โ
๐ ๐๐๐ฌ๐ฎ๐ฅ๐ญ๐ฌ
โข Adj. EPS: $1.00 (Est. $1.02) โ.
โข Revenue: $4.106B (Est. $4.09B) โ , +20.5% YoY.
โข GAAP EPS: $0.27.
โข Subscription Revenue: $3.988B, +21% YoY.
โข Adj. Operating Margin: 32.5%.
โข Operating Cash Flow: $839M, +20.5% YoY.
โข Free Cash Flow: $822M, +20% YoY.
โข cRPO: $13.65B, +20.5% YoY.
โข Total RPO: $29.7B, +22% YoY.
โ
๐ฏ ๐๐ฎ๐ข๐๐๐ง๐๐
โข Q4 Subscription Revenue: $4.245Bโ$4.255B, +22.5%โ23% YoY.
โข Q4 cRPO Growth: 18.5% YoY.
โข Q4 Adj. Operating Margin: 32%.
โข FY2026 Subscription Revenue: $15.78Bโ$15.79B, raised.
โข FY2026 Adj. Operating Margin: 31.5%.
โข FY2026 Free Cash Flow Margin: 36%, raised by 100 bps.
โข FY2026 AI Annual Contract Value Target: $1.7B, raised from $1.0B at the beginning of the year.
โ
๐ ๐๐๐ฒ ๐๐๐ค๐๐๐ฐ๐๐ฒ๐ฌ
โข Q3 revenue exceeded consensus by ~0.4%, while adjusted EPS missed by ~2.0%.
โข AI annual contract value target increased 70% YTD, reflecting accelerating enterprise adoption.
โข AI net new ACV exceeded expectations, while production consumption of agentic AI surged more than 13x YoY YTD.
โข Total RPO approached $30B, with cRPO growing 21% in constant currency.
โข Signed 19 deals exceeding $5M in net new ACV, up more than 135% YoY.
โข Customers with over $5M in ACV increased 23% to 680.
โข Expanded OpenAI partnership, including ChatGPT integration, Codex and AI security solutions.
โข Launched Control Tower Alliance with partners including NVIDIA, AWS, Anthropic, OpenAI and Cisco.
โข Raised FY2026 free cash flow margin guidance to 36%, supported by reduced capital expenditures.
โ
๐ฌ ๐๐๐ง๐๐ ๐๐ฆ๐๐ง๐ญ ๐๐จ๐ฆ๐ฆ๐๐ง๐ญ๐๐ซ๐ฒ
โOur AI momentum continues to build, with AI net new ACV exceeding expectations and enabling us to raise our year-end target for the second time this year, from $1 billion at the start of the year to $1.7 billion now.โ
