All right. Welcome back, everybody. I'm Joe Moore, Morgan Stanley Semiconductor Research. Very happy to have Richard Puccio, EVP and CFO of Analog Devices. Thanks. Thanks for coming. Thanks for having me. Maybe just start off with kind of where we are in this cycle. You've had nine consecutive quarters of above-seasonal performance. You've got some idiosyncratic growth, some kind of early-stage cyclical drivers. Can you just give us a general sense of where we are in all of this? Sure. I'll start with the idiosyncratic because if you I'll do a little bit of a walk back to where we thought this started. We talked about six quarters ago that we had some pretty resilient parts of our business that were starting to show some growth, and we expected we'd start to see real sequential growth, and a lot of that was being driven by a couple of real strong performers. From an idiosyncratic perspective, you probably heard me talk about a couple of these. You know, we've had real strength in our ATE business, which is one of the sub-elements of our industrial end market. You know, obviously fueled by the continued demand for high-performance compute and high-bandwidth memory, which requires more complex testing, which means they need sophisticated testers. We have a very strong position in ATE, so that has been a very strong market for us. I think we talked about that business growing year- over- year in 2025, you know, over 40% and continuing to go strong into the current year. You know, you look at our aerospace and defense business, you know, we've talked about that business and the size that it's reached. That was a very resilient business. That one also has pretty strong tailwinds in the market, given the increased spending we're expecting to see from the U.S. government on military and aerospace spending and also the increased levels we're expecting to see in Europe. Those were really strong drivers in the two parts of our industrial business. If you look at another business that has been growing real strong for us, grew in the back half of 2025, the last three quarters, 50% year-over-year, it's continuing to grow, is our data center business. When you look at that externally, you see that in our communications. Our communications business is about two-thirds our data center, two-thirds of that is our data center business, and that business has been very strong also, you know, given the massive expansions in CapEx. That has been a really strong business. You know, on the auto side, if you think about where we've seen success, you know, that has been a strong business for us. If you look at the sort of cycle dynamics, that was actually a business for us that only went down low single digits from peak to trough. Despite that, you know, we've now had back-to-back record years. We've are very well positioned there. The story there is, you know, we've captured share, we have great content gain, and we're a strong player in the Chinese auto market, and a lot of the growth that's been happening in auto has been in the Chinese market. That has been really strong for us. If you look at our consumer business, we've talked about the pretty significant diversification of our business, and I think, you know, our share gain there, the number of new sockets that we had ramping, has played a big part. Consumer was one of our first businesses to come back into a high-growth mode and has grown, you know, for six plus straight quarters and has had, you know, continuing expansion. It's not the old, you know, very heavily tied to handsets. It's now handsets, it's hearables, wearables, gaming platforms. A bit more diversified portfolio, and we feel like that one's really well-positioned. Those are things that I always said are idiosyncratic, where we've picked up share, we have a product in that's, you know, leading in a space. The cyclical piece, you know, for us, you know, we talked about, you know, one of the things we had been waiting to see was the return of the mass market in our industrial, right, our broad market business. We were able to see that start to pick up, and it started picking up in the, you know, the middle part of 2025 and started to accelerate. Classic cyclical upcycle trend for us is, you know, and we can track, we do track down to the part level, and we could see at the beginning as we started to grow, but we didn't feel like we were in the upcycle, a significant number of parts we would've sold in the normal upcycle were still not moving. We're at a point now where 90-plus percent of the parts we would expect to be moving in the upcycle are moving. The other thing is we were pretty aggressive, as you all know, for two years, leaning out the channel and both at our customers directly and our channel inventories at our disties. We can see in the ordering patterns now that they have clearly worked through the inventory hangover broadly across those spaces, and we're seeing that in the order patterns, and we're seeing it in the acceleration of our turns business because, you know, we're one, we have pretty regular lead times now, so they can order in quarter for things in quarter, and turns volumes has been very strong, another cyclical upside indicator. If you think across both, you know, we've had some really good activity, you know, all at the same time while we've been building more resiliency into our manufacturing processes, expanding capacity, et cetera. Feel pretty good, and I think that's a big part of what we've been seeing. You guys have managed through all of that really well, both the idiosyncratic and the cyclical. Maybe we could drill down on some of those things. Starting on the industrial idiosyncratic drivers, ATE, I think you talked about 30% sequential growth this quarter. Markets really worry about AI sustainability beyond 2026. What kind of visibility are you getting into that ramp? You know, do you feel, like, good about that growth? Do you feel like there's some risk of an overshoot at some point? Well, first, you know, one of the signals we always watch and pay very close attention to is if you look across the sort of large platform/hyperscaler companies and what they're forecasting for CapEx. Right? We all waited anxiously to see what would happen during these most recent Q4 announcements, and they lined up to each say how much more they were gonna spend and that they'd have more revenue if they could build more capacity. I think the, you know, short to medium term, I don't think that we're gonna see any drop off in that AI capital spend. I think that is gonna be a strong tailwind for a period. You know, at some point in the future, you know, maybe they don't if technologies improve, the power availability and data center demand will probably... those lines will get closer and closer, and that might be an inflection point, but I don't think we're anywhere near that yet. Yeah. I think, you know, from a visibility perspective, you know, just purely for us, obviously, you know, we have what our customers publicly say and what we talk to them about. From a firm orders sort of backlog thing, as we've talked about before, we get about a quarter's worth of visibility, particularly given normalized lead times. Yeah. From the bottlenecks the GPU guys are seeing from test capacity, there seems to be pretty clear visibility. Yeah. Aerospace and defense, probably premature to talk about events in the last couple of days, but there seems like there's a very strong long-term tailwind there from the automation, you know, a kind of edge AI happening in that business. You know, how much have you invested in that business? You mentioned last night about Hittite and some of the benefits of those businesses. What's the long-term growth profile there? For us, we think that is one of our sub-segments in industrial that will continue to grow above company average. You know, we're very well-positioned across the spectrum, you know, in aerospace and defense, you know, whether it is in the RF and microwave that you might find in guidance systems, you know, whether it's our products that are going into satellites, both geo and LEO satellites. We feel like there is a lot of macro tailwind there, right. As I mentioned, you know, the spending in aerospace and defense is going up around the world, and I think we've got a really good position there, so I think we'll continue to benefit there. We also. You see this, and this is a really good example in ADI of our ability to capture more value, is, you know, you mentioned Hittite, and you go back to something that, you know, where we might have been selling components into a prime. Now we're selling more modules and more solutions, and those capture significantly higher value for us. Aerospace and defense is one of those really good examples inside of ADI, where our ability to provide a full solution, you know, has created a tremendous amount of value for us. I think that's important. You know, one of the things, and this applies everywhere else, but it certainly applies in aerospace and defense, our ability to provide solutions to the most complex problems is what allows us to capture that higher ASP and higher value. Okay, great. Other segments, you know, instrumentation, medical devices, the energy part of the business, you know, those seem like they're a little bit more of a gradual cyclical recovery, but, you know, any puts and takes, any areas of strength or weakness to note there? It's interesting. We were clearly two of our sub-segments have been leading the charge. As we talked about as we progressed into the back half of last year, we got to a point where across all of our industrial sub-sectors, the ones you mentioned, and across all of our geographies, we were seeing growth, right? When we exited, just recently exit Q1 and think about what we're looking at at Q2, we had positive book-to-bills across all of the industrial sub-markets, and that's by all geographies. That is before any impact from the Q1 price increases. We still had book-to-bills above one. You know, as we start to think about where we are in the cycle and our ability to continue to sort of get additional benefit, despite talking about having ATE and aerospace and defense and data center at record levels, the other businesses, you know, within industrial, for instance, whether it's automation, energy, healthcare, they're all still, you know, 20% below their prior peaks. We feel like there's still room to run in the cycle for those to get back. You know, we think we're largely through the inventory correction, but we're, you know, we're still now, see lots of upside opportunity. I think that applies across the broader portfolio, where we're at peak in a handful of businesses, but we've still got room to run. Even if you just look at a historical trend line, we're still well below the trend line. You have a situation where you're not looking for restocking. Inventories are at very lean levels. You're not projecting any. You certainly aren't requiring. You're not depending on any kind of restocking. Doesn't it feel inevitable at some point? I mean, aren't these inventories just two years after the shortages that we saw, you know, getting kind of lean? The real question is, do customers have any short-term or even medium-term memory? I do think one of the, one of the interesting drivers now, and I, and I think about ADI, 90% of our parts have lead times less than 13 weeks. If you're a CFO sitting in a buyer chair, you're not incentivized to go buy and place orders with ADI early, or many of our peers, because you can get it in turns business because of the way we're set up. I think that the change you're talking about happens when you start to see tightness in supply chains across semi, when the buyers will start to get nervous and, you know, they'll be thinking, "If I don't have that part, I can't ship my product X, Y, or Z. I'm gonna start placing orders out further than the 13 weeks. Sometimes we're getting orders with 4-week lead times. I think when we start to see lead times extending, that'll be when they'll probably start feeling like they have to rebuild some of their buffers. Our view is our customers haven't done that yet. We don't see that. We've watched them lean out inventory, actually, and we spent two years leaning out the channel. Mm-hmm. From our perspective. Now, given how much we leaned it out and then we hit into this upcycle with growth, we actually I think I talked about this last quarter. We dropped below six weeks in the channel. Right, we like the six weeks model because our teams have done a lot of work operationally to make it so that we've essentially match back-end cycle time. If our back-end cycle time is roughly six weeks, we wanna have six weeks in the channel. We dropped a little bit below, so you saw us put a little bit of inventory back in the channel in Q3 and Q4. You know, we're not expecting to put more inventory into the channel. At the midpoint of our guide, we don't expect we'll put more inventory in the channel. You know, we have moved away from the historical sort of seven to eight-week channel model because we found having the inventory on our balance sheet, especially when things do get tight, if they get tight, having control and our ability to make decisions and work with customers is better when it's on our balance sheet. You'll see this dynamic continue, where we expect channel inventories will stay lower than historical levels, and our balance sheet inventory will be a little bit higher. We're consciously managing that equation every quarter, every day. Yeah. We feel like we're in a pretty good position. You know, with the up-cycle continuing, it's very hard to catch up if you don't have some reserve supply. We've talked about in the last year, we've built more die bank and more finished goods buffers because of the amount of turns business that's coming in and our ability to capture that. Okay, that's helpful. Thanks. Moving to the communications portfolio and data center, you know, you've talked about a lot of strength there, the strength that you saw last year, a very robust position in optical, but also a lot of opportunity and power. How much have you focused R&D around this opportunity to sort of capture the growth that you've had, and how much can you focus going forward now that it's becoming so much more critical? You're absolutely right. We are spending significant amount of our R&D. Look, I've said this before, our first call on capital is R&D, right? We're spending 16% of our revenue dollars in R&D. If you think about in the data center, you know, the way I would carve that up just so you get a little perspective, the data center we've said is 2/3 of our comms business, and it's roughly split 50/50 between our power portfolios and our optical portfolios. If you look at the pieces there, you know, where we play, you know, at the, at the, you know, the power management level, it's always been a strong area for us. You know, you think about hot swap and some of those features. I think that's an area that has lots of growth opportunity, particularly as we move to higher and higher voltages, right? The safety and those capabilities become more and more important. We've been a very good and at a strong position in the power conversion space. The area I would have said where we frankly punched under our weight was probably in power delivery. We are now, and we've talked about this. We are now shipping in a vertical power solution, and we're seeing that get more and more traction, particularly given all the power constraints. You know, our vertical power solution has about 30% less power loss than a lateral solution. It's a, it's an effective way to sort of offset some of this power drain. We're not the only ones playing in vertical power, but it is certainly gaining traction as an architecture. I think that presents us a pretty significant growth opportunity. We feel like there continue to be areas for us in power to grow. The other half of the portfolio is optical, and I would say the near-term thing I would highlight there is, you know, we have already got our first 1.6 terabit optical module shipping to customers and our R&D teams back to where are we making investment. R&D teams are already working on the 3.2 solutions. That's the acceleration and speed we're seeing across the data centers that are being built. We feel like we've got a good position. We're already shipping product at 1.6. We're already developing at 3.2. You know, over time, I think they both have growth opportunities just given the sheer scale and the potential power opportunity. That one could be a medium-term grow faster, but I think both of those will be good high-growth opportunities for us. The margin profile of these data center businesses versus your sort of communications business being base station-oriented used to be a little bit lower margin than everything else. At this point, the wireline part of our comms business is an above corporate average margin business for us. If you think about the, you know, the overall company margin, industrial and the comms tend to be products that are above the corporate average, consumer auto tend to be a bit below corporate average, blending out to our corporate model. Okay. Wrapping up the end markets, automotive, you talked about, you know, you did a really good job of helping us navigate the last nine months, where there were some bumps in the road that you saw that not everybody saw. I really appreciate that. Aren't we at the point where those inventories are getting too low? Automotive in particular, we saw an Xilinx issues that shut people down for a few days, and then that got resolved. People have been worried about DDR4 memory. I've been really surprised that we just haven't seen, outside of China, any real restocking around those kinds of supply chain things. I think there's very clear evidence that those inventories are very lean. Shouldn't we be looking at a space that's about to improve cyclically? I would expect it. Look, I think there's two pieces to it. There's what happens with the unit volumes, right? The current forecasts are for sort of flattish to maybe slightly down SAAR for the full year, right? I think that'll have a significant impact on what the back half of the year looks like. I do agree that we think the inventories are lean. I would say what we've seen, what we've seen, and we've talked about, you know, how auto has played out over the last couple of quarters, you know, we were pretty confident that we saw early buying behavior across the automakers. Yeah. Q2, we saw it with the U.S. and Europeans, and in Q3, we saw it with the Chinese. We expected that we would see some implication of that, some washout or reversal either in Q4 or Q1. We really didn't see Q4, actually came in quite a bit more favorable than we expected. It does appear we see some of that now because you can see it, we end up with book-to-bill under one in auto exiting Q1. You know, which not unexpected given we thought they bought a bunch of inventory in advance. Yeah. Now, as we work through that, we think that there, you know, there probably is a little bit more in Q2 we might see, but beyond that, I wouldn't expect any more corrective. If they continue to grow the way they're planning to grow, particularly for us, where China's now a third of our global auto business is in China, and China's been the fastest grower. It's been taking share from Europe and the U.S. As they continue and start to re-ramp growth, I would expect them to need to get more inventory on their books. I agree with that sentiment. Maybe your sense of that market from ADI's perspective, you know, obviously, China's got a lot of focus on internal development of silicon capability, but you actually bring really unique value added to markets that are being pioneered in China around EVs and really low-priced ADAS EV-type systems. Your confidence in that as an ongoing growth driver despite Chinese domestic competition. I think. Look, it's a. We've talked a little bit about this. I think our competition actually in China, for the most part, continues to be the competition it was before we all started talking about the local Chinese suppliers, right? The local Chinese are certainly making inroads and doing a lot of great work. For ADI, and if you think about ADI's position in China, we tend not to have a huge presence in the low ASP market, right? We're not in that, you know, sell as much silicon at the $0.50 and below. We tend to have a significantly higher ASP, which is tied to us delivering the best solutions, the most innovative solutions to the hardest problems, right? Which is why we are at the much higher end. You see that in auto, right? High performance battery management, high performance communications from a GMSL A to B, E to B perspective, functionally safe power. We've invested in all of these trends in auto that are super important. One of the things, you know, if you look at the China forecasts, you know, they're still only 10%. Coming out of 2025, they're about 10% penetrated in L2+ ADAS. The forecast in 2026 are getting to upwards of 30% penetration. The further they penetrate, the more opportunity for us there is from a content perspective. Obviously, if they're taking share from other places that aren't producing at that level, you know, where their EVs are coming out, you know, that gives us additional tailwind. That's helpful. Thank you. Maybe moving to some other issues. Issues? Well, well, questions. Okay. Price increases that you talked about, you know, we've seen raw material prices come up for a while. Seems like you're passing those through. Could you just talk about what you're doing there and what the reaction has been? Sure. You know, and this is the message our customers have heard. You know, we spent a pretty significant amount of money over the last three or four years building out and giving our customers more resiliency, right? We've talked about the expansion of our capabilities internally, the cross-qualification of our products. You know, that creates a pretty significant margin headwind 'cause we've been absorbing that cost. At the same time, the input costs continue to increase across our business. We do everything we can to minimize it. Vivek and our operations teams are grinding out efficiencies every day. It has been a very inflationary environment, and we've been absorbing that for quite a while. We just felt like the environment was the appropriate time. Look, we are continuing to deliver more and more value to customers. You can see that in our ASPs. We felt like it was an opportunity to recapture some of that value. Look, it's pricing has always been a dynamic thing at ADI. Prices have increased, prices have decreased. It has been a while since we've done any large scale, we felt like given the current environment of inflationary pressure, it was the right time to do it. Helpful. Thank you. Net gross margins, you know, you've talked about a path to 74%. You're at 71% now with mix kinda going against you. Can you just talk about the puts and takes there? Sure. I've lost my train of thought for a minute. Two things that we've talked about that drove our gross margins down, right? Were mix and underutilization. At this stage, we've continued to grow utilizations in the factories, and we think we're pretty close to what we think is an optimal is probably the closest word, an optimal level of utilization. I don't expect us to see a ton of upside going forward from the utilization part of the equation. However, from a mix perspective, you remember at peak, we were at 53% industrial. We were as low as 44% industrial as we were going through the down cycle. We're still only back at 48%. We feel really good that at 48% industrial, we were able to get above 70%. We continue to expect we'll see some additional accretion. Obviously, in Q2, we talked about there'll be some accretion just from the price increase, and some of that will stick and recur, but some of that'll be one time. We do expect we will continue to see additional accretion. If you think about the way I've described where growth is gonna come from, we've talked about industrial and communications growing strong. Those are our two above-margin businesses. If we continue to see that share shift out of the lower margin, some of our, you know, away from the lower margin businesses, we would expect to see some pickup there. I expect, you know, primary driver will be mix and mix within the mix, to be honest, even within the businesses, and less about utilizations, which has been a big factor during the down cycle. also leverage on the operating expense line. You had some variable cost increases last year with compensation stuff, and still managed to deliver healthy leverage. How do you feel about that going forward? you know, as we've talked about 2025, essentially, OPEX grew at basically the same rate as revenue, right? Not ideal, but that is a little bit of the mechanics of our variable comp system, right? Where we've talked about going from paying very little to paying more normalized variable comp in 2025. We will likely, based on the trend line we're on now, we'll pay more variable comp in 2026 than we did 2025, but it won't be as big of a percentage and a driver. We've also continued to be pretty diligent. Although we are investing more because we need to continue to be leading innovation and being first to solutions, you know, we will grow OPEX, sort of half of what revenue grows in 2026. We expect we'll continue to see it. You see it in the guide. You know, we're already guiding to a Q2 operating margin, which obviously is a combination of our expense work and our gross margin work that's up 200 basis points. Thank you. A couple of questions on strategy, I'll open it to the audience. Maxim, you've talked about a $1 billion in revenue synergy. You know, that deal was done a while ago, but you're still very focused on extracting the sort of capability of the combined company. Can you give us an update on that? Sure. When we did the deal, I think the expectation we'd set externally, excuse me, is we would do a $1 billion of synergies by the time we got to 2027. A little context, we did tens of millions of dollars of synergies in 2024. We did hundreds of millions in 2025, we expect to do several hundred million more in 2026 than we did in 2025. We feel like we're on a really good path, we will get to our $27 billion synergy target, which is really important for those of you who were around for the redo of our financial model in 2022. One of the things that we attributed to being able to bend the growth curve was the $1 billion of synergies. That has been a very significant area of focus for our teams. I just had my latest update and feel very confident we're on track for 2027. Thinking about the M&A strategy, I mean, obviously huge acquisitions in your past with Linear Tech, Maxim, Hittite, kind of forming this company. Now it seems like M&A is starting to happen again. Your view on whether there are big transactions to do, small transactions to do, you know, are you more in- From a M&A strategy perspective, I'll start with, and we just covered this, so I won't state a lot, capitalizing on the Maxim synergies has been our top priority. You know, we've done a couple of what I would call tuck-in acquisitions, where we've advanced product or gotten teams in areas that are important to us, whether it's in digital or software. We've talked about making organic investment heavily across AI, digital, and software. We will continue to look for opportunities in those areas. Look, if a, if a large opportunity came along, we'd evaluate, right? We're very fortunate. We have a very strong balance sheet. We've got a lot of flexibility. Near term, it is really about capturing the synergies. The corollary to that cash return, you've done a pretty good job of returning cash, particularly since those deals were done. You know, are you continuing to think about a 100% cash return, and what's the mix? Yeah. We do continue to think about 100% cash return, I would say I feel very good about what we've been able to accomplish given that we, you know, make our first call on capital, as you'll hear Vince say all the time is on R&D, and we're spending a pretty substantial chunk of our cash on R&D. We will continue to return 100%. Our model is 40%-60% on the dividend. As you probably all saw, we just increased the dividend for our 22nd year. I think it in total was about an 11% increase. The remainder we'll use to retire share count. If you think about what we've accomplished, I think I talked about on the call going back to when we did our first repurchases, the amount we've bought back, we feel like that is a really strong position. The other thing that's happened is we've reduced share count by 10% since we did the Maxim acquisition through repurchases. Yeah. We will continue on that model. Yeah. Good stuff. Okay. Thank you. Pause there and see if we have questions from the audience. Thanks, Richard. Could I take you back to the data center and some of the new areas in power that you were looking at? I think you called out VPD in particular. It sounds like you're moving into second stage, you're delivering power directly to the GPU substrate. Could you give us a sense for, you know, how is that qualifying with customers at this point? Maybe just the sense for how your TAM will grow as you penetrate the second stage. Thanks. Yes, on the first part of your statement is correct. We are currently actually shipping and generating revenue at a single large customer. We are in conversations with a number of the other players in that space where we expect, you know, to continue to make further traction. Obviously, you know, if the architectures change, and I don't know what that TAM looks like because I don't know how much of the existing lateral architecture gets replaced by vertical architecture. Suffice it to say, it gives us a growth opportunity beyond where we've played historically in lateral, and which is why we continue to invest heavily in our product there and in our processes to make sure we can deliver it cost effectively. Obviously at that scale, you know, the inevitable outcome will be future price pressure on everybody. We wanna make sure we've got the highest performing product that we can deliver at the best cost too. Thank you, Lee. Any other questions? Maybe if not, I'll just finish following up on that. You know, you've talked about a solutions approach, a module approach to these types of markets. That seems to be increasingly a differentiator, particularly versus your biggest competitor, that you have this mindset either you're looking at data center optical, data center power, you know, it as a complete solution. Can you talk about that philosophy a little bit? Well, I think that Vince has talked about this, for a couple of years, is our ability to move up the stack where we can take advantage of our core analog capabilities, add in software and digital solutions and AI solutions, and be able to deliver more complete solutions to the more complex problems is what's for us, is driving a ton of incremental value. The easiest way to illustrate is if you look at our products that were released at least 10 years ago versus the products that were released in the last 10 years, the ASPs are up 2x products in the last 10 versus products greater than 10. Some of that is clearly our ability to sell and deliver complicated solutions. They're powerful, you know, because you take, you know, you take where in many places we would have had somebody buying a bunch of parts and maybe doing the work themselves. They now come to us and say, "Here's a problem. What's my solution?" We build out a more sophisticated combined solution. We're able to capture a significant amount more value by doing that, which is why we've been so aggressively investing in the software, digital, and AI capabilities, is to capture that value. Very helpful. We'll wrap it up there, Richard. Thank you so much. All right. Thanks for having me, everybody. Appreciate it.