“At these rates, tariffs alone are a 5-point headwind to core EPS growth in fiscal '26.”

In context

“uates 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. We will look for every opportunity to mitigate these impacts, including sourcing flexibility, productivity improvements and pricing with innovation in affected categories and markets. Below the operating line, we expect modestly higher interest expense versus last fiscal year and a core effective tax rate in the range of 20% to 21% for fiscal '26. Combined, roughly a $250 million after-tax headwind to earnings growth. We are forecasting adjusted free cash flow productivity in the range of 85% to 90% for the year. This includes an increase in capital spending as we add capacity in several categories and as we incur the cash costs from the restructuring work. We expect to pay around $10 billion in dividends and to repurchase approximately $5 billion in common stock. Combined, a plan to retu”