For the full year 2023 guidance, we expect these incremental restrictions and processes to be a $25 million headwind to ACV and revenue relative to our full year guidance provided in August, which will mute our growth in China in 2023. The full year 2023 impact for ACV, revenue, diluted earnings per share and unlevered operating cash flows is summarized in the table below.
Despite these challenges, we are seeing operational momentum in the rest of our business and as a result are increasing ACV, revenue, diluted earnings per share and unlevered operating cash flows. The updated full year 2023 guidance reflects this incremental operational performance offset by China impacts. Additionally, meaningful U.S. Dollar strengthening in exchange rates has created continued headwinds since providing full year guidance in August. As a result, the guidance also assumes incremental adverse impacts from currency, primarily driven by substantial fluctuations in the Euro and Japanese Yen exchange rates.
The underlying foundation of our business remains strong and we continue to see momentum. The below chart captures the drivers of the update to our guidance since August:
| (in millions, except per share data) |
Mid-point of
Guidance in August |
Incremental
Operational Performance* |
Reduction
due to China Export Restrictions and Processes |
November
mid-point of Guidance at August Exchange Rates |
Currency
Fluctuations |
November
mid-point of Guidance at Current Exchange Rates | |||||||||||
| ACV | $ 2,308 | $11 | ($25) | $ 2,294 | ($28) | $ 2,266 | |||||||||||
| Revenue | $ 2,292 | $15 | ($25) | $ 2,282 | ($23) | $ 2,259 | |||||||||||
| Diluted earnings per share | $ 8.64 | $0.25 | ($0.21) | $ 8.68 | ($0.13) | $ 8.55 | |||||||||||
| Unlevered operating cash flows | $ 724 | $10 | ($7) | $ 727 | ($7) | $ 720 | |||||||||||
