“We now expect GAAP operating margin of 21.2%, This is inclusive of additional restructuring charges.”

Why this grade

Before the FY26 commitment came due, management revised GAAP operating margin guidance down from 21.2% to 20.3%, a cut of 0.9 points, so the earlier commitment was missed at the moment it was revised.

Deviation basis: percent change from the committed 21.2% margin to the revised 20.3% margin

In context

“d of our fiscal year 2026 revenue guidance. To $41.1 billion to $41.3 billion. This results in growth of approximately 8.5% to 9% year over year in nominal and 8% in constant currency. On foreign exchange, we now expect a $300 million tailwind up $50 million since our last print. We are reiterating our subscription and support revenue growth of approximately 9% year over year in constant currency. Driven by the momentum in Data Cloud and Agent Force this year. This is partially offset by weakness in marketing and commerce and slower growth in our exploration base. We are pleased to raise our non-GAAP operating margin 10 basis points to 34.1% for the year. Building on the continuous improvement from the last few years and aligned with our ongoing commitment to long-term margin improvement. We now expect GAAP operating margin of 21.2%, This is inclusive of additional restructuring charges. We are also raising our annual guidance on operating cash flow growth to 12% to 13%. This is driven by cash tax savings as a result of the recently enacted tax bill. We now expect CapEx of slightly below 2% of revenue. Resulting in free cash flow growth of 12% to 13%. Turning to Q3 guidance. Revenue is expected to be $10.24 billion to $10.29 billion up 8% to 9% year over year in nominal and 8% in constant currency. CRPO growth for Q3 is expected to be slightly above 10% year over year in nominal, including a $300 million FX tailwind resulting in slightly above 9% constant currency growth. As a reminder, while we have seen more normalized bookings growth recently, CRPO will continue to be impacted by the cumulative effect of the measured sales performance that started in Q2 fiscal year 202”