“On the bottom line, we are guiding for core EPS growth in line to plus 4% versus fiscal year '25, core EPS of $6.83. This guidance equates to a range of $6.83 to $7.09 per share, $6.96 or up 2% at the center of the range.”

In context

“for fiscal '26 prudently reflects these market realities. On the top line, we currently expect the markets in which we compete to deliver local currency value growth in the range of flat to 3% for the year with the current run rate roughly in the middle of this range. Our objective is to grow organic sales modestly ahead of the underlying growth of these markets. However, our guidance includes a 30 to 50 basis point headwind from brand and product form discontinuations as part of our 2-year restructuring program. Taken together, our guidance range for organic sales growth is in line to up 4% versus prior year. The low end of this range protects for additional softness in underlying market growth rates. The high end would require acceleration in underlying market growth and market shares. On the bottom line, we are guiding for core EPS growth in line to plus 4% versus fiscal year '25, core EPS of $6.83. This guidance equates to a range of $6.83 to $7.09 per share, $6.96 or up 2% at the center of the range. This outlook includes a commodity cost headwind of approximately $200 million after tax and a foreign exchange tailwind of approximately $300 million after tax. In addition, our outlook includes $1 billion before tax in higher costs from tariffs in fiscal '26. This is based on tariff rates announced since July 9 and assumes USMCA exceptions -- exemptions still apply for imports from Canada and Mexico. You can think about the tariff impact in 3 buckets: about $200 million from materials and products imported from China to the U.S., another $200 million from Canada's tariffs on goods shipped from the U.S. and the remaining $600 million from tariffs on goods coming to the U.S. from the rest of the world. At these rates, tariffs alone are a 5-point headwind to core EPS growth in fiscal '26. W”