“Based upon how the rates have been trending over the last few weeks, we assume the impact of FX on our results in US dollars will be positive 2% compared to fiscal 2025.”

In context

“Angie Park: Thanks, Julie. Let me turn to our business outlook. Given the macro uncertainty, we expect more of the guided range to be in play for Q4. For the fourth quarter of fiscal 2026, we expect revenues to be in the range of $17.75 billion to $18.4 billion. This assumes the impact of FX will be approximately negative 0.5% compared to the fourth quarter of fiscal 2025 and reflects an estimated 1%-5% growth in local currency. As it relates to our federal business, we expect to anniversary the headwind and get back to growth in the fourth quarter. Moving to full fiscal year 2026. Based upon how the rates have been trending over the last few weeks, we assume the impact of FX on our results in US dollars will be positive 2% compared to fiscal 2025. For the full fiscal 2026, we now expect our revenue to be in the range of 3%-4% growth in local currency over fiscal 2025, including an estimated 1% impact from our federal business. Excluding the impact of federal, our revenue is expected to be an estimated 4%-5%. We continue to expect an inorganic contribution of about 1.5%. With our exciting announcement to expand into the OT security software market that we have just made, assuming those transactions close this fiscal year, we now expect to invest approximately $9 billion in acquisitions this fiscal year, and we continue to have a pipeline of attractive acquisitions for FY 2027. For adjusted operating margin, we now expect fiscal year 2026 to be 15.8%, a 20 basis point expansion over adjusted fiscal 2025 results. We now expect our annual adjusted effective tax rate to be in the range of 24%-25%. This compares to an adjusted effective tax rate of 23.6% in fiscal 2025. We now expect our full-year diluted adjusted earnings per share for fiscal 2026 to be in the range of $13.78-$13.90, or 7%-8% growth over adjusted fiscal 2025 results. For the full fiscal 2026, we continue to expect operating cash flow to be in the range of $11.5 billion to $12.2 billion, property and equipment additions to be approximately $700 million, and free cash flow to be in the range of $10.8 billion to $11.5 billion. Our free cash flow guidance reflects a very strong free cash flow to net income ratio of 1.3. We now expect to return at least $9.5 billion through dividends and share repurchases as we continue to return a substantial portion of cash to our shareholders. Finally, as part of our routine review of our capital structure, including taking into account our elevated M&A outlook for FY 2026, we expect to access the long-term debt market to increase our liquidity for M&A spend and general corporate purposes as we look to optimize our capital structure and reduce our cost of capital. In connection with that, we expect to maintain a strong investment-grade credit rating with a low net leverage ratio. With that, let's open it up so that we can take your questions. Alexia?”