Quarterly guidance

Revenue
$935 million to $939 million
Gross margin
Approximately 80%
Operating profit
$215 million to $217 million
Net other income
Approximately $33 million
Earnings per share
$1.15 to $1.16 per share

Annual guidance

ARR
$4.396 billion to $4.426 billion
Revenue
$3.908 billion to $3.938 billion
Gross margin
Approximately 80%
Operating profit
$924 million to $932 million
Net other income
$140 million to $142 million
Earnings per share
$4.86 to $4.90 per share
Free cash flow margin
Approximately 23% to 23.5%

Outlook

AI tailwinds
Management views AI as the largest tailwind ever seen, driving accelerating demand for Zero Trust data security and security for AI solutions.
Component pricing
Capital expenditures are expected to remain elevated during fiscal 2027 due to higher component pricing, especially memory and storage.
Sales transitions
Leadership transitions in sales geos and verticals are expected to play out during the first half of fiscal 2027.
New logo execution
The company is expanding coverage through dedicated new logo sales executives and enhanced channel partnerships to target enterprise and mid-market opportunities.