On the Company's earnings conference call on April 29, 2026, the following non-GAAP financial measures were discussed or presented:
EPS | Operating Profit | Gross Margin | Operating Expenses | Tax rate (excluding discretes) | Shares | FCF | Net Income | |||||
% | $M | % | $M | % | $M | % | $M | M | $M | $M | ||
Q1 2026 | $ 2.56 | 37.5% | 480 | 60.9% | 781 | 23.4% | 301 | 15.5% | 73 | 158 | 200 | 403 |
Q4 2025 | $ 1.80 | 29.0% | 314 | 57.2% | 620 | 28.2% | 306 | 10.6% | 33 | 158 | 219 | 283 |
Q1 2025 | $ 0.75 | 20.5% | 141 | 60.6% | 416 | 40.1% | 275 | 13.5% | 19 | 162 | 98 | 122 |
Q2'26 Guidance | $1.86 - $2.15 | 30% - 32% | 28.0 % - 27.0% | 15.5% | ||||
Q1'26 Mid-point guidance | $ 2.00 | |||||||
Target Earnings Model | $9.50-$11.00 |
2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
Free Cash Flow | 370 | 521 | 370 | 444 | 684 | 966 | 415 | 426 | 474 | 450 |
GAAP to Non-GAAP Earnings Reconciliation | ||||||||||||
(In millions, except per share amounts) | Quarter Ended | |||||||||||
March 29, % of Net | December % of Net | March % of Net | ||||||||||
2026 Revenues | 31, 2025 Revenues | 30, 2025 Revenues | ||||||||||
Net revenues | $ 1,282.5 | $ 1,083.3 | $ 685.7 | |||||||||
Gross profit - GAAP | 780.9 60.9% | 619.7 57.2% | 415.3 60.6% | |||||||||
Inventory step-up | 0.1 0.0% | 0.3 0.0% | 0.2 0.0% | |||||||||
Gross profit - non-GAAP | 781.0 60.9% | 620.0 57.2% | 415.5 60.6% | |||||||||
Income from operations - GAAP | 473.0 | 36.9% | 293.2 | 27.1% | 120.8 | 17.6% | ||||||
Restructuring and other | 3.4 | 0.3% | 15.1 | 1.4% | 14.5 | 2.1% | ||||||
Acquired intangible assets amortization | 2.2 | 0.2% | 3.5 | 0.3% | 4.6 | 0.7% | ||||||
ERP related expenses | 1.7 | 0.1% | 1.9 | 0.2% | 0.7 | 0.1% | ||||||
Inventory step-up | 0.1 | 0.0% | 0.3 | 0.0% | 0.2 | 0.0% | ||||||
Income from operations - non-GAAP | $ 480.4 | 37.5% | $ 314.0 | 29.0% | $ 140.8 | 20.5% | ||||||
Net Income | ||||||||||||
Net Income | per Common | Net Income | ||||||||||
per Common Share | Share | per Common Share | ||||||||||
March 29, | % of Net | December | % of Net | March | % of Net | |||||||
2026 Revenues Basic Diluted 31, 2025 Revenues Basic Diluted 30, 2025 Revenues Basic Diluted | ||||||||||||
Net income - GAAP | $ 398.9 | 31.1% | $ 2.55 | $ 2.53 | $ 257.2 | 23.7% | $ 1.64 | $ 1.63 | $ 98.9 | 14.4% | $ 0.61 | $ 0.61 |
Amortization of equity method investment | 7.7 | 0.6% | 0.05 | 0.05 | 7.6 | 0.7% | 0.05 | 0.05 | 7.4 | 1.1% | 0.05 | 0.05 |
Restructuring and other | 3.4 | 0.3% | 0.02 | 0.02 | 15.1 | 1.4% | 0.10 | 0.10 | 14.5 | 2.1% | 0.09 | 0.09 |
Acquired intangible assets amortization | 2.2 | 0.2% | 0.01 | 0.01 | 3.5 | 0.3% | 0.02 | 0.02 | 4.6 | 0.7% | 0.03 | 0.03 |
ERP related expenses | 1.7 | 0.1% | 0.01 | 0.01 | 1.9 | 0.2% | 0.01 | 0.01 | 0.7 | 0.1% | 0.00 | 0.00 |
Inventory step-up | 0.1 | 0.0% | 0.00 | 0.00 | 0.3 | 0.0% | 0.00 | 0.00 | 0.2 | 0.0% | 0.00 | 0.00 |
Pension mark-to-market adjustment | - | - | - | - | 1.3 | 0.1% | 0.01 | 0.01 | - | - | - | - |
Pension settlement loss (gain) | - | - | - | - | 0.1 | 0.0% | 0.00 | 0.00 | - | - | - | - |
Loss (gain) of foreign exchange contract | - | - | - | - | - | - | - | - | (0.6) | -0.1% | (0.00) | (0.00) |
Exclude discrete tax adjustments | (9.3) | -0.7% | (0.06) | (0.06) | 0.4 | 0.0% | (0.00) | (0.00) | 0.9 | 0.1% | 0.01 | 0.01 |
Non-GAAP tax adjustments | (1.8)-0.1% | (0.01) (0.01) (4.3)-0.4% | (0.03) (0.03) (5.1)-0.7%(0.03) (0.03) | |||||||||
Net income - non-GAAP | $ 402.9 31.4% | $ 2.58 $ 2.56 $ 283.0 26.1% | $ 1.81 $ 1.80 $ 121.5 17.7%$ 0.75 $ 0.75 | |||||||||
GAAP and non-GAAP weighted average common shares - | ||||||||||||
basic | 156.4 | 156.4 | 161.5 | |||||||||
GAAP and non-GAAP weighted average common shares - | ||||||||||||
diluted | 157.6 | 157.7 | 162.0 | |||||||||
GAAP and non-GAAP second quarter revenue guidance: | $1,150 million | to | $1,250 million |
GAAP net income per diluted share | $ 1.83 | $ 2.12 | |
Exclude acquired intangible assets amortization | 0.01 | $ 0.01 | |
Exclude equity method investment amortization | 0.03 | $ 0.03 | |
Non-GAAP tax adjustments | (0.01) | $ (0.01) | |
Non-GAAP net income per diluted share | $ 1.86 | $ 2.15 |
($ in millions except per share amounts)
Q1'25 Q4'25 Q1'26 Q2'26 Low Guidance Q2'26 High Guidance $'s % of sales $'s % of sales $'s % of sales $'s % of sales $'s % of salesGAAP Operating Expenses | $295 | 43% | $326 | 30% | $308 | 24% | $322 | 28% | $338 | 27% |
Intangible Asset Amortization | ($5) | -1% | ($3) | 0% | ($2) | 0% | ($5) | 0% | ($5) | 0% |
Restructuring and Other | ($15) | -2% | ($15) | -1% | ($3) | 0% | ||||
ERP Related Expenses | ($1) 0% | ($2) 0% | ($2) 0% | |||||||
Non GAAP Operating Expenses | $275 40% | $306 28% | $301 23% | $317 28% $333 27% | ||||||
Q1'25 | Q4'25 | Q1'26 | ||||
$'s | % | $'s | % | $'s | % | |
GAAP Income Tax | $15 | 12% | $29 | 10% | $62 | 13% |
Exclude discrete tax adjustments | -$1 | -1% | $0 | 0% | $9 | 2% |
Tax effect of non-GAAP adjustment | $5 | 4% | $4 | 1% | $2 | 0% |
Effect of Higher Non-GAAP PBT | -2% | -1% | 0% | |||
Non GAAP Income Tax | $19 13.5% | $33 10.6% | $73 15.5% | |||
Q2'26 Guidance: | Low End | High End |
GAAP Operating Profit as % of Sales | 29.6% | 31.6% |
Acquired intangible asset amortization | 0.4% | 0.4% |
Restructuring and Other 0.0% 0.0% Non-GAAP Operating Profit as % of Sales 30.0% 32.0%
FY 2026 GAAP estimated tax rate | 13.3% |
Adjustment for Non GAAP items | 2.2% |
FY 2026 Non GAAP estimated tax rate | 15.5% |
Target Model
Low
Target
Model Mid Target Model High
Target Model Estimated GAAP Diluted EPS
$ 9.26 $
10.01 $
10.76
Add Back Intangible Asset Amortization $ 0.24 $ 0.24 $ 0.24
Target Model Estimated Non-GAAP Diluted EPS | $ 9.50 | $ 10.25 $ | 11.00 |
GAAP and non-GAAP Q2'26 EPS mid-point guidance: | |||
GAAP net income per diluted share | $ 1.97 | ||
Exclude acquired intangible assets amortization | $ 0.01 | ||
Exclude equity method investment amortization | $ 0.03 | ||
Non-GAAP tax adjustments | $ (0.01) | ||
Non-GAAP net income per diluted share | $ 2.00 |