“Consistent with last year, we are maintaining our full year view of operating tax rate in the mid-teens range.”

In context

“ty. For the full year, we are raising our expectation for operating pretax margin expansion to about 1 point year-to-year well above our model. The strength of this performance is driven by our revenue scale, portfolio mix and productivity initiatives, enabling operating leverage, while providing investment flexibility. Actions taken in the third quarter helped accelerate our productivity initiatives, and we now believe we can achieve approximately $3.5 billion in annual run rate savings by the end of 2024, up from $3 billion. Drilling down on segment margins. We expect Software segment profit margin to expand by well over 1 point for the year. Consulting segment profit margin is now expected to be flat, and we continue to see Infrastructure segment profit margin in the mid to high-teens. Consistent with last year, we are maintaining our full year view of operating tax rate in the mid-teens range. For free cash flow, given the strength of our performance year-to-date, we remain confident in delivering greater than $12 billion of free cash flow for the year, driven primarily by growth in adjusted EBITDA. We are on track to grow revenue, expand operating profit and grow free cash flow as we close out 2024. This positions us well as we look forward to 2025. We are confident in our portfolio and growth trajectory as we head into 2025, given the acceleration in software, the opportunities ahead of us in Red Hat, our new mainframe cycle and associated hardware and software stack, our generative AI positioning and contribution from acquisitions. Arvind and I are now happy to take your questions. Olympia, let’s get started. Olympia McNerney: Thank you, Jim. Before we begin the Q&A, I'd lik”