Guidance Range

Guidance range means the low and high end of a company’s forecast for future results. In simple terms, it gives investors a range instead of one exact number. Guidance ranges are important because the future is uncertain. Companies often provide a range for revenue, earnings, margins, or cash flow to show possible outcomes. For example, a company may guide for quarterly revenue between $5.0 billion and $5.3 billion. A guidance range is not a promise that results will land inside the range. Unexpected changes in demand, costs, or the economy can still push results outside it.