Financial Trends -- 8/10
Revenue re-accelerating from -2% to +11.4% YoY (guide +23% next quarter). Non-GAAP gross margin
at 25-year high (50.0%, +80bps YoY). Operating margin expanding to 32.1% (+140bps YoY). EPS +20%
YoY accelerating. Share count declining ~5% over 11 quarters. FCF is the one blemish: positive but
declining (-24% FY25, FQ2'26 margin just 2.7%) on EPIC Center capex and working-capital build.
No penalty modifiers apply.
Weight: 25%
Quarterly P&L (9 Quarters)
| Fiscal Qtr | Revenue ($M) | YoY | Non-GAAP GM% | Non-GAAP OM% | Non-GAAP EPS | FCF ($M) | Shares (M) |
|---|---|---|---|---|---|---|---|
| FQ2'24 | $6,645 | — | 47.5% | 29.0% | $2.09 | $1,135 | 836 |
| FQ3'24 | $6,778 | — | 47.4% | 28.8% | $2.12 | $2,088 | 833 |
| FQ4'24 | $7,041 | — | 47.5% | 29.3% | $2.32 | $2,168 | 828 |
| FQ1'25 | $7,157 | — | 48.9% | 30.6% | $2.38 | $544 | 819 |
| FQ2'25 | $7,101 | +6.7% | 49.2% | 30.7% | $2.39 | $1,061 | 812 |
| FQ3'25 | $7,313 | +7.7% | 48.9% | 30.7% | $2.48 | $2,050 | 802 |
| FQ4'25 | $6,808 | -3.4% | 48.1% | 28.6% | $2.17 | $2,043 | 798 |
| FQ1'26 | $7,012 | -2.0% | 49.1% | 30.0% | $2.38 | $1,040 | 799 |
| FQ2'26 | $7,910 | +11.4% | 50.0% | 32.1% | $2.86 | $210 | 799 |
Key Trends
- Revenue re-accelerating: -3.4% to -2.0% to +11.4% YoY, guide +23% FQ3'26. The GAA/advanced packaging ramp is now visible in the numbers.
- Gross margin +260bps off trough to 50.0% (25-year high). Driven by value-based pricing on differentiated products (GAA ALD, Sym3 etch).
- Operating margin +350bps off trough to 32.1%. Highest in recent history.
- EPS accelerating (+20% YoY in FQ2'26). Management has beaten EPS guidance every quarter with widening beat magnitude.
- Share count -5.1% over 11 quarters (842M to 799M), reflecting consistent buyback program.
- FCF compressed by elevated capex ($635M EPIC Center vs $381M prior year) and working-capital build. FQ2'26 FCF just $210M (2.7% margin). This is the blemish that keeps the score from a 9.
Segment Revenue (FQ2'26)
Score Rationale
Score of 8/10 reflects sharp financial improvement with accelerating revenue, margins at 25-year highs, and strong forward guidance. No penalty modifiers apply. FCF decline is the blemish that keeps this from a 9.
Positives: Revenue inflected to +11.4% YoY after two negative quarters. Non-GAAP gross margin at 25-year high (50.0%, +80bps YoY). Operating margin record 32.1% (+140bps YoY). EPS +20% YoY accelerating. Share count declining ~5% over 11 quarters. FQ3 guided at +23% YoY.
Negatives: FCF positive but declining (-24% FY25). FQ2'26 FCF margin just 2.7% on EPIC Center capex ($635M) and working-capital build.
Data sourced from Daloopa (company_id 12). Fiscal year ends October. All financials in USD. Updated June 29, 2026.