SHARPE
Reported results
- Net sales for Q2 were $8.5 billion, up 25% versus the prior year
- GAAP operating income was $414 million with a GAAP operating margin of 4.9%
- Adjusted operating income was $607 million with an adjusted operating margin of 7.1%
- GAAP net income was $263 million, resulting in GAAP earnings per share of $0.70
- Adjusted net income was $443 million, resulting in record adjusted earnings per share of $1.18
- Cash provided by operating activities was $501 million and Free Cash Flow was $261 million
Guidance
- Third Quarter Fiscal Year 2027 Net Sales: $8.87 billion to $9.17 billion, growth of 28% at the midpoint
- Third Quarter Fiscal Year 2027 Adjusted Operating Income: $685 million to $715 million
- Third Quarter Fiscal Year 2027 Adjusted EPS: $1.19 to $1.25, growth of 40% at the midpoint
- Third Quarter Fiscal Year 2027 Interest & Other: approximately $120 million
- Third Quarter Fiscal Year 2027 Adjusted income tax rate: 21%
- Third Quarter Fiscal Year 2027 Weighted average shares outstanding: approximately 375 million
- Updated Fiscal Year 2027 Net Sales: $34.9 billion to $35.9 billion, growth of 27% at the midpoint
- Updated Fiscal Year 2027 Adjusted Operating Margin: 7.6% to 7.8%
- Updated Fiscal Year 2027 Adjusted EPS: $4.84 to $5.16, growth of 52% at the midpoint
- Updated Fiscal Year 2027 Adjusted income tax rate: 21%
Notes
Updated Fiscal Year 2027 Guidance reflects expected results for the full fiscal year and does not give effect to the planned spin-off of the Cloud and Power Infrastructure segment, but includes contributions from recent acquisitions closed subsequent to September 25, 2026.
Price and volatility reaction
The stock moved +11.6% on the print. No front-expiry chain was on file, so there is no straddle expected move. 30-day ATM implied volatility moved -9.1 vol points across the event (constant-maturity series — not the front-week crush).
| Measure | Value | Basis |
|---|---|---|
| Close before release | 83.35 | 2026-10-27 |
| Close after release | 93.03 | 2026-10-28 |
| Realised move | +11.6% | close to close |
| 30d ATM IV change | -9.1 vol pts | constant-maturity series, not the front expiry |
Source
The figures above come from the earnings release the company filed with the SEC on 2026-10-28 (8-K, Item 2.02). Read the original filing on sec.gov.