Revenue Growth Despite Margin Pressure
Revenue rose 4.7% YoY to $13.37B in Q2 FY2026, yet net income declined 1.7% to $1.77B, indicating that cost increases—including a 6.2% rise in R&D to $583M and a 1.0% rise in SG&A to $1.21B—outpaced top-line gains and compressed profitability.
Strong Year-to-Date Operating Cash Flow Recovery
Fiscal year-to-date operating cash flow improved dramatically by 83.5% to $1.04B (vs. $568M in the prior-year period), suggesting improved working capital management and cash conversion despite softer net income.
Balance Sheet Deleveraging and Equity Strengthening
Total liabilities fell 2.9% YoY to $79.54B while stockholders' equity grew 12.8% to $27.41B, reflecting a meaningful improvement in the company's capital structure and financial resilience.