Earnings came inline with estimates but there were some margins pressures. In addition to this, it looks like tariffs are putting some pressures on its operations over in Europe. Many of these AI-related stocks were priced to perfection so slowing growth or suboptimal guidance is no doubt going to cause drawdowns.
It looks like they're also dumping a bunch of money into restructuring costs to improve overall margins.
Overall, you have a company that benefitted a ton from the AI buildout that got quite expensive at its peaks that is consolidating a bit here on lower than anticipated earnings, soft guidance and tariff related issues.
I don't view it as a poor company whatsoever. Solid balance sheet, good margin profile, strong returns on capital and the company has double digit free cash flow margins. I just view it as a company that might have gotten a bit ahead of itself valuation wise.