“So to sum it up, for Q3 2026, we expect our consolidated revenue to grow to $29.4 billion, up 84% year on year.”

In context

“n was up 9% year on year, in line with our guidance. Bookings continued to be strong as we sustained ARR growth of 17% year over year. For Q3, we forecast software revenue to be approximately $8.9 billion, up 31% year on year. We just released VMware Cloud Foundation 9.1 focused on improving infrastructure efficiency, security, and support for enterprise. AI inferencing workloads. With strong server demand globally, the deployment of VCF 9.1 for on-prem cloud computing is extremely strong. Driving robust revenue growth. This release adds heterogeneous compute support across GPUs, and CPU architectures. Including AMD, Intel, and NVIDIA platforms. Enabling customers, enterprise cloud customers to run AI Kubernetes, and traditional virtualized workloads on a common private cloud environment. So to sum it up, for Q3 2026, we expect our consolidated revenue to grow to $29.4 billion, up 84% year on year. We expect operating margin to be stable at approximately 67% of revenue and adjusted EBITDA to be at approximately 68% of revenue. And with that, let me turn the call over to Kirsten. Kirsten Spears: Thank you, Hock. Let me now provide additional detail on our Q2 financial performance. Consolidated revenue was a record $22.2 billion for the quarter, up 48% from a year ago. Gross margin was 77.1% of revenue in the quarter, down 32 basis points year on year as semiconductor became a larger proportion of our product mix. Consolidated operating expenses were $2.2 billion, of which $1.6 billion was R&D. Q2 operating income was a record $14.9 billion, up 52% from a year ago. Note that even with the decline in gross margin, operating margin increased 200 basis points year over year expenses rema”