“We are assuming a non-GAAP effective tax rate of approximately 19%.”

In context

“leveraging the strength of our best-in-class global supply chain team, as well as the flexibility and agility we have built into our operations over the last few years. We are prepared to take actions to mitigate the impact as and when tariffs go into effect. Turning to our financial guidance. For fiscal Q3, our guidance is as follows: we expect revenue to be in the range of $13.9 billion to $14.1 billion. We anticipate non-GAAP gross margin to be in the range of 67% to 68%. Non-GAAP operating margin is expected to be in the range of 33% to 34%. Non-GAAP earnings per share is expected to range from $0.90 to $0.92. For fiscal year '25, our guidance is, we expect revenue to be in the range of $56 billion to $56.5 billion. Non-GAAP earnings per share is expected to range from $3.68 to $3.74. We are assuming a non-GAAP effective tax rate of approximately 19%. Sami, let's now move into the Q&A. Sami Badri: Thank you Scott. Before we start the Q&A portion of the call, I'd like to remind analysts to ask one question and a single follow-up question. Michelle, can we move to the first analyst in the queue? Operator: Thank you. Simon Leopold with Raymond James. You may go ahead sir. Simon Leopold: Thanks for taking the question. I know this might be a difficult one to answer, and I appreciate the comment on tariffs. But maybe the bigger issue around the federal government is all the noise around the DOGE. And so, I'd love if you could drill down on your federal exposure, and the scenarios you're envisioning if there are major layoffs, from the U.S. government employment? Thanks. Then I've got a quick follow-up. Chuck Robbins: Okay. Thanks Simon for”