“We expect this impact will reduce very rapidly next year when the full benefits of our mitigation actions are realized.”

In context

“as Mark outlined, we're updating our 2025 guidance to reflect the continued strength of the business, including the very strong start to the year in Q1, and to reflect the expected impact of recent changes in the macroeconomic environment. While these recent macro changes are causing uncertainty and remain fluid, we thought it would be most helpful to the investment community to offer our best estimate of the impact of the known changes as of today and embed them in our guidance. Let me start with a high-level summary of the change to the midpoint of the guide. I'll then provide more detail around each one of the changes so that you have the right context. Adjusted EPS is a dollar lower at the midpoint than our previous guidance. $0.70 is driven by the tariffs between the U.S. and China. We expect this impact will reduce very rapidly next year when the full benefits of our mitigation actions are realized. Non-China-related tariffs are assumed to have no net impact on the adjusted EPS for the full year 2025. Our mitigation actions offset the gross impact of the new costs within the year. And finally, the impact of changes driven by the current policy focus of the US administration has a $0.30 impact in 2025. Revenue dollars are unchanged at the midpoint. The volume-related impacts are offset by our mitigating price actions and more favorable FX. And we now expect organic revenue growth to be 2% at the midpoint of the range for the year. The guidance is prepared using tariff rates that are in place today and assumes no change in the current U.S. policy focus. So we're updating the guide to reflect the change in the macro environment and our highly impactful mitigation actions. It's important”