MD&A sentences
Green marks more positive language; red marks more negative language.
neutral · -0.011
Management's Discussion and Analysis of Financial Condition and Results of Operations This information should be read in conjunction with the unaudited condensed consolidated financial statements and related notes included in Part I, Item 1 of this Quarterly Report on Form 10-Q and the audited consolidated financial statements and related notes and Management's Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended November 1, 2025 (fiscal 2025).
neutral · +0.025
This Quarterly Report on Form 10-Q, including the following discussion, contains forward-looking statements regarding future events and our future results that are subject to the safe harbor created under the Private Securities Litigation Reform Act of 1995 and other safe harbors under the Securities Act of 1933 and the Securities Exchange Act of 1934.
neutral · -0.010
All statements other than statements of historical fact are statements that could be deemed forward-looking statements.
neutral · +0.015
These statements are based on current expectations, estimates, forecasts and projections about the industries in which we operate and the beliefs and assumptions of our management.
neutral · -0.022
Words such as “expects,” “anticipates,” “targets,” “goals,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “potential,” “may,” “could” and “will,” and variations of such words and similar expressions are intended to identify such forward-looking statements, however, the absence of the foregoing words or expressions does not mean that a statement is not forward-looking.
negative · -0.567
Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors.
negative · -0.505
The following important factors and uncertainties, among others, could cause actual results to differ materially from those described in the forward-looking statements: economic, political, legal and regulatory uncertainty or conflicts; recently announced and future tariffs and other trade restrictions; changes in export classifications, import and export regulations or duties and tariffs; changes in demand for semiconductor products; performance of independent distributors; manufacturing delays, product and raw materials availability and supply chain disruptions; products may be diverted from our authorized distribution channels; our development of technologies and research and development investments; our ability to compete successfully in the markets in which we operate; our future liquidity, capital needs and capital expenditures; our ability to recruit and retain key personnel; risks related to acquisitions or other strategic transactions; unanticipated difficulties or expenditures relating to integrating acquired businesses; security breaches or other cyber incidents; risks related to the use of artificial intelligence in our business operations, products and services; adverse results in litigation; the outcome of any regulatory actions, including governmental inquiries, investigations or enforcement proceedings in the event of noncompliance or alleged noncompliance with laws or regulations; reputational damage; changes in our estimates of our expected tax rates based on current tax law; risks related to our indebtedness; the discretion of our Board of Directors to declare dividends and our ability to pay dividends in the future; factors impacting our ability to repurchase shares; and uncertainty as to the long-term value of our common stock.
neutral · -0.105
Additional factors that could cause actual results to differ materially from those described in these forward-looking statements include the risk factors included in Part II, Item 1A, “Risk Factors” of this Quarterly Report on Form 10-Q for the period ended August 1, 2026 and Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for fiscal 2025.
neutral · -0.341
Forward-looking statements represent management's current expectations and are inherently uncertain.
neutral · -0.010
We undertake no obligation to revise or update any forward-looking statements, including to reflect events or circumstances occurring after the date of the filing of this report, except to the extent required by law.
neutral · -0.044
16 Results of Operations Overview Amounts in the tables below are reflected in thousands except per share amounts and percentages.
neutral · -0.082
August 1, 2026 August 1, 2026 Revenue Trends by End Market The following tables summarize revenue by end market.
neutral · +0.002
The categorization of revenue by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which our product will be incorporated.
neutral · -0.014
The assignment of products to end markets may change over time.
neutral · -0.015
When this occurs, we reclassify revenue by end market for prior periods.
neutral · -0.013
Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.
positive · +0.939
August 1, 2026 53 25 16 16 12 10 6 13 August 1, 2026 25 9 15 12 11 18 13 Revenue increased 40% and 36% in the three- and nine-month periods ended August 1, 2026 as compared to the same periods of the prior fiscal year, reflecting broad-based demand across end markets.
positive · +0.915
Within Industrial, all sub-markets grew, 17 with test equipment and aerospace and defense representing the highest growth.
positive · +0.775
The strongest growth within Communications came from the data center sub-market, driven by artificial intelligence-related infrastructure investments.
neutral · -0.050
Revenue by Sales Channel The following tables summarize revenue by sales channel.
neutral · +0.037
We sell our products globally through a direct sales force, third-party distributors, independent sales representatives and via our website.
neutral · -0.014
Distributors are customers that buy products with the intention of reselling them.
neutral · -0.002
Direct customers are non-distributor customers and consist primarily of original equipment manufacturers.
neutral · +0.005
government, government prime contractors and certain commercial customers for which revenue is recorded over time.
neutral · +0.145
August 1, 2026 3 2 August 1, 2026 2 1 As indicated in the tables above, the percentage of total revenue sold via each channel has remained relatively consistent in the periods presented, but can fluctuate from time to time based on end market revenue trends.
positive · +0.680
As a percentage of total revenue, the increase in the distributor channel is primarily due to the increase in the percentage of revenue from our Industrial end market.
positive · +0.937
Gross Margin August 1, 2026 August 1, 2026 Gross margin percentage increased by 520 and 580 basis points in the three- and nine-month periods ended August 1, 2026 as compared to the same periods of the prior fiscal year, primarily due to higher utilization of our manufacturing fixed costs as a result of increased customer demand and favorable mix of products sold into our end markets.
negative · -0.736
Research and Development (R&D) August 1, 2026 August 1, 2026 17 16 13 16 14 16 18 R&D expenses increased in the three- and nine-month periods ended August 1, 2026, as compared to the same periods of the prior fiscal year, primarily as a result of higher R&D employee-related variable compensation expenses and higher salary and benefit expenses.
negative · -0.909
R&D expenses declined as a percentage of revenue, primarily reflecting higher revenue levels and improved operating leverage.
positive · +0.742
We expect to continue the development of innovative technologies and processes for new products, which we view as critical to our future growth.
positive · +0.876
We believe that a continued commitment to R&D is essential to maintain product leadership with our existing products as well as to provide innovative new product offerings.
negative · -0.711
Selling, Marketing, General and Administrative (SMG&A) August 1, 2026 August 1, 2026 22 21 10 11 10 11 SMG&A expenses increased in the three- and nine-month periods ended August 1, 2026, as compared to the same periods of the prior fiscal year, primarily as a result of higher SMG&A employee-related variable compensation expenses, higher salary and benefit expenses and acquisition related transaction costs in the third quarter of fiscal 2026.
negative · -0.904
SMG&A expenses declined as a percentage of revenue, primarily reflecting higher revenue levels and improved operating leverage.
positive · +0.097
Special Charges, Net August 1, 2026 August 1, 2026 Special charges, net decreased in the three- and nine-month periods ended August 1, 2026, as compared to the same periods of the prior fiscal year, primarily due to a $24.4 million gain recorded on the sale of a subsidiary in Penang, Malaysia in the third quarter of fiscal 2026.
negative · -0.807
The decrease in the nine-month period was partially offset by a $15.6 million impairment charge recorded in the first quarter of fiscal 2026 related to the asset group in our leased facilities in San Jose, California.
negative · -0.488
Provision for Income Taxes August 1, 2026 August 1, 2026 The Company's effective tax rates for the three- and nine-month periods ended August 1, 2026 are below the U.S.
neutral · +0.277
statutory tax rate of 21% due to lower statutory tax rates applicable to the Company's operations in the foreign jurisdictions in which it earns income.
negative · -0.739
The tax rates for the three- and nine-month periods ended August 2, 2025 were higher than the current year periods primarily due to a net deferred tax expense of $153.8 million recorded in the third quarter of fiscal 2025 related to the remeasurement of our Global Intangible Low-Taxed Income-related deferred tax assets and liabilities attributable to the passage of the One Big Beautiful Bill Act.
positive · +0.868
Net Income August 1, 2026 August 1, 2026 19 Net income increased in the three-month period ended August 1, 2026, as compared to the same period of the prior fiscal year, as the result of a $794.9 million increase in operating income and a $39.1 million decrease in provision for income taxes as noted above in Provision for Income Taxes.
positive · +0.929
Net income increased in the nine-month period ended August 1, 2026, as compared to the same period of the prior fiscal year, as the result of a $2.0 billion increase in operating income, partially offset by a $124.0 million increase in provision for income taxes.