Financial Trends -- 9/10
Near-textbook financial-strength profile. Revenue accelerating (+30.1% YoY in 2026Q1; FY25 +27.7%)
on the AI data-center demand wave concentrated in the Americas (+52% YoY). Adjusted operating margin
expanded ~1,270bps off the FY22 trough (7.7%) to 20.4%, trending toward 22%+. FCF swung from negative
(-$260M FY22) to $1.89B (FY25, +66%), all without leveraging up (LT debt flat-to-declining). Only
blemish: share count creeping ~+1%/yr instead of buybacks, and a softening EMEA segment. No penalty
modifiers. Lands just shy of a perfect 10.
Weight: 25%
Adj Op Margin
Expanding
20.4% FY25 | +1,270bps vs FY22
FCF
Growing
$1.89B FY25, +66% | 18%+ conversion
Share Count
Rising
~+1%/yr | No buybacks
Quarterly Revenue Trajectory ($M)
Revenue growth accelerating, not decelerating.
Every comparable quarter re-accelerated YoY across the 2025 cohort, and 2026Q1 (+30.1%)
reaccelerated versus 2025Q1 (+24.2%). Two-year stacked growth is running ~55-60%, driven by
the AI data-center demand wave concentrated in the Americas (+52% YoY in 2026Q1).
Gross Margin Expansion
Gross margin expanded ~400 bps and adjusted operating margin ~430 bps
YoY in 2026Q1. Margin expansion is broad-based, reflecting AI-content mix, the
$3-3.5M/MW content uplift on high-density compute, and operating leverage on the volume ramp.
Adjusted operating margin peaked at 23.2% in 2025Q4 and sits toward 22%+ on a TTM basis.
Annual Financial Summary (FY ends December)
| Metric | FY2021 | FY2022 | FY2023 | FY2024 | FY2025 |
|---|---|---|---|---|---|
| Total Net Sales ($M) | $4,998.1M | $5,691.5M | $6,863.2M | $8,011.8M | $10,229.9M |
| Rev YoY | — | +13.9% | +20.6% | +16.7% | +27.7% |
| Adj Dil EPS | $0.76 | $0.53 | $1.77 | $2.85 | $4.20 |
| Adj EPS YoY | — | -30.3% | +234% | +61.0% | +47.4% |
| Adj Op Margin | 9.4% | 7.7% | 15.3% | 19.4% | 20.4% |
| Diluted WASO (M) | 360.1 | 378.2 | 386.2 | 386.3 | 390.7 |
| Free Cash Flow ($M) | $136.1M | ($259.9M) | $778.3M | $1,135.2M | $1,887.4M |
Key trends
- Revenue compounding rapidly: From $5.0B (FY21) to $10.2B (FY25), FY25 +27.7% and re-accelerating to +30.1% in 2026Q1 on AI data-center power and cooling demand
- Adj EPS up ~5.5x in four years: $0.76 (FY21) to $4.20 (FY25) after the FY22 dip, +47.4% in FY25
- Adj operating margin +1,270bps off the FY22 trough: 7.7% (FY22) to 20.4% (FY25), operating income growing far faster than revenue
- FCF swung from negative to $1.89B: -$260M (FY22) to $1,887.4M (FY25, +66%), 18%+ conversion, still accelerating
- Modest dilution, no buybacks: Diluted WASO rose ~360M to 391M (~+1%/yr) -- the one blemish on an otherwise elite profile
Segment Net Sales -- YoY %
| Segment | 2024Q4 | 2025Q1 | 2025Q2 | 2025Q3 | 2025Q4 | 2026Q1 |
|---|---|---|---|---|---|---|
| Americas | +25.3% | +28.3% | +42.9% | +42.5% | +46.5% | +52.2% |
| APAC | +29.5% | +35.0% | +37.3% | +24.5% | -2.4% | +29.7% |
| EMEA | +38.5% | +12.0% | +9.6% | -0.3% | -6.4% | -6.3% |
Mix is increasingly Americas-led. The Americas segment
(FY25 $6,423.9M,
63% of sales) is the AI data-center engine, accelerating to +52% YoY in 2026Q1. APAC (FY25
$2,274.7M)
rebounded to +30%. EMEA (FY25 $2,382.2M)
has decelerated from +38.5% to outright contraction (-6.3%) -- a genuine watch item, though small
relative to the Americas ramp.
Free Cash Flow ($M)
FCF swung from negative to nearly $1.9B in three years.
From -$260M (FY22) to $1,887.4M (FY25), +66% YoY, with conversion improving to 18.4% and the two
most recent quarters (2025Q4, 2026Q1) running above 24% FCF margin. This was achieved without
leveraging up -- long-term debt actually declined ($3,169M FY22 to $2,892M FY25) while revenue
nearly doubled.
Penalty Modifier Check
| Modifier | Detail | Penalty |
|---|---|---|
| Negative FCF | FCF strongly positive and growing ($1,887.4M FY25, +66%) | None |
| Share Dilution >10% YoY | Diluted WASO up ~+1%/yr; +1.1% in FY25 -- far below the 10% threshold | None |
| Revenue Up / Op Income Down | Operating income grew ~8x (FY22 to FY25) vs ~1.8x revenue -- operating leverage | None |
| Debt Growing > Revenue 3+ Qtrs | LT debt flat-to-declining ($3,169M FY22 to $2,892M FY25) while revenue nearly doubled | None |
No penalty modifiers apply. The only blemishes are
slight share-count growth (rather than buybacks) and a softening EMEA segment, both minor against
the overall acceleration in revenue, margins, and free cash flow.
Score Rationale
Score of 9/10 reflects a near-textbook high-quality, high-growth compounder. No penalty modifiers applied. Held back from a perfect 10 only because share count is rising modestly (~+1%/yr) rather than declining.
Supports 9/10:
- Revenue accelerating to +30.1% YoY in 2026Q1 (FY25 +27.7%) on the AI data-center demand wave, Americas +52%
- Adjusted operating margin expanded ~1,270bps off the FY22 trough (7.7%) to 20.4%, trending toward 22%+
- Gross margin near 38%, up ~800bps off the FY22 trough
- FCF swung from -$260M (FY22) to $1,887.4M (FY25, +66%), 18%+ conversion, still accelerating
- Balance sheet de-risked -- long-term debt declined while revenue nearly doubled; net leverage cut to 0.5x
- Operating income grew ~8x vs ~1.8x revenue -- clear operating leverage
Acknowledged blemishes (no penalty):
- Share count creeping ~+1%/yr instead of buybacks -- the one thing keeping this off a 10
- EMEA segment decelerated from +38.5% to -6.3% YoY -- a watch item, small relative to the Americas ramp
Data sourced from Daloopa (company_id: 11460). Fiscal year ends December 31. All financials in USD.