“We expect the operational cadence of sales and EPS to be split equally between the first and second half in line with historical performance.”

In context

“ee a softer outlook than the start of the year. In Market forecasts have been lowered reflecting weaker consumer spending, and lower demand in industries such as auto, and electronics. The blended GDP, IPI, 2025 growth was estimated to be 2.1% and has since come down to 1.8% for the year. We continue to believe we can grow above macro due to progress on all our commercial excellence initiatives and focus on new product introductions. However, due to the softer market, we're trending to the lower end of a 2% to 3% range. On operating margins, due to the Q1 performance, we see upside to the midpoint of our margin and earnings guidance range. In terms of non-operational drivers, FX has been more favorable than expected However, it is offset by share option exercise and a higher net interest. We expect the operational cadence of sales and EPS to be split equally between the first and second half in line with historical performance. On cash, we continue to expect approximately 100% adjusted free cash flow conversion Additionally, to offset higher than expected share option exercise, we're increasing our gross share repurchases in 2025 to $2 billion versus the $1.5 billion discussed previously. As Bill pointed out, we have bought authorization for $7.5 billion of repurchases and we are prepared to be opportunistic in response to market conditions. As you know, we are dealing with tariffs, and it will provide a quantification of the tariff sensitivity on slide seven. Looking from left to right on the slide, our January guidance was for earnings of $7.60 to $7.90. As I earlier mentioned, given the Q1 strength, we are trending about $0.10 better operationally while our non-operational is balanced between FX and below the”