“For Q3, we expect revenue growth of 12% (or 11% F X neutral) driven by growth in memberships, pricing, and ad revenue.”

“Our forecast implies annual operating income growth of 20%+ for 2026.”

“We'll continue to build out our live programming we have two Major League Baseball events ( Home Run Derby and Field of Dreams game) in Q3, as well as the Tyson Fury vs. Anthony Joshua fight later this year.”

“We also recently announced an expanded agreement with the NFL, securing a premium slate of games that includes a week-one matchup in Q3, as well as a Thanksgiving Eve game and NFL Christmas Gameday in Q4, and a final week contest in Q1 of next year.”

“After today's What We Watched report, which covers the first half of 2026, we will shift to publishing this report annually in the first quarter, beginning in 2027.”

“We have $1B of debt maturing later this year, which we plan to refinance.”

“For the full year, we continue to expect FCF of approximately $12.5B, and an annual cash content spend to amortization ratio of 1.1x.”

“We're also automating more of the workflow around how advertisers transact with us by extending programmatic access to Pause Ads and live inventory this summer.”

“Our US upfront negotiations are in advanced stages, and we expect commitments to close in the next few weeks.”

“For example, in 2026, we expect live programming to account for just over 5% of our content spend but only 1% of view hours.”

“Building out our ads business continues to be a top priority and we remain on track to deliver approximately $3 billion in ads revenue in 2026.”

“We project an operating margin of 33.2% compared with 28.2% in the year ago quarter.”

“For 2026, we've narrowed our forecasted revenue range to $51.0-$51.4B and continue to forecast an operating margin of 31.5%, both consistent with our prior guidance.”

“For the full year fiscal 2027, we expect GAAP and non-GAAP tax rates to be between 16.0% and 18.0%, excluding any discrete items and material changes to our tax environment.”

“Revenue is expected to be $91.0 billion, plus or minus 2%. We are not assuming any Data Center compute revenue from China in our outlook.”

“GAAP and non-GAAP gross margins are expected to be 74.9% and 75.0%, respectively, plus or minus 50 basis points.”

“We expect a substantial increase in cash taxes in the second quarter related to estimated federal and state cash tax payments.”

“We expect our DSO to return to more normal levels next quarter.”

“GAAP and non-GAAP operating expenses are expected to be approximately $8.5 billion and $8.3 billion, respectively.”

“While we continue to execute on innovations to reduce the cost of manufacturing and operations, over time, we expect our hardware- related profits to be accompanied by an acceleration of AI, software and fleet-based profits.”

“This year we look to increase our presence in Japan by doubling our service centers and expanding our Supercharger coverage in the world's third largest vehicle market.”

“Preparations for our first large-scale Optimus factory will begin shortly in Q2. The first- generation line, designed for 1 million robots a year, will replace the Model S and Model X lines in Fremont.”

“We remain focused on growing our sales volumes through a differentiated and efficiently managed product portfolio, which includes leveraging and optimizing our existing production capacity before building new factories and production lines. Cybercab, Tesla Semi and Megapack 3 are on schedule for volume production starting in 2026.”

“Once in production, we expect that Cybercab will begin to replace the existing Model Y fleet and will be the largest volume vehicle in the fleet over time.”