“Finally, we continue to expect to return at least $7.1 billion through dividends and share repurchases as we remain committed to returning a substantial portion of cash to our shareholders.”

In context

“e expect fiscal year ‘23 to be 15.3% to 15.5%, a 10 to 30 basis point expansion over fiscal ‘22 results. We expect our adjusted annual effective tax rate to be in the range of 23% to 25%. This compares to an effective tax rate of 24% in fiscal ‘22. We expect our full year adjusted earnings per share for fiscal ‘23 to be in the range of $11.41 to $11.63, or 7% to 9% growth over fiscal ‘22 results. For the full fiscal ‘23, we now expect operating cash flow to be in the range of $8.7 billion to $9.2 billion, property and equipment additions to be approximately $700 million and free cash flow to be in the range of $8 billion to $8.5 billion, $300 million higher than our previous guidance. Our free cash flow guidance continues to reflect a very strong free cash flow to net income ratio of 1.1. Finally, we continue to expect to return at least $7.1 billion through dividends and share repurchases as we remain committed to returning a substantial portion of cash to our shareholders. With that, let’s open it up so we can take your questions. Katie? Katie O’Conor: Thanks, KC. [Operator Instructions] Operator, would you please provide instructions for those on the call? Operator: [Operator Instructions] Our first question comes from the line of Tien-Tsin Huang with JPMorgan. Please go ahead. Tien-Tsin Huang: Hi, thanks so much. I had to ask, given the great bookings here, your confidence in being able to replenish those bookings as we look to the third quarter and ahead? I’m sure a lot of people are thinking what’s going on in the month of February and March as well. I know your guidance implies some reacceleration in the fourth quarter, but just curious about your ability to replenish on the bookings side? Thanks. KC McClure: Yes. Thanks, Tien-Tsin. So we do feel good”