“So I would see margins going up as much as 50 basis points, between our first quarter guide and where we end the year.”

In context

“about gross margins in that backdrop? And then are buybacks embedded in that guide as well? Scott Herren: Yes. So there's no added buyback in there. We've talked about our cap allocation policy. Our share buybacks have both a systemic component to it that's just offsetting the shares that we issued through our equity plans and an opportunistic component. On the -- what's our expectation on gross margin through the year. Of course, we don't guide that for the full year, Amit. But what I'd say is, my expectation is, as we go through the year and we can work through the backlog, we'll begin to ship out of that backlog more and more orders that actually reflect the price increases that we put in place last year. And as we do, of course, that will be a tailwind to margins throughout the year. So I would see margins going up as much as 50 basis points, between our first quarter guide and where we end the year. Amit Daryanani: And then, if I could just follow up, there’s been a firm amount of fear that higher interest rates looks like impact enterprise spending across the board, your print, your guide doesn’t seem to suggest you’re seeing any signs of that. But, I’d love to get your perspective. What are you hearing from your customers as the macroenvironment is changing? And really related to that, are you seeing any shift in how they procure or what they want to buy from you as the macroenvironment changes? Chuck Robbins: Yes, it's a good question. And we -- what I would say is that, we are not immune to any significant change in the macro that would result in enterprise spending shifting up. My comments are just that, we haven't seen a material demand signal change as we've entered into Q1. S”