What is the explanation of the Hadith Qudsi: "My mercy has preceded My wrath"?

The Prophet's (peace and blessings be upon him) saying: "My mercy has preceded My wrath" encompasses two meanings: The first is that Allah's mercy reaches His servants as a grace from Him, without any deserving on their part, whereas His wrath does not befall them except after a cause for deserving it has emanated from them. Therefore, Allah provides for disbelievers and bestows favors upon them, and He may even guide them to Islam despite their rebellion. The second meaning is that His mercy towards His creation, even the disobedient and disbelievers, is greater than His wrath towards them. This is supported by the narration: "My mercy overcomes My wrath." This is also indicated by the fact that Allah has decreed for one good deed tenfold its like or more, and for one evil deed only its like. Thus, the universe revolves around Allah's mercy, and His wrath is incidental.