Table of Contents
a. Demand
Beat revenue estimate by 3.9% & beat guidance by 4.1%.
Beat billings estimate by 6.8%.
Missed remaining performance obligations (RPO) estimate by 2.8%.
b. Profits & Margins
Missed 80.5% GPM estimate by 80 basis points (bps; 1 basis point = 0.01%).
Gross margin was hit a bit by investment timing. No changes to their structural 80%+ GPM target.
Beat EBIT estimate by 10.3% & beat guidance by 11.7%.
OpEx rose by 26% Y/Y compared to 36% Y/Y OpEx growth during Q2 2025.
Beat $0.58 EPS estimate by $0.07 & beat guidance by $0.07.
Beat FCF estimates by 29%.
c. Balance Sheet
$5B cash & equivalents.
$1B convertible notes.
3.4% Y/Y dilution.
d. Annual Guidance & Valuation
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