“H2 capex in total remains unchanged from our January H2 guidance.”

In context

“Intelligent Cloud and More Personal Computing. We expect FX to increase COGS and operating expense growth by less than one point. In commercial bookings, we expect solid growth on a significant prior year comparable and a growing expiry base. Bookings growth will be driven by strong execution across our core annuity sales motions and continued long-term commitments to our platform. As a reminder, larger longer-term Azure contracts, which are more unpredictable in their timing, can drive increased quarterly volatility in our bookings growth rate. Microsoft Cloud gross margin percentage should be roughly 67%, down year over year primarily driven by the impact of scaling our AI infrastructure. And now, capital expenditures. We expect Q4 capital expenditures to increase on a sequential basis. H2 capex in total remains unchanged from our January H2 guidance. As a reminder, there can be quarterly spend variability from cloud infrastructure buildouts and the timing of delivery of finance leases. Next to segment guidance. In Productivity and Business Processes we expect revenue of $32.05 to $32.35 billion, or growth of 11% to 12% in constant currency. M365 commercial cloud revenue growth should be approximately 14% in constant currency, relatively stable compared to the prior quarter. We expect continued ARPU growth thru E5 and M365 Copilot and some seat growth moderation given the size of the installed base. M365 commercial products revenue growth should be in the mid-single digits. As a reminder, M365 commercial products includes both the Windows Commercial on-premises components of M365 suites and Office transactional purchasing, both of whic”