Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
We feel very comfortable and relaxed on that front.
Tariffs did not have a meaningful impact on our total company earnings in Q1.
We now anticipate gross margin to increase in the area of 20 basis points, a meaningful improvement from our prior outlook and completely mitigating the impact of tariffs.
ICD balances continued to recover post the tariff volatility, and ICD revenues were up 11% relative to the third quarter of 2025.
We saw this during COVID, with the Silicon Valley Bank failure, and after tariffs were announced last year.
This outlook reflects previously expected headwind like tariffs and now greater consumer-facing investment.
These positive drivers were partially offset by the adverse net impact of tariffs.
non-GAAP gross margin of 67% for the fourth quarter was down 40 basis points year over year, primarily from the tariff impact of 205 basis points.
A more supportive trade policy has reshaped the outlook of our business.
Probably the single biggest piece was tariffs.