Track how companies discuss tariffs and trade policies in their earnings calls, and understand their impact across different industries and regions.
Although near-term trade headwinds persist, we expect that the tangible benefits of the recent tax bill and incentive to invest in America manufacturing will drive greater customer activity.
the uncertainty and volatility around trade policies are expected to continue to have direct and indirect impacts on semiconductor demand and levels of capital spending by the industry at least in the short term.
the business was negatively impacted by the recent market volatility as some large clients drew down their money market fund balances during the quarter to tactically buy back shares in the market and increased spend ahead of the potentially higher global tariffs.
Our adjusted operating margin of 18.5% was down 110 basis points from last year, but in line with guidance, with the year-over-year decline primarily driven by tariffs, as expected.
Some things have changed since then, tariffs being the biggest one, right?
OEMs had faced some inflationary realities going on with tariffs and raw materials.
We expect to manage and mitigate all enacted tariff impacts through proactive measures, including pricing.
From a tariff standpoint, we have updated our 2025 tariff impact to be approximately $50 million with about 2/3 of it recognized in 2025.
Of course, we're monitoring the tariff situation and we'll react accordingly with pricing actions and/or further self-help actions in order to mitigate any financial impacts.
While there has been some recent progress on U.S. trade policy, especially with Europe, many issues remain unresolved.