“And hardware revenue should decline year over year.”

In context

“and as elevated inventory levels come down through the quarter. Therefore, Windows OEM revenue should decline roughly 10%. The range of potential outcomes remains wider than normal, in part due to the potential impact on the PC market from increased memory pricing. Search and news advertising ex TAC revenue growth should be in the high single digits. Even as we work to improve execution, we expect continued share gains across Bing and Edge with growth driven by volume. And we expect sequential growth moderation as the contribution from third-party partnerships continues to normalize. And Xbox content and services, we expect revenue decline in the mid-single digits against a prior year comparable that benefited from strong content performance, partially offset by growth in Xbox Game Pass. And hardware revenue should decline year over year. Now some additional thoughts on the rest of the fiscal year and beyond. First, FX. Based on current rates, we expect FX to increase Q4 total revenue and COGS growth by less than one point with no impact to operating expense growth. Within the segments, we expect FX to increase revenue growth by roughly one point in productivity and business processes and more personal computing and less than one point in intelligent cloud. With the strong work delivered in H1 to prioritize investment in key growth areas and the favorable impact from a higher mix of revenue in our Windows OEM and commercial on-prem businesses we now expect FY '26 operating margins to be up slightly. We mentioned the potential impact on Windows OEM and on-premises server markets, from increased memory pricing earlier. In ad”