Palo Alto Networks, Inc.

Good day, everyone, and welcome to Palo Alto Networks Fiscal Third Quarter 2026 Earnings Conference Call. I'm Hams Farawala, Senior Vice President of Investor Relations and Strategic Finance. Please note that this call is being recorded today, Tuesday, June 2, 2026, at 1.30 p.m. Pacific Time. With me on today's call to discuss our Fiscal Third Quarter results are Nikesh Arora, our Chairman and Chief Executive Officer, and Dipak Golechha, our Chief Financial Officer. Following our prepared remarks, Lee Klarich, our Chief Product and Technology Officer and Board Member, will join us for the question and answer portion. You can find the press release and other information to supplement today's discussion on our website at investors.PaloAltoNetworks.com. While there, please click on the link for quarterly results to find the Q3 26 Supplemental Financial Information and Q326 Earnings Presentation. During the course of today's call, we will be making forward-looking statements and projections regarding the company's business operations and financial performance, as well as the company's recent acquisitions. These statements made today are subject to a number of risks and uncertainties that could cause our actual results to differ from these forward-looking statements. Please review our press release and recent FCC filings for a description of these risks and uncertainties. We assume no obligation to update any forward-looking statements made in today's presentation. Our presentation also contains non-GAAP financial measures and key metrics relating to the company's past and expected future performance. Non-GAAP financial measures should not be considered a substitute for financial measures made in accordance with GAAP. The most directly comparable GAAP financial metrics and reconciliations are in the press release and the appendix of the investor presentation. Unless otherwise noted, all results and comparisons are on a fiscal year-over-year basis. I will now turn the call over to Nikesh.

Good afternoon and thank you everyone for joining us today for our earnings call. As you can see, our Q3 performance was exceptional. as we delivered a record quarter. Our results surpassed every guided metric, fueled by an acceleration in organic bookings momentum, the sustained tailwinds from our platformization strategy, and surging cybersecurity needs as AI transitions from experimental stages to enterprise-wide production. Within our core portfolio, we achieved significant traction in network security and XIM, while Prisma Airs continues to establish itself as the fastest scaling product in our history. Altogether, We delivered $8.1 billion in NGSAR during the third quarter, representing 60% area overgrowth. This is our most significant quarterly outperformance to date and surpassed our guidance. Our RPO reached $18.4 billion, up 36% compared to last year, when adjusting for recent CyberArk and Chronosphere acquisitions, both of which are exceeding expectations in the first quarter post-close. Our organic NGSAR and RPO rose 28% and 22% respectively. These results are materializing as AI fundamentally redefines the enterprise tech stack, elevating cybersecurity to a mission-critical priority for every organization. Much has been said about Mythos over the last many months. Over the past quarter, frontier AI development reached a critical inflection point. We have entered the era of truly cyber-capable systems where models like Mythos possess the autonomous capability to execute comprehensive attack campaigns from start to finish. This represents a fundamental paradigm shift for the cybersecurity industry. The most critical factor in this transition is speed. When weaponized by adversaries, these frontier models can identify and weaponize vulnerabilities in mere minutes, a process that previously required months of manual effort. Earlier this year, our Unit 42 researchers demonstrated the acceleration by simulating a comprehensive ransomware campaign from initial entry to data exfiltration in just 25 minutes. In contrast, the typical enterprise still requires days to identify a breach. These existing latency gaps are already a concern, but the emergence of these latest models makes them completely unsustainable. We believe this is merely the opening act. As Frontier AI development continues to accelerate, we anticipate a three to six month window before these systems evolve into more sophisticated hacking entities globally. Within a few years, We expect Agente KI to reach a level of autonomous execution that is truly unprecedented, scanning environments, generating bespoke exploits, and orchestrating end-to-end campaigns at machine speed without human intervention. That is the trajectory of the modern threat landscape. However, the same technological leap provides a powerful defensive advantage. We value this potential during the quarter. Leveraging our strategic partnerships with leading frontier labs, utilize early access to their most advanced models to complete the equivalent of years worth of pen testing in less than three weeks. This unique vantage point allowed us to introduce Unit 42 Frontier AI Defense, enabling our customers to fortify their environments against AI-driven attacks. Market reception has been exceptional. With north of 1,200 customers asking to meet us, we have already completed 800 meetings in the last six weeks to help our customers think through their cybersecurity future. These meetings are driving conversations across the platform. In fact, we're already seeing strong interest in our agentic endpoint security offering since the acquisition of Koi and have already generated interest for over 150 customers. This is critical for securing rise in AI coding tools and agents as they proliferate our endpoints. While identifying vulnerabilities is a critical first step, through mission-critical production is achieved at runtime. Real-time, in-line defense is the only way to shield even unpatched infrastructure as an attack sequence unfolds. This is where the cybersecurity battle will be won or lost. Countering the next generation of adversaries requires a comprehensive architectural vision that goes far beyond simple, large language models. While the capabilities of these frontier systems are impressive, they're not a silver bullet for cybersecurity. We currently see two major structural challenges. First, the prevalence of false positives, with error rates often reaching 25%, forcing manual intervention that destroys the speed advantage of automation. These models always fail at the last mile of complexity, leaving critical gaps in remediation and vulnerability management. In today's site landscape, the most subtle 1% of novel attack techniques are what lead to the most devastating breaches. For every enterprise, the defensive bar must be perfect, while the attacker only needs to succeed once. The probabilistic nature of even the most advanced systems leads to inaccuracies. In a mission-critical environment, the cost of a false positive is simply too high. One wrong enforcement decision can take down a global production network. Just as autonomous vehicles require constant real-time validation, an automated defense must be built on high-fidelity telemetry and battle-tested against every edge case to be mission-ready. An AI model is only as effective as the data it can see. As frontier models become available to everyone, the real competitive advantage shifts one model to the data field. That is why having sensors that fit in line with live traffic is so vital. They provide the telemetry and context needed to outmaneuver bad actors while serving as a critical enforcement point. The logic is simple. The more you integrate, the more you see, the more data you unify. The better the AI performs, the more you inspect at runtime, the faster you can stop an attack. Our global footprint now exceeds 125 million sensors across network, endpoint, and cloud, ingesting over 17 petabytes of daily telemetry. This scale creates a powerful flywheel. Every new sensor makes our entire platform more intelligent, which leads to more deployments, more data, and even stronger real-time protection. This reality is why platformization is the only sustainable answer. The legacy approach of query-based tools that wait for human reaction cannot keep up with machine speed threats. We're transforming the industry by consolidating data onto a single platform, reducing brief response times from days to minutes through AI-driven pre-analysis. Point products that silo data and increase latency are becoming obsolete. As the battle moves to fighting AI, we believe Palo Alto Networks is in pole position, and our Q3 results prove that momentum. As AI compresses attack timelines, only a platform that gets smarter with scale can respond fast enough. To insert quota risk, there are 110 net new platformizations. We figure that includes 20 from our cyber arc and chronosphere integrations. These strategic additions expand our reach into large addressable markets within our generative observability. Given the fragmented nature of these sectors, they are perfectly aligned with our overarching platformization vision. We concluded Q3 with roughly 2,280 total platformized customers bolstered by the inclusion of our latest acquisitions. These engagements represent deep architectural commitments rather than simple transactions. When organizations reach this integration milestone, they standardize their infrastructure on our platform, yielding superior long-term retention and expansion. This is reflected in our 120% net retention and single-digit churn rates amongst this cohort. Moving forward, we remain confident in surpassing 4,000 platformizations by fiscal 2030, providing the primary momentum towards our $20 billion target for NGS ARR. The scale and quality of our customer business quarter reflect how strategic these platform commitments have become and how customers are increasingly bringing us in to secure their production AI deployments to scale. Let me share a few examples. In Q3, we surpassed $200 million in ARR with a leading frontier AI lab that relies on us for observability across its most dependent training and inference clusters. We expect that to continue to grow again next quarter as they complete their migration to Chronosphere. One of our largest Q3 deals was the $80 million transaction with the leading power producer of the United States, an organization at the center of the AI infrastructure expansion. They selected our next generation firewalls and also adopted SASE to secure a distributed workforce over 25,000 employees. A global consulting leader signed a deal for over $20 million, selecting Prisma Airs, our AI security platform, to secure its rapidly growing fleet of AI apps and agents, now running more than 2 trillion tokens per month on our platform. This was an existing platformized customer who spent several months working closely with us to secure this entirely new frontier. It is also a record Prisma Airs win and speaks to how customers partners with us for the AI transformation journey. As AI raises a stake, These deals further validate our position as a cybersecurity partner of choice. That is particularly notable in our network security business, where we had our strongest Q3 in several years. Our largest business unit, Network Security, delivered its most robust third quarter performance in years. This momentum underscores the mission-critical role of real-time network traffic inspection as enterprise-wide AI initiatives continue to transition to production. We saw strong growth in hardware, staffing, and software firewalls during the period. While we're in the early innings, we anticipate that AI will serve as a structural catalyst for deeper traffic inspection requirements. The initial phase of AI adoption was primarily conversational, but the shift towards agentic AI represents a fundamental change. Unlike simple chatbots, autonomous agents trigger a massive volume of secondary machine-to-machine interactions, consistently accessing tools and data to complete complex workflows. This creates a surge in non-stop, high-volume traffic that must be secured at runtime. This evolution directly translates into heightened demand for high-throughput hardware, expanded cloud-based software capacity, and the necessity for unified policy enforcement across the entire platform. Our Q3 results featured the strongest hardware performance in a decade, with next-generation firewall booking rising nearly 40% year-to-year. This was supported by our latest Gen5 appliances and early access in AI data center build-outs. We've seen early adoption from a new class of buyers, including sovereign infrastructure providers in AI labs, are presenting a significant new market as deployments move beyond traditional hyperscalers. A key differentiator for hardware portfolio remains the strength of our subscription attached, illustrating how customers are standardizing the security stack on our platform. Within our installed base, we currently average more than four subscriptions per device. Our innovative innovation engine continues to expand this opportunity when I provide 11 advanced subscriptions, including our next-generation trust security, which utilizes CyberArk Certificate Management to address emerging compliance standards for shorter certificate lifespans. Palo Alto Networks remains the fastest growing provider in the SASE market. In Q3, SASE ARR reached $1.6 billion, growing 40% a year as customers prioritize unified protection across hybrid workforces and AI applications. Competitive momentum remains high, with nearly 50 displacement wins totaling $200 million in contract value year-to-date. Secure browser also achieved a major milestone. Scaling to 11 million licenses, a four-fold increase that cements the status as a critical control point for the AI enterprise. Furthermore, software firewalls remain a high-growth pillar of our strategy. ARR rose 25% in Q3, accelerating as organizations expand their capacity to inspect growing traffic between cloud and AI workloads. As these environments scale, the requirements for high fidelity telemetry only increases. The common architecture approach is also driving increased customer growth in Prisma Airs, which continues to be the fastest-growing product in our history. Organizations are aggressively moving beyond the experimental phase, deploying AI agents and applications for production. This transition creates entirely new mission-critical security demands. We believe we are the first in the industry to embrace AI security platformization, yes, AI security platformization, capable of securing and monitoring AI end-to-end. We have effectively doubled our capabilities in this space in just over nine months. Our journey began with securing models and runtime defense. We then integrated identity security to govern agent access and observability to trace agent behavior across complex infrastructure. Most recently, the expanded agentic endpoint security of AI tools proliferates across the edge. Our recent acquisition of Portkey marks yet another strategic milestone. As a leading AI gateway processing trillions of tokens monthly, Portkey provides a critical enforcement point to monitor every request to apply real-time policy to agent-to-agent interactions at scale. This relentless innovation has established Prisma Airs as our fastest-growing product ever. We reached over 300 customers in Q3, tripling our Q2 count, and have clear visibility towards $100 million in ARR with the next couple of quarters for a product that was not in the market one year ago. Ultimately, securing the AI enterprise generates a massive volume of runtime telemetry. The data is only actionable if processed at machine speed, which is the core mission of our Cortex platform. XIM remains our primary response to the emerging frontier model threat. As attack cycles compress to machine speed, organizations can no longer rely on legacy query-based architectures or manual dashboards. Effectively countering AI necessitates a defensive strategy powered by AI. Upon the introduction of XIM 42 months ago, we entered the sector as a disruptive innovator, engineering our platforms to ground up to redefine security off-centers. Today, our platform processes more than 17 petabytes of daily telemetry, a volume unmatched by any other pure-play security vendor. We ended the third quarter with more than $600 million in ARR, representing a 100% area of increase across a growing base of 740 customers. The most significant metric, however, is the outcome. The majority of our customers are now responding to threats in under 10 minutes. This is a dramatic reduction from the days or weeks In observability, our Q3 performance was well above our initial expectations. As AI initiatives generate a surge in telemetry, Chronosphere is a purpose-built capability to scale alongside these workloads. Our observability error surpassed $300 million this quarter, nearly doubling since our acquisition announcement last autumn. Furthermore, 80% of our net new customer acquisition this year adopted multiple products, reinforcing our platformization momentum. The world's leading AI natives, including two of the top five frontier labs, have adopted Kronosphere, validating our ability to provide observability at AI scale. Beyond our early investments in markets where AI would drive a positive inflection, we also recognized early where AI would overhaul existing security categories. Consider posture management. Traditional periodic scanning is insufficient, and Attack Fireminds are measured in minutes. As a result, we proactively transitioned our cloud portfolio from static posture real-time detection to Cortex Cloud. We're making steady progress and anticipate most Prisma customers will be migrated to Cortex Cloud by the end of the fiscal year. Now, as these ages proliferate, every autonomous entity represents a new identity that must be managed, which leads directly to our progress at CyberArk. In our inaugural quarter post-close, CyberArk has surpassed our internal benchmarks as we move to execute our unified vision for identity security. Last month, we launched IDERA, our next generation identity platform for the AI-driven enterprise. For years, the industry operated under the IAM fallacy, the belief that you only needed to secure a handful of privileged administrators. In the era of agentic AI, that distinction has vanished. Every identity, whether human, machine, or software agent, now possesses the potential to access the sensitive systems at machine speed. IDERA addresses this shift by democratizing modern PAM controls across all users and extending protection to agentic identities, which represent the primary attack vector of the future. Our execution in Q3 was strong. Joint go-to-market efforts have already initiated approximately 1,000 cross-org engagements. We have sustained CyberArts growth trajectory while improving its profitability profile through our integration initiatives. Given our rapid progress, we are now three to six months ahead of our original timeline for converging CyberArts Profitability With Our Own, a milestone we expect to reach within the next 12 to 18 months. This acceleration reinforces our path towards a 40% cash flow margin in fiscal 2028, which Dipak will talk about more. The events of the third quarter represent a watershed moment for cybersecurity and has elevated our category even higher on the CIO priority list. Mark my words, Methoz has increased the terminal value of the entire cybersecurity industry. We are identifying several structural catalysts from the AI cycle, tracking growth across our platform. First, AI creates a massive surge in traffic and connection points requiring real-time inspection. As agents trigger hundreds of second reactions, network security becomes the indispensable foundation for safe AI adoption. Second, countering machine speed adversaries requires real-time automated defense. This is the core mission of XIAM, consolidating data onto a single platform so AI can respond to threats in minutes rather than days. And third, In an environment populated by both humans and agents, identity serves as a primary defensive layer. When autonomous entities connect to your actions independently, securing access to the idea becomes mission critical. The conversion of these trends validates our platformization strategy. Managing fragmented data and siloed point products is no longer viable in an AI-driven landscape. A unified platform that gains intelligence with scale is the only path forward. While we're still in the early stages of this shift, We remain committed to innovating ahead of the set landscape and earning our customers' trust every day. I will now turn the call over to Dipak to discuss our financial results in greater detail.

Thank you, Nikesh, and good afternoon, everyone. We delivered a record Q3 with broad-based demand across our platforms and geographies. We exceeded our guidance ranges across the board. Driven by an acceleration in organic bookings growth and outperformance from our recent acquisitions as we made early progress on our integration efforts. Please note that during my remarks, I will discuss results with and without the impact of Chronosphere and CyberArk. The financial impact of our acquisition of Koi, which closed later in the quarter, was immaterial to our Q3 results. Starting with Next Generation Security ARR, we delivered 60% year-over-year growth in Q3, reaching $8.13 billion. This included $1.63 billion from CyberArk and Chronosphere. We surpassed $300 million in ARR for Chronosphere, our next-generation observability platform. That was an over 50% increase from Q2 and far exceeded our expectations, driven by an existing LLM customer increasing consumption as they continue to migrate from the incumbent vendor. Excluding the impact of CyberArk and Chronosphere, NGS ARR was $6.5 billion, up 28% year-over-year, and net new NGS ARR was $370 million, up 18% year-over-year. Please note that this excludes ARR attached to a hardware backlog that also reached record levels for Q3 quarter. We saw notable strength in network security, which is our largest segment and accounts for approximately 70% of our total revenue. All NETSEC form factors delivered sustained or accelerating growth in Q3. In SAFI, ARR reached $1.6 billion, up 40% year-over-year, more than two times the overall market growth rate. We have seen a nearly 50% increase in SAFI net new NGS ARR over the trailing 12 months, driven by continued scale Strong performance in net new logos and displacement wins. Software firewall showed strength once again this quarter, with ARR up 25% year-over-year, driven in part by the increase in Prisma Airs in firewall flex fields. As Nikesh highlighted, Prisma Airs continues to be our fastest-growing product ever. We have over 300 Prisma Airs customers as of Q3, up from just 100 at the end of Q2. As AI adoption grows in the enterprise, we believe AI is becoming a foundational infrastructure for secure AI deployment. Turning to remaining performance obligation, or RPO, we ended the quarter at $18.4 billion, growing 36% year over year. Excluding $1.8 billion from CyberArk and Chronosphere, RPO grew 22% year over year, which we believe is a direct result of our platformization strategy driving deeper customer commitments across our platforms. Current RPO was $8.3 billion, up 34% year over year. Excluding the impact from CyberArk and Chronosphere, current RPO was $7.2 billion and grew 17% year over year. and Acceleration versus 15% in Q2. Total revenue for the quarter was $3 billion, growing 31% year-over-year. Product revenue was $594 million and total services revenue was $2.4 billion, both growing 31% year-over-year. As I've highlighted in previous quarters, software and recurring revenue now represent a large and growing portion of the swine items. Today, product revenue includes major growth drivers, including software firewalls and Prisma Airs, FDLAN, and self-hosted identity security subscriptions. As a result, 46% of our trailing 12-month product revenue in Q3 included recurring software revenue, a significant increase from just 22% three years ago. Hardware, which is approximately 10% of our total revenue, delivered its best quarter in a decade, fueled by strong demand for our next-generation firewalls, and we saw early AI density data wins, contributing to record Q3 backlog. Our next-generation firewall bookings grew nearly 40% year-over-year in Q3 as we continued to gain share. AI data centers and AI-driven enterprise networking needs are driving a new market opportunity for us, which could potentially be additive to our long-term growth for firewall appliances. From a geographic perspective, we saw broad-brace growth across all of our major theaters, with the Americas growing 32% year-over-year, EMEA up 32% year-over-year, and JPAC growing 26% year-over-year. Moving down the P&L, our Q3 strength was not confined simply to our top-line metrics, as we continue to drive profitable growth across the P&L and execute it against our M&A integration strategy. Total gross margin for the quarter was 75.8%. This included services gross margin of 75.1%. We continue to balance services gross margins by driving efficiencies in cloud hosting whilst the mix shift of our high growth SaaS offerings increases. Within this, product gross margin was at 78.8%, which is a 40 basis point improvement year over year. Turning to the supply chain, we are closely monitoring rising component costs, particularly in memory and storage. Please note that we have approximately 1 million firewalls in the field, and our required component volumes are not as significant as some of our peers. Furthermore, we remain well positioned to navigate these dynamics for the following reasons. First, our higher recurring revenue mix acts as a natural hedge. Hardware today accounts for approximately 10% of our total revenue compared to 20% in fiscal year 21. Second, our vendors view us as a critical infrastructure provider, and we have a track record of leveraging our prior supply chain experience and expertise to mitigate these impacts. This includes evaluating alternative sources of supply, extending purchase commitments with our suppliers. Thirdly, we continue to evaluate further pricing actions. As a reminder, we implemented a 10% price increase on hardware in early April. The impact of pricing and rising component costs are reflected in our Q4 and fiscal 2026 outlook. These dynamics, paired with the continued operating efficiency, resulted in non-gap operating margin of 21.3% in Q3, flat versus Q3 of 25%. Looking forward, we expect to drive operating leverage as we scale and continue to make progress against our M&A integration plans. In Q3, we made a lot of progress on our integration plans. This was driven by strong execution and collaboration by our teams across every function, including our new colleagues from our recent acquisitions who have truly risen to the occasion. This is already driving tangible results. Our integration philosophy starts with product and our relentless focus on driving innovation. Just months after closing the CyberArk transaction, we introduced IDERA, our next-generation identity security platform. This includes the key innovations Nikesh highlighted, including modern PAM and agentic identity security integrated with Prisma AIRS, as well as deeper integration of identity signals with our core NETSEC and Cortex platforms. Early go-to-market collaboration has also been encouraging, with more than 1,000 cross-organization engagements initiated between the core and identity sales organizations to date. On the expense side, we're leveraging our combined scale to drive improved cloud hosting economics for the acquired CyberArk business. Post-close, we're optimizing our organizations to deliver a unified, one-team culture that is future-ready. We are carefully reviewing every single line item across each of our financial statements to drive operating leverage across vendors and functions. This includes streamlining our combined real estate footprint, which includes over 40 new facilities from our acquisitions to enhancing and fostering collaboration post-close. Additionally, we're optimizing our marketing and our IT vendor footprint. To date, we have identified more than 300 IT vendors to streamline and have already dispositioned approximately 20%. All of these factors combined will enable us to hit our CyberArk Synergy targets about three to six months earlier than we initially anticipated. This visibility, paired with our continued operating leverage across the overall company, reinforces our confidence in reaching 40% free cash flow margin in fiscal 28th. In Q3, we generated adjusted free cash flow of $910 million, a 57% increase year-over-year. On a trailing 12-month basis, we generated $4.08 billion in adjusted non-GAAP free cash flow. This represents a margin of 38.5% of 430 basis point improvement year-over-year, even with the inclusion of CyberArk and Chronosphere. We will, of course, have a full year of CyberArk and Chronosphere expenses next year, but these results solidify our continued ability to deliver best-in-class free cash flow margin and enabled us to raise our fiscal 26 guidance. The strong cash flow generation supports our opportunistic share repurchase program. During Q3, we utilized $1 billion to buy back 6.8 million shares at an average cost of $147.69. We currently maintain a billion dollars of remaining capacity under our existing repurchase authorization. Moving to the non-GAAP items, stock-based compensation increased sequentially to 17% of revenue in Q3, primarily driven by SBC related to our recent acquisitions. While M&A related SBC will continue to be amortized in future quarters, we expect stock-based compensation a percentage of revenue to return to pre-acquisition levels on a run rate basis in approximately 12 to 18 months. Beyond stock-based compensation, our GAAP results also reflect transaction and integration costs from these acquisitions, further detailed in our SFI. These non-recurring charges resulted in the GAAP net loss per share of 22 cents for the quarter. Our diluted non-GAAP EPS, which adjusts for SBC and one-time items, reached 85 cents, which came in 5 cents above the high end of our Q3 guidance. Reflecting on my five years in the seat, I've always maintained that our business model scales well across every line item of our P&L. This financial framework is precisely what allows us to execute our broader corporate strategy from a position of strength. When you look at our M&A trajectory, we initially proved this execution capability by integrating over 20 tuck-in acquisitions to build out our platforms. Today, we are successfully integrating larger, highly strategic acquisitions, all while driving durable growth and balancing against our profitability commitments. Now turning to guidance. Given the acceleration in our Q3 organic bookings growth, our early progress on M&A integration, and the strong Q4 pipeline, we are raising our full-year fiscal 2026 guidance across all metrics for both our core and acquired businesses. This quarter and last, we provided a breakout of performance for both our core business and our recent acquisitions. Our intention was always to make this a one-time in nature and move our disclosures closer in line to how we run the business. Therefore, we'll be moving to total company guidance moving forward. Beginning in fiscal 2027, we intend to provide segment-level revenue disclosures across network security, cortex, and identity. This will align our reporting with how we run the business and our platform strategy post-integration. Now let me take you through the guidance in detail. For the fourth quarter of 2026, we expect NGS ARR of $8.9 billion to $8.95 billion or 59% to 60% growth. We expect RPO of $20.9 to $21 billion or 32% to 33% growth. and we expect revenue of $3.345 billion to $3.355 billion or 32% growth. Fully diluted share counts of 830 to 840 million shares, diluted non-GAAP EPS would be in the range of 96 to 98 cents. For the fiscal year 2026, we expect NGS ARR of $8.9 billion to $8.95 billion or 59 to 60% growth We expect RPO of $20.9 to $21 billion or 32 to 33% growth. We expect revenue of $11.415 billion to $11.425 billion or 24% growth. Operating margins to be in the range of 28.9 to 29.2%. Diluted non-GAAP ETFs to be in the range of $3.77 to $3.79. fully diluted share count of 763 to 766 million shares and adjusted free cash flow margin of 37.5%. We've included our typical modeling points in the presentation for your review. And with that, I will turn it back over to Hamza for Q&A. Okay.