“We estimate an incremental positive foreign currency impact of $1.1 billion versus previous guidance, resulting in a full-year headwind of $600 million.”

In context

“priorities to appropriately manage our business. Let's now discuss our full-year guidance for 2025. We are increasing our operational sales guidance for the full year by $700 million to reflect the addition of Caplyta following the completion of the IntraCellular acquisition. Joe Wolk: Therefore, we now expect operational sales growth for the full year to be in the range of 3.3% to 4.3% with a midpoint of $92 billion or 3.8%. Excluding the impact from acquisitions and divestitures, we are maintaining our adjusted operational sales growth to the range of 2% to 3% compared to 2024. As you know, we don't speculate on future currency movements, and last quarter, we utilized the euro spot rate relative to the US dollar of 1.04. Last week, the euro spot rate relative to the US dollar was 1.11. We estimate an incremental positive foreign currency impact of $1.1 billion versus previous guidance, resulting in a full-year headwind of $600 million. As such, we now expect reported sales growth between 2.6% to 3.6% with a midpoint of $91.4 billion or 3.1%. Turning to other notable items on the P&L, we are maintaining our guide of operating margin improvement by 300 basis points versus 2024. This improvement takes into consideration the dilution from the IntraCellular transaction as well as what we know today about the impact of tariffs on our business. Joe Wolk: We now project net interest expense between $100 million and $200 million, primarily driven by financing costs associated with the IntraCellular acquisition. Other income is anticipated to be in the range of $1 billion to $1.2 billion, a slight increase versus previous guidance. Despite $0.25 dilution from the IntraCellular acquisition, including the impact of tariffs, based o”