“And then the pressure on diabetes, I think it's primarily driven by the rollout of Simplera... to the tune of about 60 basis points at the GM level, which will translate into the earnings. And again, that will get better as the manufacturing ramps up.”

In context

“hierry Pieton: Did I say headwind? Sorry. tailwind. Sorry. Geoff Martha: You got tax on your mind, that's headwind. But FX flips to a tailwind. Ryan Weispfenning: Thanks for the question, Travis. Go ahead. Travis Steed: I was going to ask, is the 7% operating profit, including or excluding tariffs, is there an extra week this year? And then why is there a diabetes EPS headwind this year if it's 18 months away, those are just sort of a few quickies. Thierry Pieton: So yeah, so the 7% is excluding the impact of tariffs. And the impact of tariffs, again, as you probably saw in the commentary, it's $200 million to $350 million of cost at the cost of goods sold level. So from an impact on the op profit growth, I guess it's something between 2.2 and 3.2 points depending on the outcome on China. And then the pressure on diabetes, I think it's primarily driven by the rollout of Simplera. So, it's the launch of this product. And as we grow it, the cost is going to go down, but initially it does put quite a bit of pressure on our margin rate to the tune of about 60 basis points at the GM level, which will translate into the earnings. And again, that will get better as the manufacturing ramps up. Travis Steed: Helpful. Thanks a lot. Ryan Weispfenning: Okay. Thanks, Travis. Let's take the next question, please, Wynne. Operator: We'll take the next question from Robbie Marcus at JPMorgan. We'll take the next question from Robbie Marcus at JPMorgan. Robbie Marcus: Great. Good morning, everyone. And, Thierry, welcome. Maybe a question for you and I'll just have one. You said you'll be back to high single-digit EPS growth in fiscal year ‘27. That's with assuming currency remains the same and favorable and you execute the diabetes spin and resulting share buyback, which aren't really quite sustainable in nature. So, without those benefi”