Automotive Semiconductor

Morning. A few honest notes from my desk before I sign off on this print. For 2026Q2 and 2026Q3, I'm penciling in revenues of roughly EUR 3.15B and EUR 3.25B respectively. Two key assumptions drive that: first, our automotive and industrial IoT backlog continues to ramp, but the second quarter has a touch of seasonal softness as customers rebalance inventory after the Chinese New Year build window, with a typical back-half pickup into Q3. Second, I'm assuming our secure MCU and connectivity mix holds steady — that secure franchise is what keeps gross margin in the 55–56% band, and it's not something I want to give back just to chase a quarter. On net income, you'll notice I'm bringing it back to a more normalized level around EUR 590M–610M. The 2026Q1 print had an outsized non-operating tailwind that I wouldn't extrapolate. Excluding that, my operating margin lands around 26%, consistent with our underlying mix and opex discipline. The top risk? Automotive order pull-ins — if OEM build rates soften further in Europe or China, we could see channel inventory build up and our H2 numbers shift left. That's what keeps me conservative on the topline. Pour another coffee. We'll talk again next quarter.