Medtronic (MDT) 20 Aug 242025 Q1 Earnings call transcript

Good morning, and welcome to another Medtronic Earnings Day. I'm Ryan Weispfenning, Vice President and Head of Medtronic Investor Relations. And I appreciate that you're joining us this morning for our fiscal '25 first quarter video earnings webcast.

Before we go inside to hear our prepared remarks, I'll share a few details about today's webcast.

Joining me are Geoff Martha, Chairman and Chief Executive Officer; and Gary Corona, Interim Chief Financial Officer. fiscal provide ended the and on for remainder will first of our Gary the which quarter, July of and comments results on our outlook Geoff 'XX. year XX, XXXX, segments analysts remarks, prepared take from our and executive After the will the company. our us, sell-side the join from cover each VPs of X that questions we'll Today's program should last about an hour.

geographic morning, containing our divisional and release issued reconciliations. financial non-GAAP press revenue a we and Earlier this summaries statements,

details our on earnings be an presentation investorrelations.medtronic.com. additional presentation earnings that posted performance. also can our provides accessed press We The release website our in or on at

today's statements, statements and the we from many may forward-looking results considered materially differ be any During actual in program, those make of projected may statement. forward-looking

are that is cause basis quarter as revenue to excludes update undertake and could current otherwise, foreign results first the any and on which the make say prior year reports periodic not statement. factors contained currency and a our impact filings basis, and comparisons comparisons Unless and actual differ that are in on organic other we to forward-looking SEC, year-over-year Other. with our all information Additional of an do in made we concerning reported revenue the we

sequential quarter. compare not basis adjustments and fiscal competitors' earnings our gains our can changes or as year-over-year our are And fiscal website would quarter or press non-GAAP our or all EPS are References include losses on year. to calendar basis. earnings non-GAAP and gains fourth charges to references finally, first measures reported 'XX revenue financial that and share in to investorrelations.medtronic.com. compared the found a quarter made any be of fiscal second during as-reported Reconciliations guidance does be at of the release to All on an our on against revenue

into quarter. head and hear the let's that, With studio about the

thanks tuning in and for today. everyone, Hello,

of drove outlook And basis our on and delivering quarter year. delivering revenue of fiscal we're X% we're we for to our we earnings our mid-single-digit growth the reported year. exceeding in row increasing saw a exit our This reported results, constant to you And is currency. a X% the growth. As seventh commitments now high the rest growth, increasing basis single-digit on adjusted as and EPS EPS tracking a in

are is in same Our growth drive growth short, the medium in term. fueling innovation driving across markets underlying and and large growth product markets which to continue secular healthy. rigor our our the to we expect new diversified We're matter. many the invest that long we pipeline, operating At time,

We're at on the robotics. front making new on end manufacturing, ablation, technology TAVR, scale neuromodulation, and across focused product management ongoing portfolio like our cycles. organizations, work. markets field pulse driving progress our hypertension of and commercial many In and diabetes, We're

to and as shareholders. Now our our on for execute returns lead transformation, deliver innovation we this strong will continue to

Now to discuss our let's QX performance. results turn the our of details and

of Combined, first our revenue. businesses. Looking highest they our and gross X% made XX% up grew at

launch to overall to quarters continue We growth expect the to in as technology. new contribution coming our increase we their

execute and been opportunity. in confident where we're developing this We're In Starting over this of we're PFA our of with and take Afib. technology rapid technology tech those that in a case, Solutions, for We've of Cardiac is in and well years. here, Ablation investing treatment disease. in shift to moments one at the positioned this new many causing a is advantage technology med ability

than growth The PulseSelect in growth cash crow catheter PulseSelect market said rate with having In over over line strong demand, accounts. PFA To treated increasing offsetting and countries, We're rapid capacity with into our meet last PulseSelect its is XX XX,XXX in catheters more patients. quarter, manufacturing launch accelerated our seeing XXX expanding the growing has successful than been X%. our declines. we're new physicians dramatically what market adoption QX, we more of and

to a a PulseSelect QX. we As acceleration result, rate through our fiscal strong this meaningfully expect in accelerate overall growth year, including CAS

Sphere-X as have all-in-one catheter. high-density perform differentiated catheter then and And This mapping ablations. field as pulse focal can we our RF well

We expect per and and We're us more and allow Sphere-X will earlier calendar it for to procedure we've revenue this in take approval mapping RF FDA of other catheters. Europe, to capture the place year. submitted will living as competitors launch

expect growth our as fast-growing and in fair time. cash and further As and then $X accelerate ablation exceed we reach large launch billion we cardiac space. this market will growth our mapping scale over Sphere-X system, we even and

Heart, growth year. single-digit last that Next, of we Valve relaunched impact the Harmony high in Structural excluding we continue our to Pulmonary deliver

we one, quarter, the plus plus of market U.S. X our TAVR launch begun have FX an FX limited additional reasons: started easier and and large valve trial our Evolut customers. reiterate launch SMART results positive for it month. with is allows for it During its two, creates now coronary full the to opportunity to important due windows this frame; access our the with in

superior small are superior in another SMART primarily above broader With at up on focus ahead. and SMART our performance and patient quarters this market who point space. continue valve to in or of of annulus data proof data, combination the equity. this health population showed XX% expect making patients sizable, just low-risk the in FX SMART our women, about X-year is the we our grow to TAVR The plus, was

EXPAND U.S., achieved our building a to QX, the a and our hernia going other we've increased. targeted continued for Robotics, steadily foundation investing In we're Surgical beyond in and gynecology are trial. And In utilization now in procedures future well. in system EURO X per U.S. that, meaningful milestone. growth. enrollment for grow studies: indication This is installed base in the And enrollment the

Hugo make our vessel to imaging ICG bringing as also progress continue LigaSure surgical advanced to fluorescent and We technologies sealing. such

the reached MiniMed XXXG and the the revenue markets. pump in CGM launch over XX% quarter, growth with both we another our high double-digit Next, We're in Diabetes, In of we CGM U.S. the system. strong international had U.S., high with XX% single-digit of growth milestone X-year and AID attachment. in and in growing driving revenue growth the

initiated In we're X international great system, past This insertion Simplera getting -- DQ&A on AID usage. to we've rated just and already for the ease high where markets, sensor, and Sync feedback its the the market full of been XXXG adds of of release the we're system quarters. by #X we the our the satisfaction getting

pipeline. CGM we're partnership we Abbott's on integrated with So market add to CGM And this, CGM to we'll our where based ago, X and an global Simplera announced bring in to weeks confident our platform. most advanced Abbott,

integrate we AID and systems. increase offer our base to MDI to with choice our our SMART allow also It installed more will will Diabetes grow space. the AID The in help do And per expect exclusively while MDI and sensor revenue. us and patients, to smart to being the neutral committed ensure this that. maintaining same partnership this being patient and #X Look, will fast-growing Diabetes just gross revenue margin. to And we're

to Securing at payment we an a can patients. Now remains key pressure continue coverage, procedure. to reach reimbursement the to with that turning inpatient hypertension. CMS CMS the now key outpatient pleased finalized has opportunity unlocking to We the levels payment. proposed establish our has enabler that and And broad and to local were engage so this national simplicity blood therapy

U.S. globally Despite the important Now more hypertension all X to billion affects the only adults. XXX,XXX of availability deaths under every pharmaceuticals, half U.S. are directly and of X of than people Furthermore, more than in the have their numerous X adults nearly as hypertension this in attributable in is classes U.S. control. hypertension. year

U.S. the billion health $XXX of and year. And care cost the system billion burden a $XXX hypertension between

you improve health. why our simplicity for there's So role can important just see to procedure cost-effectively public an

technology our several this XX%, quarter, businesses. market. the is we've highlight system a Neuromodulation made Now investments are the paying was in growing business nervous well years a in the over synergistic and turning now above brain off. where the This sensing to

closed-loop becoming we a It's space. for clear and have neuromod technology these Sensing lead. and is foundational markets, reinvigorating the

quarter Stim, first cord closed-loop the it's grew the in treat is XX%. and was spinal the Pain Inceptive stimulator our way in our we pain. inceptive First, launch U.S. This chronic first we of transforming

stimulation And The patient. thinnest a MRI senses the smallest the SCS delivered access. from It conditional also the from on interaction full device and with required closed-loop adjust no device is XX and therapy market. the times body has best XX/X the automatically second, the

affected driver other of was launch The of big our business, RC Percept neurological Percept targets debilitating like which transmits Neuromod disorders brain technology. by the on to modulation brain growth grew specific BrainSense continued electrical signals Parkinson's. with XX%

surgery while company the FDA then last signals to week, patient these And first asleep. captures and approval is equipping DBS valuable the we only the became data the and It receive physicians DBS just therapy. needed offer records to to insights personalize with the and

shorter position in the Now potentially less look modulation. leadership times. procedure stressful We continuing this to patient surgery innovation forward a our means to for advance and brain

Now to leaders. cash we just looking for profits at in this revenue reliable growth, revenue higher-growth half X%. Combined, depend our established they not also areas. our made then Collectively, but disproportionate market of can diversification flow our invest only grew and under can on their up contribution that and we

Management growth cardiac in with therapies. high in Solutions pacing digits and grew single-digit single Rhythm growth low high double-digit Cardiac Defibrillation

over Our continues of Micro generation the latest devices. XX% grew leadless our franchise adopt to as market pacemaker

in lower strikes. the primarily digits. difficult from growth fiscal we quarters, In order ongoing was fulfillment market the of as from Surgical, comparison by Korean the first as slowdown the half grew This well back low last the year single than driven prior physician

these to half in Now return that as we Surgical back year expect the ease. more growth comparisons will of fiscal the normalized

Technologies, Spine digits. and grew Cranial in And we mid-single

ecosystem. U.S. growth. share -- business. really continues business world AiBLE's a winning driven AiBLE with and around spine our This X% spine global by Our formula differentiated sheer Spine being for is our scale X% the is the features capture sustained outperform it's to just the market and core

over sales surgeons, changing helping Gary Chief win in patients to It's best Financial attract wish and all reps Spine. AiBLE our Medtronic has dynamics whom his good Officer, With I want and for join the first Medtronic we us best to Karen to the Corona, next she distributors now is Parkhill Interim and chapter. welcome Gary starts as broadcast. team. our share the to earnings competitive her that, taken and for it's

team and less raises. a rigor, our role, He's little which ago X our impressive our been to has after in our been beats corporate enhancing he leading key us than and finance years the General beat. and career missed a capabilities with And instrumental as haven't Mills. has an into a enabler both stepped been joined Gary we

welcome Gary. want I So to

thank global talented I I'm the continue and energized momentum drive your want big and all her I'm lead entire leadership support. Medtronic and together her company. Jeff, been to want finance as able me Medtronic and with of we and running, this I've excited work to to that and too to support honored Karen a team performance organization the to send team role to into ground our a to for contributions to you Geoff Thanks, to financial I'm our thank commitments. personally. for step have the achieve and the hit

with investment I'm to forward in looking weeks. over coming conversations many community the of the you having

outlook. of and I'll QX was fiscal guidance financials our you additional of above into our $X.XX ahead translated our continuing This point this We that started by EPS recap full X.X%, midpoint. year the our some a revenue midpoint growth give our deliver on commitments with at Now guidance. details to on

you by when innovation our commercial is diversified through growth, or you product fueling as see business new results. by We're this and driving and look come geography execution can both strength

Our high continued saw we to Diabetes. Neuroscience momentum cardiovascular and portfolio growth, and single-digit accelerated in

rhythm Our markets cardiac from grew the accelerated contributions PFA mid-teens growth high also emerging international management, neuromodulation. U.S. our growth and in single And digits, in markets. including on

Moving P&L. down the

was Our adjusted of margin basis XX but points, XX.X%, gross expectations. ahead down

basis decline point by currency. expected, entirely driven the As XX the of was impact

to continue activities. on underlying improvement progress make we margin our However,

QX, In constant basis and a innovation our programs margin in a from inflation, currency our offset point gross pricing XX basis. on new increase resulting cost-out our in

in up but line in was of This operating a basis adjusted XX.X%, points currency. with points decline constant basis versus last margin XX XX was year, Our expectations.

Turning capital to allocation.

hasn't philosophy changed. Our

share future our balance and tuck-in calendar returning opportunistic investments a value from through including for This repurchase. opportunity shareholders to more to seen time allocated repurchases. capital and growth, with significant continue through in we've share capital to primarily our shares year, to dividend We M&A, time,

cash forward, over buybacks the in May, these in QX billion We in incremental an M&A. $X our will of an call given have billion shares growing on our earnings go X free tuck-in $X.X have we'll focus we we quarters. as conviction and revenue, Since and past flow. And we repurchased continue our attractive total, the earnings return believe to

Now let's guidance. cover

and expect range QX to we're EPS fiscal our year organic guidance. our growth an now to revenue increase full revenue X.X% Given 'XX of X%, positive of We from X% prior raising momentum, and the outperformance X%.

we're expecting of we'd quarter would approximately growth top Based X.X%. $XXX have have to $XX of organic recent second revenue For in QX, unfavorable remodeled in in the mid-single-digit the million million million on fiscal million, an another including line. range impact deliver to to FX $XXX the rates, of growth quarter. $XX to 'XX And

line less Moving after down year our impact long-term and to an to recent much also on continue of our while investing to pipeline. P&L, as the margins And the efficiencies behind based we product margins this we quarter. our rates, operating drive in expect bottom becomes second launches expand currency and our

our new range diluted fiscal to from an the $X.XX. to $X.XX $X.XX of non-GAAP we're of $X.XX, Taking 'XX to this raising range guidance together, prior a EPS increase all

For $X.XX. X% of the EPS unfavorable continues include in $X.XX fiscal QX. year X% impact currency, guidance expect The quarter, foreign second we range an to including impact an to from 'XX

Further guidance in the the wrap in company. slide of growth driving on our are we to earnings laser-focused be the power up, line emphasize that on guidance To want presentation. I top restoring found and details can annual our

results, the see it the our You QX outlook year. saw in for you and rest that our in of

growth high half impact to currency Geoff, the EPS the as to lessons, our growth. in expect We you. accelerate the back year back exiting with single-digit from

Gary. Thanks, right. All

are I questions, capital disproportionately all to Now allocate we we've before performance. our and are front still becoming analyst few focus a cycles. Chief designed seeing we these while to our making product CEO, businesses on now you're venture the strategies the changes close competitive. some of to as our a our with M&A at lot other to sure And Since want thoughts. market the go this we investments new growth end opportunities, of payoff to is among made how company, R&D, improve exciting the highest

neuromodulation, and and in You're PFA. diabetes in in seeing it TAVR

capabilities And as future heavily working we invest robotics. improve this We've company been in to much the expect and the across growth I we're of speed. our opportunities like I continue surgical look company now stronger. are foundation and The is investing at pipeline, in momentum And hypertension this also as our better Quality to a spot. operations on fundamentals. in our enhancing digital

hunt operating We've building mission-driven in capacity changed looking culture. growth some M&A further We're the to investments add in And We're leadership a right increased and strategic our and playing opportunities. incentive We're that cases, more rigor this. organic offense. areas. performance-driven increase for are reinforces integrated an mindset on tuck-in to we've the structure to

this And growth Now improved taken execute, will create power into line society, seeing is and to this value and earnings for all translating together, that the now meaningful top you're our in shareholders. results. we momentum for continue as

employees uncomfortable. our that appreciate efforts driven rewarding and of change, we've paying embrace I the and be a done lot that all that to world. like to thank changes, you've it's see these of to can your Finally, around off. realize all I'd I

we I'm look to possibilities XX about Medtronic, of As company. before more excited Together, next resilient and we're years building the a us. stronger the

for to thanks fulfill and to our patients. that So mission serve all do you

that, to try analysts additional get to have possible. With you out give question? move can instructions Investor that, the team going Instructions] you please the as asking can If [Operator you Ryan after with the as let's Q&A we're Brad, and Relations to to a reach where So many for call. questions,

being this that please Lastly, Instructions] is Q&A be recorded. [Operator session advised

and pause Brett and ISI. the President Ku to question We'll the President Dallara, and We'll take the Wall, at assemble portfolio; Marinaro, EVP and and EVP For today's Mike a Vijay of Surgical seconds the Evercore of Gary Cardiovascular and Ryan of Diabetes; portfolio. Neuroscience first EVP are the queue. joined from Salmon, few for Kumar Geoff, EVP President Sean Medical by portfolio; President session, of

on basis north about should your my think, execution I here. like your back Geoff, a was right? rate. was quarter is in current outlook above guidance XXX question nice expectations, broad-based. seems XQ pretty of here on well Based quarter, be your performance half It guidance, Maybe really like also below the the what it It's points. first organic your annual your implies congrats

So maybe XQ, sustainability in why can just talk about sustain the one-offs Were QX performance? of back these half? trends any drove that there

heart, QX, There sort I both like in close stages growth market that's came market Yes, that driven technology new tailwind growth that real from technology for getting here cycles market markets. exciting. a question we're that uplifts new data, new like market of Plus low is is is from drove that really one-offs et DBS it's of of you. a quarter, of it's inceptive I'd getting stim Vijay, we've that into release, going of good the that these digit product see exciting risk, foundational really by high-growth directly. well the is real there. closed-loop questions smart, In that And limited is least out growth about in really which accumulation because to sustainable just single think high no therapy us. answer we our in the the just the the driven a couple the we're our we're signaled launching we've products -- all I'd pricing sensing double at consistent and beginning of there's the -- commentary, said seeing at cetera, hear same And all that's demand FX+ And as of mined there and to market full digits. me the performance. by therapy the overall, in a as in neuromod was with strictly some say really the neuromod and things them. first as -- time. had That pain lot we let Structural -- around

to But that particularly not that going to launch annualizing should the XXXG. continue is company now have businesses average. above that growth throughout that well Diabetes I'm of the at high sure level U.S. QX year, had is Two a strong -- one the we're Diabetes.

CRM the I'm a sustain the segments. have we nice And good the teens last all be quarter. able so -- we're year. some whole not I quarter. the And Those really really can diabetes quarter, X% was we're that the list. portfolio CRM going there had sure a think out going there could new every see great of strong to across product a banking in not in keep to the really CRM, also on -- CRM But just just growing I onetime execution. X about stages. And I them, There's the company, products across nothing early lot on just but

overall, issuing So we're up fundamentals sets on good we're us our guidance for we success. and guidance, headed, focused feel underlying the where and delivering commitments about issuing and on

when don't I prior know in was repurchases. [indiscernible]. follow-up I in guidance, your your question. to But margins right? tweaked, operating guidance for And pretty half, the guidance a was And guidance up it if earnings $X.X some first had Gary, like assume baked here Geoff. your look really from strong. there performance in your EPS welcome does maybe step helpful, share benefit gross related That's QX Loan on still meaningful to that one a call. looks but back margin at The billion

X talk just the months? your that second maybe margin half did change over and last So for visibility about

having forward and Vijay, chance all Thanks, I it's in you to of to person. you. meet look meet Yes. nice to a

the first. of your And the Let takes take quarter I'll buyback tackle you and through me EPS. question puts first about

the line, driven Geoff the mentioned. our EPS of Our line. to were midpoint was there mentioned, was strong, Gross about growth point our the interest by our that And $X.XX really as strong, top you consensus some we pressure and with talked the pieces, ahead $X.XX operating of highlights. with of helping. the the really lower our revenue was and count he line. benefit about But were margins Below strength starts some XX income midpoint a from that guide. guide, than The of full moving tax And and the mentioned that netted $X.XX rate. the line also on top bps share higher Geoff in about had margin

into So little visibility bit more that's a QX.

high think on As constant story. back Constant underlying single quarter we're is growth half, the And quarter. every and half that the tend pressure pretty revenue as we wane FX FX, as get ramp really to as we an margin strong Significant leverage of in first the currency a due to leverage about pretty driving stronger half, with the market on have full first we -- know, will similar is to second The digit number half. growth front. currency up fourth therapies our the ticks slightly a on you drive have we a release. basis

the the will play story how the throughout that's out year. leverage So on

The next from JPMorgan. question Marcus comes at Robbie

wanted And to my one, big you. I for quarter. congrats With This is Diabetes. a in pretty on strategy about good ask shift a

You've the the one. the pump and algorithm with both always all CGM, provider been the in and

Now how Diabetes strategy in at internal do Does we forward? with walk to this your interest. change moving us all? external with in partnering the versus Abbott strategy of through And investment your think was Simplera just best maybe launch, why about about

let answer Que Go ahead, that Yes, Que. I'll question.

Robbie. would at Thanks, changed our hasn't say all. I strategy

does on the our really mentioned, wanted puts a as see you CGM, typical technology always parts, was algorithm, outcomes think in the -- really users that And devices. MDI And burden is CGM the widespread access you together provide large wrapping I a pumping all believe burden sum in the installed or market we still puts of that knew patients. with the our of is exceed benefits there it system a the the part the to integration of changed better technology, AID what's recognition a in alone system. AID the base our We market than really alone. that

that the way path prefer provide wanted ourselves. for one to and found as a the we that experience, as well from call say pleased different experience for for And for may Medtronic one Abbott to patients number you works a patients so standpoint And phone an that we sensor. find can we're to a

response I access to just found that's a way We've would installed CGM. expand say is strategy And in be changed And to the so I your our a really think hasn't what system, to question. changed. would broader commitment in The base. our towards our confidence hasn't what

Simplera launches, well in Simplera the Europe gone have approved in very as have And Sync launches experience. working and early for We're with well. system. FDA the approval The we're Simplera Simplera integration to we're for very with we agency U.S., pleased the the now with that pleased sync get XXXG and Simple

The comes Travis Bank at Steed Research. from America Global of next question

you TAVR. I wanted in to some looking to that about expect some share? the you there? market, you're you the sensing of is kind that the to the I'll you the out? just and smart with on one today of do how the impact And see TAVR help playing think ask market when market question And how from launch, And my of given forward, impact going the get what FX the data comments competitor

Sean. going one that over Travis, hand to to I'm

for Perhaps market, Look, question. is solid. we the thanks pretty think the

the now. digits of versus in data And market line growing that in course, with we're low-risk think single momentum right the we have, I surgery. high data the

function And has done right as course, well We limited lot a globally resonated that really July, X-year a small year habits Day small and for market on out I and and launch. of as think going that that's in FX release and strategy month full very treatment really body really pick well. gotten its up. well. to here SMART saw attention in has and early read data in as analyst of coming as a women, that's for to exceptionally of the sort the did the of been particularly is compelling, of momentum we're we

the So people of will like onto is of really or continued bigger afford windows, then align really growth anatomy. that can a I native part think the those access What you continued good coronary segment. that

that So overlapping material future the costs you access. sure to preserving that and making alignment get

deliverability. full other without momentum which launch is that's year, we'll moving approvals usability right And of also device. trade-off And the geographies, of improve It's and market features really So done U.S. course, which the going. now. the obtain any will FX, all of into got within in the keep this that

really for I technology. this is the we're working So to and think new excited well market us, bring

The question next Antalffy from Danielle UBS with comes Securities.

Great. large But Congrats here. start giving I be just on Appreciating Abbott. about time follow to how good thinking just year this to Que, wanted on And you're a how we sort with about partnership how diabetes. I lines are haven't pretty here. thinking not about? should up what you today. base, are grow has the of a you installed it and it installed mean, base could thinking the

the of on how about more pump the the can Any be trajectory So the thinking as that think about should this for business. we for fruit side color low-hanging should you give Diabetes business. we changing

of opportunity a the our think are for very I most base mean now access technology. the sensor to Abbott users obvious I that installed to prefer have large

give providing can't we still options, our that experience one sensor that assured I between but sensor into you app our we're working but can as to unfortunately, can single IT automation and where to lines, that patients fast system there's as our algorithm. that X with rest experience choose incorporate So the comes one time and get Medtronic really system

own market. differentiated, it to own We user And into us base and that's our tap installed in CGM the want our to growing we the -- base. so pretty largest that's the allows addition to to think in bring installed experience the world

Biegelsen Wells Securities. Fargo The at next from question comes Larry

about for ask to wanted I question, one my Mike For and progress Hugo Jeff. the with

like we see for When to line next potential targeted time the the reached your Hugo. year questions you've commitment U.S. launch the trial. U.S. pivotal EXPAND the to And are Could going So it or in we Euro, filing? enrollment still this What's data? see sounds there's around year? Jeff,

Just rest to those concerns maybe of put here. any

I'll then Well, Mike Larry. let maybe in first and couple Thanks, the questions, come right. answer All I'll afterwards. of

Yes. Larry.

making So with on the work. the clinical we're are we progress happy Hugo, in

have still filing. targeted As final completing then reached the do as There to we the mentioned, enrollment. and is reach work we endpoints

date So in enrollment progress. to series U.S. have very gynecology together as noted, be the which of teams. good and will both cadence clinical we're progress hernia we're the and but we Also, our that giving in partners won't terms a with to submission, surgeon work be will the doing our a specific us of critical of and good the appreciative that indications, launch. allow very making then of

across clinical of series work the good work the and very of our teams. partners and So Geoff? surgeon appreciative again,

Yes.

So a on there's to to other things just here, impact said, for getting both. instrumentation we're Hugo the leading progress Mike approval onto capabilities. on as X And and that Medtronic us making the mentioned, happen to robot then need the U.S. as our inflection points level, couple the at look, of and Mike look, see

-- space, strong for including space. a absolutely Spine we're pull. committed doing I'd have And levers this a So a say, many soft We're committed all in the now helping the to -- on beyond really But not really growth do that we -- this. us, we're is driver year. -- a -- up where and commitment, is to being tissue big part think here due fiscal to being across orthopedics, but like in competitor we get midterm question with is we're we committed entrenched lead And your of we areas, different to play just surgical it, our in to are in against driver with the spine. back like it's But Larry. robotics

also lot have years. a that technology just imaging, a bit that about learned We It's more franchise. goes understanding over the great AI, the it's of the And We've in robotics other than the navigation, the piece. a digital robot. instrumentation surgery quite there so

point there's So years to pull, I'd or can that you and it's levers to we're franchises spine lot just confident. questioning, diabetes a were other ago, whether whether it. to committed lot or on compete of A We're back it's and focused couple of it. a neuromod. people And we're

and franchise focus my competitor have better because much, on investment, the to that is high very where the we and strong. the the pull, this that's of get entrenched to much levers all those on of the seen confidence we have But with place, You've are a have. we in surgery. level spot we is team knowing And

but confidence team. that, So still understanding our in having knowing

The comes from Baird at David next Rescott Equity Research. question

the the size about us X-year I how on most you can and hunt the kind term, can the Medtronic when for Congrats near and the if what to areas here. understand Great. the versus X- of Geoff, you the could heard strategically help in the I'm X- strong balance move think maybe the year kind M&A. guess, you of what you think portfolio, on your make portfolio curious needle start on to comments being sense needle that period to over period? do of what -- moving X-year I be

strategy, play as of larger highest about right? acquisition. I our are highest those -- big needle and Ablation value-creating ablation towards the the both has M&A. do a growth. growth That's crossing pointed side, and as But for are Afib still -- just focused to where of mean, capital the M&A areas. -- allocation tuck-in allocation. we pointed M&A allocating case strategy in to areas And point the talking we Affair capital its the Our we're money as on are that about areas question, allocation is the part well to. with organic our one talk strategy look, a David. on the acquisition Yes, our seed Thanks We're cap areas, we of is the this

growth with that about. just I margin So profile and talked that

And X.X over we've high-growth focused. or a tuck-in last that's the so, to operational -- is think be focus it's I or of think business we're that lot areas out product an had. are they to operations. than I changed had an that whether focus there, want years adjacency tuck-in. areas except an specific that areas existing point where we've really the business don't nothing's the So the to been getting And other I That's a existing

our focused. spot, the of in And better a much be I just back more and a I in is in gave we'll things on think that, our M&A. can down, We're footprint energies where better focus is spot explanation operations like better Our order there, a quality spot.

Taylor Matt from comes at question next The Jefferies.

a structural your And I I factor guess made as you curious And And the or that heart and through? help help organization more the you to signs really your But on about that your going double-click in more up said slowdown any you to capacity now would market. wanted know market. how limiting I'm the there seen term of I comments capacity is do deal business to about some an or forward. thoughts on you businesses? in with of run that longer on capacity haven't concerns you that of have free therapies that broadly, a

overall hand over Well, Mitral -- But say Matt. TAVR, to this still. the tricuspid. Sean, heart space, underpenetrated going coming, structural to It's look, I'm is I'd very

data growth the Sean again do it will, a benefits a where trial. and and market or what market. of Sean back. SMART you the huge risk underpenetrated seeing Sean. is kind we strong I'll think Go patient -- be this come where see then data, maybe still so then on are, I clear. let is So touch mentioned whether low capacity now and The are and I if our clear. is, ahead, we're on It's

We're hearing question. about capacity from constraints, course. the for Thanks Yes. of customers not our

the lower of That's they beyond expand for it. that be with future get at the acuity procedures capacity runway to look operator and beds which something TAVR. of some additional we're up. But a it. a of course, you like And to line as works when make sample goes to settings need U.S., of ask course, freedom our of heart So doesn't future may It But component our about into competitor. size add the the the structural the smaller there's a post than the we concerns things seem level, in service little the valve long too you it been just procedures patients to That's seeing these at capacity shifting room. clinic, add challenge. you

the we're which and X.X in indications, So expanding replacement I like U.S. people think the is arostinosis moderate valves transcatheter pursuing that. about things a and mitral population, with million

make don't to that in have it help see So expand capacity And need them centers to of be. to the sure short space a I they operators to if adequate we'll needs think it. runway they a have the enough hospitals long and that But training first with really run, I challenge. work for plan

it's think prospects don't total. on in future the a I heart of So growth structural constraint

capacity. a past, care labs that we this number agree constraints partners cath out in help when doing helped lab with the and in build we'll stepped helped work and on you see see I -- us in U.S. the the of them -- with we've out with capacity. out lot companies and delivery that. look, of health talk And was partner, number In our ago, build to when like with ASC tied a imaging in could I to capacity to across Western situations Europe, we this build cath Europe, And a capacity managed because Yes. of and space And there our when many the the we work imaging is years -- that, partners there's Like one. hospital with hospital capacity. several

not we that So that's it. would we're handle issue, in -- how an were as TAVR. hearing see Sean but to we're we not if said,

question next Goldman from Sachs. David at The comes Roman

us obviously, you've Geoff, in in as you of what we U.S. for United thinking about it's that on you market FDA you're still the a limited Europe perspective a and post year now bit Mark proxy a how whether about product this give seen CE was States. that should use of a little release pending the ramps hoping outside go Can I you could mentioned maybe Afra. that into little detail review in -- and on more

for the on now. And and business obviously, cash back Afib our in to and of lot this A David. right one. go Sure. question, interest, Sean I'll maybe Thanks

avoid more shot to really able both this of for catheter. and and spot and It's of because catheter in is Dave, we're systems select Europe underappreciated RF. for it's ramping Yes, then moving approach the a electrodes predictability States. a that's you really up is appreciated. are it that mentioned, and And gains create demand normal mapping ablation being case single we're stability, approach unique we're map for stronger volume Pulse you of to be our our The question. we're and up position cryo so of important unbelievably importantly, differentiated hearing the without And than more in precision you lines. right with thanks that can things that want put same far approach on what with source, Afra. the point-by-point part well. right so where tip, And coronary the been anatomically been fair of a the a seeing this now. the also, get both really the ablation really that got really beautiful course. meet get electrode, of customers and maybe and point-by-point got unique electrode as has isolation And you in the doing to with And good of United this the demand offsetting you Jeff business, And extraneous a depending offering well, this on as it's tissue, has injury, to Sphere-X for us we're the course, that's really the lattice use Xx Pulse, of from launch lattice use within on ISMS kind wider catheter. it's either And both that energy like having growing that and than shows spasm you excellent and And those gotten really PFA capacity, ultrasound. handling The strong. as

precision the fantastic. and that speed is So really of

everything really well. the on side, look, So going technology is

Japan, than even in markets a asking about see Europe, adopted. more technology get we new seems ramping and the of where what course, Europe, to You're price in there constraints in U.S. are cost at like higher

but uptick So we slower with this go would technology. relatively the PFA be as still ahead of robust

say, I look, that more pulse around some I'd demonstrated that open think the really course, lingering and more durability, questions great to we'll really long already of list And And with to of opportunity efficient business, of waiting through. the can having there's last larger and I sort with the that's country aperture and then, where HRS the offer catheters. think up data a longer-term AP the for a I help think at see on really the patients durability helps. for upcoming in of this challenge something economics of our Medtronic Sphere-X. time patients leverage meeting, just we to we'll and select more effective safe, portfolio any We've flow world. really some a or procedure workflow with show

but pulsed to just getting a So for market growth a future going time robust be for we're ablation, come. field going, look, really to is this long think I the

offerings little ramp, And really said, Yes. this just of both with to the a with think it's Sean quite doing segments bit. don't sure a behind PulseSelect. And Both we're have point have to shot pallet point and -- bit right we are be features. doing emphasize by mentioned -- the call. well. something the it's think in yes, the PulseSelect I well market. I differentiated don't analyst really Opera player ramping has just kind that's differentiated ramp mean PulseSelect, where will U.S. But I excited in the that's approval single be handling I'm yet and right I little and really and And the Sean well. think for we now. the catheter the that only in us really the of And for you is PulseSelect past community is of the the affairs, moved obviously, a not

comes question Bedford James. from at Raymond next Jayson The

okay? me hear you Can

we Yes, can, Jayson.

ARRIS/Sphere-X? in question. a expect acceleration for faster talk you do an about waiting then Do to you the find Maybe just folks you for in that U.S. than in year? And are revenue One, the to growth. on to did I on exiting cash follow cash Okay. second, the forward grow just be position in and going guess, acceleration market the

want you these? take do Sean, to

the Jason, want on vast Afra. United point-by-point really the mapping in guess question, market course, States, solutions I really, of the ablation of people favors with in majority The first Yes. particular.

maybe to one getting -- getting as much is we So and the users. I product we think no really traditional mean that there's strong, we're robust but bring appeal doing PulseSelect. from for users be actually pretty is more what is as already top rapid technology I uptake it. of waiting point-by-point going usage, from And the single-shot that on with as are out we're of

I So within on depending timing. fiscal opportunity got we've that faster this market year, yes, the think to grow than the the launch

Citi. at Wuensch John from comes question next The

Can time some the simplicity. we talking developing the about denervation you market renal now CMS the market behind How see product? do that and this for reimbursement NTAP is getting

mean, question, Thanks Joanne. the [indiscernible]. And said super like shape. -- look, I I'm for Yes. before, we're excited to it's I the about taking good see reimbursement

on that payment on to well. and table unlock. outpatient getting that unlock, sorry, the determined here comment maybe let payment I'll determined the With I'm it's closer the this payment inpatient with reimbursement as Sean CMS outpatient the now And the

the Geoff. for Thanks, The part X is thanks And question. payment of Andrew, it. Yes.

and most that We come. to coverage, need have coding importantly,

single of you kind -- So setting. done XX% less the outpatient We coating, procedure established. more got than noted, NTAP an of think stayer we the on as the going a but is codes be more We've to going midnight volume. with than inpatient inpatient the have of be are are to already the procedures

expect urgency CMS a And we're speed payers of our summer with soon. on. at that those course, to And And into commercial we'll month to did which you is they're that payment pretty this helps have device And see of we're get that that working making that where payment and a for move. breakthrough just it's from of being on transitional supporting we hear we that it's are CMS to here access. closely really, facilitate pass-through happen coverage policies the So codes. kind approach TPT so for that or sure helps really see this that with and on application. CMS breakthrough This with waiting patient really going technology we again, kind

we're technology the all the excited -- available. level exactly up in hoping are say things to and think of The it And to make them. I look, So this I on we're pointing direction that will the ramp get have getting of front from early outcomes about on and patients physicians and this the service the really well basis treated that we're have been new can systems from phenomenal. hospital sort patients excitement they been as case-by-case for offer as reimbursement line

that look, be that. reimbursement, unlock, toward and going we've So said marching I all is as we're think along,

opportunity here. we're So excited the about

Joanne. you, Thank

got we've time maybe more questions. X I for think

Barclays. The comes next at from question Matt Miksic

explored quick topics have If -- of here. follow-ups could the that X on kind of already been some I

The light on And there you just price of some on remember seem with of into effect just got first period on quarters I that was the of launch, stocking for kind to Sean, was premium. as TAVR, FX There on next really launch. the some FX. of I'm the out FX. as of begin Gary to And shed if sort then the you shape any wondering roll second the you could few for

same. some the impact line, questions little around bottom line remain on fact top actually I FX think the impact FX the the the X% there's the but eased a bit, that headwind,

the If FX could just we those impacts you some year out P&L of us the progresses. and as think how are maybe for the of in about again where flesh

to the want take you do question? Sean,

Yes, sure.

picking par taking stocking but new the about people the so FX up typically of bring amount inventory, a U.S. the early more ramp is bit implants. model, you And our see So are more premium also for up the accounts those valve of but a prior down level cases, of they dynamics a for the small up launch as picking saw shelf we they launch as where modest dynamics you in their we -- burning on across into both size, case per when really little is down put occur built are inventory like board, And more are while And price a technologies. there's customers for in the out inventory value. value think new we price we that TAVR product it the volume

of baked it's the this growth I for we're forecasting But everything product. switching already always into continued think dynamics. So that, of a sort that's

And you the to U.S. Gary. mentioned, million, has we $XXX FX see that to recent first million a quarter, the you'll bit weakened an impact. the rates and in on as $XXX that line million. now the is in be top we've yes, hold, in dollar revenue negative of benefits improvement expect the a compares this where Matt, and communicated $XXX If to million $XXX to impact of

benefit second to EPS But basis bottom in mentioned, show this to line growth after years is realize the hedging this a On we the more the see It's due reported our a a margin wane benefits year. program. do the underlying the up be half future to the strong foreign expect of in our currency gross bit P&L us for continues the really delayed where will delivered half. of in for line, first little show the year impact of bit that back will different. we going FX We'll up us as And year the flow exchange nice we in shape to earnings a as in on and constant through quarter. benefit the will

there's with feel questions, question, We've Matt. any go got line get if we to our call. Thanks, that didn't Okay. We'll to more one please, still your If analyst on to follow the time question, have question. free after up me for Brad. last the

Stanley. Morgan Patrick at The final Wood from question comes

Beautiful. getting business. base high I are some But guys benefit the the of now, you heavy years investment one. guess, in level Quite previous in a

the -- make side, for question over the margins does support I relative that guess between I next, you so does the product And reinvesting innovation on is, how interplay the of that feel growth on earnings don't Any line? know, of thoughts and base would business the that top trying Like be do in drive the X? see versus to great. going year there you or interplay investing how updated forward to leverage

things I more expenses driving Sure. of size. things time, be hold to P&L which our pull of up, pull top overhead something committed we lot low to and lot same up enabling to We've get can and that should line. to our to a Look, do. down that's we are that doing flat the of kind company a free leverage free But more investment, the number reinvest we got a levers Patrick. of able Thanks, in achieve I'll to. to money levers at low to -- mean for a measures we're so the that even of

have base case we're on holding we're So be want also focus, we've target a that goes we doing and got and allocation our focused that headcount our our a really G&A trying human to in -- focus hold that on just reimbursement then driving the where capital we good -- add for allocating we'll areas a we -- really distribution comes things to our like example, We're spot. and more under have for in, flat growth, for as on like adding Ardian that. direct as capital

also a use the flat disciplined process G&A areas. put So some in -- our as drive efficiencies And the to number invest through of efficiencies. these to a case base including and of very AI then of in drive our functions, for a programs high-growth to expenses enabling hold

on So or growth, committed the side, more even sales a into the business side. lot going there back distributor direct really the it R&D for but whether importantly, investing on and the be to on

as over is -- company so of we'd earlier, M&A, maybe the time raised R&D. like tuck-in the organic of to we've look, organic cadence couple the of that the because strong the of that -- cash And had increase organic over challenges support I flow last years, mentioned the we've investment -- that organic of that investment. of despite here, to kind of support And to the raised we've some the

about how not it. we're thinking that's So

businesses of And see seeing areas, freeing leverage lot both future. now, sure are I up and of the these sheet we're statement that M&A. the a P&L. levers prioritizing That's at tuck-in but And at time, we've continue making the our on earning more think pull a the cash our of that to we'll We've drive the high-growth again, rest also benefits even same do like competitive. we're into going flow same good R&D, the for using benefits We're it, that to the gotten investment how strong spot that down we that. but can balance to at different looking feel on that of the to see. income from I time, the to into that, got from

Okay. Thanks, Patrick. Geoff, please go ahead your with remarks. closing

hope in join questions. November and And which you'll Ryan. your Thanks, we we us for our earnings QX we the Medtronic. Tuesday, Okay. for thanks, And anticipate certainly interest holding XX. And appreciate everybody, support great broadcast, on

long update Now against short that's Again, Thanksgiving and and week U.S. our our strategies year. both the before we'll term. progress usual, in the on you our as this commitments long-term

So a with joining rest have that, your for thanks great of day. us, and