“We now expect CapEx for the fiscal year to be slightly below 2% of revenue.”

In context

“% as a percent of revenue. The modest increase from our prior guidance is primarily a result of the mechanical ESPP reset. As a result, for fiscal year '25, GAAP operating margin guidance is now expected to be slightly below 20%, representing 530 basis points of improvement year-over-year, which includes a slight increase in restructuring charges from our ongoing cost transformation. We expect fiscal year '25 GAAP diluted EPS of $6.05 to $6.13. Non-GAAP diluted EPS is expected to be $10.03 to $10.11. As you have heard us emphasize over the last few quarters, we are focused on driving continued free cash flow expansion. As a result of our disciplined capital deployment, we are raising fiscal year '25 operating cash flow growth to be approximately 23% to 25%, inclusive of cash tax headwind. We now expect CapEx for the fiscal year to be slightly below 2% of revenue. This now results in free cash flow growth of approximately 25% to 27% for the fiscal year. Now the guidance for Q3. On revenue, we expect $9.31 billion to $9.36 billion, up 7% year-over-year in nominal and constant currency. CRPO growth for Q3 is expected to be 9% year-over-year in nominal including $100 million FX tailwind. This will result in approximately 8.5% constant currency growth. This is inclusive of the one point quarter-over-quarter headwind from the very significant deal we closed in Q3 last year. As a reminder, while we have seen more normalized bookings growth recently, CRPO will continue to be materially impacted by the cumulative effect of the previous two years of measured sales performance. For Q3, we expect GAAP EPS of $1.41 to $1.43 and non-GAAP EPS of $2.42 to $2.44.”