sensors, onboard compute, connectivity, power, cooling, and motion actuation. Expected to become material over years as costs decline.

East Coast retrofit fully completed, 2-3 months ahead of schedule. Provides optionality for both liquid-cooled and air-cooled racks. Retrofit drag is behind them and will actually help business going forward as liquid cooling becomes increasingly integral to datacenter infrastructure.

Mike described II as a portfolio: server/rack at enterprise-level margins, but networking, silicon photonics, power management, and liquid cooling all accretive. Expects margin accretion to continue as capabilities reach scale.

Multi-geography capacity expansion: surplus capacity in Mexico for second hyperscaler, India for liquid-cooled switches, North Carolina coming in 6-8 months pre-fitted for liquid cooling, Memphis potential expansion. All within 1.5-2% CapEx-to-revenue range.

Mike acknowledged healthcare as most exciting area from a deal perspective. Conservative M&A approach but highly likely to do something. Steady business with higher margins, long product cycles, and steady cash flows make it ideal diversification.

Greg identified 20-25bps headwind from unutilized international capacity offset by positive mix. Year shape more balanced (50/50 first half/second half) versus FY25. Margins expected to increase through the year.

Positioned Jabil's configure-and-support-at-scale model as superior to OEM product approach for hyperscale customers. DCI business growing triple digits. Landing second and third hyperscale customers on this model.

Andy confirmed deliberate CLDC pruning reducing revenue but improving margins. Mike reaffirmed 6%+ target with three levers: mix shift to healthcare/AI/digital commerce, efficiency from automation, and capacity utilization recovery from 75% to 85%.

Acknowledged chicken-and-egg dynamic where customers want to see capacity before committing. Team fully engaged with multiple customers and potential customers. Path to filling new site over next few years across photonics, liquid cooling, and thermal management.

Greg attributed flat II margins to incremental investments for explosive growth that pressured near-term margins. Mike added that 5G dilution within networking masked cloud DCI leverage gains. Scale benefits expected going forward.

Liquid cooling acquisition performing well and opening doors for vertical integrated solutions. GPU-engineered racks with integrated cooling driving deeper hyperscaler relationships.

Pushed back on bearish framing of auto/EV business, calling it prudent guidance rather than structural decline. Remains technology-agnostic across ICE, hybrid, and EV platforms.

Mike called it early days but expects custom silicon to drive new revenues. Limited FY25 impact expected with more meaningful growth in FY26 and beyond.

Battery power management and DCI programs ramped in US. 30 US sites total. Surplus capacity available with ability to expand, citing St. Pete factory setup in under six months.

George cited strength in new customer acquisition, new-workload expansion, and stronger-than-expected tech refresh, all ahead of internal forecast.

Wissam said NAND impact shows in product gross margin and declined to quantify ASP-driven revenue, deferring to later quarters.

George confirmed price increases (more on AFAs than HFAs) triggering more customer discussions about optimal architecture with growing HFA interest. Too early to call it a trend but distinctly more discussion since price increases.

George confirmed good HDD procurement position even with potentially elevated demand. NetApp uses dissimilar drives to those in short supply (not highest-capacity HDDs which are most constrained).

George corrected the premise, no supply shortages exist. Secured supply and pricing through end of FY26. Broad supplier ecosystem provides optionality. Historical pattern is commodity cost increases are shared with customers through pricing actions.

George noted guide is 4% ex-Spot. US public sector (low teens, ~75-80% federal) has budget uncertainty. EMEA large countries awaiting export tariff clarity and government budget deployment. Competitive position strong but geopolitical resolution timing uncertain, warranting prudence.

Wissam confirmed 40-60bps tariff impact in guide within 71-72% gross margin range. Diverse supply chain gives mitigation optionality. Will update if trade policies change.

George emphasized software differentiation over NAND cost and confirmed deep supplier relationships for procurement decisions.

George explained the partnership evolved from public cloud to on-premises Google Distributed Cloud with early wins in public sector.

Hartung split industrial into energy infrastructure and robotics/warehouse automation and, on follow-up, explicitly called both secular rather than cyclical.

Krumm answered the allocation half (benefit spans both businesses) but explicitly declined to update the arrangement itself.

Kevin attributed the strong incremental margins to power mix and continued improvement in core industrial.

Kevin confirmed accelerating Q4 growth driven by power and medical, expecting momentum into early FY2027.

Revathi described Dallas ramping and the Poland purchase, aiming for just-enough capacity to keep lead times down.

Revathi stressed Flex's unique ability to integrate compute and power at scale as the key differentiator.

Revathi emphasized customization capability across power and cooling as the driver of accretive data center growth.

Dave held CapEx within 4 to 6% of revenue with no OpEx build; Gianluca detailed debt reduction to $3.6 billion and said buybacks are already running higher.

Mosley said NAND economics are driving customers back to HDDs for more capability within their tier. Architectures are sticky for a long time with customers asking what more HDDs can do.

Mosley confirmed Seagate starts wafers 6-9 months ahead for customer predictability. Execution on node transitions is on plan or slightly ahead.

Mosley framed it as building industry health through long-term predictability. Customers are extending planning horizons rather than seeking alternative storage.

Mosley noted seasonality is diminishing as data center becomes 80%+ of revenue. Romano confirmed March is typically the lowest revenue quarter but the impact is shrinking each year.

Mosley acknowledged initial HAMR productization challenges but said future transitions should have shorter cycles with fewer subsystem strains.

Asked how Seagate stays comfortable meeting demand at capacity if cycles improve; Dave stressed supply caution, long lead times for added capacity, and small gains from technology transitions.

Terrence detailed Astrodyne's power-filter (~40%) and custom power-supply positions in semiconductor equipment, defense, and medical; Heath added it is accretive to growth and margins, cash-funded.

Terrence confirmed grid hardening and data center power full steam ahead. Growth rate moderation driven by clean energy/renewables pauses from policy uncertainty. Expects double-digit organic growth to sustain. Some lumpiness from regulatory staging of projects. Grid hardening (~60% of business) remains strongest driver.

Heath confirmed improved pricing agility vs prior cycles. Distributor/channel pricing passes quickly; OE direct discussions take slightly longer. Terrence noted capacity is in good shape outside of AI-specific ramps. Adding capacity in energy (Richards expansion) and aerospace/defense. ACL and ICT have available capacity from the downturn.

Terrence confirmed CapEx up ~30% this year, vast majority for AI capacity. Teams executing well on new-to-world products. Continuing to expand flex capacity. Leveraging cloud ramp experience from 4 years ago.

Terrence noted pricing neutral at TE level, positive in Industrial, slightly negative in Transportation. Tariff surcharges plus sourcing mitigation provide customer value beyond price.

Terrence said stabilization is now confirmed vs just hoped for 90 days ago. Japan and China automation customers showing upward order momentum, U.S. sideways, Europe still weak. Distribution inventory destocking mostly over.

Heath confirmed Transportation at 20%+ margins, new Industrial segment in high teens with goal of reaching 20% over midterm. Growth expected to improve through the year.

Irving noted cloud segment driving both bits and revenue. Pricing stable and up single digits both QoQ and YoY. Growth trend expected to continue for 1-2 more years.

Irving confirmed 215 exabytes delivered, up 22% YoY. Over 3.5M units of current ePMR (up to 32TB) shipped. Strong execution reflects stability, quality, and scalability. Next-gen ePMR and HAMR to ramp in coming quarters.

Kris noted Q1 FCF boosted by major working capital reduction (DSO improvement). That won't repeat, but 20%+ FCF margin is sustainable going forward.

Irving confirmed win-win dynamic: customers want higher capacity for exabytes and TCO benefits; WDC benefits from higher ASPs and margins on advanced drives.

Irving confirmed non-cloud markets remain material with separate supply chains managed independently. Looking at opportunities for incremental growth in those areas.

Don confirmed strong FCF generation supporting three capital allocation priorities: reinvest in technology, de-lever balance sheet, and return capital to shareholders.

Asked about ongoing HDD manufacturing efficiency gains; management framed mid-to-high single-digit annual cost improvements, direct.