“Our free cash flow is gonna be driven by double-digit EBITDA for the year. And it's gonna be driven by a hundred plus basis point margin overall.”

In context

“hs because we don't speculate. So when you look at it, the interesting thing is you have to overcome a operating pretax margin headwind when the dollar actually devalues because we have to wrap around on the hedges from last year. Right? You'll get absolute profit dollars, yes, but it's mitigated because we try to hedge as much as we can in quarter. Read that about a hundred percent. In outer quarters, we hedge about seventy-five percent. So around that, we have some tailwinds on free cash flow. Absolutely. But the the most, biggest driver of our free cash flow continues to be the same thing we talked about ninety days ago. The driver of high-quality adjusted EBITDA, which by the way, we grew 12% in the first quarter, up 240 basis points of margin and adjusted EBITDA in the first quarter. Our free cash flow is gonna be driven by double-digit EBITDA for the year. And it's gonna be driven by a hundred plus basis point margin overall. That hasn't changed. So nothing changed overall. I would say net more conservative, but prudently given we have 85% of our free cash flow to go. Olympia McNerney: Operator, let's take the next question. Operator: The next question comes from Brian Essex with JPMorgan. Please state your question. Brian Essex: Hi. Good afternoon. Thank you for taking the question. Arvind Krishna: Arvind, I know it's it's super early here with regard to the mainframe cycle. But given the experience that you have with previous cycles, what do you anticipate from a macro perspective on for an impact on the mainframe cycle. And would you consider taking on more balance sheet risk maybe to ease the pain of any customer CapEx for that business this year? Arvind Krishna: Okay. Brian, thanks for the question. Actua”