TELTE Connectivity Ltd.

“we're going to grow this year in DDN and AI by about $1 billion. Looking at things on quarters, and I know I say it in automotive a lot, and you're all probably rolling your eyes right now with me. You look at a quarter, there's different programs that ramp supply chain impacts. And I think the more important point is we've increased our revenue by another $150 million. We're going to be stepping up here in the second half. And even the number we shared at Investor Day of the $3 billion, it continues to shift towards the left due to the momentum that we have.”

“the $150 million that I mentioned about on the statements are things that relate to the second half. Part of it is ramping of programs we have, part of it is new ramps that are coming along, and it continues to show the momentum that we have in the space. So we do think with this additional $150 million -- $150 million of AI revenue in the second half, that will put our DDN AI revenue, which runs about 70% of total DDN approaching $2.4 billion, just a little bit below that, and the momentum continues.”

“You should expect CapEx this year to be to run about 6% of revenue. That increase that we've had over the past couple of years is almost entirely due to ramping the AI programs within our DDN business. And those are tied to very specific programs. When we make capital investments, we have been awarded programs at that pace -- at those spots.”

“We now expect our AI revenues in fiscal 2026 to be about $150 million higher than our view 90 days ago, and this entire increase will be in the second half of the year and reflects the increased momentum that I talked about in orders.”

“In our digital data networks, we had another standing quarter where our business grew nearly 50% year-over-year and sales were as we expected.”

“DDN was very strong at 60% order growth year-on-year. But if you look at the rest of the Industrial segment, essentially every business unit put up double digits.”

“what's important is and in the pre remarks, we're going to stay in passives. So when you look at transceivers and things like that, I don't think that's where we add value in the supply chain. And really, when you look at what we're doing here, what TE does is how do you get the signal chain that's moving off the CPO would be the fiber attach, how do you get out to an optical backplane and really the technology we did helps our base around the fiber attach.”

“our customers, they are -- and you've heard me talk about in the orders, they are going out their orders a little bit to make sure capacity is reserved and on the ramps that they have coming. So that's built more backlog for us, as we've highlighted in the orders in DDM. But net-net, we're not seeing availability issues on what we procure to make our products. Certainly, our customers continue to ask us to ramp and ramp quicker.”

“We are innovating with our customers on their road maps and architectures and are making both organic and inorganic investments to strengthen our road map for both copper and the inflection point for optical solutions. During the quarter, we acquired a leading technology for passive optical connectivity solutions, strengthening our road map to offer customer solution for both copper and optical connectivity in the future.”

“we did make a technology acquisition around what leading-edge optical technology that will be used to strengthen our passive optical connectivity road map. What we acquired is complementary to what we do in our portfolio and it enables advancements in high-density fiber array connections, and this really would connect an optical fiber to a CPO.”

“it's not copper or optical, it's copper and optical how do they play together in different structures. So when you sit there and you think about optics coming in, it's going to come in more into the scale out first. let's face it, we are bigger in the scale up. What we do in rack is the bigger driver of what we do and where we focus.”

“the technology acquisition we did and even what I said, this will help us in the scale-out element where we're not as strong because this is really where you get to where the fiber attached to the CPO for the scale-out. So that would be increased content versus what happens in the rack.”

“even when we think about the copper TAM, even as optics gets introduced into scale out and how it could be a mix in the rack, our TAM and copper is going to continue to grow due to the power elements that you need, power connectivity goes up, where they will continue to keep copper within the rack as the workhorse. So those types of things, we still see TAM growth in copper. And then we're also going to benefit from the inflection points when it does occur of optical, we're really nicely positioned for it.”

“As we look out to the longer term, we are well positioned to continue to generate strong growth from AI applications. With our broad portfolio of data and power connectivity solutions as well as our engagements with the key architects of this space. We expect the addressable market for our AI products to continue to grow, both near term and long term.”

“We are benefiting from the secular growth trends that we see in our digital data networks business as well as our energy business, where we continue to see significant demand tied to AI and energy grid investments along with continued growth in aerospace and defense and factory automation applications.”

“what we've seen, and we talked a little bit last time, what we're seeing is we're actually not to the level of growth that we see in the AI side, but that spending is constructive. On the enterprise, telecom and wireless space as a collective, we are seeing nice growth there.”

“In the data center, load growth is being driven by the significant build-out of power infrastructure to support AI where our connectivity solutions enable higher power density as well as reliability.”