“Next, we have a bias towards returning cash to shareholders and expect we'll return more than 100% of free cash flow to shareholders through 2026.”

In context

“ash flow growth. 2024 was a strong year with approximately $1 billion more in operating profit than we had originally expected at the start of the year. In 2025, we're again performing ahead of our expectations and raising guidance across all key metrics. Compared to our 2024 Investor Day outlook, this represents an increase of more than $1 billion in operating profit. Importantly, we expect this momentum extend into 2028 with operating profit growing more than $3 billion and free cash flow growing over $1.5 billion versus '25. We're also leveraging our strong balance sheet and free cash flow generation to support mid-teens EPS growth. With respect to capital allocation, our principles remain the same. First, we will invest in the business to support growth in current and future programs. Next, we have a bias towards returning cash to shareholders and expect we'll return more than 100% of free cash flow to shareholders through 2026. Last year, we shared plans to return roughly $19 billion of cash to shareholders between '24 and '26, between dividends and buybacks. Now subject to Board approval, we're increasing that to $24 billion, including about $19 billion of buybacks and roughly $5 billion of dividends at roughly 30% of net income. This is 20% higher than what we discussed a year ago. Beyond 2026, we expect to return at least 70% of free cash flow annually through a combination of dividends and buybacks. Finally, we're open to opportunistic bolt-on M&A with a high threshold for strategic, operational and financial fit. We believe this balanced and disciplined approach best supports our goal of compounding long-term shareholder returns. And to close, on Slide 29. Our strong operational and financial foundation sup”