Quarterly guidance

Revenue
$18 billion to $18.2 billion
Non-GAAP Gross Margin
65% to 66%
Non-GAAP Operating Margin
35.5% to 36.5%
Non-GAAP EPS
$1.32 to $1.34

Annual guidance

Revenue
$72.2 billion to $73.4 billion
Non-GAAP EPS
$5.05 to $5.11

Outlook

Networking Super Cycle
Management believes they are in the early stages of a multi-year, multibillion-dollar networking super cycle driven by AI adoption.
Hyperscaler Demand
AI infrastructure revenue is projected to grow to $7.5 billion in fiscal year 2027, supported by market share gains.
Enterprise Demand
Customers are reprioritizing budgets toward AI readiness and infrastructure modernization, viewing these investments as non-optional.
Security
Security and observability are expected to grow at high single-digit rates in fiscal year 2027.
Supply Chain
Management reports no significant lead time issues and maintains direct relationships with TSMC to secure supply.
Services
Services revenue is expected to turn positive in fiscal year 2027, with gradual improvement throughout the year.
Operating Margin
The company expects to maintain strong operating leverage, with fiscal year 2027 operating margins targeted at approximately 35%.