“And we expect our adjusted Q3 effective tax rate to be approximately 19%.”

In context

“h the total company. We expect revenue of $80.65 to $81.75 billion or growth of 15 to 17% with continued strong growth across our commercial businesses. Partially offset by our consumer businesses. We expect COGS of $26.65 to $26.85 billion, growth of 22 to 23%, and operating expense of $17.8 to $17.9 billion or growth of 10 to 11% driven by continued investment in R and D, AI compute capacity, and talent. Against a low prior year comparable. Operating margins should be down slightly year over year. Excluding any impact from our investments in OpenAI, other income and expense is expected to be roughly $700 million driven by a fair market gain in our equity portfolio and interest income partially offset by interest expense which includes the interest payments related to data center leases. And we expect our adjusted Q3 effective tax rate to be approximately 19%. Next, we expect capital expenditures to decrease on a sequential basis due to a normal variability from cloud infrastructure build-outs and the timing of delivery of finance leases. As we work to close the gap between demand and supply, we expect the mix of short-lived assets to remain similar to Q2. Now our commercial business. In commercial bookings, we expect healthy growth in the core business on a growing expiry base when adjusted for the OpenAI contracts in the prior year. As a reminder, the significant OpenAI contract signed in Q2 represents multiyear demand needs from them, which will result in some quarterly volatility in both bookings and RPO growth rates going forward. Microsoft cloud gross margin percentage should be roughly 65% down year over year driven by continued investme”