Wamsi Mohan

Incoming CEO John Ternus acknowledged the question but deferred to Tim's prior framing and said only that Apple is focused on its own plans, addressing neither named competitor.

Tim confirmed AI spend sits in both OpEx and COGS and noted iCloud buy-up as a potential offset, but said the balance is uncertain and gave no capital intensity direction.

Cook pointed to accelerating R&D investment in products and services. Parekh added that AI is an important incremental investment area on top of normal product roadmap spending.

Cook declined to provide specifics on pricing strategy versus share gain trade-offs, offering only that a range of options is being evaluated.

Parekh neither confirmed nor denied the third-party data, simply reiterating the App Store quarterly record and broad-based growth without providing category-level detail.

Cook gave a one-sentence non-answer, refusing to comment on whether pricing changes are being considered to offset rising memory costs.

Cook confirmed advertising as a category set a record but explicitly declined to break out search/licensing from first-party advertising, saying he was dodging the question intentionally.

Cook confirmed ongoing constraints on several iPhone 17 models but declined to predict when supply-demand would balance or quantify the revenue impact.

Cook defended iPhone's enduring relevance given its multifunctional nature, suggesting future AI devices would be complementary rather than substitutional.

Cook flatly declined to discuss contingency plans for a potential loss of Google search revenue, refusing to speculate on court outcomes.

Cook highlighted extensive U.S. chip sourcing already embedded in margins, and Parekh added that each product cycle is different but Apple has a track record of reducing costs over product life.

Cook acknowledged DMA impact is embedded in results but declined to quantify or predict its future impact beyond the current quarter.

Cook said global iPhone inventory is comfortable, noting China ended leaner than expected because sales were higher than forecast toward quarter end.

Parekh emphasized strength and breadth of services growth but did not directly quantify the regulatory headwind or potential reversal.

Tim laid out the language and region rollout schedule (US English now, more in December, additional languages in April) but gave no installed-base percentage.

Tim declined to speculate on potential tariffs, saying he would punt on that one.

CFO said PS channel inventory is higher than normal as expected in an inflationary environment but well controlled and within the demand outlook, and Print channel inventory is at healthy, normal levels.

PS head said AI PCs provide more value than a year ago as workloads move from cloud to device, driving token-economics savings, data proximity and better response times, with adoption developing in stages around high-value use cases.

CFO attributed better-than-expected supplies to pricing actions offsetting trade headwinds and share gains, though full-year expectation of low single-digit decline in CC remains unchanged.

CFO expects Q3 print margins near low end of range from seasonality, incremental unit placement, and oil-related costs, but sees Q4 improvement and full-year margins solidly in range.

Karen confirmed good supplier relationships and adequate supply for plans. Pricing locked in on rolling basis to enable demand shaping and pricing strategy. No supply shortage expected.

Karen clarified Q1 memory impact roughly in line with start-of-year expectations. 100% sequential increase is Q1-to-Q2 forward view. Costs expected to further increase beyond Q2; peak not yet reached.

Karen explained flat FCF driven by working capital improvements from PS growth (negative cash conversion cycle), slightly lower CapEx and restructuring costs. Includes ~$250M restructuring for new AI transformation program.

Enrique outlined multi-lever approach: scale-driven supply position, qualifying additional suppliers, using workforce experience platform telemetry to optimize configurations per customer, portfolio management to shift demand, and pricing actions.

Enrique stated HP's view aligns with actual demand trends, noting strength is global not just US, ruling out pull-in. Continued growing share in premium segments of commercial, consumer, and AIPCs. Strategy focused on profitable growth, not share for its own sake.

Enrique maintained existing 16-19% print margin range, noting it provides flexibility for aggressive unit placements in profitable opportunities. Strategy unchanged: drive big tank, subscriptions, profitable office share, industrial growth, and cost discipline.

Enrique acknowledged fluid environment, declined to speculate on future tariff scenarios. Emphasized speed of Q2 response and ability to replicate playbook.

Enrique detailed supply chain shifts, logistics network redesign, and targeted price actions. Karen noted additional $100M Future Ready savings. Declined to quantify split between levers.

Only first 10% tariff included. Enrique said they may use tariff advantage for pricing or investment depending on situation. Karen confirmed same playbook for additional tariffs.

Karen outlined H2 catalysts: PS seasonality, Windows 11 refresh, AI PC ramp, higher ASPs, lower commodity costs, Future Ready savings, lower corporate other.

Karen explained Q1 seasonality in volume plus timing of stock comp hitting ~1/3 in Q1. Direct answer.

Karen noted FCF grows in line with earnings, restructuring spending decreases offset by slightly higher CapEx for growth.

Schlesinger rejected the deceleration read directly and confirmed enterprise is a significant component of Q3 growth.

Schlesinger pointed to continued optical margin expansion and total-company operating margin growth but did not address the sequential leverage gap specifically.

Wendell explained Corning prioritizes innovation-driven value creation over commodity price increases, using new products that reduce customers' total installed cost to sustainably improve margins.

Wendell confirmed yes, Optical can exceed display margins depending on innovation adoption and competitive moat strength. Ed added Optical is less capital-intensive than display, driving higher ROIC.

Weeks confirmed similar size and scale agreements being concluded with other major customers. Not yet fully included in SpringBoard because agreements not yet concluded and capacity being built won't impact financials until 2027-2028.

Weeks confirmed new innovations enable better optical performance in half the space with significantly reduced installation cost. As Corning masters manufacturing of these product sets, innovation value will increasingly accrue to shareholders through improved profitability.

Weeks said profitability in mobile consumer electronics driven by innovation adoption rates. Apple commitment provides long-term platform for co-innovation, extending beyond current Springboard plan.

Weeks clarified sequential growth pace is purely a supply question. Incremental supply available quarter-to-quarter drives the pace, not demand constraints. Customers would take more if Corning could ship more.

Schlesinger identified Gorilla and display as pull-forward areas. H2 normalization expected with full-year market view unchanged. Q3 guide already adjusted down to account for pull-forward.

Weeks expressed continued strong conviction in solar. Demand for US-sourced solar increasing. Long-term supply agreements with take-or-pay provisions secure demand regardless of incentive changes.

Weeks said detailed quarterly dialogues with major hyperscalers reconfirmed growth expectations. Individual customer plan changes balance out across Corning's broad customer footprint.

Schlesinger confirmed ramp costs are fixed OpEx that resolve when capacity reaches scale. Solar expected to reach scale in H2. Optical capacity additions are not costly CapEx.

Schlesinger confirmed JPY120 hedged through 2026 with additional hedges beyond. CapEx of ~$1.3B roughly equals depreciation, no significant capacity additions planned.

Weeks dismissed DeepSeek concerns, noting AI cost improvements are needed and expected. No impact on Springboard plan or fiber/optical demand outlook.

George declined to break out the amount but said accelerated purchasing is a very small share of the base and not material to the business.

George said a large part of the pipeline is AI-related and durable, with wins in non-traditional NetApp accounts.

George confirmed no supply shortages currently or anticipated. Working closely with broad supplier base every quarter. Qualifying multiple components for supply assurance and competitive pricing. Dynamic environment but no specific trend to flag beyond normal engagement.

George firmly denied pull-in effects in Q3 or Q4 guide. Attributed H2 acceleration to planned factors: Europe recovery, reduced US public sector headwind, large deals from start-of-year pipeline, and favorable IT spending outlook. AI, cyber resilience, cloud transformation, and data center modernization driving customer spend.

George emphasized software and platform value as primary competitive differentiation, with cloud, cyber resilience, and advanced data management as leading indicators. Flexible pricing tools (Keystone, subscriptions) helpful for competitive displacements but secondary to platform choice.

Wissam comfortable operating in 80-85% cloud margin range with potential upward bias from software mix shift and depreciation roll-off. Q2 cash flow seasonally lower plus final transition tax installment from 2017 law.

Wissam explained Q2 gross margin guide is essentially flat (10bps lower). Individual component margins all expected flat to improving, but product revenue becomes a larger share of mix in Q2, creating mix headwind. Nothing fundamentally problematic.

Wissam confirmed operating leverage expected to continue in H2. Q2 leverage dynamic driven by gross margin differential vs prior year when product margin was in the 60% range.

George quantified tariffs at 40-60bps gross margin impact under 10% baseline (not reciprocal). No China exposure. Final assembly in Singapore, Hungary, Mexico, US. Semiconductor exemption helps. Primary concern is demand-side tariff uncertainty in European manufacturing economies.

George confirmed work with largest cloud and enterprise providers on AI data modernization but declined to specify tier-2 vs hyperscaler breakdown. Deals factored into FY26 sequential ramp.

Neither executive quantified the build-to-order versus LTA split, but Gianluca confirmed the legacy preferential-price volume was minimal and ends in September.

Romano said remaining ~$400M convertible to be addressed this quarter or next, then majority to share buybacks. Vast majority of nearline capacity allocated for next 4 quarters.

Mosley noted the key behavior change is customers extending planning horizons rather than pushing harder on current pricing. Romano confirmed sequential revenue and profitability improvement throughout calendar 2026.

Romano explained the consistent pricing strategy: like-for-like price increases on contract renewals, with customers getting lower price per TB on higher capacity products, resulting in slightly declining average price per TB despite strong demand.

Mosley noted supply planning happens 6-9 months ahead under BTO. There may have been slight overpull last quarter indicating strong demand. Romano noted volume dedicated to qualification limits sellable supply.

Romano noted contract timing and pricing negotiation cadence affect quarterly margin dynamics. Mosley added Q3 underserved the market and Q4 returns to normal customer service.

Mosley argued this cycle is different from prior ones due to pandemic overbuild, and that BTO discipline and data center buildouts provide confidence through calendar year.

Mosley confirmed HAMR sampling is broad-based beyond the initial CSP but declined to give specific unit or customer details.

Asked for bookends on demand growth, March seasonality, and competitive positioning as HAMR ramps; Dave emphasized build-to-order predictability but gave no specific numbers.

Jeff said large customers would take product sooner if supply allowed; David tied rising financing receivables to overall business growth and DFS, citing a healthy liquidity position.

Clarke could not speak to next-year budgets but described multiyear supply-access agreements with large enterprises; Kennedy added DFS financing as a lever.

Jeff differentiated ISG reaction (quickly shifted to supply access focus) from CSG (channel inventory delayed impact). Some pull-forward expected to drain IT budgets and extend replacement cycles.

David cited $18.4B backlog, $30B YTD orders, and pipeline multiples of backlog. Jeff described extraordinary pricing actions already in place, expects better than normal two-thirds cost recovery.

Yvonne outlined Q4 profitability drivers: seasonal storage acceleration with more Dell IP, balanced AI server shipments with improved margins, traditional server recovery, and continued OpEx discipline.

Jeff confirmed tariffs are fully embedded in guidance with deflationary input costs. Yvonne noted 10% quarter-over-quarter gross margin dollar increase driven by AI profitability.

Yvonne provided detailed segment-level growth expectations and margin drivers, directly addressing the EPS growth bridge.

Yvonne confirmed AI margins expected to stay relatively consistent in Q4 despite mix shift. On FY26, management deferred formal guidance but listed multiple tailwinds. Did not address tariff specifics.