Thursday’s after-the-bell reports from Cloudflare, Atlassian, Dropbox, Arrow Electronics, Diodes, indie Semiconductor, Alpha and Omega Semiconductor and CVD Equipment. Two of them are about software growth rates, the rest are about what the AI build-out is doing to the parts business, good and bad.
Cloudflare (NET)
Revenue was $782.5 million, up 39% year over year and the fastest growth in nearly four years. The annualized run rate is now above $3 billion. Non-GAAP operating income came in at $137.1 million, a 17.5% margin against 15.3% a year ago, while the GAAP operating loss was $67.9 million. Gross margin slipped to 72.4%, down 290 basis points on the year, and free cash flow was $82.1 million, or 10% of revenue. Dollar-based net retention rose to 122%. Q4 guidance is $845 to $846 million, putting the full year at $2.963 to $2.964 billion.
Atlassian (TEAM)
Fiscal Q1 2027 revenue was $1.772 billion, up 24%. Cloud revenue grew 31% to $1.302 billion and subscription ARR hit $6.812 billion, up 23%. Remaining performance obligations rose 44%. GAAP operating income was $189 million against a $96 million loss a year ago, and free cash flow was $463 million. The problem was the full-year guide: total revenue growth of about 13.75%, with Data Center revenue expected to fall around 16% as customers move to cloud. Shares fell sharply after hours on the gap between 24% delivered and under 14% guided.
Dropbox (DBX)
Revenue of $637.3 million, up 0.5%, or 1.0% excluding FormSwift, which finished winding down this quarter. Total ARR was $2.555 billion. Non-GAAP operating margin was 42.2%, ahead of guidance, and paying users rose by about 20,000 to 18.2 million. The news inside the print: a planned $350 million acquisition of Tigris Data, a globally distributed object storage platform built for AI workloads.
Arrow Electronics (ARW)
Record quarter. Sales of $10.72 billion rose 39% and non-GAAP EPS of $6.22 was up 158%, both above the top of guidance. Global Components grew 43% to $7.94 billion with book-to-bill well above parity, and enterprise computing rose 29% to $2.78 billion. Inventory climbed $1.4 billion in the quarter to $7.3 billion, and operating cash flow was negative $441 million as working capital built. Q4 guidance: sales of $11.55 to $12.15 billion and non-GAAP EPS of $7.00 to $7.20.
Diodes (DIOD)
Record revenue of $532.6 million, up 35.8% on the year and 19.5% on the quarter. Gross margin expanded more than 500 basis points to 36.1%. GAAP net income was $43.7 million, or $0.95 per share, against $14.3 million a year ago. Capex ran at 10% of revenue, above the company’s 5% to 9% target band. Asia was 79% of sales.
indie Semiconductor (INDI)
Revenue of $70.2 million, up 31%, with the core business up 14% sequentially to $40.7 million. The non-GAAP operating loss narrowed to $7.2 million from $11.3 million. Q4 guidance is $73 to $81 million, which implies core revenue up about 64% year over year at the midpoint. A radar chipset has moved into high-volume production and was picked by one of the top three North American automakers.
Alpha and Omega Semiconductor (AOSL)
Fiscal Q1 revenue of $177.8 million, up 4.3% sequentially and down 2.6% on the year. The mix tells the story. AI and server revenue grew more than 65% on the quarter to about 20% of sales, while PC-related revenue fell about 30%, which management blamed on high memory costs and component shortages hitting PC builds. Non-GAAP gross margin rose to 25.2%. December quarter guidance: revenue of $180 million plus or minus $10 million.
CVD Equipment (CVV)
The smallest report of the day and the starkest. CVD will no longer pursue new system orders for its equipment business, is evaluating strategic alternatives and has put its Central Islip and Saugerties properties up for sale. Bookings were $0.7 million and gross margin fell to 9.2% from 32.0%. The company sold its SDC division earlier this year and carries no debt.
The common thread: anything selling into AI infrastructure grew, and anything selling into PCs paid for it through memory prices.