Guidance: Matthew Murphy: Putting it all together, we now expect fiscal 2028 revenue of approximately $18 billion, up $1.5 billion from the $16.5 billion outlook we provided just 1 quarter ago.
Demand and orders: Matthew Murphy: On the optical DSP side, 800 gig demand remains strong, while our 1.6T business is ramping rapidly, a trend we expect to accelerate further in fiscal 2028.
Margins: Daniel Durn: We expect our non-GAAP gross margin to be between 57.5% and 58.5%. Revenue levels and product mix remain key determinants of gross margin in any given quarter with the forecasted acceleration of our custom business creating the sequential headroom in the fiscal third quarter -- the sequential headwind in the fiscal third quarter.
Analyst Q&A
Analyst Harlan Sur asked: Welcome to the team, Dan and Ross. Matt, given the Google commercial program you signed back in late July, a $120 billion in cumulative revs over 6 years, if you hit all of your milestones, right, that puts you if you just annualize it at about $18.5 billion per year in revenues just in Google XPU attach custom ASICs, right? Management Matthew Murphy answered: And then -- so then you look out to fiscal '29 where in our last call, I talked about a $10 billion kind of plus number for custom in fiscal '29, which isn't a new number, by the way. That was something that we outlined back in June '25 and even back in April '24, we were talking about custom revenues in the $8 billion to $10 billion range. So we've had a consistent view of what that can look like. This opportunity with this customer greatly increases the revenue opportunity for us in custom with some of that potentially starting in '29.
