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Achieved record quarterly results with 56% order growth, driven by the accelerating complexity of AI data center clusters and heterogeneous networking environments.
Performance attribution centered on the ‘AI business’ which reached $500 million to $600 million in the first half, already matching the total for all of fiscal 2025.
Commercial communications growth was fueled by overlapping speed transitions, with 800-gig deployments accelerating while R&D activity shifted toward 1.6-terabit and 3.2-terabit architectures.
Aerospace and defense momentum was sustained by global modernization priorities, particularly in Europe and the Americas, focusing on radar survivability and electromagnetic spectrum operations.
The Electronic Industrial segment reached all-time highs as AI-related innovation drove demand for high-performance PCB manufacturing and advanced semiconductor wafer testing.
Strategic positioning in the ‘physics of AI infrastructure’ allows the company to capture value across both open standards and proprietary architectures, including silicon photonics and co-packaged optics.
Operational execution focused on vertical integration and in-house specialized chip manufacturing to mitigate broader supply chain volatility and support rapid new product ramps.
Raised full-year fiscal 2026 revenue growth expectations to the high-20s percent range based on a robust first-half performance and a strong pipeline for the second half.
Guidance for Q3 assumes revenue largely in line with Q2 levels, with a historically typical sequential increase expected to follow into Q4.
Increased fiscal 2026 capital expenditure guidance to $200 million to support the unprecedented manufacturing ramp of new AI-focused product introductions.
The forward strategy emphasizes ‘system-level’ opportunities, moving beyond component testing to full-scale emulation of AI workloads and non-terrestrial satellite networks.
Anticipates sustained growth from semiconductor capacity expansion through 2030, specifically targeting advanced node memory and 3D stacked chip architectures.
Recognized a one-time financial impact following a U.S. Supreme Court decision on IEBA tariffs, resulting in a $40 million revenue reduction and a $97 million reduction in expenses.
Acquisition integrations of Spirent and others remain on track to deliver $375 million in fiscal 2026 revenue with over $100 million in expected cost synergies.
Management noted a stronger sense of ‘customer urgency’ in the AI sector, leading to faster pipeline velocity and higher backlog without evidence of artificial pull-forward demand.
Identified ‘supply chain rebalancing’ and global reshoring as a structural tailwind, particularly benefiting the company’s Southeast Asia business operations.
Source: Yahoo Finance
