Strong Revenue and Operating Income Growth
Revenue grew 6.2% year-over-year to $6.65B in Q1 2026 (from $6.26B in Q1 2025), while operating income surged 12.2% to $1.06B, reflecting improved operating leverage and cost discipline. Operating margin expanded approximately 85 basis points to 16.0%.
Net Income Decline Despite Operating Strength
Net income fell 2.6% to $648M despite strong operating performance, suggesting higher below-the-line costs such as interest expense or tax provisions offset operational gains. EPS (diluted) still grew modestly by 1.7% to $2.43, aided by share count reduction from buybacks.
Robust Operating Cash Flow Generation
Operating cash flow jumped 32.6% year-over-year to $858M in Q1 2026 from $647M in Q1 2025, demonstrating strong cash conversion from operations and supporting the company's capital return program.