Q3 2026 Medtronic PLC Earnings Call

February 17, 2026

Speaker #1: Good morning. And welcome to our fiscal 26, third quarter earnings webcast. I am Ingrid Goldberg, head of Medtronic Investor Relations. And I'm joined by Jeff Martha, chairman and chief executive officer in Thierry Piton, chief financial officer.

Ingrid Goldberg: Good morning, and welcome to our fiscal 2026 Q3 earnings webcast. I am Ingrid Goldberg, Head of Medtronic Investor Relations, and I'm joined by Geoff Martha, Chairman and Chief Executive Officer, and Thierry Piéton, Chief Financial Officer. Geoff and Thierry will provide comments on the results of our third quarter, which ended on 23 January 2026, and our outlook for the remainder of the fiscal year '26. After our prepared remarks, we'll take questions from the sell-side analysts that cover the company. Earlier this morning, we issued a press release discussing our quarterly results and several financial schedules. We also posted an earnings presentation that provides additional details on our performance. The presentation can be accessed in the earnings press release and on our website at investorrelations.medtronic.com.

Speaker #1: Jeff and Thierry will provide comments on the results of our third quarter, which ended on January 23, 2026. And our outlook for the remainder of the fiscal year 26.

Speaker #1: After our prepared remarks, we'll take questions from the sell-side analysts that cover the company. Earlier this morning, we issued a press release discussing our quarterly results and several financial schedules.

Speaker #1: We also posted an earnings presentation to provide additional details on our performance. The presentation can be accessed in the earnings press release and on our website at investorrelations.medtronic.com.

Speaker #1: During today's program, many of our statements will be forward-looking and actual results may differ materially as explained in our SEC filings. We undertake no obligation to update any forward-looking statements.

Ingrid Goldberg: During today's program, many of our statements will be forward-looking, and actual results may differ materially, as explained in our SEC filings. We undertake no obligation to update any forward-looking statements. Unless otherwise stated, all comparisons are on a year-over-year basis, and revenue comparisons are made on an organic basis, which excludes the impact of foreign exchange, prior year revenue from the divestiture of the Dutch Obesity Clinic, known as NOK, and third quarter revenue in the current and prior year reported as other. References to sequential revenue changes compare to the second quarter of fiscal 2026 and are made on an as-reported basis. All share references are on a reported revenue and year-over-year basis and compare to our third fiscal quarter and our competitors' fourth calendar quarter. Reconciliations of all non-GAAP financial measures can be found in our earnings press release or on our website at investorrelations.medtronic.com.

Speaker #1: Unless otherwise stated, all comparisons are on a year-over-year basis and revenue comparisons are made on an organic basis, which excludes the impact of foreign exchange, prior year revenue from the divestiture of the Dutch obesity clinic known as NOK, and third quarter revenue in the current and prior year reported as other.

Speaker #1: References to sequential revenue changes compared to the second quarter of fiscal 26 and are made on an as-reported basis. All share references are on a revenue end-year-over-year basis and compare to our third fiscal quarter and our competitors' fourth calendar quarter.

Speaker #1: Reconciliations of all non-GAAP financial measures can be found in our earnings press release or on our website at investorrelations.medtronic.com. And finally, our EPS guidance does not include any charges or gains that would be reported as non-GAAP adjustments to earnings during the fiscal year.

Ingrid Goldberg: And finally, our EPS guidance does not include any charges or gains that would be reported as non-GAAP adjustments to earnings during the fiscal year. With that, I am now pleased to hand it over to you, Geoff.

Speaker #1: With that, I am now pleased to hand it over to you, Jeff.

Speaker #2: Okay. Thank you, Ingrid. And hello, everyone. It's an exciting time for Medtronic. We're unlocking new markets and accelerating our performance. And Q3 marks the highest revenue growth Medtronic has achieved in 10 quarters, with 6% organic revenue growth.

Geoff Martha: Okay. Thank you, Ingrid, and hello, everyone. It's an exciting time for Medtronic. We're unlocking new markets and accelerating our performance. Q3 marks the highest revenue growth Medtronic has achieved in 10 quarters, with 6% organic revenue growth. Our end markets are strong, and we're leaning into multiple new opportunities for revenue growth with a continuous pipeline of new and innovative technologies, either developed internally or through venture and M&A, in areas core to Medtronic. This includes four generational growth drivers: our PFA platform for AFib, Symplicity Spyral for hypertension, Altaviva for urge urinary incontinence, and our Hugo surgical robot. Each, each one of these individual products could ultimately deliver well over $1 billion of revenue, and each serves a large, under-penetrated market, where Medtronic is uniquely positioned to lead and to take share.

Speaker #2: Our end markets are strong and we're leaning into multiple new opportunities for revenue growth with a continuous pipeline of new and innovative technologies, either developed internally or through venture and M&A in areas core to Medtronic.

Speaker #2: This includes four-generational growth drivers: our PFA platform for AFib, Simplicity Spiral for hypertension, AltaViva for urogeneral incontinence, and our Hugo surgical robot. Each one of these individual products could ultimately deliver well over $1 billion of revenue.

Speaker #2: And each serves a large under-penetrated market where Medtronic is uniquely positioned to lead and to take share. With 80% growth year-over-year, our cardiac ablation solutions business was once again the fastest growing in the segment, doubling the growth rate of our closest competitor.

Geoff Martha: With 80% growth year-over-year, our cardiac ablation solutions business was once again the fastest growing in the segment, doubling the growth rate of our closest competitor. This quarter, PFA grew nearly 200% worldwide. We gained 4 points of share in this rapidly growing, $13+ billion market with our Affera platform and our Sphere-9 catheter. Our catheters continue to demonstrate leading safety and durability, and the versatility of our Sphere-9 catheter is one of the many reasons we continue to see such high physician demand. Today, it's used in a broad range of cases across persistent and paroxysmal procedures globally. Now, alongside integrated mapping, 50% to 60% of cases now utilize both PFA and RF energies, all with this one singular catheter. We know versatility and efficiency are very important for enabling safer cases and improving EP lab workflows.

Speaker #2: This quarter, PFA grew nearly 200% worldwide. We gained four points of share in this rapidly growing 13-plus billion-dollar market with our Aferra platform in our Sphere 9 catheter.

Speaker #2: Our catheters continue to demonstrate leading safety and durability. And the versatility of our Sphere 9 catheter is one of the many reasons we continue to see such high physician demand.

Speaker #2: Today, it's used in a broad range of cases across persistent and paroxysmal procedures globally. Now, alongside integrated mapping, 50% to 60% of cases now utilize both PFA and RF Energies.

Speaker #2: All with this one singular catheter. We know versatility and efficiency are very important for enabling safer cases and improving EP lab workflows. We significantly added to our installed base, a strong leading indicator for future revenue growth and margin expansion.

Speaker #2: We have a long runway ahead to expand our footprint and deepen our penetration and we remain on track to double our revenue in this business.

Geoff Martha: We significantly added to our installed base, a strong leading indicator for future revenue growth and margin expansion. We have a long runway ahead to expand our footprint and deepen our penetration, and we remain on track to double our revenue in this business, delivering $2 billion trailing in total CAS revenue by first half of fiscal year 2027. Looking ahead, we're continuing to innovate and expand our current indications and geographies to drive continued growth. We are excited to bring Sphere-9 to Japan, and we're pursuing an expanded indication submission in VT. Both of these are planned for the first half of calendar 2026. The only other catheter that is generating even more excitement than Sphere-9 is Sphere-360. Last month, we received CE Mark and initiated the US pivotal trial for Sphere-360, which is our next-gen, single-shot, all-in-one PFA and mapping catheter.

Speaker #2: Delivering $2 billion trailing in total cash revenue by first half of fiscal year 27. And looking ahead, we're continuing to innovate and expand our current indications and geographies to drive continued growth.

Speaker #2: We are excited to bring Sphere 9 to Japan and we're pursuing an expanded indication submission in VT, both of these are planned for the first half of calendar 26.

Speaker #2: And the only other catheter that is generating even more excitement than Sphere 9 is Sphere 360. Last month, we received CE Mark and initiated the US pivotal trial for Sphere 360, which is our next-gen single-shot all-in-one PFA and mapping catheter.

Speaker #2: 360 demonstrated strong European clinical data and drew significant physician interest due to its safety and its durability. Now we're going to begin commercializing in Europe this spring and we look forward to bringing this unique catheter to the US.

Geoff Martha: Sphere-360 demonstrated strong European clinical data and drew significant physician interest due to its safety and its durability. Now we're going to begin commercializing in Europe this spring, and we look forward to bringing this unique catheter to the US. Beyond CATH, we're also making material progress with Symplicity Spyral for hypertension and Altaviva for urge urinary incontinence. Symplicity delivers a one-time, durable, minimally invasive treatment for hypertension and represents one of our largest growth drivers. Now, this is going to be a contributor for years to come, given the 18 million US patients with uncontrolled hypertension. We're seeing strong patient outcomes in the field, and the R&D and value proposition. It resonates with both physicians and patients.... Now we've got strong and growing clinical data, a broad label, and expanding reimbursement all in hand. Look, we've built the foundation.

Speaker #2: Beyond CAS, we're also making material progress with Simplicity Spiral for hypertension and AltaViva for urogeneral incontinence. Simplicity delivers a one-time durable, minimally invasive treatment for hypertension and represents one of our largest growth drivers.

Speaker #2: Now this is going to be a contributor for years to come given the 18 million US patients with uncontrolled hypertension. We're seeing strong patient outcomes in the field and the already in value proposition, it resonates with both physicians and patients.

Speaker #2: Now we've got strong and growing clinical data. A broad label and expanding reimbursement all in hand. Look, we built the foundation. Now we're focused on growing this new segment and transforming the hypertension treatment paradigm.

Geoff Martha: Altaviva for urge urinary incontinence. Symplicity delivers a one-time, durable, minimally invasive treatment for hypertension and represents one of our largest growth drivers. Now, this is going to be a contributor for years to come, given the 18 million US patients with uncontrolled hypertension. We're seeing strong patient outcomes in the field and the R&D and value proposition; it resonates with both physicians and patients. Now we've got strong and growing clinical data, a broad label, and expanding reimbursement all in hand. Look, we built the foundation. Now we're focused on growing this new segment and transforming the hypertension treatment paradigm. We've recently activated our direct-to-consumer Go Beyond campaign in key markets around the US, which is resulting in a 50 times increase in website visits versus the prior quarter. So a lot of interest coming in from patients.

Speaker #1: Delta Viva for urge urinary incontinence. Simplicity delivers a one-time, durable, minimally invasive treatment for hypertension and represents one of our largest growth drivers. Now, this is going to be a contributor for years to come, given the 18 million U.S.

Speaker #2: We've recently activated our direct-to-consumer Go Beyond campaign in key markets around the US, which has resulting in a 50 times increase in website visits versus the prior quarter.

Geoff Martha: Now we're focused on growing this new segment and transforming the hypertension treatment paradigm. We've recently activated our direct-to-consumer Go Beyond campaign in key markets around the US, which is resulting in a 50 times increase in website visits versus the prior quarter. So a lot of interest coming in from patients. Building a new market, it does take time, but that is something Medtronic knows how to do exceptionally well. And in parallel to building out this new segment, we're innovating for the long term. First, with our transradial catheter, which is on track to launch in the second half of fiscal year 2027, and with our Spiral Gemini trial, evaluating multi-organ ablation to further boost efficacy. Now, similarly, we are scaling Altaviva, our tibial neurostimulation device.

Speaker #1: Patients with uncontrolled hypertension—we're seeing strong patient outcomes in the field, and the already in value proposition—it resonates with both physicians and patients.

Speaker #2: So a lot of interest coming in from patients. Building a new market, it does take time, but that is something Medtronic knows how to do exceptionally well.

Speaker #1: Now we've got strong and growing clinical data. A broad label and expanding reimbursement all in hand. Look, we've built the foundation. Now we're focused on growing this new segment and transforming the hypertension treatment paradigm.

Speaker #2: And in parallel to building out this new market, we're innovating for the long term. First with our transradial catheter, which is on track to launch in the second half of fiscal year 27.

Speaker #1: We've recently activated our direct-to-consumer Go Beyond campaign in key markets around the U.S. which has resulting in a 50 times increase in website visits versus the prior quarter.

Speaker #2: And with our spiral Gemini trial, evaluating multi-organ ablation to further boost efficacy. Now similarly, we are scaling AltaViva. Our tibial neurostimulation device, AltaViva is a simple yet transformational option for treating urogeneral incontinence.

Speaker #1: So, a lot of interest coming in from patients. Building a new market does take time, but that is something Medtronic knows how to do exceptionally well.

Geoff Martha: Building a new market, it does take time, but that is something Medtronic knows how to do exceptionally well. And in parallel to building out this new market, we're innovating for the long term. First, with our transradial catheter, which is on track to launch in the second half of fiscal year 2027, and with our Spiral Gemini trial evaluating multi-organ ablation to further boost efficacy. Now, similarly, we are scaling Altaviva, our tibial neurostimulation device. Altaviva is a simple yet transformational option for treating urge urinary incontinence, which is a condition that affects 16 million people in the US. Altaviva is a very small device that requires no imaging, no sedation, activates the same day, is MRI ready, and offers up to 15 years of battery life, the longest in its category.

Speaker #1: And in parallel to building out this new market, we're innovating for the long term. First, with our transradial catheter, which is on track to launch in the second half of fiscal year '27.

Speaker #2: Which is a condition that affects 16 million people in the US. AltaViva is a very small device that requires no imaging. No sedation. Activates the same day.

Geoff Martha: Altaviva is a simple yet transformational option for treating urge urinary incontinence, which is a condition that affects 16 million people in the US. Altaviva is a very small device that requires no imaging, no sedation, activates the same day, is MRI ready, and offers up to 15 years of battery life, the longest in its category. Again, we are receiving great early interest and feedback from both physicians and patients, and we are training doctors. We're educating and supporting hospital staff and investing in omni-channel consumer activation. Look, it's early days for both of these launches, and we are focused on disciplined execution to convert early traction into procedures. Now, pivoting to Hugo. This quarter, our Hugo robot received FDA clearance for urologic surgical procedures, enabling us to begin our purposeful US launch.

Speaker #1: And with our spiral Gemini trial, evaluating multi-organ ablation to further boost efficacy. Now, similarly, we are scaling UltaViva. Our tibial neurostimulation device, UltaViva is a simple yet transformational option for treating urge urinary incontinence.

Speaker #2: Is MRI ready and offers up to 15 years of battery life. The longest in its category. Again, we are receiving great early interest and feedback from both physicians and patients.

Speaker #2: And we are training doctors. We're educating and supporting hospital staff and investing in omnichannel consumer activation. Look, it's early days for both of these launches.

Speaker #1: Which is a condition that affects 16 million people in the U.S. UltaViva is a very small device that requires no imaging. No sedation. Activates the same day.

Speaker #2: And we are focused on disciplined execution to convert early traction into procedures. Now pivoting to Hugo. This quarter, our Hugo robot received FDA clearance for urologic surgical procedures, enabling us to begin our purposeful US launch.

Speaker #1: It is MRI-ready and offers up to 15 years of battery life—the longest in its category. Again, we are receiving great early interest and feedback from both physicians and patients.

Geoff Martha: Again, we are receiving great early interest and feedback from both physicians and patients, and we are training doctors. We're educating and supporting hospital staff and investing in omni-channel consumer activation. Look, it's early days for both of these launches, and we are focused on disciplined execution to convert early traction into procedures. Now, pivoting to Hugo. This quarter, our Hugo robot received FDA clearance for urologic surgical procedures, enabling us to begin our purposeful US launch. And today, I'm excited to share that we've already completed our first installations and initial cases. As noted in our release this morning, last week, we completed our first cases at Cleveland Clinic, where surgeons echoed the strong feedback we continuously receive on Hugo's differentiation across multiple areas. This includes its flexibility, portability, open console, and of course, our trusted instrumentation.

Speaker #2: And today, I'm excited to share that we've already completed our first installations and initial cases. As noted in our release this morning, last week we completed our first cases at Cleveland Clinic.

Speaker #1: And we are training doctors. We're educating and supporting hospital staff and investing in omnichannel consumer activation. Look, it's early days for both of these launches.

Geoff Martha: Today, I'm excited to share that we've already completed our first installations and initial cases. As noted in our release this morning, last week, we completed our first cases at Cleveland Clinic, where our surgeons echoed the strong feedback we continuously receive on Hugo's differentiation across multiple areas. This includes its flexibility, portability, open console, and of course, our trusted instrumentation. Hugo is especially compelling when paired with our Touch Surgery digital ecosystem, an AI-powered data, connectivity, and analytics technology that is unique to Medtronic. This quarter, Touch Surgery installations increased over 20% sequentially and have now surpassed 1,000 systems globally. Further, we continue to evolve our Hugo system with the fourth generation software release and continuous system improvements. We are planning to expand into additional indications in the US, like hernia, part of our broader general surgery indication, where this system really shines.

Speaker #2: Where surgeons echoed the strong feedback, we continuously receive on Hugo's differentiation across multiple areas. This includes its flexibility, portability, open console, and of course, our trusted instrumentation.

Speaker #1: And we are focused on disciplined execution to convert early traction into procedures. Now, pivoting to Hugo. This quarter, our Hugo robot received FDA clearance for urologic surgical procedures, enabling us to begin our purposeful U.S.

Speaker #2: Hugo is especially compelling when paired with our touch surgery digital ecosystem. An AI-powered data connectivity and analytics technology that is unique to Medtronic. This quarter, touch surgery installations increased over 20% sequentially and have now surpassed 1,000 systems globally.

Speaker #1: launch. And today, I'm excited to share that we've already completed our first installations and initial cases. As noted in our release this morning, last week we completed our first cases at Cleveland Clinic.

Speaker #1: Where surgeons echoed the strong feedback we continuously receive on Hugo's differentiation across multiple areas. This includes its flexibility, portability, open console, and, of course, our trusted instrumentation.

Speaker #2: Further, we continue to evolve our Hugo system with the fourth-generation software release and continuous system improvements. We are planning to expand into additional indications in the US like hernia.

Speaker #1: Hugo is especially compelling when paired with our Touch Surgery digital ecosystem, an AI-powered data connectivity and analytics technology that is unique to Medtronic. This quarter, Touch Surgery installations increased over 20% sequentially and have now surpassed 1,000 systems globally.

Geoff Martha: Hugo is especially compelling when paired with our Touch Surgery digital ecosystem, an AI-powered data, connectivity, and analytics technology that is unique to Medtronic. This quarter, Touch Surgery installations increased over 20% sequentially and have now surpassed 1,000 systems globally. Further, we continue to evolve our Hugo system with the fourth generation software release and continuous system improvements. We are planning to expand into additional indications in the US, like hernia, part of our broader general surgery indication, where this system really shines. Customers value... I mean, they really value having a partner that spans the full continuum of surgical care. And Medtronic is the only company that has approved offerings across open, laparoscopic, and robotic-assisted surgeries, which matters as hospitals build and expand their surgical practices.

Speaker #2: Part of our broader general surgery indication where this system really shines. Customer's value I mean, they really value having a partner that spans the full continuum of surgical care.

Speaker #2: And Medtronic is the only company that has approved offerings across open, surgeries. Which matters as hospitals build and expand their surgical practices. Now we are thrilled with these four-generational growth drivers.

Geoff Martha: Customers value... I mean, they really value having a partner that spans the full continuum of surgical care. And Medtronic is the only company that has approved offerings across open, laparoscopic, and robotic-assisted surgeries, which matters as hospitals build and expand their surgical practices. Now, we are thrilled with these four generational growth drivers, but our innovation pipeline is far broader, and we are committed to driving sustained innovation across our portfolio and advancing a steady cadence of new technologies across high-need, high-growth categories where we are well positioned, like MMA, carotid stenting, thrombectomy, coronary DCB, cardiac rhythm management, spine surgery, as well as many others. And to that point, I am extremely excited to highlight a major milestone in our neuroscience business. Just last week, we secured FDA clearance for our Stealth AXiS surgical system for spinal procedures.

Speaker #1: Further, we continue to evolve our Hugo system with the fourth generation software release and continuous system improvements. We are planning to expand into additional indications in the U.S.

Speaker #1: like hernia. Part of our broader general surgery indication, where this system really shines. Customer's value I mean, they really value having a partner that spans the full continuum of surgical care.

Speaker #2: But our innovation pipeline is far broader. And we are committed to driving sustained innovation across our portfolio and advancing a steady cadence of new technologies across high-need, high-growth categories where we are well-positioned.

Speaker #1: And Medtronic is the only company that has approved offerings across open, laparoscopic, and robotic-assisted surgeries. Which matters as hospitals build and expand their surgical practices.

Speaker #2: Like MMA, carotid stenting, thrombectomy, coronary DCB, cardiac rhythm management, spine surgery, as well as many others. And to that point, I am extremely excited to highlight a major milestone in our neuroscience business.

Speaker #1: Now, we are thrilled with these four-generational growth drivers. But our innovation pipeline is far broader. And we are committed to driving sustained innovation across our portfolio and advancing a steady cadence of new technologies across high-need, high-growth categories where we are well positioned.

Geoff Martha: Now, we are thrilled with these four generational growth drivers, but our innovation pipeline is far broader, and we are committed to driving sustained innovation across our portfolio and advancing a steady cadence of new technologies across high need, high growth categories, where we are well positioned, like MMA, carotid stenting, thrombectomy, coronary DCB, cardiac rhythm management, spine surgery, as well as many others. To that point, I am extremely excited to highlight a major milestone in our neuroscience business. Just last week, we secured FDA clearance for our Stealth AXiS surgical system for spinal procedures. Stealth AXiS is a new transformative platform that unifies AI-powered planning, robotics, and navigation into one seamless system, elevated by the entire AiBLE ecosystem. Stealth AXiS was designed around navigation, which is paramount to surgeons' workflow in the OR.

Speaker #2: Just last week, we secured FDA clearance for our stealth access surgical system for spinal procedures. Stealth access is a new transformative platform that unifies AI-powered planning, robotics, and navigation into one seamless system.

Speaker #1: Like MMA, carotid stenting, thrombectomy, coronary DCB, cardiac rhythm management, spine surgery, as well as many others. And to that point, I am extremely excited to highlight a major milestone in our Neuroscience business.

Geoff Martha: Stealth AXiS is a new transformative platform that unifies AI-powered planning, robotics, and navigation into one seamless system, elevated by the entire AiBLE ecosystem. Stealth AXiS was designed around navigation, which is paramount to surgeons' workflow in the OR. Today, navigation, which we pioneered and we lead, drives 70% of US spine procedures, and really, it just dictates the workflow in the spine OR. So Stealth AXiS is really two things. It's about taking share as a new platform with improved functionality, and it brings down barriers for physicians to step into robotics without disrupting their workflow. Now, building on our 10,000-unit installed base, we are expanding and opening this segment and extending our leadership, and we're not stopping at spine. We anticipate pursuing future cranial and ENT indications for Stealth AXiS.

Speaker #2: Elevated by the entire ABLE ecosystem. Stealth access was designed around navigation. Which is paramount to surgeons' workflow in the OR. Today, navigation, which we pioneered and we lead, drives 70% of US spine procedures and really, it just dictates the workflow in the spine OR.

Speaker #1: Just last week, we secured FDA clearance for our stealth access surgical system for spinal procedures. Stealth access is a new transformative platform that unifies AI-powered planning, robotics, and navigation into one seamless system.

Speaker #2: So stealth is really two things. It's about taking share as a new platform with improved functionality. And it brings down barriers for physicians to step into robotics without disrupting their workflow.

Speaker #1: Elevated by the entire ABLE ecosystem. Stealth access was designed around navigation, which is paramount to surgeons' workflow in the OR. Today, navigation, which we pioneered and we lead, drives 70% of U.S.

Speaker #2: Now building on our 10,000 unit installed base, we are expanding and opening this segment and extending our leadership. And we're not stopping at spine.

Geoff Martha: Today, navigation, which we pioneered and we lead, drives 70% of US spine procedures, and really, it just dictates the workflow in the spine OR. So Stealth is really two things. It's about taking share as a new platform with improved functionality, and it brings down barriers for physicians to step into robotics without disrupting their workflow. Now, building on our 10,000 unit installed base, we are expanding and opening this segment and extending our leadership, and we're not stopping at spine. We anticipate pursuing future cranial and ENT indications for Stealth AXiS. This is an important driver for our CST business and an exciting step forward to improve precision, predictability, and personalization of care....

Speaker #1: Spine procedures—and really, it just dictates the workflow in the spine OR. So Stealth is really two things: it's about taking share as a new platform with improved functionality.

Speaker #2: We anticipate pursuing future cranial and ENT indications for stealth access. This is an important driver for our CST business and an exciting step forward to improve precision, predictability, and personalization of care.

Speaker #1: And it brings down barriers for physicians to step into robotics without disrupting their workflow. Now, building on our 10,000-unit installed base, we are expanding and opening this segment and extending our leadership.

Geoff Martha: This is an important driver for our CST business and an exciting step forward to improve precision, predictability, and personalization of care. We're executing our M&A strategy as well with the CathWorks acquisition and CRDN, and we continue to build out our venture and minority investment portfolio with the Intera investment in Structural Heart. Both transactions underscore our long-term strategy to digitize, enable, and build effective and efficient ecosystems within our core markets.... So before I turn it over to Thierry to walk through the details of our business performance, our financials, and the guidance, I would like to close with the following remarks. At Medtronic, we are translating the breadth and the depth of innovation across the portfolio into durable growth.

Speaker #2: And we're executing our M&A strategy as well with the CathWorks acquisition and CRDN. And we continue to build out our venture and minority investment portfolio with the Interis investment and structural heart.

Speaker #1: And we're not stopping at spine. We anticipate pursuing future cranial and ENT indications for stealth access. This is an important driver for our CST business and an exciting step forward to improve precision, predictability, and personalization of care.

Speaker #2: Both transactions underscore our long-term strategy to digitize, enable, and build effective and efficient ecosystems within our core markets. So before I turn it over to Thierry, to walk through the details of our business performance, our financials, and the guidance, I would like to close with the following remarks.

Speaker #1: And we're executing our M&A strategy as well, with the CathWorks acquisition and CRDN. And we continue to build out our venture and minority investment portfolio with the Interis investment in structural heart.

Geoff Martha: We're executing our M&A strategy as well, with the CathWorks acquisition and CRDN, and we continue to build out our venture and minority investment portfolio with the Anteris investment in Structural Heart. Both transactions underscore our long-term strategy to digitize, enable, and build effective and efficient ecosystems within our core markets. Before I turn it over to Thierry to walk through the details of our business performance, our financials, and the guidance, I would like to close with the following remarks. At Medtronic, we are translating the breadth and the depth of innovation across the portfolio into durable growth. We have businesses at different stages of their growth journey, but the cadence of innovation across our portfolio suggests a steadily improving growth outlook for total Medtronic. We have businesses that are executing exceptionally well today and are positioned to be meaningful contributors for a very long time.

Speaker #2: At Medtronic, we are translating the breadth and the depth of innovation across the portfolio into durable growth. We have businesses at different stages of their growth journey.

Speaker #1: Both transactions underscore our long-term strategy to digitize, enable, and build effective and efficient ecosystems within our core markets. So, before I turn it over to Thierry to walk through the details of our business performance, our financials, and the guidance, I would like to close with the following remarks.

Speaker #2: But the cadence of innovation across our portfolio suggests a steadily improving growth outlook for total Medtronic. We have businesses that are executing exceptionally well today in our position to be meaningful contributors for a very long time.

Geoff Martha: We have businesses at different stages of their growth journey, but the cadence of innovation across our portfolio suggests a steadily improving growth outlook for total Medtronic. We have businesses that are executing exceptionally well today and are positioned to be meaningful contributors for a very long time. This includes CAS, with its strong PFA pipeline, CST with Stealth AXiS, and of course, CRM, a large and steady growth engine with meaningful innovation and defibrillation, and leadless, and in conduction system pacing. We have businesses where the pipeline is now just activating, where we have clear line of sight to meaningful, tangible opportunities that will enhance growth. From CRDN with the ramp of Symplicity, Pelvic Health with Altaviva, Peripheral Vascular Health with NeuroGuard and Libero, and Neurovascular with innovation like Artiss, NeuroGuard, and expanding indication for On-X into MMAE.

Speaker #2: This includes Cass with its strong PFA pipeline, CST with stealth access, and of course, CRM, a large and steady growth engine with meaningful innovation and defibrillation, and leadless, and a conduction system pacing.

Speaker #1: At Medtronic, we are translating the breadth and the depth of innovation across the portfolio into durable growth. We have businesses at different stages of their growth journey.

Speaker #1: But the cadence of innovation across our portfolio suggests a steadily improving growth outlook for total Medtronic. We have businesses that are executing exceptionally well today and are positioned to be meaningful contributors for a very long time.

Speaker #2: We have businesses where the pipeline is now just activating, where we have clear line of sight to meaningful, tangible opportunities that will enhance growth.

Speaker #2: From CRDN with the ramp-up simplicity, pelvic health with Ultaviva, peripheral vascular health with NeuroGuard and Liberon, and neurovascular with innovation like Artis, NeuroGuard, and expanding indication for Onyx into MMAE.

Speaker #1: This includes CASS, with its strong PFA pipeline; CST, with stealth access; and, of course, CRM—a large and steady growth engine with meaningful innovation in defibrillation, leadless, and conduction system pacing.

Geoff Martha: This includes CAS, with its strong PFA pipeline, CST with Stealth AXiS, and of course, CRM, a large and steady growth engine with meaningful innovation and defibrillation, and leadless, and in conduction system pacing. We have businesses where the pipeline is now just activating, where we have clear line of sight to meaningful, tangible opportunities that will enhance growth. From CRDN with the ramp of Symplicity, Pelvic Health with Altaviva, Peripheral Vascular Health with NeuroGuard and Libero, and Neurovascular with innovation like Artiss, NeuroGuard, and expanding indication for On-X into MMAE. And Surgical, where the launch of Hugo in the US is just beginning. These are all real drivers with tangible reasons for improvement and the potential to impact growth in the coming quarters and years.

Speaker #2: And surgical, where the launch of Hugo in the US is just beginning. These are all real drivers with tangible reasons for improvement. And the potential to impact growth in the coming quarters and years.

Speaker #1: We have businesses where the pipeline is now just activating, where we have clear line of sight to meaningful, tangible opportunities that will enhance growth.

Geoff Martha: And surgical, where the launch of Hugo in the US is just beginning. These are all real drivers with tangible reasons for improvement and the potential to impact growth in the coming quarters and years. We also have areas where there is work to do, and we have defined plans underway, like in structural heart, where we're taking specific actions to fill out the portfolio and improve the trajectory. So with strong contributors delivering today, businesses on the cusp of step change improvement, and segments where we're taking deliberate actions to strengthen long-term competitiveness, we are confident in our ability to deliver durably. So with that, I'll turn it over to Thierry to walk through the details of our business performance. So over to you, Thierry.

Speaker #1: From CRDN, with the ramp-up simplicity; pelvic health with Ultaviva; peripheral vascular health with NeuroGuard and Liberant; and neurovascular with innovation like Artis, NeuroGuard, and expanding the indication for Onyx into MMAE.

Speaker #2: We also have areas where there is work to do and we have defined plans underway, like in structural heart. Where we're taking specific actions to fill out the portfolio and improve the trajectory.

Speaker #2: So with strong contributors delivering today, businesses on the cusp of step change improvement, and segments where we're taking deliberate actions to strengthen long-term competitiveness, we are confident in our ability to deliver durably.

Speaker #1: And Surgical, where the launch of Hugo in the U.S. is just beginning. These are all real drivers with tangible reasons for improvement, and the potential to impact growth in the coming quarters and years.

Speaker #2: So with that, I'll turn it over to Thierry to walk through the details of our business performance. So over to you, Thierry. Hey, thanks, Jeff.

Speaker #1: We also have areas where there is work to do, and we have defined plans underway, like in structural heart, where we're taking specific actions to fill out the portfolio and improve the trajectory.

Geoff Martha: We also have areas where there is work to do, and we have defined plans underway, like, in Structural Heart, where we're taking specific actions to fill out the portfolio and improve the trajectory. So with strong contributors delivering today, businesses on the cusp of step change improvement, and segments where we're taking deliberate actions to strengthen long-term competitiveness, we are confident in our ability to deliver durably. So with that, I'll turn it over to Thierry to walk through the details of our business performance. So over to you, Thierry.

Speaker #2: And hi, everyone. I appreciate all of you joining today. Let's start with our cardiovascular portfolio where this quarter, we delivered 11% year-over-year revenue growth with 13% growth in the US.

Speaker #1: So with strong contributors delivering today, businesses on the cusp of step change improvement, and segments where we're taking deliberate actions to strengthen long-term competitiveness, we are confident in our ability to deliver durably.

Thierry Piéton: Hey, thanks, Jeff, and hi, everyone. I appreciate all of you joining today. Let's start with our cardiovascular portfolio, where this quarter we delivered 11% year-over-year revenue growth with 13% growth in the US. This represents the strongest growth we've seen in cardiovascular in the last 10 years, excluding COVID comps. CAS grew 80% year-over-year, with PFA accounting for 80% of that revenue. Beyond CAS, the remainder of the cardiovascular portfolio delivered combined mid-single-digit growth. Cardiac rhythm management also had a strong quarter. CRM continued to contribute 15% of our total revenue, and it grew a healthy 5%. This was primarily driven by continued double-digit growth in Micra, mid-teens growth in 3830 CSP Lead, and over 70% growth in Aurora EV-ICD. In peripheral vascular health, we posted high single-digit growth, driven by broad strength across our endovenous portfolio.

Speaker #2: This represents the strongest growth we've seen in cardiovascular in the last 10 years, excluding COVID comps. Cass grew 80% year-over-year, with PFA accounting for 80% of that revenue.

Speaker #1: So with that, I'll turn it over to Thierry to walk through the details of our business performance. So, over to you, Thierry.

Speaker #2: Hey, thanks, Jeff. And hi, everyone. I appreciate all of you joining today. Let's start with our cardiovascular portfolio, where this quarter we delivered 11% year-over-year revenue growth, with 13% growth in the U.S.

Thierry Piéton: Hey, thanks, Jeff, and hi, everyone. I appreciate all of you joining today. Let's start with our cardiovascular portfolio, where this quarter we delivered 11% year-over-year revenue growth with 13% growth in the US. This represents the strongest growth we've seen in cardiovascular in the last 10 years, excluding COVID comps. CAS grew 80% year over year, with PFA accounting for 80% of that revenue. Beyond CAS, the remainder of the cardiovascular portfolio delivered combined mid-single-digit growth. Cardiac rhythm management also had a strong quarter. CRM continued to contribute 15% of our total revenue, and it grew a healthy 5%. This was primarily driven by continued double-digit growth in Micra, mid-teens growth in 3830 CSP lead, and over 70% growth in Aurora EV-ICD. In peripheral vascular health, we posted high single-digit growth, driven by broad strength across our endovenous portfolio.

Speaker #2: Beyond Cass, the remainder of the cardiovascular portfolio delivered combined mid-single-digit growth. Cardiac rhythm management also had a strong quarter. CRM continued to contribute 15% of our total revenue.

Speaker #2: This represents the strongest growth we've seen in Cardiovascular in the last 10 years, excluding COVID comps. CASS grew 80% year-over-year, with PFA accounting for 80% of that revenue.

Speaker #2: And it grew a healthy 5%. This was primarily driven by continued double-digit growth in micro, mid-teens growth in 3830 CSP lead, and over 70% growth in Aurora, EV ICD.

Speaker #2: In peripheral vascular health, we posted high single-digit growth driven by broad strength across our endovenous portfolio. We look forward to the continued launch of NeuroGuard IEP carotid stents and the full market release of our Liberon mechanical thrombectomy system.

Speaker #2: And it grew a healthy 5%. This was primarily driven by continued double-digit growth in Micro, mid-teens growth in 3830 CSP lead, and over 70% growth in Aurora EV ICD.

Thierry Piéton: We look forward to the continued launch of NeuroGuard IEP carotid stents and the full market release of our Libero mechanical thrombectomy system. In structural heart, Q3 was a little softer, as expected, and grew low single digits. We had a stronger quarter internationally and continued to gain share in Europe. This was partially offset in the US, where we annualized our Evolut FX+ launch and saw some competitive pressure. I'll now pivot to our neuroscience portfolio, which grew 3%. Growth was a little below our expectations this quarter, but neuroscience is also where we have one of our broadest pipelines and some of our most exciting opportunities. Importantly, we expect that pipeline to begin impacting growth in the Q4. Cranial and Spinal Technologies continues to be a powerful engine for Medtronic. This large business delivered mid-single-digit growth, including 8% growth from strong pull-through in core spine.

Speaker #2: In structural heart, Q3 was a little softer as expected. And grew low single digits. We had a stronger quarter internationally. And continued to gain share in Europe.

Speaker #2: In Peripheral Vascular Health, we posted high single-digit growth, driven by broad strength across our endovenous portfolio. We look forward to the continued launch of NeuroGuard IEP carotid stents and the full market release of our Liberant mechanical thrombectomy system.

Speaker #2: This was partially offset in the US where we annualized our Evolute FX Plus launch. And saw some competitive pressure. I'll now pivot to our neuroscience portfolio, which grew 3%.

Thierry Piéton: We look forward to the continued launch of NeuroGuard IEP carotid stents and the full market release of our Libero mechanical thrombectomy system. In structural heart, Q3 was a little softer, as expected, and grew low single digits. We had a stronger quarter internationally and continued to gain share in Europe. This was partially offset in the US, where we annualized our Evolut FX+ launch and saw some competitive pressure. I'll now pivot to our neuroscience portfolio, which grew 3%. Growth was a little below our expectations this quarter, but neuroscience is also where we have one of our broadest pipelines and some of our most exciting opportunities. Importantly, we expect that pipeline to begin impacting growth in Q4. Cranial and spinal technologies continues to be a powerful engine for Medtronic. This large business delivered mid-single-digit growth, including 8% growth from strong pull-through in core spine.

Speaker #2: Growth was a little below our expectations this quarter. But neuroscience is also where we have one of our broadest pipelines and some of our most exciting opportunities.

Speaker #2: In Structural Heart, Q3 was a little softer as expected and grew low single digits. We had a stronger quarter internationally and continued to gain share in Europe.

Speaker #2: Importantly, we expect that pipeline to begin impacting growth in the fourth quarter. Cranial and spinal technologies continues to be a powerful engine for Medtronic.

Speaker #2: This was partially offset in the U.S., where we annualized our Evolute FX Plus launch and saw some competitive pressure. I'll now pivot to our neuroscience portfolio, which grew 3%.

Speaker #2: This large business delivered mid-single-digit growth, including 8% growth from strong pull-through in core spine. We're excited to offer customers our new navigation and robotics platform, stealth access with which Jeff just mentioned, with FDA clearance achieved.

Speaker #2: Growth was a little below our expectations this quarter. But Neuroscience is also where we have one of our broadest pipelines and some of our most exciting opportunities.

Thierry Piéton: We're excited to offer customers our new navigation and robotics platform, Stealth AXiS, with Jeff, which Jeff just mentioned. With FDA clearance achieved, we expect to see Stealth AXiS contribute neurosurgery and CST overall as soon as Q4. Specialty therapies delivered flat results in Q3. This is an area where we expect improved performance in the coming quarters, given the series of new product developments. Neurovascular has been challenged over the last quarters due to China VBP and to the recall of Vantage, both of which are now mostly behind us. We also have line of sight to a higher level of growth from the contribution of On-X's expanded indication. The NeuroGuard carotid stent launch will also contribute as it's being commercialized by both our neurovascular and peripheral vascular businesses.

Speaker #2: Importantly, we expect that pipeline to begin impacting growth in the fourth quarter. Cranial and spinal technologies continues to be a powerful engine for Medtronic.

Speaker #2: We expect to see stealth access contribute neurosurgery and CST overall as soon as the fourth quarter. Specialty therapies delivered flat results in the third quarter.

Speaker #2: This large business delivered mid-single-digit growth, including 8% growth from strong pull-through in core spine. We're excited to offer customers our new platform, Stealth Access with Geoff, which Geoff just mentioned, with FDA clearance achieved.

Speaker #2: This is an area where we expect improved performance in the coming quarters. Given the series of new product developments, neurovascular has been challenged over the last quarters due to China VBP, and to the recall of Vantage, both of which are now mostly behind us.

Thierry Piéton: We're excited to offer customers our new navigation and robotics platform, Stealth AXiS, which Jeff just mentioned. With FDA clearance achieved, we expect to see Stealth AXiS contribute neurosurgery and CST overall as soon as Q4. Specialty therapies delivered flat results in Q3. This is an area where we expect improved performance in the coming quarters, given the series of new product developments. Neurovascular has been challenged over the last quarters due to China VBP and to the recall of Vantage, both of which are now mostly behind us. We also have line of sight to a higher level of growth from the contribution of On-X's expanded indication. The NeuroGuard carotid stent launch will also contribute as it's being commercialized by both our neurovascular and peripheral vascular businesses.

Speaker #2: We expect to see Stealth access contribute to Neurosurgery and CST overall as soon as the fourth quarter. Specialty Therapies delivered flat results in the third quarter.

Speaker #2: We also have line of sight to a higher level of growth from the contribution of Onyx's expanded indication. The NeuroGuard carotid stent launch will also contribute as it's being commercialized by both our neurovascular and peripheral vascular businesses.

Speaker #2: This is an area where we expect improved performance in the coming quarters. Given the series of new product developments, Neurovascular has been challenged over the last quarters due to China VVP and the recall of Vantage, both of which are now mostly behind us.

Speaker #2: In pelvic health, we saw a slightly softer sacral nerve stimulation market environment. But look forward to seeing the increased contribution from Ultaviva. In neuromodulation, we grew 4% driven by the continued rollout of our differentiated, fully closed-loop technologies inceptive SCS and brain sense ADBS.

Thierry Piéton: In pelvic health, we saw a slightly softer sacral nerve stimulation market environment, but look forward to seeing the increased contribution from Altaviva. In neuromodulation, we grew 4%, driven by the continued rollout of our differentiated, fully closed-loop technologies, Inceptiv SCS and BrainSense DBS. Next, our MedSurg portfolio grew 3% ahead of expectations. First, endoscopy and ACM had strong quarters. Endoscopy revenue grew 10%, led by mid-teens growth in our esophageal portfolio, driven by NexPowder and strong market adoption of EndoFLIP 3.0. Acute care and monitoring saw a 7% growth, led by strength in blood oxygen management and airway access. And finally, our surgical business grew by 1%. We saw strength and energy in wound management and hernia, with expected softness in stapling.

Speaker #2: We also have line of sight to a higher level of growth from the contribution of Onyx's expanded indication. The NeuroGuard carotid stent launch will also contribute, as it's being commercialized by both our neurovascular and peripheral vascular businesses.

Speaker #2: Next, our med search portfolio grew 3% ahead of expectations. First, endoscopy and ACM had strong quarters. Endoscopy revenue grew 10%, led by mid-teens growth.

Speaker #2: In Pelvic Health, we saw a slightly softer sacral nerve stimulation market environment, but look forward to seeing the increased contribution from Ultaviva. In Neuromodulation, we grew 4%, driven by the continued rollout of our differentiated, fully closed-loop technologies—Inceptiv SCS and BrainSense ADBS.

Thierry Piéton: In pelvic health, we saw a slightly softer sacral nerve stimulation market environment, but look forward to seeing the increased contribution from Altaviva. In neuromodulation, we grew 4%, driven by the continued rollout of our differentiated, fully closed loop technologies, Inceptiv SCS and BrainSense ADVS. Next, our MedSurg portfolio grew 3% ahead of expectations. First, endoscopy and ACM had strong quarters. Endoscopy revenue grew 10%, led by mid-teens growth in our esophageal portfolio, driven by Nexpower and strong market adoption of EndoFlip 300. Acute care and monitoring saw a 7% growth, led by strength in blood oxygen management and airway access. And finally, our surgical business grew by 1%. We saw strength and energy in wound management and hernia, with expected softness in stapling.

Speaker #2: And our esophageal portfolio driven by Next Powder and strong market adoption of Endoflip 300. Acute care and monitoring saw a 7% growth, led by strength in blood oxygen management and airway access.

Speaker #2: Next, our Med Search portfolio grew 3% ahead of expectations. First, Endoscopy and ACM had strong quarters. Endoscopy revenue grew 10%, led by mid-teens growth.

Speaker #2: And finally, our surgical business grew by 1%. We saw strength in energy, in wound management, and hernia. With expected softness in stapling. The next phase of growth for this business is the rollout of Hugo.

Speaker #2: And our esophageal portfolio, driven by Next Powder and strong market adoption of EndoFLIP 300. Acute care and monitoring saw 7% growth, led by strength in blood oxygen management and airway access.

Speaker #2: And we're thrilled to see our first installations and first cases so swiftly after the US launch. Wrapping up our business performance's minimed, our diabetes business, which delivered 15% reported and over 8% organic growth.

Thierry Piéton: The next phase of growth for this business is the rollout of Hugo, and we're thrilled to see our first installations and first cases so swiftly after the US launch. Wrapping up our business performance is MiniMed, our diabetes business, which delivered 15% reported and over 8% organic growth. Performance was led by double-digit strength in international markets, but we also saw acceleration in the US with strong sequential lift, driven by Simplera Sync and Instinct, which both just launched in December. Our diabetes business continues its strong innovation cycle, supported by multiple recent regulatory and pipeline milestones. In addition to introducing Instinct and Simplera Sync to the market, we secured several FDA clearances that further expand 780G's indications. We also announced that 780G system is now available through pharmacy, with agreements that cover the majority of commercially insured lives in the US.

Speaker #2: Performance was led by double-digit strength in international markets, but we also saw acceleration in the US with strong sequential lift driven by Simplerra Sync and Instinct, which both just launched in December.

Thierry Piéton: The next phase of growth for this business is the rollout of Hugo, and we're thrilled to see our first installations and first cases so swiftly after the US launch. Wrapping up our business performance is MiniMed, our diabetes business, which delivered 15% reported and over 8% organic growth. Performance was led by double-digit strength in international markets, but we also saw acceleration in the US with strong sequential lift, driven by Simplera Sync and Instinct, which both just launched in December. Our diabetes business continues its strong innovation cycle, supported by multiple recent regulatory and pipeline milestones. In addition to introducing Instinct and Simplera to the market, we secured several FDA clearances that further expand 780G's indications. We also announced that 780G system is now available through pharmacy, with agreements that cover the majority of commercially insured lives in the US.

Speaker #2: And we're thrilled to see our first installations and first cases so swiftly after the U.S. launch. Wrapping up our business performance, MiniMed, our diabetes business, delivered 15% reported and over 8% organic growth.

Speaker #2: Our diabetes business continues its strong innovation cycle supported by multiple recent regulatory and pipeline milestones. In addition to introducing Instinct and Simplerra to the market, we secured several FDA clearances that further expand 780s indications.

Speaker #2: Performance was led by double-digit strength in international markets, but we also saw acceleration in the U.S., with strong sequential lift driven by Simplerra Sync and Instinct, which both just launched in December.

Speaker #2: We also announced that 780G system is now available through pharmacy with agreements that cover the majority of commercially insured lives in the US. And we submitted minimed flex to the US FDA and began the US pivotal study for Vivera our third generation fully closed-loop algorithm which we believe will help maintain our leadership in delivering industry-leading outcomes.

Speaker #2: Our diabetes business continues its strong innovation cycle, supported by multiple recent regulatory and pipeline milestones. In addition to introducing Instinct and Simplerra to the market, we secured several FDA clearances that further expand 780s indications.

Thierry Piéton: And we submitted MiniMed Flex to the US FDA and began the US pivotal study for Vivera, our third-generation fully closed-loop algorithm, which we believe will help maintain our leadership in delivering industry-leading outcomes. Finally, our MiniMed Fit patch pump remains on track, and we intend to submit it to the US FDA by this fall. The planned separation of MiniMed is perfectly on track. Our preferred path continues to be a two-step IPO and split. We continue to expect the separation to be complete by the end of calendar year 2026. Now, turning to the financials. This quarter, revenue of $9 billion grew 8.7% reported and 6% organic, a 50 basis point acceleration from prior quarter, and 50 basis points above our guidance.

Speaker #2: We also announced that the 780G system is now available through pharmacy, with agreements that cover the majority of commercially insured lives in the U.S. And we submitted MiniMed Flex to the U.S.

Speaker #2: Finally, our minimed fit patch pump remains on track. And we intend to submit it to the US FDA by this fall. The plant separation of minimed is perfectly on track.

Thierry Piéton: And we submitted MiniMed Flex to the U.S. FDA and began the U.S. pivotal study for Vivera, our third generation, fully closed-loop algorithm, which we believe will help maintain our leadership in delivering industry-leading outcomes. Finally, our MiniMed Fit patch pump remains on track, and we intend to submit it to the U.S. FDA by this fall. The planned separation of MiniMed is perfectly on track. Our preferred path continues to be a two-step IPO and split. We continue to expect the separation to be complete by the end of calendar year 2026. Now, turning to the financials. This quarter, revenue of $9 billion grew 8.7% reported and 6% organic, a 50 basis point acceleration from prior quarter and 50 basis points above our guidance.

Speaker #2: Our preferred path continues to be a two-step IPO and split. We continue to expect the separation to be complete. By the end of calendar year 26.

Speaker #2: FDA and began the U.S. pivotal study for Vivera our third generation fully closed-loop algorithm which we believe will help maintain our leadership in delivering industry-leading outcomes.

Speaker #2: Now turning to the financials, this quarter revenue of $9 billion grew 8.7% reported. And 6% organic a 50 basis point acceleration from prior quarter.

Speaker #2: Finally, our MiniMed's FIT Patch Pump remains on track, and we intend to submit it to the U.S. FDA by this fall. The planned separation of MiniMed is perfectly on track.

Speaker #2: And 50 basis points above our guidance. Geographically, this performance was balanced. Led by high single-digit growth in Western Europe, with mid-single-digit growth across the US and Japan.

Speaker #2: Our preferred path continues to be a two-step IPO and split. We continue to expect the separation to be complete by the end of calendar year 2026.

Thierry Piéton: Geographically, this performance was balanced, led by high single-digit growth in Western Europe, with mid-single-digit growth across the US and Japan. US growth was 6% year-over-year, the strongest performance we've delivered since fiscal year 2019, excluding COVID comps. In China, we delivered low single-digit growth while navigating ongoing but manageable volume-based procurement in a few businesses. Excluding VBP, our growth rate in China was mid-single-digit. Our adjusted gross margin was 64.9% ahead of expectations. As I've done in the last several quarters, let me walk you through the rough breakout of the components. We realized 30 basis points of benefit from pricing. Net of inflation, cost down was negative 20 basis points, as Q3 is typically our lowest quarter for generating cost efficiency savings, and we had some prior year non-recurring items.

Speaker #2: US growth was 6% year over year. The strongest performance we've delivered since fiscal year 2019, excluding COVID comps. In China, we delivered low single-digit growth, while navigating ongoing but manageable volume-based procurement in a few businesses.

Speaker #2: Now turning to the financials, this quarter revenue of $9 billion grew 8.7% reported and 6% organic, a 50 basis point acceleration from the prior quarter.

Speaker #2: And 50 basis points above our guidance. Geographically, this performance was balanced, led by high single-digit growth in Western Europe, with mid-single-digit growth across the U.S.

Thierry Piéton: Geographically, this performance was balanced, led by high single-digit growth in Western Europe, with mid-single digit growth across the US and Japan. US growth was 6% year-over-year, the strongest performance we've delivered since fiscal year 2019, excluding COVID comps. In China, we delivered low single-digit growth while navigating ongoing but manageable volume-based procurement in a few businesses. Excluding VBP, our growth rate in China was mid-single digit. Our adjusted gross margin was 64.9% ahead of expectations. As I've done in the last several quarters, let me walk you through the rough breakout of the components. We realized 30 basis points of benefit from pricing. Net of inflation, cost down was negative 20 basis points, as the third quarter is typically our lowest quarter for generating cost efficiency savings, and we had some prior year non-recurring items.

Thierry Piéton: Geographically, this performance was balanced, led by high single-digit growth in Western Europe, with mid-single digit growth across the US and Japan. US growth was 6% year-over-year, the strongest performance we've delivered since fiscal year 2019, excluding COVID comps. In China, we delivered low single-digit growth while navigating ongoing but manageable volume-based procurement in a few businesses. Excluding VBP, our growth rate in China was mid-single digit. Our adjusted gross margin was 64.9% ahead of expectations. As I've done in the last several quarters, let me walk you through the rough breakout of the components. We realized 30 basis points of benefit from pricing. Net of inflation, cost down was negative 20 basis points, as the Q3 is typically our lowest quarter for generating cost efficiency savings, and we had some prior year non-recurring items.

Speaker #2: Excluding VBP, our growth rate in China was mid-single-digit. Our adjusted gross margin was 64.9% ahead of expectations. As I've done in the last several quarters, let me walk you through the rough breakout of the components.

Speaker #2: and Japan. U.S. growth was 6% year over year—the strongest performance we've delivered since fiscal year 2019, excluding COVID comps. In China, we delivered low single-digit growth, while navigating ongoing but manageable volume-based procurement in a few businesses.

Speaker #2: We realized 30 basis points of benefit from pricing. Net of inflation cost down was negative 20 basis points as the third quarter is typically our lowest quarter for generating cost efficiency savings.

Speaker #2: Excluding VVP, our growth rate in China was mid-single-digit. Our adjusted gross margin was 64.9% ahead of expectations. As I've done in the last several quarters, let me walk you through the rough breakout of the components.

Speaker #2: And we had some prior year non-recurring items. Mixed was negative 100 basis points. Mostly driven by cath and diabetes. As discussed in prior disclosures, with cath in the early stages of launch, this business is currently impacted by the mix of lower margin capital to higher margin catheters.

Thierry Piéton: Mixed with negative 100 basis points, mostly driven by CAS and diabetes. As discussed in prior disclosures, with CAS in the early stages of launch, this business is currently impacted by the mix of lower margin capital to higher margin catheters, and diabetes is in its early manufacturing ramp-up of Simplera. Over time, as you know, we expect this mix dynamic to improve as we scale CAS and separate the diabetes business. Tariffs impacted the business $93 million, or 110 basis points, in line with forecast. And finally, foreign exchange provided an approximate 40 basis points tailwind. Adjusted R&D was 8% of revenue and increased 7.4%. On an organic basis, this outpaced revenue by 50 basis points. Adjusted SG&A was 32.3% of revenue, which is 30 basis points lower than the third quarter of last year.

Speaker #2: We realized 30 basis points of benefit from pricing. Net of inflation, cost down was negative 20 basis points, as the third quarter is typically our lowest quarter for generating cost efficiency savings.

Speaker #2: And diabetes is in the in its early manufacturing ramp-up of Simplerra. Over time, as you know, we expect this mixed dynamic to improve. As we scale cath and separate the diabetes business.

Speaker #2: And we had some prior year non-recurring items. Mix was negative 100 basis points, mostly driven by CAS and Diabetes. As discussed in prior disclosures, with CAS in the early stages of launch, this business is currently impacted by the mix of lower-margin capital to higher-margin catheters.

Thierry Piéton: Mixed with negative 100 basis points, mostly driven by CAS and diabetes. As discussed in prior disclosures, with CAS in the early stages of launch, this business is currently impacted by the mix of lower margin capital to higher margin catheters, and diabetes is in its early manufacturing ramp-up of Simplira. Over time, as you know, we expect this mix dynamic to improve as we scale CAS and separate the diabetes business. Tariffs impacted the business $93 million or 110 basis points, in line with forecast. Finally, foreign exchange provided an approximate 40 basis points tailwind. Adjusted R&D was 8% of revenue and increased 7.4%. On an organic basis, this outpaced revenue by 50 basis points. Adjusted SG&A was 32.3% of revenue, which is 30 basis points lower than the third quarter of last year.

Thierry Piéton: Mixed with negative 100 basis points, mostly driven by CAS and diabetes. As discussed in prior disclosures, with CAS in the early stages of launch, this business is currently impacted by the mix of lower margin capital to higher margin catheters, and diabetes is in its early manufacturing ramp-up of Simplira. Over time, as you know, we expect this mix dynamic to improve as we scale CAS and separate the diabetes business. Tariffs impacted the business $93 million or 110 basis points, in line with forecast. Finally, foreign exchange provided an approximate 40 basis points tailwind. Adjusted R&D was 8% of revenue and increased 7.4%. On an organic basis, this outpaced revenue by 50 basis points. Adjusted SG&A was 32.3% of revenue, which is 30 basis points lower than the Q3 of last year.

Speaker #2: Tariffs impacted the business 93 million dollars, or 110 basis points, in line with forecast. And finally, foreign exchange provided an approximate 40 basis points tailwind.

Speaker #2: Adjusted R&D was 8% of revenue. And the increased 7.4%. On an organic basis, this outpaced revenue by 50 basis points. Adjusted SGNA was 32.3% of revenue, which is 30 basis points lower than the third quarter of last year.

Speaker #2: And Diabetes is in its early manufacturing ramp-up of Simplerra. Over time, as you know, we expect this mixed dynamic to improve as we scale CAS and separate the Diabetes business.

Speaker #2: Tariffs impacted the business $93 million, or 110 basis points, in line with forecast. And finally, foreign exchange provided an approximate 40 basis points tailwind.

Speaker #2: We continue to fuel our PFA launch and develop and build the markets for simplicity, Altiviva, and Hugo but at the same time, we deliver discipline leverage in GNA.

Thierry Piéton: We continue to fuel our PSA launch and develop and build the markets for Symplicity, Altaviva, and Hugo, but at the same time, we delivered disciplined leverage in SG&A. Our adjusted operating profit was $2.2 billion, resulting in an adjusted operating margin of 24.1% ahead of expectations again. Our adjusted tax rate was 17.3%, about 100 basis points higher than forecast, largely due to jurisdictional mix of profits. All in all, adjusted EPS was $1.36, three cents above the midpoint of our guidance range. Now turning to guidance. On the top line, we're reiterating fiscal 2026 organic revenue growth guidance of approximately 5.5%. In the fourth quarter, we expect revenue growth similar to Q3, so around 6% off a stronger Q4 2025 comp.

Speaker #2: Adjusted R&D was 8% of revenue, and that increased 7.4%. On an organic basis, this outpaced revenue by 50 basis points. Adjusted SG&A was 32.3% of revenue, which is 30 basis points lower than the third quarter of last year.

Speaker #2: Our adjusted operating profit was 2.2 billion dollars. Resulting in an adjusted operating margin of 24.1% ahead of expectations again. Our adjusted tax rate was 17.3%, about 100 basis points higher than forecast, largely due to jurisdictional mix of profits.

Speaker #2: We continue to fuel our PSA launch and develop and build the markets for Simplicity, Altiviva, and Hugo, but at the same time, we deliver disciplined leverage in G&A.

Thierry Piéton: We continue to fuel our PSA launch and develop and build the markets for Symplicity, Altaviva, and Hugo, but at the same time, we delivered disciplined leverage in G&A. Our adjusted operating profit was $2.2 billion, resulting in an adjusted operating margin of 24.1%, ahead of expectations again. Our adjusted tax rate was 17.3%, about 100 basis points higher than forecast, largely due to jurisdictional mix of profits. All in all, adjusted EPS was $1.36, 3 cents above the midpoint of our guidance range. Now, turning to guidance. On the top line, we're reiterating fiscal 2026 organic revenue growth guidance of approximately 5.5%. In the fourth quarter, we expect revenue growth similar to Q3, so around 6% off a stronger Q4 2025 comp.

Thierry Piéton: We continue to fuel our PSA launch and develop and build the markets for Symplicity, Altaviva, and Hugo, but at the same time, we delivered disciplined leverage in G&A. Our adjusted operating profit was $2.2 billion, resulting in an adjusted operating margin of 24.1%, ahead of expectations again. Our adjusted tax rate was 17.3%, about 100 basis points higher than forecast, largely due to jurisdictional mix of profits. All in all, adjusted EPS was $1.36, 3 cents above the midpoint of our guidance range. Now, turning to guidance. On the top line, we're reiterating fiscal 2026 organic revenue growth guidance of approximately 5.5%. In the Q4, we expect revenue growth similar to Q3, so around 6% off a stronger Q4 2025 comp.

Speaker #2: All in all, adjusted EPS was $1.36, 3 cents above the midpoint of our guidance range. Now turning to guidance, on the top line, we're reiterating fiscal 26 organic revenue growth guidance of approximately 5.5%.

Speaker #2: Our adjusted operating profit was $2.2 billion, resulting in an adjusted operating margin of 24.1%—ahead of expectations again. Our adjusted tax rate was 17.3%, about 100 basis points higher than forecast, largely due to the jurisdictional mix of profits.

Speaker #2: In the fourth quarter, we expect revenue growth similar to Q3, so around 6% off a stronger Q4 25 comp. Moving down the P&L, we expect our fiscal 26 gross margin to increase slightly ex tariffs.

Speaker #2: All in all, adjusted EPS was $1.36, three cents above the midpoint of our guidance range. Now, turning to guidance, on the top line, we're reiterating fiscal '26 organic revenue growth guidance of approximately 5.5%.

Speaker #2: Pricing effects and COGS efficiency programs are expected to more than offset the negative impacts of business mix primarily from cath and diabetes. We anticipate a tariff impact to COGS of approximately 185 million, including 75 million in the fourth quarter.

Thierry Piéton: Moving down the P&L, we expect our fiscal 2026 gross margin to increase slightly ex tariffs. Pricing, FX, and COGS efficiency programs are expected to more than offset the negative impacts of business mix, primarily from CAS and diabetes. We anticipate a tariff impact to COGS of approximately $185 million, including $75 million in the fourth quarter. Including tariffs, we expect fiscal 2026 gross margin decrease of roughly 30 basis points. We expect fiscal 2026 adjusted operating profit to grow approximately 5% or 7%, excluding tariffs. Our fiscal 2026 operating margin is expected to be roughly flat, excluding tariffs, and down about 50 basis points, including the tariff impact. In totality, we expect with these results to deliver gross margin and operating margin leverage ex tariffs in the second half of fiscal year 2026, as we stated last quarter.

Speaker #2: In the fourth quarter, we expect revenue growth similar to Q3, so around 6%, off a stronger Q4 '25 comp. Moving down the P&L, we expect our fiscal '26 gross margin to increase slightly, ex-tariffs.

Speaker #2: Including tariffs, we expect fiscal 26 gross margin decrease of roughly 30 basis points. We expect fiscal 26 adjusted operating profit to grow approximately 5%, or 7% excluding tariffs.

Thierry Piéton: Moving down the P&L, we expect our fiscal 2026 gross margin to increase slightly ex tariffs. Pricing, FX, and COGS efficiency programs are expected to more than offset the negative impacts of business mix, primarily from CAS and diabetes. We anticipate a tariff impact to COGS of approximately $185 million, including $75 million in the Q4. Including tariffs, we expect fiscal 2026 gross margin decrease of roughly 30 basis points. We expect fiscal 2026 adjusted operating profit to grow approximately 5% or 7%, excluding tariffs. Our fiscal 2026 operating margin is expected to be roughly flat, excluding tariffs, and down about 50 basis points, including the tariff impact. In totality, we expect with these results to deliver gross margin and operating margin leverage ex tariffs in the second half of the fiscal year 2026, as we stated last quarter.

Speaker #2: Pricing effects and COGS efficiency programs are expected to more than offset the negative impacts of business mix primarily from CAS and diabetes. We anticipate a tariff impact to COGS of approximately $185 million, including $75 million in the fourth quarter.

Speaker #2: Our fiscal 26 operating margin is expected to be roughly flat excluding tariffs, and down about 50 basis points including the tariff impact. In totality, we expect these results to deliver gross margin and operating margin leverage ex tariffs in the second half of the fiscal year 26, as we stated last quarter.

Speaker #2: Turning to EPS, this quarter we saw a beat of 3 cents. This was largely due to slightly better than expected revenue in the quarter, mainly from CRM and ACM.

Speaker #2: Our fiscal '26 operating margin is expected to be roughly flat, excluding tariffs, and down about 50 basis points including the tariff impact. In totality, we expect these results to deliver gross margin and operating margin leverage, ex-tariffs, in the second half of fiscal year '26, as we stated last quarter.

Thierry Piéton: Turning to EPS, this quarter, we saw a beat of $0.03. This was largely due to slightly better than expected revenue in the quarter, mainly from CRM and ACM. This was partially offset by the aforementioned tax pressure that we saw in the quarter. As we expect CRM and ACM to normalize and the tax pressure to carry into Q4, we are maintaining our fiscal 2026 EPS guidance in the range of $5.62 to $5.66. Look, we're excited about the quarter, and we think Q4 is going to be another robust quarter, and that we will sustain our growth at a higher level and into the next year. We're making progress on margin expansion, and the negative mix effect from CAS and diabetes are going to get better.

Speaker #2: This was partially offset by the aforementioned tax pressure that we saw in the quarter. As we expect CRM and ACM to normalize and the tax pressure to carry into Q4, we are maintaining our fiscal 26 EPS guidance in the $5.62 to $5.66.

Speaker #2: Turning to EPS, this quarter we saw a beat of 3 cents. This was largely due to slightly better-than-expected revenue in the quarter, mainly from CRM and ACM.

Thierry Piéton: Turning to EPS, this quarter, we saw a beat of $0.03. This was largely due to slightly better than expected revenue in the quarter, mainly from CRM and CAS. This was partially offset by the aforementioned tax pressure that we saw in the quarter. As we expect CRM and CAS to normalize and the tax pressure to carry into Q4, we are maintaining our fiscal 2026 EPS guidance in the range of $5.62 to $5.66. Look, we're excited about the quarter, and we think Q4 is going to be another robust quarter and that we will sustain our growth at a higher level and into the next year. We're making progress on margin expansion, and the negative mix effect from CAS and diabetes are going to get better.

Speaker #2: Look, we're excited about the quarter and we think Q4 is going to be another robust quarter and that we will sustain our growth at a higher level and into the next year.

Speaker #2: We're making progress on margin expansion. And the negative mix effect from cath and diabetes are going to get better. We're going to continue to invest in growth areas like R&D, sales, and marketing, and M&A to capitalize on the opportunities ahead of us.

Thierry Piéton: We're going to continue to invest in growth areas like R&D, sales and marketing, and M&A to capitalize on the opportunities ahead of us. We will also continue to drive efficiency in functional areas. All told, we are committed to our guidance, and we maintain our expectation for high single-digit EPS growth in fiscal year 2027. Back to you, Jeff.

Speaker #2: And we will also continue to drive efficiency in functional areas. All told, we are committed to our guidance and we maintain our expectation for high single-digit EPS growth in fiscal year 27.

Speaker #2: Look, we're excited about the quarter and we think Q4 is going to be another robust quarter and that we will sustain our growth at a higher level and into the next year.

Speaker #2: We're making progress on margin expansion. And the negative mix effect from CAS and diabetes are going to get better. We're going to continue to invest in growth areas like R&D, sales, and marketing, and M&A to capitalize on the opportunities ahead of us.

Speaker #2: Back to you, Jeff.

Speaker #1: Okay. Thanks, Thierry. Now, before we go to Q&A, let me close with a few final thoughts. So we're encouraged by the progress across the business, as Thierry just said.

Geoff Martha: Okay, thanks, Thierry. Now, before we go to Q&A, let me close with a few final thoughts. So we're encouraged by the progress across the business, as Thierry just said, and we remain committed to stronger, durable revenue and earnings growth. Our PFA trajectory is strong, and we're progressing on multiple billion-dollar opportunities. We're reinforcing our future pipeline, and we're committed to organic and inorganic investment to further bolster the portfolio. Bottom line, we are delivering. Now to our Medtronic colleagues around the world, thank you for your unwavering commitment to our mission and to the patients we serve. You're delivering for customers and for patients, and you're turning our strategy into performance. So thank you. With that, let's turn to Q&A. So first, Ingrid, welcome to your first earnings call. And now can you please provide the instructions and queue up the analysts?

Speaker #1: And we remain committed to stronger, durable revenue and earnings growth. Our PFA trajectory is strong and we're progressing on multiple billion dollar opportunities. We're reinforcing our future pipeline and we're committed to organic and inorganic investment to further bolster the portfolio.

Speaker #2: And we will also continue to drive efficiency in functional areas. All told, we are committed to our guidance, and we maintain our expectation for high single-digit EPS growth in fiscal year '27.

Speaker #2: Back to you, Geoff.

Speaker #1: Okay, thanks, Thierry. Now, before we go to Q&A, let me close with a few final thoughts. We're encouraged by the progress across the business, as Thierry just said.

Speaker #1: Bottom line, we are delivering. Now, to our Medtronic colleagues around the world, thank you for your unwavering commitment to our mission and to the patience we serve.

Speaker #1: And we remain committed to stronger, durable revenue and earnings growth. Our PFA trajectory is strong, and we're progressing on multiple billion-dollar opportunities. We're reinforcing our future pipeline, and we're committed to organic and inorganic investment to further bolster the portfolio.

Speaker #1: Your delivering for customers and for patients and your turning our strategy into performance. So thank you. With that, let's turn to Q&A. So first, Ingrid, welcome to your first earnings call.

Speaker #1: And now, can you please provide the instructions and queue up the analysts?

Speaker #1: Bottom line, we are delivering. Now, to our Medtronic colleagues around the world, thank you for your unwavering commitment to our Mission and to the patients we serve.

Speaker #2: Thank you, Jeff. For sell-side analysts that would like to ask a question, please select participants button and click raise hand. If you're using the mobile app, please press more and then select raise hand.

Ingrid Goldberg: Thank you, Jeff. For sell-side analysts that would like to ask a question, please select Participants button and click Raise Hand. If you're using the mobile app, please press More and then select Raise Hand. Your lines are currently on mute. And when called upon, you'll receive a request to unmute your line. You must respond to this before asking your question. Finally, please be advised, this Q&A session is being recorded. We'll now pause to assemble the queue. We'll take our first question from Travis Steed at Bank of America. Travis, please go ahead.

Speaker #1: You're delivering for customers and for patients, and you're turning our strategy into performance. So thank you. With that, let's turn to Q&A. So first, Ingrid, welcome to your first earnings call.

Speaker #2: Your lines are currently on mute and when called upon, you'll receive a request to unmute your line. You must respond to this before asking your question.

Speaker #2: Finally, please be advised this Q&A session is being recorded. We'll now pause to assemble the queue. We'll take our first question from Travis Steed at Bank of America.

Speaker #1: And now, can you please provide the instructions and queue up the analysts?

Speaker #3: Thank you, Geoff. For sell-side analysts that would like to ask a question, please select participants button and click raise hand. If you're using the mobile app, please press more and then select raise hand.

Operator: Thank you, Jeff. For sell-side analysts that would like to ask a question, please select Participants button and click Raise Hand. If you're using the mobile app, please press More and then select Raise Hand. Your lines are currently on mute, and when called upon, you'll receive a request to unmute your line. You must respond to this before asking your question. Finally, please be advised this Q&A session is being recorded. We'll now pause to assemble the queue. We'll take our first question from Travis Steed at Bank of America. Travis, please go ahead.

Speaker #2: Travis, please go ahead.

Speaker #3: Hi, everybody. Thanks for taking the question. I guess first I'll start on just the comments on accelerating revenue growth next year and growing earnings.

Speaker #3: Your lines are currently on mute, and when called upon, you'll receive a request to unmute your line. You must respond to this before asking your question.

Travis Steed: Hi, everybody, thanks for taking the question. I guess first I'll start on just the comments on accelerating revenue growth next year and growing earnings high single digits. When you think about CAS, obviously... Can you hear me okay? Can you hear me okay?

Speaker #3: High single digits. When you think about caths, obviously can you hear me okay? Can you hear me okay?

Speaker #3: Finally, please be advised this Q&A session is being recorded. We'll now pause to assemble the queue. We'll take our first question from Travis Steed at Bank of America.

Speaker #1: There we go.

Speaker #3: Yeah. Okay. I just wanted to ask about the accelerating revenue growth for next year. And also the commitment to grow earnings high single digits.

Geoff Martha: There we go.

Thierry Piéton: Yeah.

Ingrid Goldberg: Yeah.

Speaker #3: Travis, please go ahead.

Travis Steed: Okay. I just wanted to ask about the accelerating revenue growth for next year, and also the commitment to grow earnings in high single digits. I guess when you think about the overall portfolio, obviously, CAS is starting to hit tougher comps and, you know, this quarter, you know, surgical is only growing 1%. So just trying to think about how you get that business accelerating with Hugo and just like the commitment to be able to deliver on the commitments that you've kind of laid out for FY27.

Speaker #3: I guess when you think about the overall portfolio, obviously caths is starting to hit tougher comps and this quarter surgical is only growing 1%.

Speaker #4: Hi, everybody. Thanks for taking the question. I guess, first, I'll start on just the comments on accelerating revenue growth next year and growing earnings.

Speaker #3: So just trying to think about how you get that business accelerating with Hugo and just the commitment to be able to deliver on the commitments that you've kind of laid out for FY 27.

Speaker #4: High single digits. When you think about CAS, obviously, can you hear me okay? Can you hear me okay?

Speaker #1: Well, thanks, Travis, for the question. I'll give it a start and then hand it over to Thierry. I mean, look, on the top line, obviously as you mentioned, really strong quarter.

Speaker #1: There we go.

Geoff Martha: There we go.

Travis Steed: Yeah.

Speaker #4: Yeah, okay. I just wanted to ask about the accelerating revenue growth for next year, and also the commitment to grow earnings high single digits.

Operator: Yeah.

Travis Steed: Okay. I just wanted to ask about the accelerating revenue growth for next year, and also the commitment to grow earnings in high single digits. I guess when you think about the overall portfolio, obviously CAS is starting to hit tougher comps and, you know, this quarter, you know, surgical is only growing 1%. So just trying to think about how you get that business accelerating with Hugo and just like the commitment to be able to deliver on the commitments that you've kind of laid out for FY 2027.

Geoff Martha: Well, well, thanks, Travis, for the question. I'll give it a start and then, and hand it over to Thierry. I mean, look, on the top line, obviously, as you mentioned, we had a really strong quarter with CAS. You know, we still, you know, we think that growth is, is going to continue and become a larger part of the company. Obviously, we're well positioned there. And then we... You know, our other big growth drivers, particularly, Symplicity, for hypertension and Altaviva for overactive bladder, we see them, beginning to, kick in here, even in, Q4.... and then you've got a number of other businesses here that, are going to, you know, start growing faster than they have been here recently. You know, one is, is, CST, with the, Stealth AXiS.

Speaker #1: With caths, we still think that growth is going to continue and become a larger part of the company, obviously. We're well positioned there. And then our other big growth drivers, particularly simplicity, for hypertension, and AltaViva for overactive bladder, we see them beginning to kick in here.

Speaker #4: I guess, when you think about the overall portfolio, obviously, CAS is starting to hit tougher comps, and this quarter Surgical is only growing 1%.

Speaker #4: So, just trying to think about how you get that business accelerating with Hugo, and just the commitment to be able to deliver on the commitments that you've kind of laid out for FY27.

Speaker #1: Well, thanks, Travis, for the question. I'll give it a start and then hand it over to Thierry. I mean, look, on the top line, obviously, as you mentioned, really strong quarter.

Geoff Martha: ... Well, thanks, Travis, for the question. I'll give it a start and then hand it over to Thierry. I mean, look, on the top line, obviously, as you mentioned, we had a really strong quarter with CAS. You know, we still, you know, we think that growth is going to continue and become a larger part of the company. Obviously, we're well positioned there. And then we, you know, our other big growth drivers, particularly, Symplicity, for hypertension and Altaviva for overactive bladder, we see them, beginning to, kick in here, even in, Q4. And then you've got a number of other businesses here that, are going to, you know, start growing faster than they have been here recently. You know, one is, CST, with the, Stealth AXiS.

Speaker #1: Even in Q4. And then you've got a number of other businesses here that are going to start growing faster than they have been here recently.

Speaker #1: With CAS, we still think that growth is going to continue and become a larger part of the company, obviously. We're well positioned there. And then our other big growth drivers, particularly Simplicity for hypertension, and AltaViva for overactive bladder, we see them beginning to kick in here.

Speaker #1: One is CST, with the stealth access. I'm sure we'll get some questions on that. But I do think this is kind of underappreciated, quite frankly.

Speaker #1: By the street. This is not just a new robot. It's not just an extension of Mazur. It's a whole new platform. That has a lot of benefits to it.

Geoff Martha: I'm sure we'll get some questions on that, but I do think this is kind of underappreciated, quite frankly, you know, by the street. This is, you know, not just a new robot, it's not, it's not just an extension of Mazor, it's a whole new platform, that, you know, that has a lot of benefits to it, and I think that's gonna create growth for the short and long term for CST. And then Neurovascular is going to kick up as well. Neurovascular's got a number of new products, like the On-X, you know, indication for MMAE, as well as, our carotid stenting product and, and NeuroGuard, and then it's anniversaries, VBP, and a few other things. So you're going to see a kick-up in Neurovascular as well.

Speaker #1: Even in Q4. And then you've got a number of other businesses here that are going to start growing faster than they have been here recently.

Speaker #1: And I think that's going to create growth for the short and long term for CST. And then Neurovascular is going to kick up as well.

Speaker #1: Neurovascular has got a number of new products. Like the Onyx indication for MMAE as well as our carotid stenting product and NeuroGuard. And then it's anniversaries.

Speaker #1: One is CST, with the stealth access. I'm sure we'll get some questions on that. But I do think this is kind of underappreciated, quite frankly.

Geoff Martha: I'm sure we'll get some questions on that, but I do think this is kind of underappreciated, quite frankly, you know, by the street. This is, you know, not just a new robot, it's not just an extension of Mazor, it's a whole new platform, that, you know, that has a lot of benefits to it, and I think that's gonna create growth for the lo- you know, short and long term for CST. And then Neurovascular is going to kick up as well. Neurovascular's got a number of new products, like the On-X, you know, indication for MMAE, as well as, our carotid stenting product and NeuroGuard, and then it's anniversaries, VBP and a few other things. So you're going to see a kick up in Neurovascular as well.

Speaker #1: By the street, this is not just a new robot. It's not just an extension of Mazur. It's a whole new platform. That has a lot of benefits to it.

Speaker #1: BBP and a few other things. So you're going to see a kick up in Neurovascular as well. So I think we feel good about the growth continuing here out.

Speaker #1: Not just in Q4, but out into FY 27.

Speaker #1: And I think that's going to create growth for the short and long term for CST. And then neurovascular is going to kick up as well.

Speaker #3: Yeah. And on the EPS side, so as I mentioned in the comments, the algorithm is here, right? So we have the accelerated growth. The things are getting better at the gross margin level in particular in the second half, as we'll see the mix effect from caths getting better and the separation of diabetes.

Geoff Martha: I think, you know, we feel good about the growth continuing here out, you know, not just in Q4, but out into FY 2027.

Speaker #1: Neurovascular has got a number of new products, like the Onyx indication for MMAE, as well as our carotid stenting product and NeuroGuard. And then it's anniversaries.

Thierry Piéton: Yeah, and on the EPS side. So, you know, as I mentioned in the comments, the algorithm is clear, right? So we have the accelerated growth, the things are getting better at the growth margin level, in particular in the second half, as we'll see, the mix effect from CAS getting better and the separation of diabetes will continue to drive the leverage on the functional areas, in particular in G&A. And we'll then continue to invest in R&D and in M&A. So we're reiterating the high single digit EPS growth guidance for 2027. We do have a couple, you know, meaningful puts and takes in the number next year. And as we're getting more visibility, we'll keep you posted on what the impacts are.

Speaker #1: BBP and a few other things. So you're going to see a kick up in Neurovascular as well. So I think we feel good about the growth continuing here out.

Speaker #3: We'll continue to drive the leverage on the functional areas in particular in GNA. And we'll continue to invest in R&D and in M&A. So we're reiterating the high single digit EPS growth guidance for 27.

Geoff Martha: So I think, you know, we feel good about the growth, continuing here out, you know, not just in Q4, but out into in FY 2027.

Speaker #1: Not just in Q4, but out into FY 27.

Speaker #4: Yeah. And on the EPS side, as I mentioned in the comments, the algorithm is here, right? So, we have the accelerated growth. Things are getting better at the gross margin level, in particular in the second half, as we'll see the mix effect from CAS getting better and the separation of Diabetes.

Thierry Piéton: Yeah, and on the EPS side. So, you know, as I mentioned in the comments, the algorithm is clear, right? So we have the accelerated growth, the things are getting better at the growth margin level, in particular in the second half, as we'll see, the mix effect from CAS getting better and the separation of diabetes will continue to drive the leverage on the functional areas, in particular in G&A. And we'll then continue to invest in R&D and in M&A. So we're reiterating the high single-digit EPS growth guidance for 2027. We do have a couple, you know, meaningful puts and takes in the number next year. And as we're getting more visibility, we'll keep you posted on what the impacts are.

Speaker #3: We do have a couple meaningful puts and takes in the number next year. And as we're getting more visibility, we'll keep you posted on what the impacts are.

Speaker #3: But to name a few, so we'll have the carryover from the tariffs, the tariff settlement going into next year. This year we had about two and a half quarters of tariffs and that will carry over into the full year.

Speaker #4: We'll continue to drive the leverage on the functional areas in particular in GNA. And we'll continue to invest in R&D and in M&A. So we're reiterating the high single digit EPS growth guidance for 27.

Thierry Piéton: But to name a few, so we'll have the carryover from the tariffs, the tariff settlement, going into next year. You know, this year we had about 2.5 quarters of tariffs, and that will carry over into the full year. I think the way to think about that is about $75 million per quarter. So on a full year basis, it means around $300 million of headwind versus the $185 million we had in, what we're having in 2026. We'll have a little bit of help from the fact that there's 53 weeks in fiscal year 2027, as opposed to 52 usually.

Speaker #3: I think the way to think about that is about 75 million per quarter. So on a full year basis, it means around 300 million of headwind versus the 185 we had in what we're having in 26.

Speaker #4: We do have a couple of meaningful puts and takes in the number next year. And as we're getting more visibility, we'll keep you posted on what the impacts are.

Speaker #3: We'll have a little bit of help from the fact that there's 53 weeks in fiscal year 27 as opposed to 52 usually. And then the diabetes deal, we fully expect the deal to be accretive.

Speaker #4: But to name a few, we'll have the carryover from the tariffs, the tariff settlement going into next year. This year, we had about two and a half quarters of tariffs.

Thierry Piéton: But to name a few, we'll have the carryover from the tariffs, the tariff settlement, going into next year. You know, this year we had about two and a half quarters of tariffs, and that will carry over into the full year. I think the way to think about that is about $75 million per quarter. So on a full year basis, it means around $300 million of headwind versus the $185 million we had in what we're having in 2026. We'll have a little bit of help from the fact that there's 53 weeks in fiscal year 2027, as opposed to 52, usually.

Speaker #4: And that will carry over into the full year. I think the way to think about that is about 75 million per quarter. So on a full-year basis, it means around 300 million of headwind versus the 185 we had in what we're having in 26.

Speaker #3: But between the moment we do the IPO and the moment we do the split, you should expect some dilution to the tune of 1% to 2 cents per month.

Thierry Piéton: And then, you know, the diabetes deal, we fully expect the deal to be accretive, but between the moment we do the IPO and the moment we do the split, you should expect some dilution to the tune of $0.01 to $0.02 per month. The reason behind that is that most of the stock, the Medtronic stock retirement that we will do that drives the accretion, happens only upon the full separation. And so we'll see the accretion later, but initially, we've got a little bit of pressure coming from that. And we've also embedded in the guidance $0.04 to $0.05 of dilution coming from M&A activity. So we've already announced CathWorks and Anteris, and so we've embedded that in the guidance.

Speaker #3: The reason behind that is that most of the stock, the Medtronic stock retirement that we will do that drives the accretion happens only upon the full separation.

Speaker #4: We'll have a little bit of help from the fact that there's 53 weeks in fiscal year '27, as opposed to 52 usually. And then the diabetes deal—we fully expect the deal to be accretive.

Speaker #3: And so we'll see the accretion later. But initially, we've got a little bit of pressure coming from that. And we've also embedded in the guidance 4% to 5 cents of dilution coming from M&A activity.

Thierry Piéton: Then, you know, the diabetes deal, we fully expect the deal to be accretive, but between the moment we do the IPO and the moment we do the split, you should expect some dilution to the tune of $0.01 to $0.02 per month. The reason behind that is that most of the stock, the Medtronic stock retirement that we will do that drives the accretion, happens only upon the full separation. So we'll see the accretion later, but initially we've got a little bit of pressure coming from that. We've also embedded in the guidance 4 to 5 cents of dilution coming from M&A activity. So we've already announced CathWorks and Anteris, and so we've embedded that in the guidance.

Speaker #4: But between the moment we do the IPO and the moment we do the split, you should expect some dilution to the tune of 1% to 2 cents per month.

Speaker #3: So we've already announced CathWorks and Anteris. And so we've embedded that in the guidance. So it's all in as we get more visibility to the timing of diabetes and the closing of the M&A deals.

Speaker #4: The reason behind that is that most of the stock, the Medtronic stock retirement that we will do that drives the accretion happens only upon the full separation.

Speaker #3: We'll give you more specifics on the different impacts in the Q4 release. But as you can see, we're committed to the growth acceleration. We're committed to the investment with M&A and with R&D.

Thierry Piéton: So it's all in as we get more visibility to the timing of diabetes and the closing of the M&A deals. We'll give you more specifics on the different impacts in the Q4 release. But as you can see, we're committed to the growth acceleration. We're committed to the investment with M&A and with R&D, and we're committed to the guidance.

Speaker #4: And so we'll see the accretion later. But initially, we've got a little bit of pressure coming from that. And we've also embedded in the guidance $0.04 to $0.05 of dilution coming from M&A activity.

Speaker #3: And we're committed to the guidance.

Speaker #4: So we've already announced CathWorks and Anteris. And so we've embedded that in the guidance. So it's all in as we get more visibility to the timing of diabetes and the closing of the M&A deals.

Speaker #1: Yeah. And just on that acceleration, go ahead, Travis.

Speaker #3: Excluding accelerating. Yeah, there's that extra selling week next year. Is the growth acceleration excluding that extra selling day?

Thierry Piéton: So, it's all in as we get more visibility to the timing of diabetes and the closing of the M&A deals. We'll give you more specifics on the different impacts in the Q4 release. But as you can see, we're committed to the growth acceleration. We're committed to the investment with M&A and with R&D, and we're committed to the guidance.

Geoff Martha: Yeah, and just-

Travis Steed: Is the growth acceleration-

Speaker #1: So that'll be part of it. That'll be part of it. And again, we'll give you the details of the impacts as we go into the Q4 announcement.

Geoff Martha: Go ahead, Travis.

Travis Steed: Excluding selling day? Yeah, there's that extra selling week next year. Is that-- is the growth acceleration excluding that extra selling day?

Speaker #4: We'll give you more specifics on the different impacts in the Q4 release. But as you can see, we're committed to the growth acceleration. We're committed to the investment with M&A and with R&D.

Speaker #1: But I think about the growth acceleration, you mentioned caths in Q3. I mean, beyond caths, you saw our CRM business and our peripheral vascular health business both step up in Q3.

Thierry Piéton: So that'll be part of it. That'll be part of it, and again, we'll give you the details of the impacts, as we go into the Q4 announcement.

Geoff Martha: When I think about the growth acceleration, you mentioned CAS in Q3. I mean, beyond CAS, you saw our CRM business and our peripheral vascular health business both step up in Q3. You know, Q4, like I said, and beyond, CSP, think about CST and neurovascular starting to accelerate. And then as you get into FY 2027, that's when the Ardian and Altaviva, you know, really kick in, and also Hugo. So we feel good about that acceleration.

Speaker #1: Q4, like I said, and beyond, see us think about CST and Neurovascular starting to accelerate. And then as you get into FY 27, that's when the Ardian and AltaViva really kick in.

Speaker #4: And we're committed to the guidance.

Speaker #1: Yeah. And just on that acceleration, go ahead, Travis.

Geoff Martha: Yeah, and just-

Travis Steed: The growth acceleration.

Geoff Martha: Go ahead, Travis.

Travis Steed: Excluding something. Yeah, there's that extra selling week next year. Is that—is the growth acceleration excluding that extra selling day?

Speaker #4: Excluding some day. Yeah, there's that extra selling week next year. Is the growth acceleration excluding that extra selling day?

Speaker #1: And also Hugo. So we feel good about that acceleration.

Speaker #1: So that'll be part of it. That'll be part of it. And again, we'll give you the details of the impacts as we go into the Q4 announcement.

Thierry Piéton: So that'll be part of it. That'll be part of it. And again, we'll give you the details of the impacts as we go into the Q4 announcement.

Speaker #3: Great. Thank you.

Speaker #1: But I think about the growth acceleration, you mentioned CAS in Q3. I mean, beyond CAS, you saw our CRM business and our peripheral vascular health business both step up in Q3.

Geoff Martha: When I think about the growth acceleration, you mentioned CAS in Q3. I mean, beyond CAS, you saw our CRM business and our peripheral vascular health business both step up in Q3. You know, Q4, like I said, and beyond, think about CST and neurovascular starting to accelerate. And then as you get into FY 2027, that's when the Ardian and Altaviva, you know, really kick in, and also Hugo. So we feel good about that acceleration.

Speaker #2: All right. Our next question comes from Vijay Kumar at Evercore. Please go ahead, Vijay.

Travis Steed: Great. Thank you.

Speaker #4: Thank you, Ingrid. And welcome to your inaugural earnings call here. Jeff, congrats on a nice sprint. I had one product question and one clarification on the guidance.

Ingrid Goldberg: All right, our next question comes from Vijay Kumar at Evercore. Please go ahead, Vijay.

Speaker #1: Q4, like I said, and beyond, see us think about CST and neurovascular starting to accelerate. And then, as you get into FY27, that's when Ardian and AltaViva really kick in.

Vijay Kumar: Thank you, Ingrid, and welcome to your inaugural earnings call here. Geoff, congrats on a nice sprint. You know, I had one product question and one clarification on the guidance. On the product, you mentioned RDN, you know, Altaviva. Those will be growth accelerators in fiscal 2026. How should we, you know, monitor the progress? Are there any goalposts that we can look forward to in tracking the launch curves for RDN and Altaviva?

Speaker #4: On the product, you mentioned RDN, AltaViva. Those will be growth accelerators in fiscal 26. How should we monitor the progress rate? Are there any goalposts that we can look forward to in tracking the launch curves for RDN and AltaViva?

Speaker #1: And also Hugo. So we feel good about that acceleration.

Travis Steed: Great. Thank you.

Speaker #4: Great. Thank you.

Speaker #3: All right. Our next question comes from Vijay Kumar at Evercore. Please go ahead, Vijay.

Operator: All right, our next question comes from Vijay Kumar at Evercore. Please go ahead, Vijay.

Vijay Kumar: Thank you, Ingrid, and welcome to your inaugural earnings call here. Jeff, congrats on a nice sprint. You know, I had one product question and one clarification on the guidance. On the product, you mentioned RDN, you know, Altaviva. Those will be growth accelerators in fiscal 26. How should we, you know, monitor the progress? Are there any goalposts that we can look forward to in tracking the launch curves for RDN and Altaviva?

Speaker #5: Thank you, Ingrid. And welcome to your inaugural earnings call here. Jeff, congrats on a nice sprint. I had one product question and one clarification on the guidance.

Speaker #1: You know, it's a good question. I think we'll start to lay out more concrete goalposts as we go forward. Right now, we've been talking a lot about the leading indicators that we're seeing with both.

Geoff Martha: You know, it's a good question. I think we'll start to lay out more concrete goalposts, as we go forward. Right now, we've been talking a lot about, you know, the leading indicators that we're seeing with both, and we're seeing, you know, really strong leading indicators. Like with Altaviva, we talked about, you know, training 500+ physicians. You have strong demand, training 500, you know, + physicians. And, like I said, last quarter, I mean, this is over the weekend, often traveling. It just shows the commitment here. And then things like in renal denervation, I'd say it's things like, you know, the opening of new accounts. Like this quarter, we opened 200, you know, over 200 new accounts.

Speaker #5: On the product, you mentioned RDN, AltaViva. Those will be growth accelerators in fiscal '26. How should we monitor the progress rate? Are there any goalposts that we can look forward to in tracking the launch curves for RDN and AltaViva?

Speaker #1: And we're seeing really strong leading indicators, like with AltaViva. We talked about training 500 plus physicians. Strong demand training 500 plus physicians. And like I said, last quarter, I mean, these are this is over the weekend, often traveling.

Speaker #1: It just shows the commitment here and then things like in renal denervation. I'd say it's things like the opening of new accounts, like this quarter we opened 200 over 200 new accounts.

Geoff Martha: You know, it's a good question. I think we'll start to lay out more concrete goalposts... as we go forward. Right now, we've been talking a lot about, you know, the leading indicators that we're seeing with both, and we're seeing, you know, really strong leading indicators. Like with Altaviva, we talked about, you know, training 500+ physicians. You have strong demand, training 500, you know, + physicians. And, like I said, last quarter, I mean, these are- this is all over the weekend, often, often traveling. It just shows the commitment here. And then things like in, in renal denervation, I'd say it's, it's things like, you know, the opening of new accounts. Like this quarter, we opened 200, you know, over 200 new accounts.

Speaker #1: Our physician finders up to 150 physicians. And remember, that's a low it's a hard it's a high bar to get in. You have to do five cases and plus opt in.

Speaker #1: And we're seeing really strong leading indicators, like with AltaViva. We talked about training 500-plus physicians. Strong demand training 500-plus physicians. And like I said, last quarter, I mean, these are this is over the weekend, often traveling.

Geoff Martha: Our physician finder is up to 150 physicians, and remember, that's a low. It's a hard, it's a high bar to get in. You have to do 5 cases, and plus opt in. So, there's a lot more physicians doing cases today. And we'll continue to track, like, the covered lives, like in, and for reimbursement for Ardian, we're already up to, like, 100 million covered lives, which is about 1/3 of the population here in the US. So those are all leading indicators, and we'll start putting more, you know, other, as you put goalposts out there, as this starts to mature a little bit, both of these launches. I don't know if you have anything to add to that, Terry?

Speaker #1: So there's a lot more physicians doing cases today. And we'll continue to track the covered lies. Like for Ardian, we're already up to like 100 million covered lives.

Speaker #1: It just shows the commitment here, and then things like in renal denervation. I'd say it's things like the opening of new accounts. Like this quarter, we opened over 200 new accounts.

Speaker #1: There's about one third of the population here in the US. So those are all leading indicators. And we'll start putting more other as you put, goalposts out there as this starts to mature a little bit, both of these launches.

Speaker #1: Our physician finder is up to 150 physicians. And remember, that's a low—it's a hard—it's a high bar to get in. You have to do five cases and plus opt in.

Geoff Martha: Our physician finder is up to 150 physicians, and remember, that's a low, it's a high bar to get in. You have to do 5 cases, and plus opt-in. So, there's a lot more physicians doing cases today. And we'll continue to track, like, the covered lives, like, in, in for reimbursement, for Ardian, we're already up to, like, 100 million covered lives, which is about 1/3 of the population here in the US. So we'll- those are all leading indicators, and we'll start putting more, you know, other, as you put goalposts out there, as this starts to mature a little bit, both of these launches. I don't know if you have anything to add to that, Thierry.

Speaker #1: I don't know if you have anything to add to that, Thierry.

Speaker #3: Nope.

Speaker #4: Wait, just one clarification on the extra week. Jeff, on we're looking at exit rates of 6% organic, right? And let's assume next year is north of 6%.

Speaker #1: So there's a lot more physicians doing cases today, and we'll continue to track the covered lives. Like for Ardian, we're already up to like 100 million covered lives.

Thierry Piéton: Nope.

Patrick Wood: Great. Just one clarification on the extra week, Jeff, on, you know, we're looking at exit rates of 6% organic, right? And let's assume next year is north of 6%. The extra week is almost 2 points of growth. So are we looking at, you know, base organic, excluding extra week, somewhere in the 5% range, or any thoughts on how to think about extra week contribution?

Vijay Kumar: Great. Just one clarification on the extra week, Jeff, on, you know, we're looking at exit rates of 6% organic, right? And let's assume next year is north of 6%. The extra week is almost 2 points of growth. So are we looking at, you know, base organic, excluding extra week, somewhere in the 5% range, or any thoughts on how to think about extra week contribution?

Speaker #4: The extra week is almost two points of growth. So are we looking at base organic excluding extra week, somewhere in the 5% ish range or any thoughts on how to think about extra week contribution?

Speaker #1: There's about one-third of the population here in the US. So those are all leading indicators. And we'll start putting more, other—as you put it—goalposts out there as this starts to mature a little bit, both of these launches.

Speaker #3: So maybe I'll take that one. And thanks for the question. Look, first, it's a little bit less than two points of full growth. And again, we'll give you the specific calculations as we close the year.

Speaker #1: I don't know if you have anything to add to that, Thierry.

Thierry Piéton: Nope.

Speaker #4: Nope.

Speaker #5: Great. And just one clarification on the extra week. Jeff, on we're looking at exit rates of 6% organic, right? And let's assume next year is north of 6%.

Vijay Kumar: Great. Just one clarification on the extra week, Jeff. On you know, we're looking at exit rates of 6% organic, right? And let's assume next year is north of 6%. The extra week is almost 2 points of growth. So are we looking at base organic, excluding extra week, somewhere in the 5% range, or any thoughts on how to think about extra week contribution?

Thierry Piéton: So, maybe I'll take that one now, and thanks for the question. Look, first, it's a little bit less than 2 points of full growth. And again, we'll give you the specific calculations as we close the year. But the way to think of it is that there's going to be growth acceleration excluding the extra week, right? So it should be upside. So we should have, you know, better growth than we have in fiscal year 2026, in 2027, and the extra week should be on top of that.

Speaker #3: But the way to think of it is that there's going to be growth acceleration excluding the extra week. Right? So it should be upside.

Speaker #5: The extra week is almost two points of growth. So are we looking at base organic excluding extra week, somewhere in the 5%-ish range or any thoughts on how to think about extra week contribution?

Speaker #3: So we should have better growth than we have in fiscal year 26 in 27 and the extra week should be on top of that.

Speaker #4: Thank you so much.

Speaker #1: Is that clear, Vijay?

Speaker #4: So maybe I'll take that one. And thanks for the question. Look, first, it's a little bit less than two points of full growth. And again, we'll give you the specific calculations as we close the year.

Thierry Piéton: So, maybe I'll take that one now, and thanks for the question. Look, first, it's a little bit less than 2 points of full growth. And again, we'll give you the specific calculations as we close the year. But, the way to think of it is that there's going to be growth acceleration, excluding the extra week, right? So it should be upside. So we should have, you know, better growth than we have in fiscal year 2026, in 2027, and the extra week should be on top of that.

Speaker #4: Crystal clear, Jeff. Thank you.

Patrick Wood: Thank you so much.

Vijay Kumar: Thank you so much.

Geoff Martha: Is that clear, Vijay?

Speaker #2: Great. And our next question comes from Larry Biegelson at Wells Fargo. Larry, you are live.

Patrick Wood: Crystal clear. Yes. Thank you.

Vijay Kumar: Crystal clear. Yes. Thank you.

Speaker #4: But the way to think of it is that there's going to be growth acceleration excluding the extra week. So it should be upside. So we should have better growth than we have in fiscal year '26 in '27, and the extra week should be on top of that.

Speaker #5: Good morning. Thanks for taking the question. Yeah, Jeff, I wanted to ask about caths. And your growth continued to accelerate this quarter to 80% worldwide.

Ingrid Goldberg: Great. Our next question comes from Larry Biegelsen at Wells Fargo. Larry, you are live.

Larry Biegelsen: Good morning. Thanks for taking the question. Yeah, Jeff, I wanted to ask about caths and your growth, you know, continued to accelerate this quarter to 80% worldwide, which implies the worldwide EP market grew about 20% in calendar year Q4. So my question is: you know, how are you thinking about the EP market growth in calendar year 2026 and your cath growth, you know, going forward now that you're lapping the Affera US launch? I think to achieve the trailing twelve-month, you know, $2 billion goal, it looks like your cath growth has to kind of sustain about 80%, the next two quarters. Is that directionally accurate? Thanks for taking the question.

Speaker #5: Which implies that worldwide EP market grew about 20% in calendar year Q4. So my question is, how are you thinking about the EP market growth in calendar year 26 and your caths growth going forward now that you're lapping the affair of US launch?

Speaker #5: Thank you so much.

Vijay Kumar: Thank you so much.

Speaker #1: Is that clear, Vijay?

Geoff Martha: Is that clear, Vijay?

Vijay Kumar: Crystal clear. Yes. Thank you.

Speaker #5: Crystal clear, Jeff. Thank you.

Vijay Kumar: Crystal clear. Yes. Thank you.

Speaker #3: Great. And our next question comes from Larry Beagleson at Wells Fargo. Larry, you are live.

Operator: Great. Our next question comes from Larry Biegelsen at Wells Fargo. Larry, you are live.

Speaker #5: I think to achieve the trailing 12-month, $2 billion goal, it looks like your caths growth has to kind of sustain about 80% the next two quarters.

Speaker #6: Good morning. Thanks for taking the question. Yeah, Jeff, I wanted to ask about CAS, and your growth continued to accelerate this quarter to 80% worldwide.

Larry Biegelsen: Good morning. Thanks for taking the question. Yeah, Jeff, I wanted to ask about caths, and your growth, you know, continued to accelerate this quarter to 80% worldwide, which implies the worldwide EP market grew about 20% in calendar year Q4. So my question is: you know, how are you thinking about the EP market growth in calendar year 2026 and your cath growth, you know, going forward now that you're lapping the Affera US launch? I think to achieve the trailing 12-month, you know, $2 billion goal, it looks like your cath growth has to kind of sustain about 80% the next two quarters. Is that directionally accurate? Thanks for taking the question.

Speaker #5: Is that directionally accurate? Thanks for taking the question.

Speaker #1: Well, first, I'd say we agree with you on the market growth and our fiscal Q3 or Q4 here of around 20%. And we think the market will continue to be like that in the near term.

Speaker #6: Which implies that worldwide EP market grew about 20% in calendar year Q4. So my question is, how are you thinking about the EP market growth in calendar year 26 and your CAS growth going forward now that you're lapping the affair of US launch?

Geoff Martha: Well, first I'd say you're-- you know, we agree with you on the market growth in our, you know, fiscal Q3 or Q4 here of around 20%. And we think, you know, the market, you know, will, you know, continue to be like that in the near term. And, you know, for our fiscal 2027, we think it's going to be at least high teens, and then thereafter, a strong double-digit market. So we see the market growth continuing, and then, you know, we believe we're really well positioned with our portfolio of catheters, you know, that we have, as well as mapping. In terms of our business growth, we do see it sustaining here in Q4, and we haven't provided guidance beyond that.

Speaker #1: And for our fiscal 27, we think it's going to be at least high teens. And thereafter, a strong double-digit market. So we see the market growth continuing.

Speaker #6: I think, to achieve the trailing 12-month $2 billion goal, it looks like your CAS growth has to kind of sustain about 80% the next two quarters.

Speaker #1: And then we believe we're really well positioned with our portfolio of catheters. That we have as well as mapping. In terms of our business growth, we do see it sustaining here in Q4.

Speaker #6: Is that directionally accurate? Thanks for taking the question.

Speaker #1: Well, first, I'd say we agree with you on the market growth and our fiscal Q3 or Q4 here of around 20%. And we think the market will continue to be like that in the near term.

Geoff Martha: Well, first I'd say you're, you know, we agree with you on the market growth in our, you know, fiscal Q3 or Q4 here of around 20%. And we think, you know, the market, you know, will, you know, continue to, to be like that in the near term. And, you know, for our fiscal 2027, we think it's going to be at least high teens, and, and then thereafter, a strong double-digit market. So we see the market growth continuing, and then, you know, we believe we're, we're really well positioned with our portfolio of, of catheters, you know, that, that we have, as well as mapping. In terms of our, our business growth, we do see it, sustaining here in Q4, and we haven't provided guidance beyond that.

Speaker #1: And we haven't provided guidance beyond that. But again, I'd like to say I think we're very well positioned here. When you look at the four players in PFA, I think we've got two that are really their value proposition right now is setting around mapping.

Speaker #1: And for our fiscal 27, we think it's going to be at least high teens. And then thereafter, a strong double-digit market. So we see the market growth continuing and then we believe we're really well positioned with our portfolio of catheters.

Geoff Martha: But again, I'd like to say I think we're very well positioned here. When you look at the four players in PFA, I think we, you know, got two that are really, their value proposition right now is centered around mapping. And we feel like we're very well positioned against them because the... We still think the catheter carries the day, and we have integrated mapping. And then when you look at our competitor, that's really their value proposition centers around catheters, we believe we have a better portfolio of catheters. Our Sphere-9 is, like I said in the commentary, proven to be quite versatile.

Speaker #1: And we feel like we're very well positioned against them because we still think the catheter carries the day. And we have integrated mapping. And then when you look at our competitor that's really their value proposition centers around catheters, we believe we have a better portfolio of catheters.

Speaker #1: That we have, as well as mapping. In terms of our business growth, we do see it sustaining here in Q4. And we haven't provided guidance beyond that.

Speaker #1: Our Sphere 9 is, like I said, in the commentary, proven to be quite versatile. And I know initially, our competitor here did a pretty good job of putting out a narrative that Sphere 9 was more of a niche.

Geoff Martha: But again, I'd like to say I think we're very well positioned here. When you look at the four players in PFA, I think we, you know, got two that are really, their value proposition right now is centering around mapping, and we feel like we're very well positioned against them because... We still think the catheter carries the day, and we have integrated mapping. And then when you look at our competitor, that's really their value proposition centers around catheters, we believe we have a better portfolio of catheters. Our Sphere-9 is, like I said, in the commentary, proven to be quite versatile. And I know initially, our competitor here did a, you know, pretty good job of putting out a narrative that Sphere-9 was more of a niche.

Speaker #1: But again, I'd like to say I think we're very well positioned here. When you look at the four players in PFA, I think we've got two that are really their value proposition right now is setting around mapping.

Geoff Martha: But again, I'd like to say I think we're very well positioned here. When you look at the four players in PFA, I think we, you know, got two that are really, their value proposition right now is centering around mapping, and we feel like we're very well positioned against them because... We still think the catheter carries the day, and we have integrated mapping. And then when you look at our competitor, that's really their value proposition centers around catheters, we believe we have a better portfolio of catheters. Our Sphere-9 is, like I said, in the commentary, proven to be quite versatile. And I know initially, our competitor here did a, you know, pretty good job of putting out a narrative that Sphere-9 was more of a niche.

Geoff Martha: I know initially, our competitor here did a pretty good job of putting out a narrative that Sphere-9 was more of a niche. And I think as that's gotten out there, that's proven not to be true, as it's being used, you know, across persistent and paroxysmal. It's new cases, redos, it's simple versus complex. It's being used across the board. And then we've got Sphere-360, you know, got CE Mark, and it's a single-shot catheter. And again, you know, that's probably the one catheter that's got more excitement than Sphere-9. And we started the US trial. And then, of course, we're going to have mapping upgrades, you know, on a regular basis.

Speaker #1: And I think as that's gotten out there, that's proven not to be true. As it's being used in across persistent and paroxysmal new cases, redos, it's simple versus complex.

Speaker #1: And we feel like we're very well positioned against them, because we still think the catheter carries the day. And we have integrated mapping. And then, when you look at our competitor, that's really—their value proposition centers around catheters—we believe we have a better portfolio of catheters.

Speaker #1: It's being used across the board. And then we've got Sphere 360. It's got CE marked. And it's a single-shot catheter. And again, that's probably the one catheter that's got more excitement than Sphere 9.

Speaker #1: Our Sphere 9 is, like I said in the commentary, proven to be quite versatile. And I know initially, our competitor here did a pretty good job of putting out a narrative that Sphere 9 was more of a niche.

Speaker #1: And we started the US trial. And then, of course, we're going to have mapping upgrades on a regular basis. So feeling pretty good about our position today.

Speaker #1: And I think as that's gotten out there, that's proven not to be true. As it's being used in across persistent and paroxysmal new cases, redos, it's simple versus complex.

Geoff Martha: And I think as that's gotten out there, that, that's proven not to be true, as it's being used in, you know, across persistent and paroxysmal. It's new cases, you know, redos, it's simple versus complex. It's being used across the board. And then we've got Sphere-360, you know, it got CE marked, and, and it's a single-shot catheter, and again, you know, that's probably the one catheter that's got more excitement than Sphere-9. And, we started the US trial. And then, of course, we're going to have mapping upgrades, you know, on a regular basis. So, feeling pretty good about our position today, as well as tomorrow. And like I said, the underlying market's really strong.

Speaker #1: As well as tomorrow. And like I said, the underlying market's really strong.

Geoff Martha: Feeling pretty good about our position today, as well as tomorrow. Like I said, the underlying market's really strong.

Speaker #1: It's being used across the board. And then we've got Sphere 360, got CE marked. And it's a single-shot catheter. And again, that's probably the one catheter that's got more excitement than Sphere 9.

Speaker #5: All right. Thanks so much, Jeff.

Speaker #2: Thank you, Larry. Our next question comes from Patrick Wood at Morgan Stanley. Patrick, please go ahead.

Larry Biegelsen: All right. Thanks so much, Jeff.

Speaker #4: Perfect. Thank you so much for taking the question. I'll keep it to one, just given there's so much going on. Obviously, the cath works in the entire deals.

Ingrid Goldberg: Thank you, Larry. Our next question comes from Patrick Wood at Morgan Stanley. Patrick, please go ahead.

Speaker #1: And we started the US trial. And then, of course, we're going to have mapping upgrades on a regular basis. So, feeling pretty good about our position today.

Speaker #4: I know you were close to cath works for a long time. How are we thinking about cath allocation M&A? There's a lot of other companies doing very large deals in this space.

Patrick Wood: Perfect. Thank you so much for taking the question. I'll keep it to one, just given there's so much going on. Obviously, the CathWorks and the Affera's deals, I know you were close to CathWorks for a long time. You know, how are we thinking about capital allocation, M&A? There's a lot of other companies doing very large deals in this space, and I'm just trying to work out, you know, directionally, do you guys feel still more that it's kind of bolt-on M&A, technology, tuck-ins, that kind of things, relative to larger deals, and how are you think about capital allocation going forward? Thanks.

Speaker #1: As well as tomorrow. And like I said, the underlying market's really strong.

Speaker #4: I'm just trying to work out directionally, do you guys feel still more that it's kind of bolt-on M&A technology, tuck-ins, that kind of things relative to larger deals?

Speaker #6: All right. Thanks so much, Jeff.

Larry Biegelsen: All right. Thanks so much, Jeff.

Speaker #3: Thank you, Larry. Our next question comes from Patrick Wood at Morgan Stanley. Patrick, please go ahead.

Operator: Thank you, Larry. Our next question comes from Patrick Wood at Morgan Stanley. Patrick, please go ahead.

Speaker #4: And how do you think about cath allocation going forward? Thanks.

Speaker #1: Well, thanks for the question, Patrick. And as we've stated, we're a very committed to accelerating M&A. And you're starting to see that with cath works and in Terrace.

Speaker #5: Perfect. Thank you so much for taking the question. I'll keep it to one, just given there's so much going on. Obviously, the cath works in the entire deals.

Patrick Wood: Perfect. Thank you so much for taking the question. I'll keep it to one, just given there's so much going on. Obviously, the CathWorks and the Anteris deals, I know you were close to CathWorks for a long time. You know, how are we thinking about capital allocation, M&A? There's a lot of other companies doing very large deals in this space, and I'm just trying to work out, you know, directionally, do you guys feel still more that it's kind of bolt-on M&A, technology, tuck-ins, that kind of things, relative to larger deals, and how are you thinking about capital allocation going forward? Thanks.

Geoff Martha: Well, thanks for the question, Patrick. Look, as we've stated, you know, we're very committed to accelerating M&A, and you're starting to see that with CathWorks and Intera. And again, it's very, you know, focused, tied to our strategy venture investments that might lead to ultimately to M&A and then M&A. And we are focused on, you know, more like what we would define as tuck-in deals. They can get up to several billion dollars, but tuck-in, you know, a close adjacency to our existing business. And a number of them, though. I mean, that's the other thing. I think it's a fairly, you know, meaningful amount of capital among several different tuck-in venture and tuck-in opportunities across our portfolio.

Speaker #5: I know you were close to CathWorks for a long time. How we think about cath allocation M&A—there's a lot of other companies doing very large deals in this space.

Speaker #1: And again, it's very focused tied to our strategy venture investments. That might lead to ultimately to M&A. And then M&A. And we are focused on more like what we would define as tuck-in deals.

Speaker #5: And I'm just trying to work out directionally, do you guys feel still more that it's kind of bolt-on M&A technology, tuck-ins, that kind of things relative to larger deals?

Speaker #1: They can get up to several billion dollars. But tuck-in in or a close adjacency to our existing business. And a number of them, though.

Speaker #5: And how do you think about cap allocation going forward? Thanks.

Geoff Martha: Well, thanks for the question, Patrick. And look, as we've stated, look, we're very committed to accelerating M&A, and you're starting to see that with CathWorks and Affera. And again, it's, it's very, you know, focused, tied to our, our strategy venture investments that might lead to ultimately to M&A and, and then, and then M&A. And we are focused on, you know, more like what we would define as tuck-in deals. They can get up to several billion dollars, but tuck-in, you know, a close adjacency to our existing business. And a number of them, though. I mean, that's the other thing. I think it's a, you know, a, a fairly, you know, meaningful amount of capital among several different tuck-in, venture and tuck-in opportunities across our portfolio.

Speaker #1: Well, thanks for the question, Patrick. And as we've stated, we're very committed to accelerating M&A. And you're starting to see that with CathWorks and Interis.

Speaker #1: I mean, that's the other thing. I think it's a fairly meaningful amount of capital among several different tuck-in venture and tuck-in opportunities across our portfolio.

Speaker #1: And again, it's very focused, tied to our strategy—venture investments that might ultimately lead to M&A. And then M&A, we are focused on more like what we would define as tuck-in deals.

Speaker #1: Again, prioritizing maybe the higher growth areas and in some cases, maybe having multiple shots on goal. Like we did with Pulse Field Ablation. Right?

Speaker #1: We did an organic program. We went out and got Afera. We may see us do that again in some of these high-growth, really must-win markets where but that's how I would say it.

Geoff Martha: Again, prioritizing maybe the higher growth areas, and in some cases, maybe having multiple shots on goal, like we did with pulsed field ablation, right? We had an organic program. We went out and got Affera. We may, you may see us do that again in some of these high growth, really must-win, you know, markets where... But, but that's, that's how I would say it. Tuck-in across many of our different segments and subsegments, as well as venture.

Speaker #1: They can get up to several billion dollars. But tuck-in, or a close adjacency to our existing business, and a number of them, though. I mean, that's the other thing.

Speaker #1: Tuck-in, across many of our different segments and subsegments. As well as venture.

Speaker #1: I think it's a fairly meaningful amount of capital among several different tuck-in opportunity ventures and tuck-in opportunities across our portfolio. Again, prioritizing maybe the higher growth areas, and in some cases, maybe having multiple shots on goal, like we did with Pulse Field Ablation.

Speaker #4: Appreciate it. Thanks for taking the question, guys.

Geoff Martha: Again, prioritizing maybe the higher growth areas and in some cases, maybe having multiple shots on goal, like we did with pulsed field ablation, right? We did an organic program. We went out and got Affera. You may see us do that again in some of these high growth, really must-win, you know, markets where... But, but that's, that's how I would say it. Tuck-in across many of our different segments and subsegments, as well as venture.

Speaker #2: Great. So Robbie Marcus from JPMorgan will be our next question. Please go ahead, Robbie.

Matthew Taylor: ... Appreciate it. Thanks for taking the question, guys.

Patrick Wood: Appreciate it. Thanks for taking the question, guys.

Speaker #1: We did an organic program. We went out and got Afera. We may see us do that again in some of these high-growth, really must-win markets where but that's how I would say it.

Ingrid Goldberg: Great. So Robbie Marcus from JPMorgan will be our next question. Please go ahead, Robbie.

Speaker #4: Great. Can you hear me OK?

Speaker #6: Yep.

Speaker #4: Great. Good morning. Thank you for taking the questions. Two from me. Maybe I'll ask them just as one. Jeff or maybe Thierry. As you think about the fiscal 27 guidance and especially, I imagine you'll have Hugo and Renal Denervation and Tibial Spend to support those launches and continued investment in CAS.

Robert Marcus: Great. Can you hear me okay?

Robbie Marcus: Great. Can you hear me okay?

Speaker #1: Tuck-in, across many of our different segments and subsegments, as well as venture.

Geoff Martha: Yep.

Robert Marcus: Great. Good morning. Thank you for taking the questions. Two for me. Maybe I'll ask them just as one. Geoff or maybe Thierry, as you think about the fiscal 2027 guidance, and especially, I imagine you'll have Hugo and renal denervation and tibial spend to support those launches and continued investment in CAS. You know, how do you think about getting to the high single digit EPS growth? If you could give us some high-level drivers there. And then second part, the Street's sitting at 8.5% EPS growth. I know traditionally, you do something like 6.5 to 9.4 is high single. Do you think the Street at 8.5, is at a good midpoint of the range to start here? Thanks a lot.

Robbie Marcus: Great. Good morning. Thank you for taking the questions. Two for me. Maybe I'll ask them just as one. Geoff or maybe Thierry, as you think about the fiscal 2027 guidance, and especially, I imagine you'll have Hugo and renal denervation and tibial spend to support those launches and continued investment in CAS. You know, how do you think about getting to the high single digit EPS growth? If you could give us some high-level drivers there. And then second part, the Street's sitting at 8.5% EPS growth. I know traditionally, you do something like 6.5 to 9.4 is high single. Do you think the Street at 8.5, is at a good midpoint of the range to start here? Thanks a lot.

Speaker #5: Appreciate it. Thanks for taking the question, guys.

Patrick Wood: Appreciate it. Thanks for taking the question, guys.

Speaker #3: Great. So, Robbie Marcus from JPMorgan will be our next question. Please go ahead, Robbie.

Operator: Great. So Robbie Marcus from J.P. Morgan will be our next question. Please go ahead, Robbie.

Speaker #5: Great. Can you hear me OK?

Robbie Marcus: Great. Can you hear me okay?

Speaker #4: How do you think about getting to the high single-digit EPS growth? If you could give us some high-level drivers there. And then second part, the street's sitting at 8.5% EPS growth.

Speaker #7: Yep.

Geoff Martha: Yep.

Patrick Wood: Yep.

Speaker #5: Great, good morning. Thank you for taking the questions. Two from me—maybe I'll ask them just as one. Jeff, or maybe Thierry, as you think about the fiscal '27 guidance, and especially, I imagine you'll have Hugo and Renal Denervation and tibial spend to support those launches and continued investment in CAS.

Robbie Marcus: Great. Good morning. Thank you for taking the questions. Two from me. Maybe I'll ask them just as one. Geoff or maybe Thierry, as you think about the fiscal 2027 guidance, and especially I imagine you'll have Hugo and renal denervation and tibial spend to support those launches and continued investment in CAS, you know, how do you think about getting to the high single-digit EPS growth? If you could give us some high-level drivers there. And then second part, the Street's sitting at 8.5% EPS growth. I know traditionally you do something like 6.5 to 9.4 is high single. Do you think the Street at 8.5 is at a good, you know, midpoint of the range to start here? Thanks a lot.

Speaker #4: I know traditionally, you do something like 6.5% to 9.4% as high single. Do you think the street at 8.5% is at a good midpoint of the range to start here?

Speaker #4: Thanks a lot.

Speaker #3: Yeah. Hi, Robbie. Thanks for the question. So again, on EPS, the high-level drivers, we talked about the accelerated growth. And obviously, that's going to help from a leverage standpoint.

Speaker #5: How do you think about getting to the high single-digit EPS growth? If you could give us some high-level drivers there. And then, second part, the Street's sitting at 8.5% EPS growth.

Thierry Piéton: Yeah. Hi, Robbie. Thanks for the question. So again, on EPS, you know, the high-level drivers, we talked about, you know, the accelerated growth and obviously that's going to help from a leverage standpoint. If you look at the gross margin line, what you've seen so far is operational improvements in pricing and cost out that have been offset by the mix effects on CAS and diabetes. And as I've stated a couple of times already, those are going to get better. So the CAS improvement comes from the mix shifting towards more catheters and less capital equipment, which will help from a margin perspective. And then on the diabetes side, it comes from the separation, right? So diabetes has a lower gross margin rate than the rest of the business.

Speaker #3: If you look at the gross margin line, what you've seen so far is operational improvements in pricing and cost out that have been offset by the mix effects on cash and diabetes.

Speaker #5: I know traditionally, you do something like 6 and 1/2 to 9.4 as high single. Do you think the street at 8 and 1/2 is at a good midpoint of the range to start here?

Speaker #3: And as I've stated a couple of times already, those are going to get better. So the cash improvement comes from the mix shifting towards more catheters and less capital equipment, which will help from a margin perspective.

Speaker #5: Thanks a lot.

Speaker #8: Yeah, hi Robbie. Thanks for the question. So again, on EPS, the high-level drivers—we talked about the accelerated growth, and obviously that's going to help from a leverage standpoint.

Thierry Piéton: Yeah. Hi, Robbie. Thanks for the question. So again, on EPS, you know, the high level drivers, we talked about, you know, the accelerated growth and obviously that's going to help from a leverage standpoint. If you look at the gross margin line, what you've seen so far is operational improvements in pricing and cost out that have been offset by the mix effects on CAS and diabetes. And as I've stated a couple of times already, those are going to get better. So the CAS improvement comes from the mix shifting towards more catheters and less capital equipment, which will help from a margin perspective. And then on the diabetes side, it comes from the separation, right? So diabetes has a lower gross margin rate than the rest of the business.

Speaker #3: And then on the diabetes side, it comes from the separation. Right? So diabetes has a lower gross margin rate than the rest of the business.

Speaker #8: If you look at the gross margin line, what you've seen so far is operational improvements in pricing and cost out that have been offset by the mix effects on cash and diabetes.

Speaker #3: And so once that business goes away, it'll give us a natural lift from a gross margin perspective. If you start looking at overhead, look, we're going to continue to lean into R&D and sales and marketing to develop the franchises that you mentioned.

Thierry Piéton: And so once that business go away, it'll give us a natural lift from a gross margin perspective. If you start looking at overhead, look, we're going to continue to lean into R&D and sales and marketing to develop the franchises that you mentioned. So we're putting resources in R&D and we're putting resources in CAS. We're hiring the mappers that are necessary. We're doing the direct-to-consumer marketing on, in particular on, renal denervation and Altaviva, and we'll continue to do that. But net, net, the SG&A line will provide leverage because we, as we're having this quarter, for example, or Q3, you know, what you see is the leverage that we get on the G&A line, more than offsets the resources that we're putting from our sales and marketing perspective.

Speaker #8: And as I've stated a couple of times already, those are going to get better. So the cash improvement comes from the mix shifting towards more catheters and less capital equipment, which will help from a margin perspective.

Speaker #3: So we're putting resources in RDN. We're putting resources in cash. We're hiring the mappers that are necessary. We're doing the direct-to-consumer marketing on, in particular, on renal denervation and Altiviva.

Speaker #8: And then on the diabetes side, it comes from the separation. So diabetes has a lower gross margin rate than the rest of the business.

Speaker #3: And we'll continue to do that. But net-net, the SG&A line will provide leverage because we as we're having this quarter, for example, a Q3, what you see is the leverage that we get on the G&A line more than offsets the resources that we're putting from our sales and marketing perspectives.

Thierry Piéton: And so once that business go away, it'll give us a natural lift from a gross margin perspective. If you start looking at overhead, look, we're going to continue to lean into R&D and sales and marketing to develop the franchises that you mentioned. So we're putting resources in Ardian, we're putting resources in CAS, we're hiring the mappers that are necessary. We're doing the direct-to-consumer marketing on, in particular on, renal denervation and Altaviva, and we'll continue to do that. But net net, the SG&A line will provide leverage because we, as we're having this quarter, for example, or Q3, you know, what you see is the leverage that we get on the G&A line more than offsets the resources that we're putting from our sales and marketing perspective.

Speaker #8: And so, once that business goes away, it'll give us a natural lift from a gross margin perspective. If you start looking at overhead—look, we're going to continue to lean into R&D and sales and marketing to develop the franchises that you mentioned.

Thierry Piéton: And so once that business go away, it'll give us a natural lift from a gross margin perspective. If you start looking at overhead, look, we're going to continue to lean into R&D and sales and marketing to develop the franchises that you mentioned. So we're putting resources in Ardian, we're putting resources in CAS, we're hiring the mappers that are necessary. We're doing the direct-to-consumer marketing on, in particular on, renal denervation and Altaviva, and we'll continue to do that. But net net, the SG&A line will provide leverage because we, as we're having this quarter, for example, or Q3, you know, what you see is the leverage that we get on the G&A line more than offsets the resources that we're putting from our sales and marketing perspective.

Speaker #8: So we're putting resources in RDN. We're putting resources in cash. We're hiring the mappers that are necessary. We're doing the direct-to-consumer marketing, in particular on renal denervation and Altiviva.

Speaker #3: So look, that will provide some improvements on operating margin. And then below the line, we'll continue to have a little bit of headwind on the interest line because we're refinancing debt that was contracted almost at 0% four or five years ago.

Thierry Piéton: So look, that will provide some, some improvements on operating margin. And then, below the line, you know, we'll continue to have a little bit of a headwind on the interest line because we're refinancing debt that was contracted almost at 0%, you know, four or five years ago, with debt that's now at, you know, sort of 3.5, 4%. And, we'll continue to have some pressure on tax, but the tax line is kind of getting to where it's going to stabilize now. And then look, you know, I mentioned we have a few puts and takes where we need to understand the timing between now and, and year-end. One is the timing of the diabetes separation.

Speaker #8: And we'll continue to do that. But net-net, the SG&A line will provide leverage, because we—as we're having this quarter, for example in Q3—what you see is the leverage that we get on the G&A line more than offsets the resources that we're putting from our sales and marketing perspectives.

Speaker #3: With debt that's now at sort of 3.5%, 4%. And we'll continue to have some pressure on tax. But the tax line is kind of getting to where it's going to stabilize now.

Speaker #3: And then look, I mentioned we have a few puts and takes where we need to understand the timing between now and your ends. One is the timing of the diabetes separation.

Speaker #8: So look, that will provide some improvements on operating margin. And then below the line, we'll continue to have a little bit of headwind on the interest line because we're refinancing debt that was contracted almost at 0% four or five years ago.

Thierry Piéton: So look, that will provide some improvements on operating margin. And then, below the line, you know, we'll continue to have a little bit of a headwind on the interest line because we're refinancing debt that was contracted almost at 0%, you know, 4 or 5 years ago, with debt that's now at, you know, sort of 3.5, 4%. And, we'll continue to have some pressure on tax, but the tax line is kind of getting to where it's going to stabilize now. And then look, you know, I mentioned we have a few puts and takes where we need to understand the timing between now and year-ends. One is the timing of the diabetes separation.

Speaker #3: And as I said, between the IPO and the split, we get about 1% to 2% of dilution. From the fact that we're losing 20% of the profit of diabetes, but we don't have the benefit from the share count reduction yet.

Speaker #8: With debt that’s now at sort of 3.5%, 4%, and we’ll continue to have some pressure on tax. But the tax line is kind of getting to where it’s going to stabilize now.

Thierry Piéton: As I said, you know, between the IPO and the split, we get about $0.01 to $0.02 of dilution from the fact that we're losing 20% of the profit of diabetes, but we don't have the benefit from the share count reduction yet. You know, that share count reduction is calculated on a 12-month rolling average, so you'll see that gradually get better. Then we'll have some dilution coming from M&A. The guidance is all in at a high single-digit EPS growth. Now, the second part of your question on the 8.5%, it feels like some of the latter items that I mentioned.

Speaker #3: That share count reduction is calculated on a 12-month rolling average. So you'll see that gradually get better. And then we'll have some dilution coming from M&A.

Speaker #8: And then look, I mentioned we have a few puts and takes where we need to understand the timing between now and your ends. One is the timing of the diabetes separation.

Speaker #3: So the guidance is all in at high single-digit EPS growth. Now, the second part of your question on the 8.5%, it feels like some of the latter items that I mentioned, so the sort of temporary dilution that we get from diabetes and some of the M&A dilution is maybe not fully embedded.

Speaker #8: And as I said, between the IPO and the split, we get about 1% to 2% of dilution. From the fact that we're losing 20% of the profit of Diabetes, but we don't have the benefit from the share count reduction yet.

Thierry Piéton: As I said, you know, between the IPO and the split, we get about $0.01 to $0.02 of dilution from the fact that we're losing 20% of the profit of diabetes, but we don't have the benefit from the share count reduction yet. You know, that share count reduction is calculated on a 12-month rolling average, so you'll see that gradually get better. And then we'll have some dilution coming from M&A. So, the guidance is all in at a high single-digit EPS growth.

Thierry Piéton: So, the sort of temporary dilution that we get from diabetes and some of the M&A dilution is maybe not fully embedded in what the Street sees right now. And, as we get more visibility, we'll help clarify that.

Speaker #3: In what the street sees right now. And as we get more visibility, we'll help clarify that.

Speaker #8: That share count reduction is calculated on a 12-month rolling average, so you'll see that gradually get better. And then we'll have some dilution coming from M&A.

Speaker #4: Thank you very much.

Speaker #8: So the guidance is all in at high single-digit EPS growth. Now, the second part of your question on the 8 and 1/2%, it feels like some of the latter items that I mentioned, so the sort of temporary dilution that we get from diabetes and some of the M&A dilution is maybe not fully embedded.

Speaker #2: Our next question comes from Matt Taylor at Jefferies. Matt, please go ahead.

Robert Marcus: Thank you very much.

Robbie Marcus: Thank you very much.

Thierry Piéton: Now, the second part of your question on the 8.5%, it feels like some of the latter items that I mentioned, so, the sort of temporary dilution that we get from diabetes and some of the M&A dilution is maybe not fully embedded in what the Street sees right now. And, as we get more visibility, we'll help clarify that.

Speaker #7: Hi. Thanks for taking the question this morning. I wanted to follow up on the question around capital allocation and TAVR. I guess it was interesting to see the investment in tariffs.

Ingrid Goldberg: Our next question comes from Matt Taylor at Jefferies. Matt, please go ahead.

Matthew Taylor: Hi, thanks for taking the question this morning. I wanted to follow up on the question around capital allocation and TAVR. I guess it was interesting to see the investment in Anteris. I was wondering if you could comment about why you didn't just buy the whole company versus invest. And we also saw over the weekend, the results of longer-term follow-up for CoreValve, published in JACC, and similar to the Edwards trials, there was some late catch-up in mortality. I was wondering if you could comment on that in the TAVR arm.

Speaker #8: In what the Street sees right now. And as we get more visibility, we'll help clarify that.

Speaker #7: I was wondering if you could comment about why you didn't just buy the whole company versus invest. And we also saw over the weekend the results of longer-term follow-up for CorValve published in JACC.

Speaker #5: Thank you very much.

Robbie Marcus: Thank you very much.

Speaker #3: Our next question comes from Matt Taylor at Jefferies. Matt, please go ahead.

Operator: Our next question comes from Matt Taylor at Jefferies. Matt, please go ahead.

Speaker #7: And similar to the Edwards trials, there was some late catch-up in mortality. I was wondering if you could comment on that in the TAVR arm.

Speaker #4: Hi, thanks for taking the question this morning. I wanted to follow up on the question around capital allocation and TAVR. I guess it was interesting to see the investment in tariffs.

Geoff Martha: Hi, thanks for taking the question this morning. I wanted to follow up on the question around capital allocation and TAVR. I guess it was interesting to see the investment in Anteris. I was wondering if you could comment about why you didn't just buy the whole company versus invest, and-

Matt Taylor: Hi, thanks for taking the question this morning. I wanted to follow up on the question around capital allocation and TAVR. I guess it was interesting to see the investment in Anteris. I was wondering if you could comment about why you didn't just buy the whole company versus invest, and we also saw over the weekend the results of longer-term follow-up for CoreValve, published in JACC, and similar to the Edwards trials, there was some late catch-up in mortality. I was wondering if you could comment on that in the TAVR arm.

Speaker #1: Sure. I think on your first question on tariffs, I mean, it's just we feel the structural hard space is one of the spaces we help pioneer.

Speaker #4: I was wondering if you could comment about why you didn't just buy the whole company versus invest. And we also saw over the weekend the results of longer-term follow-up for CorValve published in JACC.

Geoff Martha: Sure. I think, you know, on your first call on Anteris, I mean, it's just we feel the structural heart space is one of the spaces we helped pioneer. We have a really strong position, great reputation, but we want to expand in that. You know, we've got some organic program. Obviously, we have our Evolut platform. You know, we've got mitral and tricuspid replacement programs, but we still think there's an opportunity here to expand. And in the case of TAVR, the balloon expandable is the larger piece of the market, and this is an opportunity to get into that market.

Speaker #1: We have a really strong position, great reputation. But we want to expand in that. We've got some organic program. Obviously, we have our Evolute platform.

Matt Taylor: ... We also saw over the weekend the results of longer-term follow-up for CoreValve, published in JACC, and similar to the Edwards trials, there was some late catch-up in mortality. I was wondering if you could comment on that in the TAVR arm.

Speaker #4: And similar to the Edwards trials, there was some late catch-up in mortality. I was wondering if you could comment on that in the TAVR arm.

Speaker #1: We've got Mitral and TriCuspid, replacement programs. But we still think there's an opportunity here to expand. And in the case of TAVR, the balloon expandable is the larger piece of the market.

Speaker #1: Sure. I think on your first question on tariffs, I mean, it's just we feel the structural hard space is one of the spaces we help pioneer.

Geoff Martha: Sure. I think, you know, on your first go on Anteris, I mean, it's just, we feel the structural heart space is one of the spaces we helped pioneer. We have a really strong position, great reputation, but we want to expand in that. You know, we've got some organic program. Obviously, we have our Evolut platform. You know, we've got mitral and tricuspid replacement programs, but we still think there's an opportunity here to expand. And in the case of TAVR, the balloon expandable is the larger piece of the market, and this is an opportunity to get into that market.

Speaker #1: And this is an opportunity to get into that market. Again, we may have multiple shots on goal here. But I think in tariffs is a good one to invest in.

Speaker #1: We have a really strong position, great reputation. But we want to expand in that. We've got some organic program. Obviously, we have our Evolute platform.

Speaker #1: And partner with. And we'll see where we go from here there. And then in terms of the JACC article, I would say here that look, I just want to emphasize that this is an old valve that's no longer commercially available.

Geoff Martha: Again, we may have multiple shots on goal here, but thinking Terrace is a good one to invest in and partner with, and we'll see where we go from there. And then in terms of the JACC article, I would say here that, you know, look, this is. I just want to emphasize that this is, you know, an old valve that's no longer commercially available, and it's an old procedural technique that, you know, that we've provided guidance. So basically, all that communication did is reiterate the guidance that we provided back in 2020. So that's, you know, that's what's happening there.

Speaker #1: We've got mitral and tricuspid replacement programs, but we still think there's an opportunity here to expand. And in the case of TAVR, the balloon expandable is the larger piece of the market.

Speaker #1: And it's an old procedural technique that we've provided guidance. Basically, all that communication did is reiterate the guidance that we provided back in 2020.

Speaker #1: And this is an opportunity to get into that market. And again, we may have multiple shots on goal here. But I think in tariffs is a good one to invest in.

Geoff Martha: Again, we may have multiple shots on goal here, but thinking Anteris is a good one to invest in and partner with, and we'll see where we go from here there. And then in terms of the JACC article, you know, I would say here that, you know, look, this is. I just want to emphasize that this is, you know, an old valve that's no longer commercially available, and it's an old procedural technique that we've provided guidance. So basically, all that communication did is reiterate the guidance that we provided back in 2020. So that's what's happening there.

Speaker #1: And so that's what's happening there. And like I said, we're collaborating with our physicians to make sure they understand all of this. And moving forward from here.

Speaker #1: And partner with. And we'll see where we go from here, there. And then, in terms of the JACC article, I would say here that, look, I just want to emphasize that this is an old valve that's no longer commercially available.

Speaker #1: So that's if you have anything to add there. But bullish on the structural hard space. And I would the tariffs investment and who knows, maybe more following that.

Geoff Martha: You know, like I said, we're collaborating with our physicians to make sure they understand all of this and, you know, moving forward from here. So that's... I don't know if you have anything to add there. Bullish on the structural heart space, and I would, you know, the Anteris investment and, you know, who knows, maybe more following that.

Speaker #1: And it's an old procedural technique that we've provided guidance. Basically, all that communication did is reiterate the guidance that we provided back in 2020.

Speaker #7: All right. Thanks for the color, Jeff.

Speaker #2: All right. Our next question comes from Matt Miksic at Barclays. Matt, please go ahead.

Speaker #1: And so that's what's happening there. And like I said, we're collaborating with our physicians to make sure they understand all of this. And moving forward from here.

Patrick Wood: All right. Thanks for the color, Geoff.

Speaker #4: Great. Thanks. Thanks so much for taking the question. And congrats on the tariffs investment, by the way. So on cash, I'll just ask one question.

Geoff Martha: And, you know, like I said, we're collaborating with our physicians to make sure they understand all of this and, you know, moving forward from here. So that's, I don't know if you have anything to add there. But bullish on the structural heart space and, I would, you know, the Anteris investment and, you know, who knows? Maybe more following that.

Ingrid Goldberg: All right, our next question comes from Matt Miksic at Barclays. Matt, please go ahead.

Matthew Miksic: Great. Thanks, thanks so much for taking the question. And congrats on the Anteris investment, by the way. So, on CATH, just as one question, you mentioned, you know, generator sales or kind of a headwind to gross margins at this point, you know, the mix is maybe shifting a little more towards capital. If you could give us a sense of when that starts to normalize. And then also in terms of the runway, I think we understand that hiring mappers is maybe the bottleneck here, if you want to put it that way. You know, you need more people to open more centers to get more catheter use.

Speaker #1: So that's if you have anything to add there. But bullish on the structural heart space. And I would add the tariffs, investment, and who knows, maybe more following that.

Speaker #4: You mentioned generator sales or kind of a headwind to gross margins at this point. The mix is maybe shifting a little more towards capital.

Speaker #4: All right. Thanks for the color, Jeff.

Matt Taylor: All right. Thanks for the color, Jeff.

Speaker #4: If you could give us a sense of when that starts to normalize, and then also in terms of the runway, I think we understand that hiring mappers is maybe the bottleneck here if you want to put it that way.

Speaker #3: All right. Our next question comes from Matt Mixic at Barclays. Matt, please go ahead.

Operator: All right, our next question comes from Matt Miksik at Barclays. Matt, please go ahead.

Speaker #5: Great, thanks. Thanks so much for taking the question, and congrats on the tariffs investment, by the way. So, on cash, I'll just ask one question.

Matt Miksic: Great. Thanks, thanks so much for taking the question. And congrats on the Anteris investment, by the way. So, on cath, I'll just ask as one question. You mentioned, you know, generator sales are kind of a headwind to gross margins at this point. You know, the mix is maybe shifting a little more towards capital. If you could give us a sense of when that starts to normalize. And then also in terms of the runway, I think we understand that hiring mappers is maybe the bottleneck here, if you want to put it that way. You know, you need more people to open more centers to get more catheter use.

Speaker #4: You need more people to open more centers. To get more catheter use. Any sense of where you are in that continuum through the academic centers or into the general centers in the US and some sense of the pace that you're able to maintain for hiring centers?

Speaker #5: You mentioned generator sales are kind of a headwind to gross margins at this point. The mix is maybe shifting a little more towards capital.

Speaker #5: If you could give us a sense of when that starts to normalize, and then also in terms of the runway, I think we understand that hiring mappers is maybe the bottleneck here, if you want to put it that way.

Matthew Miksic: Any sense of where you are in that, in that continuum, through the academic centers or into the general, you know, centers in the US and, and some sense of, of the pace that you're able to maintain, for hiring centers? So helpful color. Appreciate you taking the question.

Speaker #4: So helpful color. Appreciate you taking the question.

Speaker #1: Matt. On the last part of it, where are we? I still think we're kind of relatively early in our launch here. We still have a long runway to go, which is good.

Speaker #5: You need more people to open more centers. To get more catheter use. Any sense of where you are in that continuum through the academic centers or into the general centers in the US and some sense of the pace that you're able to maintain for hiring centers?

Geoff Martha: Thanks, Matt. You know, on the last part of it, and where are we? I still think we're kind of relatively early in our launch here, where we still have a long runway to go, which is good, in penetrating some of these high-volume academic centers, as well as getting out beyond that. To your point, the mappers, hiring mappers has been critical. It's not, you know, the topic, if you will, but it is an important topic here. We've been able to stay ahead of it, but it is the thing that we're probably the most focused on right now is continuing to hire mappers.

Speaker #1: In penetrating some of these high-volume academic centers, as well as getting out beyond that. And to your point, the mappers, hiring mappers has been critical.

Matt Miksic: Any sense of where you are in that, in that continuum, through the academic centers or into the general, you know, centers in the US and, and some sense of, of the pace that you're able to maintain, for hiring centers? So helpful color. Appreciate you taking the question.

Speaker #1: It's not the topic. If you will, but it is an important topic here. We've been able to stay ahead of it, but it is the thing that we're probably the most focused on right now is continuing to hire mappers.

Speaker #5: So helpful color. Appreciate you taking the question.

Speaker #1: Thanks, Matt. On the last part of it, where are we? I still think we're kind of relatively early in our launch here. We still have a long runway to go, which is good.

Geoff Martha: Thanks, Matt. You know, on the last part of it, and where are we? I still think we're kind of relatively early in our launch here, where we still have a long runway to go, which is good, in penetrating some of these high volume academic centers, as well as getting out beyond that. To your point, the mappers, hiring mappers has been critical. It's not, you know, the topic, if you will, but it is an important topic here. We've been able to stay ahead of it, but it is the thing that we're probably the most focused on right now is continuing to hire mappers.

Speaker #1: And a lot of these mappers tend to be pretty dedicated to this space. And they're seeing where the direction of travel is or to use a Minnesota term where the puck's going.

Speaker #1: In penetrating some of these high-volume academic centers, as well as getting out beyond that. And to your point, the mappers—hiring mappers has been critical.

Speaker #1: And so that helps a lot as well. So that's how I would comment on there. And what was the first part of the question?

Geoff Martha: You know, a lot of these mappers tend to be pretty dedicated to this space, and they're seeing where the direction of travel is, or to use a Minnesota term, where the puck's going. And so that helps a lot as well. So that, that's how I would, you know, you know, comment on there. And, the... What was the first part of the question?

Speaker #3: The first part was on the dilution that comes from the capital equipment. And when does the mix turn around? So first, what I want to say is cash is a fantastic business from an operating margin perspective, right?

Speaker #1: It's not the topic, if you will, but it is an important topic here. We've been able to stay ahead of it, but it is the thing that we're probably the most focused on right now—is continuing to hire mappers.

Thierry Piéton: The first part was on the dilution that comes from the-

Thierry Piéton: The first part was on the dilution that comes from the capital equipment and when does the mix turn around? First, what I want to say is CAS is a fantastic business from an operating margin perspective, right?

Geoff Martha: Yeah

Thierry Piéton: ... capital equipment and when does the mix turn around? First, what I want to say is CAS is a fantastic business from an operating margin perspective, right?

Speaker #3: So it is slightly dilutive because of this mix issue at the GM level. But it's driving significant profitability at the total business level at the operating margin level.

Geoff Martha: You know, and a lot of these mappers tend to be pretty dedicated to this space, and they're seeing where the direction of travel is, or to use a Minnesota term, where the puck's going. And so that helps a lot as well. So that, that's how I would, you know, you know, comment on there. And, the... What was the first part of the question?

Speaker #1: And a lot of these mappers tend to be pretty dedicated to this space. And they're seeing where the direction of travel is or to use a Minnesota term where the puck's going.

Geoff Martha: Right.

Thierry Piéton: So it is slightly dilutive because of this mix issue at the GM level, but it's driving significant, you know, profitability at the total business level, at the operating margin level. You know, when it's going to turn around between capital equipment and catheters, you know, I want to say it's almost a good problem to have. So I hope it turns around as late as possible, because as we're building the install base, it's always going to be good, good news going forward. That being said, I think you'll start to see an inflection in the second half of next year. The mix is, you know, starting to improve with the catheter, the catheter sales increasing. Look, year-over-year, CATH is going to drive gross margin improvement as early as 27. Look, it's a great business to be in, and it's all good news going forward.

Speaker #1: And so that helps a lot as well. So that's how I would comment on there. And what was the first part of the question?

Speaker #3: When it's going to turn around between capital equipment and catheters, I want to say it's almost a good problem to have. So I hope it turns around as late as possible because as we're building the install base, it's always going to be good news going forward.

Thierry Piéton: The first part was on the dilution that comes from the capital equipment-

Speaker #5: The first part was on the dilution that comes from the capital equipment. And when does the mix turn around? So first, what I want to say is cash is a fantastic business from an operating margin perspective, right?

Geoff Martha: Yeah.

Thierry Piéton: when does the mix turn around? So first, what I want to say is, cath is a fantastic business from an operating margin perspective, right?

Speaker #3: That being said, I think you'll start to see an inflection in the second half of next year. The mix is starting to improve with the catheter sales increasing.

Geoff Martha: Right

Thierry Piéton: ... turns around as late as possible, because as we're building the install base, it's always going to be good, good news going forward. That being said, I think you'll start to see an inflection in the second half of next year. The mix is, you know, starting to improve with the catheter, the catheter sales increasing. Look, year-over-year, CATH is going to drive gross margin improvement as early as 27. Look, it's a great business to be in, and it's all good news going forward.

Geoff Martha: Right.

Speaker #5: So, it is likely dilutive because of this mix issue at the GM level, but it's driving significant profitability at the total business level at the operating margin level.

Speaker #5: When it's going to turn around between capital equipment and catheters, I want to say it's almost a good problem to have. So I hope it turns around as late as possible because as we're building the install base, it's always going to be good news going forward.

Speaker #3: And look, year over year, cash is going to drive gross margin improvement as early as '27. So look, it's a great business to be in.

Speaker #3: And it's all good news going forward.

Geoff Martha: Right

Thierry Piéton: ... it turns around as late as possible, because as we're building the install base, it's always going to be good, good news going forward. That being said, I think you'll start to see an inflection in the second half of next year. The mix is, you know, starting to improve in with the catheter, the catheter sales increasing. And look, year over year, cath is going to drive gross margin improvement as early as 2027. So look, it's a great business to be in, and it's all good news going forward.

Geoff Martha: Right

Speaker #4: Great. Thank you.

Speaker #2: Our next question comes from Chris Pasquale at Nephron. Chris, go ahead.

Speaker #5: That being said, I think you'll start to see an inflection in the second half of next year. The mix is starting to improve with the catheter sales increasing.

Matthew Miksic: Great. Thank you.

Speaker #5: Thanks. I wanted to ask about Hugo. Jeff, you talked about the impact of simplicity and AltaViva really beginning to kick in as soon as next quarter.

Ingrid Goldberg: Our next question comes from Chris Pasquale at Nephron. Chris, go ahead.

Chris Pasquale: Thanks. I wanted to ask about Hugo. Jeff, you talked about the impact of Symplicity and Altaviva really beginning to kick in as soon as next quarter. I don't think you included Hugo in that group, so would love to hear how you're thinking about the timeline for Hugo to really begin to move the needle within the surgical business, and any qualitative comments you can make about the system pipeline right now.

Speaker #5: And look, year over year, cash is going to drive gross margin improvement as early as '27. So look, it's a great business to be in.

Speaker #5: I don't think you included Hugo in that group. So we'd love to hear how you're thinking about the timeline for Hugo to really begin to move the needle within the surgical business and any qualitative comments you can make about the system pipeline right now.

Speaker #5: And it's all good news going forward. Great. Thank you.

Matt Miksic: Great. Thank you.

Speaker #1: Well, first of all, look, super excited about where we are with Hugo. Big quarter for us this past quarter, getting the FDA approval. We just announced this morning we completed our first cases in the US in February, earlier this month, in Cleveland Clinic.

Speaker #3: Our next question comes from Chris Pasquale at Nephron. Chris, go ahead.

Operator: Our next question comes from Chris Pasquale at Nephron. Chris, go ahead.

Geoff Martha: Well, first of all, look, super excited about where we are with Hugo. Big quarter for us this past quarter, getting the FDA approval. We just announced this morning, we did. You know, we completed our first cases in the US in February, earlier this month, in Cleveland Clinic. We got more scheduled this week, got other centers, and all the leading indicators of Hugo. And, oh, by the way, on those cases, we got great feedback in terms of how the system's performing and its future opportunity in the US market. The leading indicators are all positive in terms of, you know, the smooth case rate, procedures, procedure growth globally, and utilization. They could both continue to be really strong. We watch those every week. I know the business watches it every day.

Speaker #1: Thanks. I wanted to ask about Hugo. Jeff, you talked about the impact of simplicity and AltaViva really beginning to kick in as soon as next quarter.

Speaker #1: We got more scheduled this week. Got other centers. And all the leading indicators of Hugo and oh, by the way, on those cases, we got great feedback in terms of how the systems performing and its future opportunity in the US market.

Speaker #1: I don’t think you included Hugo in that group, so we’d love to hear how you’re thinking about the timeline for Hugo to really begin to move the needle within the surgical business, and any qualitative comments you can make about the system pipeline right now.

Speaker #1: The leading indicators are all positive in terms of the smooth case rate, procedures growth globally, and utilization. Both continue to be really strong. We watch those every week.

Speaker #6: Well, first of all, look, super excited about where we are with Hugo. Big quarter for us this past quarter, getting the FDA approval. We just announced this morning we did we completed our first cases in the US in February, earlier this month, in Cleveland Clinic.

Geoff Martha: Well, first of all, look, super excited about where we are with Hugo. Big quarter for us this past quarter, getting the FDA approval. We just announced this morning we did. You know, we completed our first cases in the US in February, earlier this month, in Cleveland Clinic. We got more scheduled this week, got other centers. And all the leading indicators of Hugo, and, oh, by the way, on those cases, we got great feedback in terms of how the system's performing and its future opportunity in the US market. The leading indicators are all positive in terms of, you know, the smooth case rate, procedures, procedure growth globally, and utilization. They can both continue to be really strong. We watch those every week. I know the business watches it every day.

Speaker #1: I know the business watches it every day. I see them every week. And we're seeing a pretty meaningful step up in installations around the world, especially as US kicks in.

Speaker #6: We got more scheduled this week. Got other centers. And all the leading indicators of Hugo and oh, by the way, on those cases, we got great feedback in terms of how the systems performing and its future opportunity in the US market.

Geoff Martha: I see them every week. And we're seeing, you know, a pretty meaningful step up in installations around the world, especially as US kicks in. And so we-- look, we expect to step up in Q4. Now, the surgical business is a big business, has some puts and takes, so you may not, you know, you may not move the needle on the surgical business quite yet. But underneath the covers there, Hugo is growing and growing, you know, pretty fast now. And it'll... Eventually you'll see- you'll start to see this move, that big $6 billion business. But we like where we sit. Really excited about getting in the US market, and the reception that we're getting, and the orders that we have.

Speaker #1: And so look, we expect to step up in Q4. Now, the surgical business is a big business, has some puts and takes. So you may not it may not move the needle on the surgical business quite yet.

Speaker #6: The leading indicators are all positive in terms of the smooth case rate, procedure growth globally, and utilization. Both continue to be really strong.

Speaker #1: But underneath the covers there, Hugo is growing and growing pretty fast now. And it'll eventually, you'll start to see this move that big $6 billion business.

Speaker #6: We watch those every week. I know the business watches it every day. I see them every week. And we're seeing a pretty meaningful step up in installations around the world, especially as the US kicks in.

Geoff Martha: I see them every week. We're seeing, you know, a pretty meaningful step up in installations around the world, especially as US kicks in. So we-- Look, we expect to step up in, in Q4. Now, the surgical business, as a big business, has some puts and takes, so you may not, you know, you may not move the needle, on the surgical business quite yet, but, but underneath the covers there, Hugo is growing and growing, you know, pretty fast now. And it'll eventually you'll start to see this move, that big $6 billion business. But we like where we sit. Really excited about getting in the US market, and, and the reception that we're getting, and the orders that we have.

Speaker #1: But we like where we sit. Really excited about getting in the US market. And the reception that we're getting. And the orders that we have.

Speaker #6: And so, look, we expect to step up in Q4. Now, the surgical business is a big business, has some puts and takes. So you may not—it may not move the needle on the surgical business quite yet.

Speaker #5: Great. Thanks, Jeff.

Speaker #2: OK. Next question comes from Danielle Antalffy at UBS. Danielle, you are live.

Speaker #6: But underneath the covers there, Hugo is growing and growing pretty fast now. And it'll eventually, you'll start to see this move that big $6 billion business.

Chris Pasquale: Great. Thanks, Jeff.

Speaker #6: Good morning, everyone. Thank you so much for taking the question. Jeff, I was hoping you could talk a little bit more about how we should think about renal denervation, simplicity, and the market development that you're talking about.

Ingrid Goldberg: Okay. Next question comes from Danielle Antalffy at UBS. Danielle, you are live.

Geoff Martha: Good morning, everyone. Thank you so much for, for taking the question. Jeff, I was hoping you could talk a little bit more about how we should think about renal denervation, Symplicity, and the market development that you're talking about. You know, we've talked to some referring physicians who've been involved in renal denervation since the very beginning, and she sounds like she's getting a lot of calls from folks. I'm just curious, what goes into actually developing this market, building out, helping centers build out referral networks, et cetera? Yeah, sure. And if you could give any color on actual numbers to date, you know, even directionally. Thanks so much. Sorry about that. Sure. Thanks, Danielle. I mean, I appreciate that question.

Danielle Antalffy: Good morning, everyone. Thank you so much for, for taking the question. Jeff, I was hoping you could talk a little bit more about how we should think about renal denervation, Symplicity, and the market development that you're talking about. You know, we've talked to some referring physicians who've been involved in renal denervation since the very beginning, and she sounds like she's getting a lot of calls from folks. I'm just curious, what goes into actually developing this market, building out, helping centers build out referral networks, et cetera?

Speaker #6: But we like where we sit. Really excited about getting in the US market, and the reception that we're getting, and the orders that we have.

Speaker #6: We've talked to some referring physicians who've been involved in renal denervation since the very beginning and she sounds like she's getting a lot of calls from folks.

Speaker #1: Great. Thanks, Jeff.

Joanne Wuensch: Great. Thanks, Jeff.

Chris Pasquale: Great. Thanks, Jeff.

Speaker #6: I'm just curious, what goes into actually developing this market, building out, helping centers build out referral networks, et cetera? And if you could give any color on any color on actual numbers to date, even directly.

Speaker #3: OK. Next question comes from Danielle Antoffi at UBS. Danielle, you are live.

Operator: Okay, next question comes from Danielle Antalffy at UBS. Danielle, you are live.

Danielle Antalffy: Good morning, everyone. Thank you so much for taking the question. Jeff, I was hoping you could talk a little bit more about how we should think about renal denervation, Symplicity, and the market development that you're talking about. You know, we've talked to some referring physicians who've been involved in renal denervation since the very beginning, and she sounds like she's getting a lot of calls from folks. I'm just curious, what goes into actually developing this market, building out, helping centers build out referral networks, et cetera?

Speaker #7: Good morning, everyone. Thank you so much for taking the question. Jeff, I was hoping you could talk a little bit more about how we should think about renal denervation, Symplicity, and the market development that you're talking about.

Speaker #6: Thanks so much. Sorry about that.

Speaker #1: Sure. Thanks, Danielle. I mean, I of physicians getting a lot of calls, that is really starting to kick in. Just to give you again, I appreciate that it's a leading indicator, but it's pretty powerful.

Geoff Martha: Yeah, sure.

Danielle Antalffy: And if you could give any color on actual numbers to date, you know, even directionally. Thanks so much. Sorry about that.

Speaker #7: We've talked to some referring physicians who've been involved in renal denervation since the very beginning and she sounds like she's getting a lot of calls from folks.

Geoff Martha: Sure. Thanks, Danielle. I mean, I appreciate that question. I mean, you know, first of all, you know, in terms of physicians getting a lot of calls, that is really starting to kick in. Just to give you, again, I appreciate that it's a leading indicator, but it's pretty powerful. So on our direct-to-consumer website around Symplicity, I'm just double-checking. Last quarter, we had maybe 50,000, or Q2 rather, we had about 50,000 visits. In Q3, we had 2.5 million visits. So the consumer demand is really spiking here, and we're just getting started. Like I said earlier, we opened up over 200 accounts. The physician finder's up, reimbursement's strong. We're getting that strong consumer demand. And most importantly, we're getting, you know, terrific, patient results, patient outcomes, right? With the blood pressure coming down meaningfully, it's staying patients, and it's really resonating with patients.

Geoff Martha: I mean, you know, first of all, you know, in terms of physicians getting a lot of calls, that is really starting to kick in. Just to give you, again, I appreciate that it's a leading indicator, but it's pretty powerful. So on our direct-to-consumer website around Symplicity, I'm just double-checking. Last quarter, we had maybe 50,000, or Q2 rather, we had about 50,000 visits. In Q3, we had 2.5 million visits. So the consumer demand is really spiking here, and we're just getting started. Like I said earlier, we opened up over 200 accounts. The physician finder's up, reimbursement's strong. We're getting that strong consumer demand. And most importantly, we're getting, you know, terrific, patient results, patient outcomes, right? With the blood pressure coming down meaningfully, it's staying patients, and it's really resonating with patients.

Speaker #1: So on our direct-to-consumer website around simplicity, I'm just double-checking. Last quarter, we had maybe 50,000 or Q2, rather, we had about 50,000 visits. In Q3, we had 2 and 1/2 million visits.

Speaker #7: I'm just curious, what goes into actually developing this market, building out, helping centers build out referral networks, et cetera? And if you can give any color on any color on actual numbers to date, even directionally.

Geoff Martha: Yeah, sure.

Danielle Antalffy: If you could give any color on actual numbers to date, you know, even directionally. Thanks so much. Sorry about that.

Geoff Martha: Yeah, sure.

Danielle Antalffy: If you could give any color on actual numbers to date, you know, even directionally. Thanks so much. Sorry about that.

Speaker #1: So the consumer demand is really spiking here. And we're just getting started. Like I said earlier, we opened up over 200 accounts. The physician finders up, reimbursements strong.

Speaker #7: Thanks so much. Sorry about that.

Geoff Martha: Sure. Thanks, Danielle. I mean, I appreciate that question. I mean, you know, first of all, you know, in terms of physicians getting a lot of calls, that is really starting to kick in. Just to give you, again, I appreciate that it's a leading indicator, but it's pretty powerful. So on our direct-to-consumer website around Symplicity, I'm just double-checking. Last quarter, we had maybe 50,000, or Q2 rather, we had about 50,000 visits. In Q3, we had 2.5 million visits. So the consumer demand is really spiking here, and we're just getting started. Like I said earlier, we opened up over 200 accounts. The physician finder's up, reimbursement's strong. We're getting that strong consumer demand, and most importantly, we're getting, you know, terrific patient results, patient outcomes, right? With the blood pressure coming down meaningfully.

Speaker #1: Sure. Thanks, Danielle. I mean, I appreciate that question. I mean, first of all, in terms of physicians getting a lot of calls, that is really starting to kick in.

Speaker #1: Just to give you again, I appreciate that it's a leading indicator. But it's pretty powerful. So on our direct-to-consumer website around simplicity, I'm just double-checking.

Speaker #1: We're getting that strong consumer demand. And most importantly, we're getting terrific patient results, patient outcomes, right, with the blood pressure coming down meaningfully, it's staying, patients and this really resonating with patients.

Speaker #1: Last quarter, we had maybe 50,000 or Q2, rather. We had about 50,000 visits. In Q3, we had 2 and 1/2 million visits. So the consumer demand is really spiking here.

Speaker #1: And that in and of itself is getting doctors excited. And so what we're doing is we've been hiring a lot of people in terms of market development.

Geoff Martha: And that, in and of itself, is getting doctors excited. So what we're doing is we've been hiring a lot of people in terms of market development, and there's several different roles here, right? One is building that referral pathway from the general practitioners, and the hypertensive specialists into the hospital, into that proceduralist. We've got a lot of people around health economics, around coding and billing, as well, helping the hospitals. So it's a number of roles like that, right? Health economics, coding, billing, as well as some of the other roles I said in terms of the market development, building those referral pathways. And that's really where things are right now. I'd say all the market, like, the initial foundational elements, have all been like...

Speaker #1: And we're just getting started. Like I said earlier, we opened up over 200 accounts. The physician finder's up. Reimbursement's strong. We're getting that strong consumer demand.

Speaker #1: And there's several different roles here, right? One is building that referral pathway from the general practitioners and the hypertensive specialists into the hospital, into that procedure list.

Speaker #1: And most importantly, we're getting terrific patient results—patient outcomes, right—with the blood pressure coming down meaningfully. It's staying. Patients—and this is really resonating with patients.

Speaker #1: We've got a lot of people around health economics, around coding and billing, as well. Helping the hospitals. So it's a number of roles like that, right?

Geoff Martha: It's staying patients, and it's really resonating with patients, and that in and of itself is getting doctors excited. So what we're doing is we've been hiring a lot of people in terms of market development, and there's several different roles here, right? One is building that referral pathway from the general practitioners and the hypertensive specialists into the hospital, into that proceduralist. We've got a lot of people around health economics, around coding and billing, as well, helping the hospitals. So it's a number of roles like that, right? Health economics, coding, billing, as well as some of the other roles I said in terms of the market development, building those referral pathways. And that's really where things are right now.

Speaker #1: And that in and of itself is getting doctors excited. And so what we're doing is we've been hiring a lot of people in terms of market development.

Speaker #1: Health economics, coding, billing, as well as some of the other roles I said in terms of the market development, building those referral pathways. And that's really where things are right now.

Speaker #1: And there are several different roles here, right? One is building that referral pathway from the general practitioners and the hypertensive specialists into the hospital, into that procedure list.

Speaker #1: I'd say all the market like the initial foundational elements have all been like the chips have turned over green, right? The FDA approval is breakthrough approval, and it's broad.

Speaker #1: We've got a lot of people around health economics, around coding and billing as well, helping the hospitals. So it's a number of roles like that, right?

Speaker #1: The CMS reimbursement, it's a good number. And it's broad. We're the commercial payers are falling in line. And the competitive dynamics are way better than we thought.

Geoff Martha: The chips have turned over green, right? The FDA approval is breakthrough approval, and it's broad. The CMS reimbursement, it's a good number, and it's broad. You know, we've, the commercial payers are, you know, falling in line, and, you know, the competitive dynamics are way better than we thought. We initially here, we're doing. I saw different analysts, you know, over the last couple of years, predictions on the mix between us and the other competitor on the market. We're doing way better than any of those models. And so now we've just got to build this market. It's all those things we said, Danielle. But again, where we're really excited, where you feel the energy, is it all starts with those patient outcomes and how this is resonating with consumers.

Speaker #1: Health economics, coding, billing, as well as some of the other roles I mentioned in terms of market development—building those referral pathways. And that's really where things are right now.

Speaker #1: Initially here, we're doing I saw different analysts over the last couple of years predictions on the mix between us and the other competitor on the market.

Speaker #1: I'd say all the market, like the initial foundational elements, have all been—like, the chips have turned over green, right? The FDA approval is breakthrough approval.

Geoff Martha: I'd say all the market, like, the initial foundational elements, have all been like. The chips have turned over green, right? The FDA approval is breakthrough approval, and it's broad. The CMS reimbursement, it's a good number, and it's broad. You know, we've, we're the commercial payers are, you know, falling in line, and, you know, the competitive dynamics are way better than we thought. We initially here, we're doing. I saw different analysts, you know, over the last couple of years, predictions on the mix between us and the other competitor on the market. We're doing way better than any of those models, and so now we just got to build this market. It's all those things we said, Danielle.

Speaker #1: We're doing way better than any of those models. And so now we just got to build this market. It's all those things we said, Danielle.

Speaker #1: And it's broad. The CMS reimbursement—it's a good number. And it's broad. The commercial payers are falling in line. And the competitive dynamics are way better than we thought.

Speaker #1: But again, where we're really excited, where you feel the energy, is it all starts with those patient outcomes and how this is resonating with consumers.

Speaker #1: So the other thing we're going to do over time, besides building the referral pathway, working with hospitals, is building the brand around simplicity, right?

Speaker #1: So all the 50,000 to 2.5 million I talked about of site visits, that's all about lead development, lead generation. We'd also like to build the brand of simplicity and make it synonymous with hypertension management.

Geoff Martha: So the other thing we're going to do over time, besides building the referral pathway, working with hospitals, is building the brand around Symplicity, right? So all the, the 50,000 to 2.5 million I talked about in site visits, that's all about lead development, lead generation. We'd also like to build the brand of Symplicity and make it synonymous with hypertension management. So that's, that's going to be an investment that, that Thierry talked about for, for FY 2027. So a lot of exciting, a lot of excitement right now and, and already, and it'll start to, you know, the numbers in FY-- will be more meaningful in FY 2027 for us, the actual revenue, the la- the lagging indicators. And again, it, it'll be-- it's very profitable right out of the gate for us. Thank you so much.

Speaker #1: Initially here, we're doing—I saw different analysts over the last couple of years' predictions on the mix between us and the other competitor on the market.

Speaker #1: We're doing way better than any of those models. And so now we just got to build this market. It's all those things we said, Danielle.

Speaker #1: So that's going to be an investment that Thierry talked about for FY27. So a lot of exciting a lot of excitement right now in already.

Speaker #1: But again, where we're really excited, where you feel the energy, is it all starts with those patient outcomes and how this is resonating with consumers.

Geoff Martha: But again, where we're really excited, where you feel the energy, is, it all starts with those patient outcomes and how this is resonating with consumers. So the other thing we're going to do over time, besides building the referral pathway, working with hospitals, is building the brand around Symplicity, right? So all the 50,000 to 2.5 million I talked about of site visits, that's all about lead development, lead generation. We'd also like to build the brand of Symplicity and make it synonymous with hypertension management. So that's going to be an investment that Thierry talked about for FY 2027. So a lot of exciting, a lot of excitement right now and already, and it'll start to, you know, the numbers in FY-- will be more meaningful in FY 2027 for us, the actual revenue, the lagging indicators.

Speaker #1: And it'll start the numbers in will be more meaningful in FY27 for us, the actual revenue, the lagging indicators. And again, it'll be it's very profitable right out of the gate for us.

Speaker #1: So, the other thing we're going to do over time, besides building the referral pathway and working with hospitals, is building the brand around simplicity, right?

Speaker #1: So, all the 50,000 to 2.5 million I talked about of site visits, that's all about lead development, lead generation. We'd also like to build the brand of Simplicity and make it synonymous with hypertension management.

Speaker #6: Thank you so much.

Speaker #2: All right. And as we reach the top of the hour here, our last question is going to come from Joanne Wenchett City. And before we move to Joanne, please, of course, email us for any of those we did not reach today.

Ingrid Goldberg: All right, as we reach the top of the hour here, our last question is going to come from Joanne Wuensch, Citigroup. Before we move to Joanne, please, of course, email us for any of those we did not reach today. Sorry and thank you, and we'll look forward to talking to you soon. But Joanne, please go ahead.

Speaker #1: So that's going to be an investment that Thierry talked about for FY27. So a lot of excitement right now in already.

Speaker #2: Shari, and thank you. And we'll look forward to talking to you soon. But Joanne, please go ahead.

Speaker #7: Thank you so much. And good morning. I'm going to ask the self-active question. And what you can share with us about the product and why you're so excited about it.

Speaker #1: And it'll start to—the numbers in FY will be more revenue, the lagging indicators. And again, it'll be—it's very profitable right out of the gate for us.

Geoff Martha: Thank you so much, and good morning. I'm gonna ask the Stealth AXiS question and what you can share with us about the product and why you're so excited about it. Thank you. Well, thanks, Joanne, for that question. You know, it... First of all, like I said, I do think this is, has been, is meaningfully underappreciated in the, not so much in, maybe in the clinical community, from spine surgeons, but maybe in the investment community. Because look, this robot does two things. First of all, it's not an extension of Mazor. It's a new platform with a ton of new functionality, that's going to be very value-added. But the other thing that's really important here is how it fits into the workflow.

Joanne Wuensch: Thank you so much, and good morning. I'm gonna ask the Stealth AXiS question and what you can share with us about the product and why you're so excited about it. Thank you.

Speaker #7: Thank you.

Speaker #1: Well, thanks, Joanne, for that question. First of all, like I said, I do think this is has been as meaningfully underappreciated in the not so much in maybe in the clinical community, from spine surgeons, but maybe in the investment community, because, look, this robot does two things.

Geoff Martha: And again, it's very profitable right out of the gate for us.

Speaker #7: Thank you so much.

Danielle Antalffy: Thank you so much.

Speaker #3: All right. And as we reach the top of the hour here, our last question is going to come from Joanne Wenchitt, Citi. And before we move to Joanne, please, of course, email us for any of those we did not reach today.

Operator: All right, and as we reach the top of the hour here, our last question is going to come from Joanne Wuensch, Citi. And before we move to Joanne, please, of course, email us for any of those we did not reach, we did not reach today. Sorry, and thank you, and we'll look forward to talking to you soon. But Joanne, please go ahead.

Geoff Martha: Well, thanks, Joanne, for that question. You know, it... First of all, like I said, I do think this is, has been, is meaningfully underappreciated in the, not so much in, maybe in the clinical community, from spine surgeons, but maybe in the investment community. Because look, this robot does two things. First of all, it's not an extension of Mazor. It's a new platform with a ton of new functionality, that's going to be very value-added. But the other thing that's really important here is how it fits into the workflow.

Speaker #1: First of all, it's not an extension of Mazor. It's a new platform with a ton of new functionality. That's going to be very value-added.

Speaker #3: Sorry. And thank you. And we'll look forward to talking to you soon. But Joanne, please go ahead.

Joanne Wuensch: Thank you so much, and good morning. I'm gonna ask the self-access question and what you can share with us about the product and why you're so excited about it. Thank you.

Speaker #8: Thank you so much. And good morning. I'm going to ask this self-active question. And what you can share with us about the product and why you're so excited about it.

Joanne Wuensch: Thank you so much, and good morning. I'm gonna ask the self-access question and what you can share with us about the product and why you're so excited about it. Thank you.

Speaker #1: But the other thing that's really important here is how it fits into the workflow. So today, 70% I mentioned the commentary. 70% of procedures in the US are navigated.

Speaker #8: Thank you.

Speaker #1: Well, thanks, Joanne, for that question. First of all, like I said, I do think this has been as meaningfully underappreciated, not so much maybe in the clinical community from spine surgeons, but maybe in the investment community.

Geoff Martha: Well, thanks, Joanne, for that question. You know, it, first of all, like I said, I do think this is, has been, is meaningfully underappreciated in, in the, not so much in, maybe in the clinical community, from spine surgeons, but maybe in the investment community, because, look, this robot does two things. First of all, it's not an extension of Mazor. It's a new platform with a ton of new functionality, that's going to be very value-added. But the other thing that's really important here is how it fits into the workflow. So today, 70%, I mentioned in the commentary, 70% of procedures in the US are navigated. That's like navigation and OR, which we invented, and we, we lead by far. And, you know, today, robotics doesn't work well with that, that workflow.

Speaker #1: That's like navigation in OR, which we invented, and we lead by far. And today, robotics doesn't work well with that workflow. So that's why robotic penetration is a lot smaller than the 70% that we're seeing with navigation.

Geoff Martha: So today, 70%, I mentioned in the commentary, 70% of procedures in the US are navigated. That's like navigation and arm, which we invented, and we lead by far. And you know, today, robotics doesn't work well with that workflow. So that's why robotic penetration is a lot smaller than the 70% that we're seeing with navigation. The Stealth AXiS fits right into that workflow, so it's one seamless system from the initial imaging to the AI-based surgical planning, right into the case, navigation, imaging, and now robotics. One seamless workflow that, trust me, surgeons really have been waiting for. So you got a better robot with more functionality, and then you've got a much, much, much better workflow that, as you know, is super important to physicians and health systems.

Speaker #1: Because look, this robot does two things. First of all, it's not an extension of Mazor. It's a new platform with a ton of new functionality.

Speaker #1: The stealth access fits right into that workflow. So it's one seamless system from the initial imaging to the AI-based surgical planning, right into the case, navigation, imaging, and now robotics.

Speaker #1: That's going to be very value-added. But the other thing that's really important here is how it fits into the workflow. So today, 70%—I mentioned the commentary.

Speaker #1: Seventy percent of procedures in the US are navigated. That's like navigation and OR, which we invented. And we lead by far. And today, robotics doesn't work well with that workflow.

Speaker #1: One seamless workflow that, trust me, surgeons really have been waiting for. So you've got a better robot with more functionality and then you've got a much, much, much better workflow that, as you know, is super important to physicians and health systems.

Speaker #1: So that's why robotic penetration is a lot smaller than the 70% that we're seeing with navigation. The stealth access fits right into that workflow.

Geoff Martha: So that's why robotic penetration is a lot smaller than the 70% that we're seeing with navigation. The Stealth AXiS fits right into that workflow. So it's one seamless system from the initial imaging to the AI-based surgical planning, right into the case, navigation, imaging, and now robotics. One seamless workflow that, trust me, surgeons really have been waiting for. So you got a better robot with more functionality, and then you've got a much, much, much better workflow that, as you know, is super important to physicians and health systems. And this is just effectively lowering the barriers to step into robotics for spine surgery. And it's going to grow the market, I believe, and we are definitely going to continue to take share.

Speaker #1: And this is just effectively lowering the barriers to step into robotics for spine surgery. And it's going to grow the market, I believe. And we are definitely going to continue to take share.

Speaker #1: So it's one seamless system from the initial imaging to the AI-based surgical planning, right into the case, navigation, imaging, and now robotics. One seamless workflow that, trust me, surgeons really have been waiting for.

Geoff Martha: And this is just effectively lowering the barriers to step into robotics for spine surgery. And it's going to grow the market, I believe, and we are definitely going to continue to take share. And this really, you know, this really, you know, lengthens our, or extends our lead in my opinion, from our primary competitor in this space. The competitive dynamics have dramatically changed over the last couple of years. We're enabling technology, and our AiBLE suite is key to winning. And this, like I said, extends our lead over our competitor. And so super excited about that. You know, but in closing here, I'd say beyond some of the big generational growth drivers we mentioned, we talked a lot about CAS and Ardian, a little bit about Altaviva and Hugo.

Speaker #1: And this really this really lengthens our extends our lead in my opinion, from our primary competitor in this space. The competitive dynamics have dramatically changed over the last couple of years.

Speaker #1: So you've got a better robot with more functionality, and then you've got a much, much, much better workflow that, as you know, is super important to physicians and health systems.

Speaker #1: We're enabling technology and are able suite is key to winning. And this is, like I said, extends our lead over our competitor. And so super excited about that.

Speaker #1: But in closing here, I'd say beyond some of the big generational growth drivers we mentioned, we talked a lot about CAS and RDN. A little bit about AltaViva.

Speaker #1: And this really this really lengthens our extends our lead in my opinion from our primary competitor in this space. The competitive dynamics have dramatically changed over the last couple of years.

Geoff Martha: And this really, you know, this really, you know, lengthens our, or extends our lead, in my opinion, from our primary competitor in this space. The competitive dynamics have dramatically changed over the last couple of years. We're enabling technology, and our AiBLE suite is key to winning. And this, like I said, extends our lead over our competitor. And so super excited about that. You know, but in closing here, I'd say beyond some of the big generational growth drivers we mentioned, we talked a lot about CAS and Ardian, a little bit about Altaviva and Hugo. I would add to that robotics piece.

Speaker #1: And Hugo. I would add I would add to that robotics piece. I would add stealth access. But we've got a breadth of innovation right now in Medtronic, which is why you're feeling we're getting the excitement here.

Speaker #1: We're enabling technology, and our Able suite is key to winning. And this, like I said, extends our lead over our competitor, and so I'm super excited about that.

Geoff Martha: I would add to that robotics piece. I would add, you know, self-access, but we've got a breadth of innovation right now in Medtronic, which is why you're feel-- we're getting the excitement here. You know, whether, you know, you saw it from this quarter, like I mentioned, from CRM and peripheral vascular health, which we didn't get any questions on. Their growth has, has meaningfully improved here from a number of new products like Carotid and Thrombectomy. We talked about CST accelerating. Neurovascular is accelerating with new products that they've got, you know, you know, between the, the NeuroGuard Carotid, you know, product as well as, you know, MMAE, that's a mouthful. And then you've got these, like I said, these, these bigger growth drivers like Ardian and Altaviva, that are at the very, very...

Speaker #1: Whether you saw it from this quarter, like I mentioned, from CRM and peripheral vascular health, which we didn't get any questions on. Their growth has meaningfully improved here from a number of new products, like carotid and thrombectomy.

Speaker #1: But in closing here, I'd say beyond some of the big generational growth drivers we mentioned, we talked a lot about CAS and RDN. A little bit about Altiviva.

Speaker #1: We talked about CST accelerating. Neurovascular is accelerating with new products that they've got. Between the NeuroGuard carotid product, as well as MMME MMAE. It's a mouthful.

Speaker #1: And Hugo. I would add to that robotics piece. I would add stealth access. But we've got a breadth of innovation right now in Medtronic, which is why you feel we are getting the excitement here.

Geoff Martha: I would add, you know, Stealth AXiS, but we've got a breadth of innovation right now in Medtronic, which is why you're feel-- we're getting the excitement here. You know, whether, you know, you saw it from this quarter, like I mentioned, from CRM and peripheral vascular health, which we didn't get any questions on. Their growth has meaningfully improved here from a number of new products like Carotid and Thrombectomy. We talked about CST accelerating. Neurovascular is accelerating with new products that they've got, you know, you know, between the NeuroGuard Carotid, you know, product as well as, you know, MMAE, that's a mouthful. And then you've got these, like I said, these bigger growth drivers like Ardian and Altaviva, and Hugo, that are at the very early stages.

Speaker #1: And then you've got these, like I said, these bigger growth drivers, like RDN and AltaViva, that are at the very, very and Hugo, that are at the very early stages so you're starting to see the breadth kick in, which is beautiful to see.

Speaker #1: I know that in this business, innovation is key. And we've got a depth of innovation with these big generational growth drivers. But we also have the breadth.

Geoff Martha: And Hugo, that are at the very early stages. So you're starting to see the breadth kick in, which is beautiful to see. I know that in this business, innovation is key, and we've got a depth of innovation with these big generational growth drivers, but we also have the breadth. And, you know, as Thierry walked through, I think it was Robbie's question, we're pulling different levers to make sure that we're investing appropriately in these organically, whether it's increasing R&D, funding direct to consumer, hiring a ton of mappers, and if you're a mapper out there, you know, hit our website up, you know, and then kicking in the M&A, right?

Speaker #1: We talked about CST accelerating. Neurovascular is accelerating with new products that they've got. Between the NeuroGuard carotid product, as well as MMME MMAE. It's a mouthful.

Speaker #1: And as Thierry walked through, I think it was Robbie's question, we're pulling different levers to make sure that we're investing appropriately. In these organically, whether it's increasing R&D, funding direct to consumer, hiring a ton of mappers, and if you're a mapper out there, hit our website up.

Speaker #1: And then you've got these, like I said, these bigger growth drivers like RDN and Altiviva that are at the very, very—and Hugo—that are at the very early stages, so you're starting to see the breadth kick in, which is beautiful to see.

Geoff Martha: So you're starting to see the breadth kick in, which is beautiful to see. I know that in this business, innovation is key, and we've got a depth of innovation with these big generational growth drivers, but we also have the breadth. And, you know, as Thierry walked through, I think it was Robbie's question, we're pulling different levers to make sure that we're investing appropriately in these organically, whether it's increasing R&D, funding direct to consumer, hiring a ton of mappers. And if you're a mapper out there, you know, hit our website up. You know, and then kicking in the M&A, right? So, you know, we're really shifting our stance, moving into more of an offensive footing here. And it's based on just the momentum that we have and the momentum we see coming.

Speaker #1: I know that in this business, innovation is key. And we've got a depth of innovation with these big generational growth drivers, but we also have the breadth.

Speaker #1: And then kicking in the M&A, right? So we're really shifting our stance, moving into more of an offensive footing here. And it's based on just the momentum that we have and the momentum we see coming.

Geoff Martha: You know, we're really shifting our stance, moving into more of an offensive footing here, and it's based on just the momentum that we have and the momentum we see coming.

Speaker #2: All right. Thank you, everyone. And I'll turn to Jeff for some closing remarks.

Speaker #1: I thought that was the close. OK. Thank you, thank you all for joining today. And all of your questions. And appreciate your support and continued interest in Medtronic.

Ingrid Goldberg: All right. Thank you, everyone, and I'll turn to Geoff for some closing remarks.

Geoff Martha: I thought that was the close. Okay. Thank you. Thank you all for joining today, and all of your questions, and you know, appreciate your support and continued interest in Medtronic. We hope that you'll join us for our Q4 and our full year, fiscal 2026 earnings broadcast, where we're going to update you on the continued progress that we just talked about, against our short and long-term strategies. With that, have a great rest of your day. Thank you.

Speaker #1: And we hope that you'll join us for our Q4 and our four-year fiscal '26 earnings broadcast, where we're going to update you on the continued progress that we just talked about.

Speaker #3: All right. Thank you, everyone. I'll turn it over to Jeff for some closing remarks.

Operator: All right. Thank you, everyone, and I'll turn to Jeff for some closing remarks.

Speaker #1: I thought that was the close. OK. Thank you, thank you all for joining today. And all of your questions. And appreciate your support and continued interest in Medtronic.

Geoff Martha: I thought that was the close. Okay. Thank you. Thank you all for joining today, and all of your questions. You know, appreciate your support and continued interest in Medtronic, and we hope that you'll join us for our Q4 and our full year, fiscal 2026 earnings broadcast, where we're going to update you on the continued progress that we just talked about, against our short and long-term strategies. With that, have a great rest of your day. Thank you.

Speaker #1: And we hope that you'll join us for our Q4 and our four-year fiscal '26 earnings broadcast. Where we're going to update you on the continued progress that we just talked about.

Q3 2026 Medtronic PLC Earnings Call

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