Quarterly guidance

Revenue
$3.9 billion to $4 billion
Gross margin
63% to 64%
Operating margin
48% to 49%
Diluted EPS
$1.26 to $1.30
Effective tax rate
Approximately 21%

Annual guidance

FY 2027 Revenue Growth
38% to 40%, equating to approximately $18.5 billion at the midpoint
FY 2027 Gross Margin
62% to 64%
FY 2027 Operating Margin
Approximately 49%
FY 2027 Effective Tax Rate
Approximately 21%

Outlook

AI Fabrics
Expected to be the fastest growing segment in 2027, doubling to approximately $7 billion.
Cognitive Campus
Projected to grow rapidly to approximately $2 billion in 2027.
Supply Chain
Purchase commitments increased to $11.4 billion, reflecting secured chip and memory supplies for new products and AI deployments.
Scale-up Trials
Scale-up trials are expected to begin in 2027 with production anticipated in 2028.