“Based on recent rates, FX would have an unfavorable impact to fiscal '25 in the range of $225 million to $325 million, including $100 million to $150 million in the third quarter.”

Why this grade

Management revised the full-year FX headwind estimate upward before the original commitment came due, raising the low end of the range from $225 million to $275 million while holding the high end at $325 million. Since FX impact here is a cost/headwind, a higher unfavorable impact is worse, so the revised range represents a less favorable outcome than originally committed.

Deviation basis: percent change in midpoint of guided FX headwind, from $275 million to $300 million

In context

“returning capital to shareholders, primarily through our dividend and from time-to-time, opportunistic share repurchases. As I mentioned last quarter, we've increased our focus on tuck-in M&A. We're also continuing to work to evaluate our portfolio. Overall, we view active portfolio management as an important lever to delivering on our long-term strategic and financial objectives. Now, turning to guidance. Given our continued outperformance and positive momentum, we're raising our full year revenue and EPS guidance. We now expect fiscal '25 organic revenue growth of 4.75% to 5%, an increase from the prior range of 4.5% to 5%. For Q3, we're expecting to deliver another quarter of mid-single-digit growth on the top line and we'd have you model organic revenue growth of approximately 4.75%. Based on recent rates, FX would have an unfavorable impact to fiscal '25 in the range of $225 million to $325 million, including $100 million to $150 million in the third quarter. Moving down the P&L, we expect our third and fourth quarter gross margins to improve sequentially as currency becomes much less of an impact. We also continue to expect our full year operating margins to expand as we balance driving efficiencies with investing behind our product launches and in our long-term pipeline. On the bottom-line, we're raising our fiscal '25 non-GAAP diluted EPS guidance to a new range of $5.44 to $5.50, an increase from the prior range of $542 to $5.50. For the third quarter, we expect EPS of $1.35 to $1.37. The fiscal year 2025 guidance range continues to include an unfavorable 5% impact from foreign currency including an unfavorable 1% impact in Q3. Further details on our annual guidance can be found in the guidance slide in our presentation. So, to conclude, w”