Adjusted EPS was $1.76 against the analysts’ average estimate of $1.48, so it beat that estimate by 19.0%. Revenue was $2.8 billion for Q2 2027, which fell 3.9% year on year.
Against expectations
The company beat the analysts’ average estimate in 4 of the last eight reported quarters.
How the quarter compares
Revenue growth in 4 of the previous eight quarters was faster than this quarter’s. The trailing operating margin was 9.3%, down 0.2 percentage points from a year earlier. Free cash flow over the trailing twelve months was $984.0 million, up 20.1% on the year before. Free cash flow was 9.0% of revenue over the same period (the free-cash-flow margin).
Guidance
Management has also set expectations. The company gave its fiscal 2027 guidance for Revenue: $11.3 billion to $11.6 billion. Over the same period, the company gave its fiscal 2027 guidance for Adjusted EBITDA: $1,260.0 million to $1,290.0 million. The company raised its fiscal 2027 guidance for Adjusted Diluted EPS: $6.50 to $6.70. Meanwhile, the company gave its fiscal 2027 guidance for Free Cash Flow (adjusted): $850.0 million to $925.0 million.
The valuation angle
Our model translates these figures into value. Fundamentalytics’ base-case value is $80.00 per share, against a share price of $78.32 used on the release date. This is our model, not the company’s. At the same time, in our model, growth 5 percentage points lower would lower the value by 34.1%, and 5 percentage points higher would raise it by 44.8%. A discount rate 1 percentage point higher would lower the value by 19.2%.
What comes next
The next filing will show whether the trends above continue, slow or reverse.
