Q1 2025 Medtronic PLC Earnings Call

August 20, 2024

Yeah.

Hello everyone and thanks for tuning in today.

Hello everyone, and thanks for tuning in today.

Geoffrey Martha: Hello everyone, and thanks for tuning in today. As you saw on our results, we're exceeding our commitments and increasing our outlook for the rest of the year. This is now our seventh quarter in a row of delivering mid-single-digit revenue growth. And we drove earnings growth, increasing adjusted EPS to 3% on a reported basis, and 8% constant currency. And we're tracking to delivering high-single-digit EPS growth on a reported basis as we exit the fiscal year.

As you saw in our results, we're exceeding our commitments and increasing our outlook for the rest of the year.

Thanks so much.

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

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

And Joanne, thanks for the question.

As you saw in our results, we're exceeding our commitments and increasing our outlook, for the rest of the year. This is now our seventh quarter in a row of delivering mid-single-digit revenue growth.

We're talking about allocating our money to the areas of highest growth. And the M&A strategy has to play with our organic strategy, and both are pointed towards the highest growth areas.

And we hope you'll join us for our Q2 earnings broadcast, which we anticipate holding on Tuesday, November 19th. Now, that's the week before Thanksgiving in the U.S. this year.

Again, as usual, we'll update you on our progress against our long-term strategies and our commitments, both short and long-term.

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

As you saw on our results, we're exceeding our commitments and increasing our outlook for the rest of the year. This is now our seventh quarter in a row of delivering mid-single-digit revenue growth. And we drove earnings growth, increasing adjusted EPS to 3% on a reported basis, and 8% constant currency.

And so that's the user experience we want to bring to the market.

You know, the payment is one part of it, we have coding and coverage, most importantly, that need to come.

Speaker Change: As you saw in our results, we're exceeding our commitments and increasing our outlook for the rest of the year. This is now our seventh quarter in a row of delivering mid-single-digit revenue growth.

Speaker Change: This is now our seventh quarter in a row of delivering mid-single-digit revenue, and we drove earnings growth increasing adjusted EPS to 3% on a reported basis and 8% constantly.

Speaker Change: We think that's pretty differentiated.

Speaker Change: So you know, the codes are already established.

Speaker Change: We've got the as, as you noted, in NTAP, we have inpatient coding, but outpatient is going to be more of the kind of procedure volume, we think less than 10% of the procedures are going to be done with more than a single midnight stay or on the inpatient setting.

Speaker Change: So really, it's, it's that TPT or transitional pass-through payment that, that we're really waiting on.

Speaker Change: And we did hear from CMS on that this summer, just this month, where they're supporting our, our approach here for, for that application.

Speaker Change: This is a breakthrough device.

Speaker Change: And we drove earnings growth, increasing adjusted EPS to 3% on a reported basis and 8% constant, currency. And we're tracking to delivering high single-digit EPS growth on a reported basis as we exit, the fiscal year.

And we're tracking to delivering high-single-digit EPS growth on a reported basis as we exit the fiscal year.

Speaker Change: and we drove earnings growth increasing adjusted e ps s twoto three percent on a reported basis and eight percent constant currency and we're tracking to delivering high single digititypf growth on a reported basis as we exit the fiscal year

Speaker Change: And we're tracking to delivering high single-digit EPF growth on a reported basis as we.

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

Geoffrey Martha: Our underlying markets are healthy, we're driving operating rigger, and new product innovation is fueling our diversified growth across many large, secular growth markets that matter. At the same time, we continue to invest in our pipeline, which we expect to drive growth in the short, medium, and long-term. We're at the front end of many new product cycles in markets like diabetes, pulse field ablation, tavern, neuromodulation, hypertension, and robotics. We're focused on driving scale across our manufacturing, technology, and commercial organizations, and making progress on our ongoing portfolio management work. Now as we deliver innovation and continue to execute on our transformation, this will lead to strong returns for our shareholders.

Speaker Change: Our underlying markets are healthy.

Speaker Change: We're driving operating rigor.

Speaker Change: And new product innovation is fueling our diversified growth across many large, secular growth markets that matter.

Speaker Change: And new product innovation is fueling our diversified growth across many large secular, growth markets that matter.

Speaker Change: Our underlying markets are healthy. We're driving operating rigor. And new product innovation is fueling our diversified growth across many large, secular growth markets that matter.

Speaker Change: At the same time, we continue to invest in our, which we expect to drive growth in the short, medium, and the long term.

Speaker Change: At the same time, we continue to invest in our pipeline, which we expect to drive growth, in the short, medium, and the long term.

Speaker Change: At the same time, we continue to invest in our pipeline, which we expect to drive growth in the short, medium, and the long term.

Speaker Change: We're at the front end of many new product cycles in markets like diabetes, pulse field ablation, tavern, neuromodulation, hypertension, and robotics.

Speaker Change: We're at the front end of many new products like, in markets like diabetes.

Speaker Change: And it allows us to tap into the largest CGM install base in the world, in addition to growing our own install base.

Speaker Change: We're at the front end of many new product cycles. In markets like diabetes, pulse field ablation, TAVR, neuromodulation, hypertension, and robotics.

Speaker Change: Thank you.

Speaker Change: We're at the front end of many new product cycles in markets like diabetes, pulse field ablation, TAVR, neuromodulation, hypertension, and robotics.

Speaker Change: Pulse Field Ablation, TAVR, Neuromodulation, Hypertension, and Robotics.

Speaker Change: Thanks, Danielle.

Speaker Change: We're focused on driving scale across our manufacturing, technology, and commercial organizations, and making progress on our ongoing portfolio management work.

Speaker Change: We're focused on driving scale across our manufacturing, technology and commercial, and making progress on our ongoing portfolio.

Speaker Change: Next question, Brett.

Speaker Change: We're focused on driving scale across our manufacturing, technology, and commercial, organizations and making progress on our ongoing portfolio management work.

Speaker Change: We're focused on driving scale across our manufacturing, technology, and commercial organizations.

Speaker Change: and making progress on our ongoing portfolio management work.

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

Speaker Change: So that that helps to get into those kind of payment codes.

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

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

Speaker Change: Now let's turn to the details of our Q1 results and discuss our performance.

Geoffrey Martha: Now let's turn to the details of our Q1 results and discuss our performance. Looking first at our highest growth businesses, combined they grew 8% and made up 21% of our revenue. We expect their contribution to our overall growth to increase in the coming quarters as we continue to launch new technology. Starting with cardiac ablation solutions, we're at one of those moments in MedTech where a new technology is causing a rapid shift in the treatment of a disease.

Speaker Change: Now, let's turn to the details of our Q1 results and discuss our, Looking first at our highest gross, Combined, they grew 8% and made up 21% of our revenue. We expect their contribution to our overall growth to increase in the coming quarters as we continue to launch new technology, starting with cardiac ablation solution.

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

Speaker Change: Now let's turn to the details of our Q1 results and discuss our performance.

Speaker Change: Larry, please go ahead.

Speaker Change: Looking first at our highest growth businesses, combined they grew 8% and made up 21% of our revenue. We expect their contribution to our overall growth to increase in the coming quarters as we continue to launch new technology.

Speaker Change: Looking first at our highest gross businesses, combined, they grew 8% and made up 21% of, our revenue. We expect their contribution to our overall growth to increase in the coming quarters, as we continue to launch new technology.

Speaker Change: Looking first at our highest-grossed businesses.

Speaker Change: Combined, they grew 8% and made up 21% of our revenue.

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

Speaker Change: Starting with cardiac ablation solutions, we're at one of those moments in MedTech where a new technology is causing a rapid shift in the treatment of a disease. In this case, PFA is that technology for AFib. We've been investing in and developing this technology over many years. We're well positioned here and we're confident in our ability to execute and take advantage of this opportunity.

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

Speaker Change: Ablation, you know, ACE of ablation is a case in point where we did the Affair acquisition as well as a needle crossing acquisition.

Speaker Change: We're at one of those moments in MedTech, where a new technology is causing a rapid shift in the treatment of a disease.

Speaker Change: Morning, thanks for taking the question.

Speaker Change: Starting with cardiac ablation solutions,

Speaker Change: For my one question, I wanted to ask about the progress with UGO for Mike and Jeff.

Speaker Change: So it sounds like you've reached the targeted enrollment in Expand Euro, the pivotal US trial.

Speaker Change: You know, those are the areas that we're pointed to.

Speaker Change: But we're, you know, we are still focused on, you know, value creating tuck in M&A.

Speaker Change: We're at one of those moments in medtech where a new technology is causing a rapid shift in the treatment of a disease. In this case, PFA is that technology for AFib.

Geoffrey Martha: In this case, PFA is that technology for AFib. We've been investing in and developing this technology over many years. We're well positioned here and we're confident in our ability to execute and take advantage of this opportunity. In line with what we said last quarter, our cast growth rate accelerated in Q1 growing over 6%. We're seeing rapid market adoption of our Pulse Select PFA catheters and its growth is more than offsetting crowd declines.

Speaker Change: In this case, PFA is that technology for a.

Speaker Change: When are we going to see the data?

Speaker Change: With that growth and margin profile that I just talked about.

Speaker Change: You know, what's the timeline for US filing?

Speaker Change: So I don't want to point out specific areas other than the high growth areas that are, you know, whether they be a product tuck into an existing business or an adjacency to an existing business tuck in.

Speaker Change: You know, could we see potential launch this year, or next year?

Speaker Change: And Jeff, there's still questions around your commitment to UGO.

Speaker Change: We've been investing in and developing this technology over many years.

Speaker Change: Just maybe, you know, put any of those concerns to rest here.

Speaker Change: That's where we're focused.

Speaker Change: Thank, All right, thanks, Larry.

Speaker Change: We've been investing in and developing this technology over many years.

Speaker Change: We're well positioned here and we're confident in our ability to execute and take advantage of this opportunity.

Speaker Change: Maybe I'll have Mike answer the first couple questions, and then I'll come in afterwards.

Speaker Change: And I think, you know, nothing's changed there, except that I think over the last year and a half or so, you know, we've had a lot of operational focus areas that we've had.

Speaker Change: And that's been the focus is really getting the operations, our operations footprint in a better spot, our back orders down, things like that, quality in a better spot.

Speaker Change: We're well positioned here and we're confident in our ability to execute and take advantage of this opportunity.

Speaker Change: In line with what we said last quarter, our cast growth rate accelerated in Q1 growing over 6%.

Speaker Change: In line with what we said last quarter, our cash growth rate accelerated in Q1, growing over 6%.

Speaker Change: In line with what we said last quarter, our cast growth rate accelerated in Q1, growing, over 6%. We're seeing rapid market adoption of our PulseSelect PFA catheters and its growth is, more than offsetting cryo declines. The PulseSelect launch has been successful with more than 550 physicians in 20 countries, having treated over 10,000 patients. To meet the strong market demand, we're dramatically increasing our PulseSelect catheter manufacturing, capacity and expanding into new accounts. As a result, we expect PulseSelect to meaningfully accelerate our overall cast growth rate through, this fiscal year, including a strong acceleration in Q2.

Speaker Change: In line with what we said last quarter, our CAS growth rate accelerated in Q1, growing over six percent.

Speaker Change: We're seeing rapid market adoption of our Pulse Select PFA catheters and its growth is more than offsetting crowd declines. The Pulse Select launch has been successful with more than 550 physicians in 20 countries having treated over 10,000 patients.

Speaker Change: We're seeing rapid market adoption of our Pulse Select PFA catheters, and its growth is more than offsetting crowded.

Speaker Change: We're seeing rapid market adoption of our pulse-select PFA catheters and its growth is more than offsetting crowd declines.

Geoffrey Martha: The Pulse Select launch has been successful with more than 550 physicians in 20 countries having treated over 10,000 patients. Patients. To meet the strong market demand, we're dramatically increasing our pulse select catheter manufacturing capacity and expanding into new accounts. As a result, we expect pulse select to meaningfully accelerate our overall cast growth rate through the fiscal year, including a strong acceleration in Q2. And then we have our differentiated through nine focal catheter.

Speaker Change: The Pulse Select launch has been successful, with more than 550 physicians in 20 countries having treated over 10,000 patients. To meet the strong market demand, we're dramatically increasing our pulse-select catheter manufacturing capacity and expanding into new accounts.

Speaker Change: The Pulse Select launch has been successful, with more than 550 physicians in 20 countries having treated over 10,000 patients.

Speaker Change: Patients.

Speaker Change: To meet the strong market demand, we're dramatically increasing our pulse select catheter manufacturing capacity and expanding into new accounts. As a result, we expect pulse select to meaningfully accelerate our overall cast growth rate through the fiscal year, including a strong acceleration in Q2.

Speaker Change: To meet the strong market demand, we're dramatically increasing our pulse-select catheter manufacturing capacity and expanding into new accounts.

Speaker Change: As a result, we expect Pulse Select to meaningfully accelerate our overall CAS growth rate through this fiscal year, including a strong acceleration in Q2.

Speaker Change: And then we have our differentiated through nine focal catheter.

Speaker Change: And then we have our differentiated sphere 9 focal, This all-in-one catheter can perform high-density mapping as well as pulse field and RF ablation.

Speaker Change: And then we have our differentiated sphere 9 focal catheters.

Speaker Change: This all-in-one catheter can perform high-density mapping, as well as pulse field and RF ablations.

Speaker Change: This all in one catheter can perform high density mapping as well as pulse field, and our fibrillations.

Geoffrey Martha: This all in one catheter can perform high density mapping as well as pulse field, and our fibrillations. We expect for a nine will allow us to capture more revenue per procedure as it will take the place of other competitors mapping and our catheters. We're in limited launch in Europe and we've submitted to FDA for approval earlier this county year. As we launch and scales for your nine and our fair mapping system, we expect our cast growth will accelerate even further over time.

Speaker Change: And then we have our differentiated sphere-9 focal catheter.

Speaker Change: This all-in-one catheter can perform high-density mapping as well as pulse field and RF ablations. We expect Sphere 9 will allow us to capture more revenue per procedure, as it will take the place of other competitors' mapping and RF catheters.

Speaker Change: We expect Sphere 9 will allow us to capture more revenue per procedure, as it will take the place of other competitors' mapping and RF catheters. We're in limited launch in Europe, and we've submitted to FDA for approval earlier this calendar year.

Speaker Change: We expect for a nine will allow us to capture more revenue per procedure as it will take the place of other competitors mapping and our catheters.

Speaker Change: We expect Sphere 9 will allow us to capture more revenue per procedure as it will take the place of other competitors, mapping and RF-Cath, We're in limited launch in Europe, and we've submitted to FDA for approval earlier this calendar year.

Speaker Change: We're in a much better spot there, and I think can focus more of our energies on M&A.

Speaker Change: We're in limited launch in Europe and we've submitted to FDA for approval earlier this county year.

Speaker Change: We're in limited launch in Europe , and we've submitted to FDA for approval earlier this calendar year.

Speaker Change: As we launch and scale Sphere 9 and our Affair mapping system, we expect our cast growth will accelerate even further over time, as we reach and then exceed market growth in this large and fast-growing $9 billion cardiac ablation space.

Speaker Change: And the explanation I just gave is where we'll be focused.

Speaker Change: As we launch and scale SPHERE 9 and our FERA mapping system, we expect our CAS growth will accelerate even further over time, as we reach and then exceed market growth in this large and fast growing $9 billion cardiac ablation.

Speaker Change: As we launch and scales for your nine and our fair mapping system, we expect our cast growth will accelerate even further over time.

Speaker Change: As we launch and scale Sphere 9 and our Affair mapping system, we expect our CAS growth will accelerate even further over time as we reach and then exceed market growth in this large and fast-growing $9 billion cardiac ablation space.

Speaker Change: Thanks, David.

Speaker Change: As we reach and then exceed market growth in this large and fast growing $9 billion cardiac ablation space.

Geoffrey Martha: As we reach and then exceed market growth in this large and fast growing $9 billion cardiac ablation space. Next in structural heart, we continue to deliver high single digit growth, excluding the impact of our harmony pulmonary valve that we relaunched last year. During the quarter, we started with the limited U.S, launch of our Evalued FX Plus Taver valve and have now begun full market launch this month. FX Plus is important for two reasons.

Speaker Change: Next, in structural heart, we continue to deliver high single-digit growth, excluding the impact of our Harmony pulmonary valve that we relaunched last year.

Speaker Change: Next in structural heart, we continue to deliver high single digit growth, excluding the impact of our harmony pulmonary valve that we relaunched last year. During the quarter, we started with the limited U.S, launch of our Evalued FX Plus Taver valve and have now begun full market launch this month.

Speaker Change: Next, in Structural Heart, we continue to deliver high single-digit growth, excluding the impact of our Harmony pulmonary valve that we relaunched last year.

Speaker Change: Yeah, good morning, Larry.

Speaker Change: Next, in Structural Heart, we continue to deliver high single-digit growth, excluding the impact of our Harmony pulmonary valve that we relaunched last year.

Speaker Change: During the quarter, we started with the limited U.S. launch of our EvoluteFX Plus tavern valve, and have now begun full market launch this month. FX Plus is important for two reasons. One, it allows for easier coronary access due to the large windows in its frame.

Speaker Change: During the quarter, we started with the limited U.S. launch of our EvoluteFX Plus Taver Valve and have now begun full market launch. FX Plus is important for two reasons. One, it allows for easier coronary access due to the large windows in its.

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

Geoffrey Martha: One, it allows for easier coronary access due to the large windows in its frame. And two, it creates an additional opportunity to reiterate our positive smart trial results with our customers. Smart showed our superior valve performance in small annualist patients who are primarily women and this was just another proof point in our broader focus on health equity. The smart patient population is sizable, making up about 40% of the taver space. With this combination of FX Plus, our superior four year low risk data and smart data, we expect to continue to grow at or above the market. In the quarters ahead.

Speaker Change: During the quarter, we started with the limited U.S. launch of our EvoluteFX Plus Tavern Valve and have now begun full market launch this month.

Speaker Change: FX Plus is important for two reasons. One, it allows for easier coronary access due to the large windows in its frame.

Speaker Change: FX Plus is important for two reasons. One, it allows for easier coronary access due to the large windows in its frame. And two, it creates an additional opportunity to reiterate our positive smart trial results with our customers.

Speaker Change: And two, it creates an additional opportunity to reiterate our positive SMART trial results with our customers. SMART showed our superior valve performance in small annulus patients who are primarily women, and this was just another proof point in our broader focus on health equity. The SMART patient population is sizable, making up about 40% of the tavern space.

Speaker Change: And two, it creates an additional opportunity to reiterate our positive smart trial results with our customers.

Speaker Change: Smart showed our superior valve performance in small annualist patients who are primarily women and this was just another proof point in our broader focus on health equity.

Speaker Change: SMART showed our superior valve performance in small annulus patients who are primarily women and this was just another proof point in our broader focus on health equity.

Speaker Change: And this was just another proof point in our broader focus on health.

Speaker Change: The smart patient population is sizable, making up about 40% of the taver space.

Speaker Change: The smart patient population is sizable, making up about 40% of the Taverner.

Speaker Change: With this combination of FX Plus, our superior four-year low-risk data, and SMART data, we expect to continue to grow at or above the market in the quarters ahead.

Speaker Change: The SMART patient population is sizable, making up about 40% of the TAVR space.

Speaker Change: With this combination of FX Plus.

Speaker Change: With this combination of FX Plus, our superior four year low risk data and smart data, we expect to continue to grow at or above the market. In the quarters ahead.

Speaker Change: Our Superior Four-Year Low-Risk Day, and smart.

Speaker Change: With this combination of FX+,

Speaker Change: Our superior four-year low-risk data

Speaker Change: We expect to continue to grow at or above the market in the quarters.

Speaker Change: and Smart Data, we expect to continue to grow at or above the market in the quarters ahead.

Speaker Change: In surgical robotics, we're investing in building a foundation for future growth.

Mike Marinaro: In surgical robotics, we're investing in building a foundation for future growth. In Q1, our install base continue to grow and utilization per system steadily increased. In the U.S., we've now achieved the targeted enrollment for the expand your trial. This is a meaningful milestone. And beyond that enrollment and procedures in our other two U.S, indication studies, hernia and gynecology are going well. We also continue to make progress bringing our advanced surgical technologies to Hugo, such as ICG, fluorescent imaging and ligusher vessel ceiling.

Speaker Change: In surgical robotics, we're investing in building a foundation for future growth. In Q1, our install base continued to grow and utilization per system steadily increased.

Speaker Change: In Q1, our install base continued to grow, and utilization per system steadily increased.

Speaker Change: In surgical robotics, we're investing in building a foundation for future growth. In Q1, our install base continued to grow and utilization per system steadily increased. And in the U.S.,

Speaker Change: In Q1, our install base continue to grow and utilization per system steadily increased.

Speaker Change: And in the U.S., we've now achieved the targeted enrollment for the Xpand Euro trial. This is a meaningful milestone.

Speaker Change: And in the U.S.

Speaker Change: In the U.S., we've now achieved the targeted enrollment for the expand your trial. This is a meaningful milestone.

Speaker Change: We've now achieved the targeted enrollment for the EXPAND Euro trial. This is a meaningful milestone.

Speaker Change: As mentioned, we have reached targeted enrollment.

Speaker Change: There's still work to do as we reach the final endpoints and then completing the filing.

Speaker Change: We've now achieved the targeted enrollment for the EXPAND Euro trial. This is a meaningful milestone.

Speaker Change: So we won't be giving a specific date in terms of submission, but very good progress and very appreciative of the work that we're doing together with our surgeon partners and our teams.

Speaker Change: And beyond that enrollment and procedures in our other two U.S, indication studies, hernia and gynecology are going well.

Speaker Change: And beyond that, enrollment and procedures in our other two U.S. indication studies, hernia and gynecology, are going well.

Speaker Change: Also, as noted, we're making good progress in the enrollment of both hernia and the gynecology clinical series that will allow us to then have a cadence of indications which will be critical to the U.S. launch.

Speaker Change: And beyond that, enrollment and procedures in our other two U.S. indication studies, hernia and gynecology, are going well.

Speaker Change: We also continue to make progress, bringing our advanced surgical technologies to Hugo, such as ICG fluorescent imaging and ligature vessel sealing.

Speaker Change: We also continue to make progress bringing our advanced surgical technologies to Hugo, such as ICG, fluorescent imaging and ligusher vessel ceiling.

Speaker Change: We also continue to make progress bringing our advanced surgical technologies to Hugo, such as ICG fluorescent imaging and Ligature vessel imaging.

Speaker Change: We also continue to make progress bringing our advanced surgical technologies to Hugo, such as ICG fluorescent imaging and ligature vessel sealing.

Speaker Change: Next, in diabetes, we had another strong quarter, growing 13%, with double-digit growth in both the U.S. and international markets.

Speaker Change: Next in diabetes, we have another strong quarter growing 13% with double-digit growth in both the U.S. and international markets.

Speaker Change: So very good work across the clinical series.

Speaker Change: Next in diabetes, we had another strong quarter growing 13% with double digit growth in both the U.S, and international markets.

Que Dallara: Next in diabetes, we had another strong quarter growing 13% with double digit growth in both the U.S, and international markets. In the U.S., we reached the one year milestone of the launch of the mini-med 7AG AID system. We're driving high single digit growth in pump revenue and over 30% growth in CGM revenue with our high CGM attachment. In international markets, we initiated the full market release of the Simplera SYNC sensor and we're just getting great feedback on the ease of insertion and it's used.

Speaker Change: And again, appreciative of the work of our surgeon partners and teams.

Speaker Change: Next, in diabetes, we had another strong quarter, growing 13%, with double-digit growth in both the U.S. and international markets.

Speaker Change: Geoff?

Speaker Change: In the U.S., we reached the one year milestone of the launch of the mini-med 7AG AID system.

Que Dallara: This adds to the already high satisfaction of our 7AG system where we've been the number one rated AID system by DQ&A for the past two quarters. So we're confident in some player and our CGM pipeline. And to add to this two weeks ago, we announced our global partnership with Abbott, where we'll bring to market an integrated CGM based on Abbott's most advanced CGM platform. The sensor will integrate exclusively with our AID and Smart MDI systems.

Speaker Change: In the U.S., we reached the one-year milestone of the launch of the MiniMed 780G AID system.

Speaker Change: In the U.S., we reached the one-year milestone of the launch of the Mini-Med 780G AIDS.

Speaker Change: In the U.S., we reached the one-year milestone of the launch of the MiniMed 780G AID system.

Speaker Change: We're driving high single-digit growth in pump revenue, and over 30% growth in CGM revenue, with our high CGM attachment.

Speaker Change: We're driving high single digit growth in pump revenue and over 30% growth in CGM revenue with our high CGM attachment.

Speaker Change: We're driving high single-digit growth in pump revenue and over 30% growth in CGM revenue with our high CGM attachment.

Speaker Change: In international markets, we initiated the full market release of the Simplera Sync Sensor, and we're just getting great feedback on the ease of insertion and its usage.

Speaker Change: In international markets, we initiated the full market release of the Simplera SYNC sensor and we're just getting great feedback on the ease of insertion and it's used.

Speaker Change: In international markets, we initiated the full market release of the Simplera Sync Sensor, and we're getting, we're just getting great feedback on it on the ease of insertion and its use, This adds to the already high satisfaction of our 780G system where we've been the number one rated AID system by DQ&A for the past two quarters.

Speaker Change: In international markets, we initiated the full market release of the Simplera Sync Sensor, and we're getting, we're just getting great feedback on it, on the ease of insertion and its usage.

Speaker Change: This adds to the already high satisfaction of our 780G system, where we've been the number-one rated AID system by DQ&A for the past two quarters. So we're confident in Simplera and our CGM pipeline.

Speaker Change: This adds to the already high satisfaction of our 7AG system where we've been the number one rated AID system by DQ&A for the past two quarters.

Speaker Change: This adds to the already high satisfaction of our 780G system, where we've been the number one rated AID system by DQ&A for the past two quarters.

Speaker Change: So we're confident in Simplera and our CGM pipeline. And to add to this, two weeks ago, we announced our global partnership with Abbott, where we'll bring to market an integrated CGM based on Abbott's most advanced CGM platform. The sensor will integrate exclusively with our AID and SMART MDI. It will also allow us to offer more choice to patients, increase our installed base, and grow our diabetes revenue.

Speaker Change: So we're confident in some player and our CGM pipeline. And to add to this two weeks ago, we announced our global partnership with Abbott, where we'll bring to market an integrated CGM based on Abbott's most advanced CGM platform. The sensor will integrate exclusively with our AID and Smart MDI systems. It will also allow us to offer more choice to patients, increase our installed base, and grow our diabetes revenue. And we expect to do this while maintaining the same revenue per patient, and being neutral to diabetes gross margin.

Speaker Change: And to add to this, two weeks ago, we announced our global partnership with Abbott, where we'll bring to market an integrated CGM based on Abbott's most advanced CGM platform.

Que Dallara: It will also allow us to offer more choice to patients, increase our installed base, and grow our diabetes revenue. And we expect to do this while maintaining the same revenue per patient, and being neutral to diabetes gross margin. Look, we're committed to being number one in the fast growing AID and Smart MDI space. And this partnership will help ensure just that.

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

Speaker Change: The sensor will integrate exclusively with our AID and SMART MDI systems. It will also allow us to offer more choice to patients, increase our installed base, and grow our diabetes revenue.

Speaker Change: The sensor will integrate exclusively with our AID and SMART MDI systems.

Speaker Change: It will also allow us to offer more choice to patients, increase our installed base, and grow our diabetes revenue. And we expect to do this while maintaining the same revenue per patient and being neutral to diabetes gross margin.

Speaker Change: And we expect to do this while maintaining the same revenue per patient and being neutral to diabetes gross margin.

Speaker Change: And we expect to do this while maintaining the same revenue per patient, and being neutral to diabetes.

Speaker Change: Look, we're committed to being number one in the fast growing AID and Smart MDI space.

Speaker Change: Look, we're committed to being number one in the fast-growing AID and SMART MDI space.

Speaker Change: Look, we're committed to being number one in the fast-growing AID and smart MDI.

Speaker Change: Look, we're committed to being number one in the fast-growing AID and SMART MDI space. And this partnership will help ensure just that. Now, turning to hypertension.

Speaker Change: And this partnership will help ensure just that.

Speaker Change: And this partnership will help ensure just.

Speaker Change: Yeah, so look, as Mike said, look, there's a couple of things on Hugo here, two inflection points that need to happen for us to see the impact at the Medtronic level, you know, the US approval, and then just getting, getting our, you know, leading instrumentation onto the robot and other capabilities.

Speaker Change: And this partnership will help ensure just that.

Speaker Change: Now, turning to hypertension.

Speaker Change: Next question, please, Brad.

Speaker Change: Now turning to hypertension.

Speaker Change: And as Mike mentioned, you know, we're making we're making progress on both.

Speaker Change: Now turning to hypertension, securing broad reimbursement remains key to unlocking the opportunity to our simplicity blood pressure procedure.

Sean Salmon: Now turning to hypertension, securing broad reimbursement remains key to unlocking the opportunity to our simplicity blood pressure procedure. We were pleased that CMS has finalized the inpatient payment and has now proposed an outpatient payment. And we continue to engage with CMS at the national and local levels to establish coverage, a key enabler so that this therapy can reach patients. Now, this is important as hypertension affects more than one billion people globally, and nearly half of all US adults.

Speaker Change: Securing broad reimbursement remains key to unlocking the opportunity to our simplicity blood pressure procedure.

Speaker Change: The next question comes from Matt Taylor at Jeffries.

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

Speaker Change: Securing broad reimbursement remains key to unlocking the opportunity to our simplicity blood pressure procedure.

Speaker Change: We were pleased that CMS has finalized the inpatient payment and has now proposed an outpatient payment.

Speaker Change: Matt, please go ahead.

Speaker Change: We were pleased that CMS has finalized the inpatient payment and has now proposed an outpatient payment.

Speaker Change: And we continue to engage with CMS at the national and local levels to establish coverage, a key enabler so that this therapy can reach patients.

Speaker Change: And we expect to see that, you know, happen, And of course, we're working really closely with CMS and with commercial payers on making sure we have coverage policies that are going to facilitate patient access.

Speaker Change: And we continue to engage with CMS at the national and local levels to establish coverage, a key enabler so that this therapy can reach patients.

Speaker Change: Hi, thanks for taking the question.

Speaker Change: And again, being a breakthrough technology, that helps you with the kind of urgency and speed at which we'll see CMS move.

Speaker Change: So look, I think all things on the reimbursement front are pointing exactly in the direction we were hoping to get them, and we're excited to ramp this technology up and make it available.

Speaker Change: I will say that the level of excitement we're getting from physicians and from hospital systems about this new service line they can offer, as well as patients and the early outcomes for patients that have been treated on a sort of case-by-case basis have been really phenomenal.

Speaker Change: And we continue to engage with CMS at the national and local levels to establish coverage.

Speaker Change: I guess I wanted to double click on some of the comments that you made on the structural heart market.

Speaker Change: Now, this is important as hypertension affects more than 1 billion people globally and nearly half of all U.S. adults.

Speaker Change: And I'm really curious about your thoughts on capacity now and going forward.

Speaker Change: A key enabler so that this therapy can reach patients.

Speaker Change: Now, this is important as hypertension affects more than one billion people, and nearly half of all U.S. adults, despite the availability of numerous classes of pharmaceuticals.

Speaker Change: So this is this is like a, you know, a midterm growth driver for us, I'd say beyond the fiscal year.

Speaker Change: Now, this is important as hypertension affects more than one billion people globally, and nearly half of all US adults.

Speaker Change: But, you know, to get back to your question on our commitment, Larry, you know, we're, we're absolutely committed to this, I, you know, and I, with all due, it's a, it's a, we do think surgery, robotics is really across many different surgical areas, including orthopedics, where we play in spine, is a big driver in the space.

Speaker Change: Now this is important as hypertension affects more than 1 billion people globally and nearly half of all U.S. adults.

Speaker Change: Despite the availability of numerous classes of pharmaceuticals, only one in four adults in the U.S. have their hypertension under control.

Speaker Change: Despite the availability of numerous classes of pharmaceuticals, only one in four adults in the US have their hypertension under control.

Sean Salmon: Despite the availability of numerous classes of pharmaceuticals, only one in four adults in the US have their hypertension under control. Furthermore, more than 700,000 deaths in the US every year are directly attributable to hypertension. And the burden of hypertension costs the US health care system between $100 and $200 billion a year. So you can see why there's just an important role for our simplicity procedure to cost effectively improve public health.

Speaker Change: Only one in four adults in the U.S. have their hypertension under control.

Speaker Change: Despite the availability of numerous classes of pharmaceuticals.

Speaker Change: Only one in four adults in the U.S. have their hypertension under control. Furthermore, more than 700,000 deaths in the U.S. every year are directly attributable to hypertension.

Speaker Change: Furthermore, more than 700,000 deaths in the U.S. every year are directly attributable to hypertension.

Speaker Change: Furthermore, more than 700,000 deaths in the US every year are directly attributable to hypertension.

Speaker Change: And the burden of hypertension costs the U.S. healthcare system between $100 and $200 billion a year.

Speaker Change: And the burden of hypertension costs the U.S. health care system between $100 and $200 billion a year.

Speaker Change: And the burden of hypertension costs the US health care system between $100 and $200 billion a year.

Speaker Change: And the burden of hypertension costs the U.S. healthcare system between $100 and $200 billion a year.

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

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

Speaker Change: And we're committed to being not just part of it, but being, you know, helping to lead that, like we're doing in spine.

Speaker Change: So you know, look, I think that unlock, as we've said all along, is going to be reimbursement, and we're marching toward that.

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

Speaker Change: Now turning to our synergistic businesses, neuromodulation was a highlight this quarter, growing 10% well above the market. This is a business where the investments we've made over several years in sensing technology in the brain and the nervous system are now paying off.

Sean Salmon: Now turning to our synergistic businesses, neuromodulation was a highlight this quarter, growing 10% well above the market. This is a business where the investments we've made over several years in sensing technology in the brain and the nervous system are now paying off. Sensing and closing technology is becoming foundational for the neuromod space. It's reinvigorating these markets and we have a clear lead. First in pain stem, we grew 11%. This was the first quarter of our Inceptive launch in the US.

Speaker Change: Now turning to our synergistic business.

Speaker Change: And with, you know, no, we're up against a really strong entrenched competitor here in the soft tissue space.

Speaker Change: So we're excited about the opportunity here.

Speaker Change: Now, turning to our synergistic businesses.

Speaker Change: And I know you said that you haven't seen signs of a slowdown in the market, but you have concerns about capacity there longer term or more broadly.

Speaker Change: But we are we are committed, we have levers to pull, we have a great surgery franchise. And we've learned quite a bit about robotics over the years.

Speaker Change: And also the understanding that it's more than just the robotics, a lot of other technology that goes in there, imaging, navigation, you know, the instrumentation, AI, so the digital piece.

Speaker Change: Neuromodulation was a highlight this quarter, growing 10%, well above the mark. This is a business where the investments we've made over several years in sensing technology in the brain and the nervous system are now paying off. Sensing and closed-loop technology is becoming foundational for the Neuromod, It's reinvigorating these marks, and we have a clear lead.

Speaker Change: Yeah, we're focused on it.

Speaker Change: Thank you, Joanne.

Speaker Change: So there's a lot to it, a lot of levers to pull, and we're committed, and, and we're confident and not just point back to, you know, a couple years ago, other franchises that, that people were questioning, can you can you compete whether it's spine or whether it's diabetes or neuromod?

Speaker Change: Neuromodulation was a highlight this quarter, growing 10%, well above the market. This is a business where the investments we've made over several years in sensing technology in the brain and the nervous system are now paying off. Sensing and closed-loop technology is becoming foundational for the neuromod space. It's reinvigorating these markets, and we have a clear lead.

Speaker Change: Is that a limiting factor in that business or any of your businesses?

Speaker Change: You see those, you've seen those all, you know, get to a much, much better spot with the focus and investment.

Speaker Change: Now turning to our synergistic businesses.

Speaker Change: Neuromodulation was a highlight this quarter, growing 10%, well above the market.

Speaker Change: And how would you deal with that as an organization to help free up more capacity to help your therapies run through?

Speaker Change: I think we've got time for maybe two more questions.

Speaker Change: This is a business where the investments we've made over several years in sensing technology in the brain and the nervous system are now paying off. Sensing and closed-loop technology is becoming foundational for the neuromod space. It's reinvigorating these markets.

Speaker Change: We'll take the next question, Brad.

Speaker Change: The next question comes from Matt Miksic at Barclays.

Speaker Change: Sensing and closing technology is becoming foundational for the neuromod space.

Speaker Change: It's reinvigorating these markets and we have a clear lead.

Speaker Change: First, in pain stem, we grew 11%.

Speaker Change: Well, look, I'd say overall, I'm going to hand this over to Sean, Matt.

Speaker Change: First, in Payne Stem, we grew 11%.

Speaker Change: Matt, please go ahead.

Speaker Change: But, you know, the structural heart space, TAVR, you know, and mitral is coming, tricuspid.

Speaker Change: First in pain stem, we grew 11%.

Speaker Change: And we have a clear lead.

Speaker Change: This was the first quarter of our inceptive launch in the U.S.

Speaker Change: It's very underpenetrated still.

Speaker Change: This was the first quarter of our Inceptive launch in the US. Inceptive is our first closed loop spinal cord stimulator and it's transforming the way we treat chronic pain.

Speaker Change: This was the first quarter of our inceptive launch in the U.S.

Speaker Change: Hey, thanks so much for the question.

Speaker Change: First, in pain stim, we grew 11%. This was the first quarter of our Inceptive launch in the U.S. Inceptive is our first closed-loop spinal cord stimulator, and it's transforming the way we treat chronic pain.

Speaker Change: Inceptive is our first closed-loop spinal cord stimulator, and it's transforming the way we treat chronic pain. The device automatically senses and adjusts stimulation 50 times a second, 24-7, with no required interaction from the patient.

Speaker Change: So I do see a huge and the patient benefits are clear.

Speaker Change: Sean mentioned the data, whether it be low risk or now are smart trial.

Sean Salmon: Inceptive is our first closed loop spinal cord stimulator and it's transforming the way we treat chronic pain. The device automatically senses and adjust stimulation 50 times a second 24 seven with no required interaction from the patient. And the therapy is delivered from the smallest and the thinnest closed loop SCS device on the market. It also has the best full body conditional MRI access. The other big driver of neuromod growth was our brain modulation business, which grew 14% on the continued launch of Percept RC with brain sense.

Speaker Change: The data is clear.

Speaker Change: The device automatically senses and adjust stimulation 50 times a second 24 seven with no required interaction from the patient. And the therapy is delivered from the smallest and the thinnest closed loop SCS device on the market.

Speaker Change: The device automatically senses and adjusts stimulation.

Speaker Change: It's underpenetrated.

Speaker Change: And so I still think this is a strong growth market.

Speaker Change: I'll let Sean touch again on kind of where we are, where the market is, if you will, on capacity and what we're seeing.

Speaker Change: And then maybe come back.

Speaker Change: 50 times.

Speaker Change: the device automatically sensus and a just imulation fifty times a second

Speaker Change: 24-7 with no required interaction from the, And the therapy is delivered from the smallest and the thinnest closed-loop SCS device on the market.

Speaker Change: And I just, if I could, two quick follow ups on some of the topics that have already been kind of explored here.

Speaker Change: The first, for Sean, just on TAVR, I seem to remember that with the FX launch, there was a some effect of price premium, there was some period of kind of stocking as you got into the launch.

Speaker Change: I'm just wondering if you could shed any light on on this sort of shape of the next few quarters as you as you really begin to roll out FX+.

Speaker Change: And then the second, for Gary, on, On FX, I think, you know, there's some questions around the fact that, you know, top line FX impact actually eased a little bit, but the FX impact on the bottom line, the headwind 5% remain the same.

Speaker Change: 24-7 with no required interaction from the patient.

Speaker Change: You can maybe just flesh out for us, again, where some of the impacts of FX are in the P&L and how we think about those as the year progresses.

Speaker Change: And the therapy is delivered from the smallest and the thinnest closed-loop SCS device on the market.

Speaker Change: Thanks so much.

Speaker Change: And the therapy is delivered from the smallest and the thinnest closed-loop SCS device on the market.

Speaker Change: It also has the best full-body conditional MRI access.

Speaker Change: It also has the best full body conditional MRI access.

Speaker Change: It also has the best full body conditional MRI.

Speaker Change: The other big driver of neuromod growth was our brain modulation business, which grew 14% on the continued launch of PerceptRC with brain sense technology. Percept transmits electrical signals to specific brain targets affected by debilitating neurological disorders like Parkinson's. It then captures and records these signals, equipping physicians with the valuable data and the insights needed to personalize the therapy.

Speaker Change: It also has the best full-body conditional MRI access. The other big driver of Neuromod growth was our brain modulation business, which grew 14% on the continued launch of PerceptRC with BrainSense technology.

Speaker Change: The other big driver of neuromod growth was our brain modulation business, which grew 14% on the continued launch of PerceptRC with Brain Sense.

Speaker Change: Sean, you want to take that question?

Speaker Change: The other big driver of neuromod growth was our brain modulation business, which grew 14% on the continued launch of Percept RC with brain sense.

Speaker Change: Yeah, sure.

Speaker Change: So you know that we are, Across the board, we price for value when you think there's more value.

Speaker Change: Technology, Persept transmits electrical signals to specific brain targets affected by debilitating neurological disorders like Parkinson's.

Sean Salmon: Technology, Persept transmits electrical signals to specific brain targets affected by debilitating neurological disorders like Parkinson's. It then captures and records these signals, equipping physicians with the valuable data and the insights needed to personalize the therapy. And just last week we became the first and only DBS company to receive FDA approval to offer DBS surgery while the patient is asleep. Now this innovation means a less stressful surgery for the patient and potentially shorter procedure times. We look forward to continuing to advance our leadership position in brain modulation.

Speaker Change: Percept transmits electrical signals to specific brain targets affected by debilitating neurological disorders like, It then captures and records these signals.

Speaker Change: PERCEP transmits electrical signals to specific brain targets affected by debilitating neurological disorders like Parkinson's.

Speaker Change: It then captures and records these signals, equipping physicians with the valuable data and the insights needed to personalize the therapy.

Speaker Change: Equipping physicians with the valuable data and the insights needed to personalize the therapy.

Speaker Change: It then captures and records these signals, equipping physicians with the valuable data and the insights needed to personalize the therapy.

Speaker Change: And just last week, we became the first and only DBS company to receive FDA approval to offer DBS surgery while the patient is asleep.

Speaker Change: And just last week we became the first and only DBS company to receive FDA approval to offer DBS surgery while the patient is asleep. Now this innovation means a less stressful surgery for the patient and potentially shorter procedure times.

Speaker Change: And just last week we became the first and only DBS company to receive FDA approval to offer DBS surgery while the patient is. Now this innovation means a less stressful surgery for the patient and potentially shorter procedure.

Speaker Change: And just last week we became the first and only DBS company to receive FDA approval to offer DBS surgery while the patient is asleep.

Speaker Change: And that's where we are on surgery.

Speaker Change: And my level of confidence on this is high because of the levers we have to pull, the team we have in place, the franchise we have, but, but, but knowing that the entrenched competitors are a strong so understanding that, but still knowing, you know, having confidence in our team.

Speaker Change: Thanks, Larry.

Speaker Change: Sleep.

Speaker Change: Next question, please, Brett.

Speaker Change: Now, this innovation means a less stressful surgery for the patient and potentially shorter procedure times.

Speaker Change: We look forward to continuing to advance our leadership position in brain modulation.

Speaker Change: The next question comes from David Rescott at Barrett Equity Research.

Speaker Change: We look forward to continuing to advance our leadership position in brain modulation.

Speaker Change: Now, this innovation means a less stressful surgery for the patient and potentially shorter, procedure times.

Speaker Change: Now looking at our established market leaders. Combined, they made up just under half of our revenue and grew 5%.

Speaker Change: David, please go ahead.

Speaker Change: So a modest price premium is built into our TAVR launch. But it really is about picking up more volume on cases, more implants.

Speaker Change: Now looking at our established market leaders, combined they made up just under half of our revenue and grew 5%.

Sean Salmon: Now looking at our established market leaders, combined they made up just under half of our revenue and grew 5%. Collectively we can depend on this diversification not only for reliable revenue growth, but also their disproportionate contribution to our profits and cash flow that we can then invest in higher growth areas. Cardiac rhythm management grew high single digits with high single digit growth and defibrillation solutions and low double digit growth and cardiac pacing therapies.

Speaker Change: And the dynamics that you typically see when you're bringing your product out are, you know, customers burning down their shelf inventory as they they put a small amount of stocking per valve size, like a par level, as they ramp up for new technologies.

Speaker Change: now looking at our established market leaderscombined they made up just under half of our revenue and grew five percent

Speaker Change: Collectively we can depend on this diversification not only for reliable revenue growth, but also their disproportionate contribution to our profits and cash flow that we can then invest in higher growth areas.

Speaker Change: Collectively, we can depend on this diversification, not only for reliable revenue growth, but also their disproportionate contribution to our profits and cash flow that we can then invest in higher growth areas.

Speaker Change: Collectively, we can depend on this diversification not only for reliable revenue growth

Speaker Change: but also their disproportionate contribution to our profits and cash flow that we can then invest in higher growth areas.

Speaker Change: Cardiac rhythm management grew high single digits with high single digit growth and defibrillation solutions and low double digit growth in cardiac pacing.

Speaker Change: Cardiac rhythm management grew high single digits with high single digit growth and defibrillation solutions and low double digit growth and cardiac pacing therapies.

Speaker Change: Cardiac rhythm management grew high single digits with high single digit growth in defibrillation solutions and low double digit growth in cardiac pacing therapies.

Speaker Change: Our micro-leadless pacemaker franchise grew over 20%, as the market continues to adopt our latest generation of devices.

Speaker Change: Our micro leaeless pacemaker franchise grew over 20% as the market continues to adopt our latest generation of devices.

Sean Salmon: Our micro leaeless pacemaker franchise grew over 20% as the market continues to adopt our latest generation of devices. In surgical we grew low single digits. This was lower growth in prior quarters, primarily driven by the difficult comparison from backorder fulfillment in the first half of the last fiscal year, as well as the Korean market slowdown from the ongoing physician strikes. Now we expect that surgical will return to more normalized growth in the back half of the fiscal year as these comparisons ease.

Speaker Change: Our micro-leadless pacemaker franchise grew over 20% as the market continues to adopt our latest generation of devices.

Speaker Change: In surgical we grew low single digits. This was lower growth in prior quarters, primarily driven by the difficult comparison from backorder fulfillment in the first half of the last fiscal year, as well as the Korean market slowdown from the ongoing physician strikes. Now we expect that surgical will return to more normalized growth in the back half of the fiscal year as these comparisons ease.

Speaker Change: In surgical, we grew low single digits. This was lower growth than prior quarters, primarily driven by the difficult comparison from backorder fulfillments in the first half of the last fiscal year, as well as the Korean market slowdown from the ongoing physician strike. Now we expect that surgical will return to more normalized growth in the back half of the fiscal year as these comparisons change.

Speaker Change: And in cranial and spinal technologies, we grew mid single digits.

Speaker Change: Now, we expect that surgical will return to more normalized growth in the back half of the fiscal year as these comparisons ease.

Speaker Change: And in cranial and spinal technologies, we grew mid-single digit.

Sean Salmon: And in cranial and spinal technologies, we grew mid single digits. Our spine business continues to just really outperform the market with 7% global and 9% US core spine growth. This sustained share capture is being driven by our able ecosystem. Able's differentiated features and the sheer scale around the world is it's a winning formula for our spine business. It's good for patients and surgeons and it's changing the competitive dynamics in spine. Able is helping us win share and attract the best sales reps and distributors to join our metronic team.

Speaker Change: And in cranial and spinal technologies, we grew mid-single digits.

Speaker Change: Our spine business continues to just really outperform the market with 7% global and 9% U.S. core spine growth. This sustained share capture is being driven by our ABLE ecosystem. Abel's Differentiated Features.

Speaker Change: Our spine business continues to just really outperform the market with 7% global and 9% US core spine growth.

Speaker Change: Our spine business continues to just really outperform the market with 7% global and 9% U.S. core spine growth.

Speaker Change: This sustained share capture is being driven by our able ecosystem.

Speaker Change: This sustained share capture is being driven by our ABLE ecosystem.

Speaker Change: Able's differentiated features and the sheer scale around the world is it's a winning formula for our spine business.

Speaker Change: And the sheer scale around the world is it's a winning formula for our spine.

Les: Abel's Differentiated Features

Les: And the sheer scale around the world is, it's a winning formula for our spine business.

Les: It's good for patients and surgeons, and it's changing the competitive dynamics in spas.

Speaker Change: It's good for patients and surgeons and it's changing the competitive dynamics in spine.

Les: It's good for patients and surgeons and it's changing the competitive dynamics in spine.

Les: Abel is helping us win share and attract the best sales reps and distributors to join our Medtronic.

Speaker Change: Able is helping us win share and attract the best sales reps and distributors to join our metronic team.

Les: ABLE is helping us win share and attract the best sales reps and distributors to join our Medtronic team.

Les: Go ahead, Sean.

Speaker Change: With that, I now want to welcome Gary Corona, our interim chief financial officer to his first metronic earnings broadcast.

Gary Corona: With that, I now want to welcome Gary Corona, our interim chief financial officer to his first metronic earnings broadcast. Gary's taken over for Karen Parkhill to whom we wish all the best as she starts her next chapter. Gary joined us a little less than two years ago after impressive career with General Mills. He's been leading our corporate finance team and has been instrumental in enhancing both our capabilities and our rigor, which has been a key enabler to our beaten raises. And as he stepped into the role, we haven't missed a beat. So I want to welcome Gary.

Les: With that, I now want to welcome Gary Corona, our Interim Chief Financial Officer to his first Medtronic earnings, Gary's taking over for Karen Parkhill, to whom we wish all the best as she starts her next. Gary joined us a little less than two years ago after an impressive career with General Mills.

Les: Oh, great.

Les: Yeah, thanks for the question.

Gary Corona: With that, I now want to welcome Gary Corona, our Interim Chief Financial Officer, to his first Medtronic Earnings broadcast.

Gary Corona: Gary's taken over for Karen Parkhill to whom we wish all the best as she starts her next chapter. Gary joined us a little less than two years ago after impressive career with General Mills. He's been leading our corporate finance team and has been instrumental in enhancing both our capabilities and our rigor, which has been a key enabler to our beaten raises.

Gary Corona: Thanks, Jeff.

Speaker Change: Gary is taking over for Karen Parkhill to whom we wish all the best as she starts her next chapter.

Speaker Change: And as he stepped into the role, we haven't missed a beat.

Speaker Change: Gary joined us a little less than two years ago after an impressive career with General Mills. He's been leading our corporate finance team and has been instrumental in enhancing both our capabilities and our rigor, which has been a key enabler to our beats and raises.

Speaker Change: He's been leading our corporate finance team and has been instrumental in enhancing both our capabilities and our rigor, which has been a key enabler to our beats and raises.

Speaker Change: And as he stepped into the role, we haven't missed a beat.

Speaker Change: You know, we're, we're not hearing from our customers, about capacity constraints.

Speaker Change: So I want to welcome Gary.

Speaker Change: Thanks for taking the questions.

Speaker Change: So I want to welcome Gary.

Speaker Change: Thanks, Jeff.

Speaker Change: And congrats on the strong start to the year here.

Gary Corona: And as he stepped into the role, we haven't missed a beat, so I want to welcome Gary. Thanks, Geoff. And I, too, want to thank Karen for all her contributions to Medtronic and her support of me personally.

Gary Corona: Thanks, Jeff.

Gary Corona: And I too want to thank Karen for all her contributions to Medtronic and her support of me personally.

Speaker Change: And I too want to thank Karen for all her contributions to metronic and her support of me personally.

Gary Corona: And I too want to thank Karen for all her contributions to metronic and her support of me personally. I'm energized to step into this role and continue the momentum that we have as a company. I'm honored to lead our talented global finance team and want to send a big thank you to the entire metronic organization for your support. I've been able to hit the ground running and I'm excited to work together with Jeff and the leadership team to drive performance and achieve our financial commitments. I'm looking forward to having conversations with many of you in the investment community over the coming weeks.

Gary Corona: I'm energized to step into this role and continue the momentum that we have as a company.

Gary Corona: Of course, our sample size may be a little smaller than our competitor.

Gary Corona: I'm energized to step into this role and continue the momentum that we have as a company.

Gary Corona: I'm honored to lead our talented global finance team and want to send a big thank you to the entire Medtronic organization for your support. I've been able to hit the ground running and I'm excited to work together with Jeff and the leadership team to drive performance and achieve our financial commitment.

Speaker Change: I'm honored to lead our talented global finance team and want to send a big thank you to the entire metronic organization for your support.

Gary Corona: But, you know, we ask about the future for the service line as they add additional, you know, things into the structural heart component of it.

Gary Corona: It doesn't seem like at the operator level, there's, there's concerns.

Speaker Change: I've been able to hit the ground running and I'm excited to work together with Jeff and the leadership team to drive performance and achieve our financial commitments.

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

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

Gary Corona: Um, I Jeff, I heard your comments on, you know, being on on the hunt for for M&A.

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

Speaker Change: Now I'll recap our Q1 financials and give you some additional details on our outlook. We started this fiscal year by continuing to deliver on our commitments with revenue growth at 5.3% a full point above the midpoint of our guidance. This translated into EPS that was three cents ahead of our guidance midpoint.

Gary Corona: Now I'll recap our Q1 financials and give you some additional details on our outlook. We started this fiscal year by continuing to deliver on our commitments with revenue growth at 5.3% a full point above the midpoint of our guidance. This translated into EPS that was three cents ahead of our guidance midpoint. We're driving diversified growth and you can see this strength come through when you look by business or by geography as both new product innovation and commercial execution is fueling our results.

Gary Corona: Now I'll recap our Q1 financials and give you some additional details on our Outlook.

Gary Corona: We look forward to continuing to advance our leadership position in brain modulation.

Gary Corona: I'm curious if you could help us kind of understand, you know, maybe what what areas strategically you think make the most sense in the portfolio when you kind of think about the size of the Medtronic portfolio?

Gary Corona: And we saw both those dynamics occur, you know, in the early launch accounts, where people are picking up a little bit of inventory, but also taking down inventory for the prior model, the FX in the case of the US. So it's always a sort of switching dynamics.

Gary Corona: We started this fiscal year by continuing to deliver on our commitments with revenue growth at 5.3%, a full point above the midpoint of our guidance.

Gary Corona: This translated into EPS that was three cents ahead of our guidance mid- We're driving diversified growth, and you can see this strength come through when you look by business or by geography as both new product innovation and commercial execution is fueling our results.

Gary Corona: But, you know, I think that that's already baked into everything that we're forecasting for the continued growth of this product.

Gary Corona: Now, looking at our established market leaders, combined, they made up just under half of our revenue and grew 5%. Collectively, we can depend on this diversification, not only for reliable revenue growth, but also their disproportionate contribution to our profits and cash flow that we can then invest in higher growth areas.

Gary Corona: This translated into EPS that was three cents ahead of our guidance midpoint.

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

Gary Corona: I guess?

Gary Corona: How do you how do you balance that kind of near term?

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

Gary Corona: What can be needle moving versus you know, what what can move the needle over the two to three year period and three to five year period?

Gary Corona: Cardiac rhythm management grew high single digits with high single digit growth, in defibrillation solutions and low double digit growth in cardiac pacing therapies.

Gary Corona: Our cardiovascular portfolio accelerated to high single-digit growth and we saw continued momentum in neuroscience and diabetes.

Gary Corona: Thank you.

Speaker Change: Our cardiovascular portfolio accelerated to high single-digit growth and we saw continued momentum in neuroscience and diabetes.

Gary Corona: Our cardiovascular portfolio accelerated to high single-digit growth and we saw continued momentum in neuroscience and diabetes. Our U.S, growth also accelerated on contributions from cardiac rhythm management, PFA and neuromodulation. And our international markets grew in the high single digits including mid-teens growth in emerging markets. Moving down the P&L our adjusted gross margin was 65.9% down 50 basis points but ahead of expectations as expected the decline was entirely driven by the 80 basis point impact of currency.

Gary Corona: Our cardiovascular portfolio accelerated to high single-digit growth, and we saw continued momentum in neuroscience and diabetes.

Gary Corona: Our micro leadless pacemaker franchise grew over 20% as the market continues to adopt our latest, generation of devices.

Gary Corona: Our U.S. growth also accelerated on contributions from cardiac rhythm management, PFA, and neuromodulation.

Gary Corona: Thanks.

Speaker Change: Our U.S, growth also accelerated on contributions from cardiac rhythm management, PFA and neuromodulation.

Gary Corona: Our U.S. growth also accelerated on contributions from cardiac rhythm management, PFA, and neuromodulation.

Speaker Change: And our international markets grew in the high single digits including mid-teens growth in emerging markets. Moving down the P&L our adjusted gross margin was 65.9% down 50 basis points but ahead of expectations as expected the decline was entirely driven by the 80 basis point impact of currency.

Gary Corona: In surgical, we grew low single digits. This was lower growth than prior quarters, primarily driven by the difficult comparison from backorder fulfillments in the first half of the last fiscal year, as well as the Korean market slowdown from the ongoing physician strikes. Now, we expect that surgical will return to more normalized growth in the back half of the fiscal year as these comparisons ease.

Gary Corona: And our international markets grew in the high single digits, including mid-teens growth in emerging markets.

Gary Corona: Thanks for the question, David.

Gary Corona: And in cranial and spinal technologies, we grew mid single digits.

Gary Corona: And our international markets grew in the high single digits, including mid-teams growth in emerging markets.

Gary Corona: Our spine business continues to just really outperform the market with 7% global and 9% US core spine growth. This sustained share capture is being driven by our ABLE ecosystem.

Gary Corona: Moving down the P&L, our adjusted gross margin was 65.9%, down 50 basis points, but ahead of expectations. As expected, the decline was entirely driven by the 80-basis-point impact of current, However, we continue to make progress on our underlying margin improvement activities. In Q1, pricing from our new innovation and our cost-out programs offset inflation, resulting in a 30 basis point increase in our gross margin on a constant currency basis.

Gary Corona: ABLE's differentiated features and the sheer scale around the world is, it's a winning formula for, our spine business. It's good for patients and surgeons, and it's changing the competitive dynamics in spine.

Gary Corona: ABLE is helping us win share and attract the best sales reps and distributors to join our Medtronic team.

Gary Corona: Moving down the P&L, our adjusted gross margin was 65.9 percent down 50 basis points but ahead of expectations.

Gary Corona: As expected, the decline was entirely driven by the 80-basis point impact of currency.

Speaker Change: However, we continue to make progress on our underlying margin improvement activities. In Q1 pricing from our new innovation and our cost-out programs offset inflation resulting in a 30 basis point increase in our gross margin on a constant currency basis.

Gary Corona: However, we continue to make progress on our underlying margin improvement activities. In Q1 pricing from our new innovation and our cost-out programs offset inflation resulting in a 30 basis point increase in our gross margin on a constant currency basis. Our adjusted operating margin was 24.4% in line with expectations. This was a decline of 40 basis points versus last year but up 60 basis points in constant currency.

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

Gary Corona: In Q1, pricing from our new innovation and our cost-out programs offset inflation, resulting in a 30-basis point increase in our gross margin on a constant currency basis.

Speaker Change: Our adjusted operating margin was 24.4% in line with expectations. This was a decline of 40 basis points versus last year but up 60 basis points in constant currency.

Gary Corona: Our adjusted operating margin was 24.4%, in line with expectations. This was a decline of 40 basis points versus last year, but up 60 basis points in constant current.

Gary Corona: Our adjusted operating margin was 24.4%, in line with expectations.

Gary Corona: This was a decline of 40 basis points versus last year, but up 60 basis points in constant currency.

Speaker Change: Turning to capital allocation our philosophy hasn't changed. We continue to balance investments for future growth including tuck in M&A with returning capital to shareholders primarily through our dividend and from time to time through opportunistic share repurchases. This calendar year we've seen a significant value opportunity in our shares and allocated more capital to share repurchase. Since our Q4 earnings call in May we repurchased an incremental $1.5 billion of our shares and in total $4 billion over the past two quarters. We believe these buybacks will have an attractive return given the conviction we have in growing our revenue earnings and free cash flow.

Gary Corona: Turning to capital allocation our philosophy hasn't changed. We continue to balance investments for future growth including tuck in M&A with returning capital to shareholders primarily through our dividend and from time to time through opportunistic share repurchases. This calendar year we've seen a significant value opportunity in our shares and allocated more capital to share repurchase. Since our Q4 earnings call in May we repurchased an incremental $1.5 billion of our shares and in total $4 billion over the past two quarters. We believe these buybacks will have an attractive return given the conviction we have in growing our revenue earnings and free cash flow. And as we go forward we'll continue to focus on tuck in M&A.

Gary Corona: Turning to capital allocation, our philosophy hasn't, We continue to balance investments for future growth, including Tuck and M&A, with returning capital to shareholders primarily through our dividend, and from time to time, through opportunistic share repurchase. This calendar year, we've seen a significant value opportunity in our shares and allocated more capital to share repurchase. Since our Q4 earnings call in May, we repurchased an incremental $1.5 billion of our shares, and in total, $4 billion over the past two quarters.

Gary Corona: Yeah, I mean, look, on the M&A side, this is one of the areas, it's part of our larger capital allocation strategy, right?

Gary Corona: We talk about, you know, little C capital allocation and big C capital allocation.

Speaker Change: And as we go forward we'll continue to focus on tuck in M&A.

Gary Corona: Turning to capital allocation, our philosophy hasn't changed. We continue to balance investments for future growth, including Tuck and M&A, with returning capital to shareholders primarily through our dividend, and from time to time, through opportunistic share repurchases.

Gary Corona: We're talking about allocating our money to the areas of highest growth. And the M&A strategy has to play with our organic strategy, and both are pointed towards the highest growth areas.

Gary Corona: You know, ablation, you know, ACE of ablation is the case in point where we did the affair acquisition, as well as a needle crossing acquisition.

Gary Corona: This calendar year, we've seen a significant value opportunity in our shares and allocated more capital to share repurchase.

Gary Corona: Yeah, that's those are the areas that were that were pointed to.

Gary Corona: Since our Q4 earnings call in May, we repurchased an incremental $1.5 billion of our shares, and in total, $4 billion over the past two quarters.

Gary Corona: We believe these buybacks will have an attractive, Given the conviction we have in growing our revenue, earnings, and free cash flow.

Gary Corona: We believe these buybacks will have an attractive return, given the conviction we have in growing our revenue, earnings, and free cash flow.

Gary Corona: And as we go forward, we'll continue to focus on Tuck and M&A.

Gary Corona: But we're, you know, we are still focused on, you know, value creating tuck in M&A.

Gary Corona: And as we go forward, we'll continue to focus on Tuckin' M&A.

Gary Corona: With that, I now want to welcome Gary Corona, our interim chief financial officer to his first Medtronic earnings broadcast.

Speaker Change: Now let's cover guidance.

Gary Corona: Now let's cover guidance. Given our Q1 out performance and positive momentum we're raising our full year revenue and EPS guidance. We now expect fiscal 25 organic revenue growth of 4.5 to 5% on increase from the prior range of 4 to 5. For Q2 we're expecting to deliver another quarter of mid single digit growth in the top line and we'd have you model organic revenue growth of approximately 4.5%. Based on recent rates FX would have an unfavorable impact to fiscal 25 in the range of 110 to 210 million including 10 to $60 million in the second quarter.

Gary Corona: Now let's cover guidance.

Speaker Change: Given our Q1 out performance and positive momentum we're raising our full year revenue and EPS guidance. We now expect fiscal 25 organic revenue growth of 4.5 to 5% on increase from the prior range of 4 to 5. For Q2 we're expecting to deliver another quarter of mid single digit growth in the top line and we'd have you model organic revenue growth of approximately 4.5%. Based on recent rates FX would have an unfavorable impact to fiscal 25 in the range of 110 to 210 million including 10 to $60 million in the second quarter.

Gary Corona: now let's cover guidance given our q one out performance and positive momentum we're raising our full year revenue and eps guidance

Gary Corona: Given our Q1Out performance and positive momentum, we're raising our full year revenue in EPS guidance. We now expect fiscal 25 organic revenue growth of 4.5% to 5%, an increase from the prior range of 4% to 5%. For Q2, we're expecting to deliver another quarter of mid-single-digit growth on the top line. And we'd have you model organic revenue growth of approximately 4.5%. Based on recent rates, FX would have an unfavorable impact to Fiscal 25 in the range of $110 to $210 million.

Gary Corona: we now expect fiscal twenty-five organic revenue growth of four anda half to five percent an increase from the prior range of fourto-five

Gary Corona: For Q2, we're expecting to deliver another quarter of mid-single-digit growth on the top line. And we'd have you model organic revenue growth of approximately 4.5%.

Gary Corona: Based on recent rates, FX would have an unfavorable impact to Fiscal 25 in the range of $110 to $210 million.

Gary Corona: Including 10 to 60 million dollars in the second quarter, Moving down the P&L, we continue to expect our operating margins to expand this year as we drive efficiencies while also investing behind our product launches and in our long-term pipeline.

Gary Corona: including 10 to 60 million dollars in the second quarter.

Speaker Change: Moving down the P&L we continue to expect our operating margins to expand this year as we drive efficiencies we'll also investing behind our product launches and in our long term pipes.

Gary Corona: Moving down the P&L we continue to expect our operating margins to expand this year as we drive efficiencies we'll also investing behind our product launches and in our long term pipes. And based on recent rates, currency becomes much less of an impact to our margins and bottom line after the second quarter. Taking this all together, we're raising our fiscal 25 non-gap diluted EPS guidance to a new range of 542-550, an increase from the prior range of 540-550. For the second quarter, we expect EPS of 124-126. The fiscal year 25 guidance range continues to include an unfavorable 5% impact from foreign currency, including an 8% impact in Q2.

Gary Corona: Moving down the P&L, we continue to expect our operating margins to expand this year as we drive efficiencies while also investing behind our product launches and in our long-term pipeline.

Gary Corona: Gary's taking over for Karen Parkhill, to whom we wish all the best as she starts her next chapter. Gary joined us a little less than two years ago after an impressive career with General Mills. He's been leading our corporate finance team and has been instrumental in enhancing both our capabilities and our rigor, which has been a key enabler to our beats and raises.

Speaker Change: And based on recent rates, currency becomes much less of an impact to our margins and bottom line after the second quarter.

Gary Corona: And based on recent rates, currency becomes much less of an impact to our margins and bottom line after the second quarter. Taking this all together, we're raising our fiscal 25 non-GAAP diluted EPS guidance to a new range of 542 to 550, an increase from the prior range of 540 to 550. For the second quarter, we expect EPS of 124 to 126. The Fiscal Year 2025 Guidance Range continues to include an unfavorable 5% impact from foreign currency, including an 8% impact in Q2.

Gary Corona: And based on recent rates, currency becomes much less of an impact to our margins and bottom line after the second quarter.

Speaker Change: Taking this all together, we're raising our fiscal 25 non-gap diluted EPS guidance to a new range of 542-550, an increase from the prior range of 540-550.

Gary Corona: Taking this all together, we're raising our Fiscal 25 non-GAAP diluted EPS guidance to a new range of 542 to 550, an increase from the prior range of 540 to 550.

Speaker Change: For the second quarter, we expect EPS of 124-126. The fiscal year 25 guidance range continues to include an unfavorable 5% impact from foreign currency, including an 8% impact in Q2.

Gary Corona: for the second quarter we expect epss of and twenty four to and twenty six the fiscal year twenty-five guidance range continues to include an unfavorable five percent impact from foreign currency including an eight percent impact in q two

Gary Corona: Further details on our annual guidance can be found in the guidance slide in our presentation.

Speaker Change: Further details on our annual guidance can be found in the guidance slide in our presentation.

Gary Corona: Further details on our annual guidance can be found in the guidance slide in our presentation. To wrap up, I want to emphasize that we are laser focused on driving top line growth and restoring the earnings power of the company. You saw that in our Q1 results and you see it in our outlook for the rest of the year. We expect our EPS growth to accelerate in the back half as the impact from currency lessons exiting the year with high single-digit growth.

Gary Corona: Further details on our annual guidance can be found in the guidance slide in our presentation.

Speaker Change: To wrap up, I want to emphasize that we are laser focused on driving top line growth and restoring the earnings power of the company.

Gary Corona: To wrap up, I want to emphasize that we are laser-focused on driving top-line growth and restoring the earnings power of the company.

Speaker Change: To wrap up, I want to emphasize that we are laser-focused on driving top-line growth and restoring the earnings power of the company.

Speaker Change: You saw that in our Q1 results and you see it in our outlook for the rest of the year. We expect our EPS growth to accelerate in the back half as the impact from currency lessens, exiting the year with high single-digit growth.

Speaker Change: You saw that in our Q1 results and you see it in our outlook for the rest of the year. We expect our EPS growth to accelerate in the back half as the impact from currency lessons exiting the year with high single-digit growth.

Speaker Change: You saw that in our Q1 results, and you see it in our Outlook for the rest of the year.

Speaker Change: we expect our eps growth to accelerate in the back half as the impact from currency lessons

Speaker Change: Geoff, back to you.

Speaker Change: Hi, Matt, this is this is Gary.

Speaker Change: Jeff, back to you.

Geoffrey Martha: Jeff, back to you. All right, thanks, Gary.

Speaker Change: In the US, of course, the, the freedom of beds for post procedure that, that goes beyond TAVR.

Jeff: exiting the year with high single-digit growth jeff back to you all right thanks gary now before we go to the analysts questions i want to close with a few thoughts

Jeff: All right, thanks, Gary.

Speaker Change: That's, that's been a challenge.

Jeff: All right.

Jeff: And yeah, as you said, as you mentioned, the US dollar has weakened a bit in the first quarter, and you'll see the benefits of that in the in the top line, where we've communicated improvement in the impact of the FX. You know, if recent rates hold, we now expect FX on revenue to be a negative impact of 120 to 210.

Jeff: But we're seeing some shifting of procedures to lower acuity settings to make room.

Speaker Change: Now before we go to the analyst questions, I want to close with a few thoughts.

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

Jeff: Thanks, Gary.

Jeff: And that compares to 275 to 375.

Speaker Change: Since becoming CEO, we've made a lot of changes to this company, all designed to improve performance. Chief among these strategies is how we allocate capital to disproportionately focus our R&D, our venture, and our M&A investments on the highest growth market opportunities.

Jeff: And as he stepped into the role, we haven't missed a beat.

Jeff: And of course, the valve clinic, which works these patients up, that's, that's something you just add capacity to when you need future capacity to expand it and you get a long runway to look at it.

Jeff: So I want to welcome Gary.

Speaker Change: Since becoming CEO , we've made a lot of changes to this company.

Speaker Change: Now, before we go to the analyst questions, I want to close with a few.

Speaker Change: You know, on the bottom line, the benefit is delayed due to our hedging program.

Speaker Change: Since becoming CEO, we've made a lot of changes, all designed to improve. Chief among these strategies is how we allocate capital to disproportionately focus our R&D, our venture, and our M&A investments on the highest growth market opportunity, while still making sure our other businesses are competitive.

Speaker Change: But we do expect to realize the benefits in future years, you know, where FX will show up for us this year will be a little bit different.

Speaker Change: Thanks, Jeff.

Speaker Change: So I think with the expanding indications, you know, we're pursuing a moderate aortic stenosis population, which is about two and a half million people in the US.

Speaker Change: All designed to improve performance.

Speaker Change: It's going to show up a bit more in the gross margin line for us this year.

Speaker Change: Chief among these strategies is how we allocate capital to disproportionately focus our R&D, our venture, and our M&A investments on the highest growth market opportunities.

Speaker Change: While still making sure our other businesses are competitive, and now you're seeing the payoff as we are at the front end of some exciting new product cycles.

Speaker Change: And now you're seeing the payoff as we are at the front end of some exciting new products.

Speaker Change: And, you know, transcatheter mitral replacement valves and things like that.

Speaker Change: while still making sure our other businesses are competitive.

Speaker Change: And now you're seeing the payoff, as we are at the front end of some exciting new product cycles.

Speaker Change: So we'll work with centers to make sure that they have adequate training of operators and help them to expand capacity if it needs to be.

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

Geoffrey Martha: You're seeing it in diabetes and in neuromodulation, in TAVR and PFA. And as I look at our pipeline, I expect this momentum to continue as we invest heavily in future growth opportunities like hypertension and surgical robotics.

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

Speaker Change: But in the short run, I really don't see a challenge.

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

Speaker Change: And I think hospitals have a long enough runway to plan for, for space that they need it.

Speaker Change: You're seeing it in diabetes and in neuromodulation.

Speaker Change: And as I look at our pipeline, I expect this momentum to continue as we invest heavily in future growth opportunities like hypertension and surgical robotics.

Speaker Change: and TAVR and PFA.

Speaker Change: And as I look at our pipeline, I expect this momentum to continue as we invest heavily in future growth opportunities like hypertension and surgical robotics.

Speaker Change: We've also been working on the fundamentals. The foundation of this company is now much stronger.

Geoffrey Martha: We've also been working on the fundamentals. The foundation of this company is now much stronger. Quality and operations are in a better spot. And we're investing in enhancing our digital capabilities across the company to improve our speed. We're playing more offense. We're building capacity in strategic growth areas. We're looking to further increase organic investments and are on the hunt for the right, tuck-in M&A opportunities. We've integrated a performance-driven mindset and an incentive structure that reinforces this. And in some cases, we've changed leadership to add increased operating rigor to our mission-driven culture.

Speaker Change: We've also been working on the fundamental.

Speaker Change: Yeah, and I look, I agree with you on this one.

Speaker Change: And, but, you know, when we see situations like that, when there's capacity, in the past, we've stepped in and helped a hospital, our hospital partners with capacity, like in Europe, you know, many, several years ago, we helped build out a number of and managed number of cath labs when there was cath lab capacity constraints across Western Europe.

Speaker Change: The foundation of this company is now much stronger. Quality and operations are in a better spot, and we're investing in enhancing our digital capabilities across the company to improve our speed.

Speaker Change: You know, I could see us doing this in the ASC space in the US, you know, to help build out that.

Speaker Change: we've also been working on the fundamentals

Speaker Change: The foundation of this company is now much stronger.

Speaker Change: Quality and operations are in a better spot.

Speaker Change: And we're investing in enhancing our digital capabilities across the company to improve our speed.

Speaker Change: Quality and operations are in a better spot and we're investing in enhancing our digital capabilities across the company to improve our speed.

Speaker Change: We're playing more offense.

Speaker Change: We're playing more off.

Speaker Change: We're building capacity in strategic growth areas.

Speaker Change: And, you know, we partner, we talk with the imaging companies, because a lot of the capacity, a lot of the capacity is tied to imaging and work with them and work with our, you know, healthcare delivery partners to build out that capacity.

Speaker Change: We're building capacity in strategic growth areas.

Speaker Change: We're playing more offense.

Speaker Change: We're looking to further increase organic investments and are on the hunt for the right tuck-in M&A opportunity.

Speaker Change: We're looking to further increase organic investments and are on the hunt for the right, tuck-in M&A opportunities.

Speaker Change: So that's how we would handle it if we were to see an issue.

Speaker Change: We're building capacity in strategic growth areas.

Speaker Change: We're looking to further increase organic investments and are on the hunt for the right tuck-in M&A opportunities.

Speaker Change: We've integrated a performance-driven mindset and an incentive structure that reinforces this.

Speaker Change: We've integrated a performance driven mindset and an incentive structure that reinforces, And in some cases, we've changed leadership, to add increased operating rigor to our mission-driven culture.

Speaker Change: We've integrated a performance-driven mindset and an incentive structure that reinforces this. And in some cases, we've changed leadership.

Speaker Change: And in some cases, we've changed leadership to add increased operating rigor to our mission-driven culture.

Speaker Change: to add increased operating rigor to our mission-driven culture

Speaker Change: I'll take it all together.

Geoffrey Martha: I'll take it all together. This is now translating into the top line growth momentum and improved earnings power that you're seeing in our results. And as we continue to execute, this will create meaningful value for society and for shareholders.

Speaker Change: Now take it all together, this is now translating into the top line growth momentum and improved earnings power that you're seeing in our results.

Speaker Change: And as we mentioned, the impact of foreign exchange will wane in the back half of the year.

Speaker Change: This is now translating into the top line growth momentum and improved earnings power that you're seeing in our results.

Speaker Change: Now take it all together, this is now translating into the top line growth momentum and improved earnings power that you're seeing in our results.

Speaker Change: And as our strong underlying earnings growth on a constant currency basis continues, you know, after we delivered a really nice shape of the PNL in the first quarter, we'll see that benefit flow through to reported EPS in the second half.

Speaker Change: And as we continue to execute, this will create meaningful value for society, and for shareholders.

Speaker Change: Okay, thanks, Matt.

Speaker Change: And as we continue to execute, this will create meaningful value for society and for shareholders.

Speaker Change: We've got time for one more question.

Speaker Change: And I too want to thank Karen for all her contributions to Medtronic and her support of me personally.

Speaker Change: Finally, I'd like to thank all of our employees around the world.

Speaker Change: If we didn't get your question, if there's any analysts on the line that still have questions, feel free to follow up with me after the call.

Speaker Change: Finally, I'd like to thank all of our employees around the world. I realize that we've driven a lot of change, and that can be uncomfortable.

Geoffrey Martha: Finally, I'd like to thank all of our employees around the world. I realize that we've driven a lot of change, and that can be uncomfortable. I appreciate all that you've done to embrace these changes and it's rewarding to see your efforts paying off. As we look to the next 75 years of metronik, I'm excited about the possibilities before us. Together, we're building a stronger and more resilient company. So thanks for all that you do to fulfill our mission and to serve patients.

Speaker Change: I appreciate all that you've done to embrace these changes and it's rewarding to see your efforts paying off.

Speaker Change: Finally, I'd like to thank all of our employees around the world.

Speaker Change: I realize that we've driven a lot of, and that can be unconfirmed.

Speaker Change: We'll go to our last question, please, Brad.

Speaker Change: I realize that we've driven a lot of change.

Speaker Change: I appreciate all that you've done to embrace these, and it's rewarding to see your efforts paying off.

Speaker Change: And that can be uncomfortable.

Speaker Change: I appreciate all that you've done to embrace these changes.

Speaker Change: As we look to the next 75 years of metronik, I'm excited about the possibilities before us.

Speaker Change: As we look to the next 75 years of Medtronic, I'm excited about the possibilities before us.

Speaker Change: I'm energized to step into this role and continue the momentum that we have as a company.

Speaker Change: And it's rewarding to see your efforts paying off.

Speaker Change: As we look to the next 75 years of Medtronic, I'm excited about the possibilities before us.

Speaker Change: I'm honored to lead our talented global finance team and want to send a big thank you to the entire Medtronic organization for your support. I've been able to hit the ground running and I'm excited to work together with Jeff and the leadership team to drive performance and achieve our financial commitments.

Speaker Change: Together, we're building a stronger and more resilient company.

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

Speaker Change: So, thanks for all that you do to fulfill our mission and to serve patients.

Speaker Change: So with that, let's move to Q&A where we're going to try to get as many analysts as possible.

Unknown Executive: So with that, let's move to Q&A where we're going to try to get as many analysts as possible. So we ask that you limit yourself to just one question and only if needed a related follow-up. If you have additional questions, you can reach out to Ryan and the investor relations team after the call.

Speaker Change: So with that, let's move to Q&A where we're going to try to get as many analysts as possible.

Speaker Change: So with that growth and margin profile that I that I just talked about, so it's, I don't want to point out specific areas, other than the high growth areas that are, you know, with whether they be a product tuck into an existing business or an adjacency to an existing business tuck in, that's where we're focused.

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

Speaker Change: But, you know, we're not, like Sean said, we're not hearing that in, Tavit.

Speaker Change: So with that, let's move to Q&A where we're going to try to get as many analysts as possible.

Speaker Change: So we ask that you limit yourself to just one question and only if needed, a related follow-up.

Speaker Change: So we ask that you limit yourself to just one question and only if needed a related follow-up.

Speaker Change: So we ask that you limit yourself to just one question and only, if needed, a related follow-up.

Speaker Change: If you have additional questions, you can reach out to Ryan and the investor relations team after the call.

Speaker Change: If you have additional questions, you can reach out to Ryan and the Investor Relations team after the call.

Speaker Change: Great.

Speaker Change: With that, Brad, can you please give the instructions for asking a question.

Brad Welnick: With that, Brad, can you please give the instructions for asking a question.

Speaker Change: With that, Brad, can you please give the instructions for asking a question?

Speaker Change: And I think, you know, not nothing, nothing's changed there, except that I think over the last year and a half or so, you know, we've had a lot of operational focus areas that we've had. And, and, and that's been the focus is, is really getting the operations, our operations footprint in a better spot or back orders down things like that quality in a better spot.

Speaker Change: The final question comes from Patrick Wood at Morgan Stanley.

Speaker Change: For the cell site analyst that would like to ask a question, please select the Participants button and click Raise Hand.

Brad Welnick: For the cell site analyst that would like to ask a question, please select the Participants button and click Raise Hand. If you're using the mobile app, press the More button and select Raise Hand. Your lines are currently on mute. When called upon, you will receive a request to unmute your line, which you must respond to before asking your question.

Speaker Change: Thank you guys.

Speaker Change: With that, Brad, can you please give the instructions for asking a question?

Speaker Change: For the cell site analysts that would like to ask a question, please select the Participants button and click Raise Hand.

Speaker Change: Patrick, please go ahead.

Brad: For the cell site analysts that would like to ask a question, please select the participants button and click raise hand.

Speaker Change: Appreciate it.

Brad: If you're using the mobile app, press the More button and select Raise Hand.

Speaker Change: If you're using the mobile app, press the More button and select Raise Hand.

Brad: Thanks, Matt.

Brad: Your lines are currently on mute.

Speaker Change: If you're using the mobile app, press the More button and select Raise Hand. Your lines are currently on mute. When called upon, you will receive a request to unmute your line, which you must respond to before asking your question. Lastly, please be advised that this Q&A session is being recorded.

Speaker Change: Your lines are currently on mute.

Speaker Change: When called upon, you will receive a request to unmute your line, which you must respond to before asking your question.

Speaker Change: Beautiful.

Speaker Change: When called upon, you will receive a request to unmute your line, which you must respond to before asking your question.

Speaker Change: Lastly, please be advised that this Q&A session is being recorded.

Speaker Change: Thank you so much for taking the question.

Speaker Change: Lastly, please be advised that this Q&A session is being recorded.

Unknown Executive: Lastly, please be advised that this Q&A session is being recorded.

Speaker Change: For today's session, Geoff, Gary, and Ryan are joined by Que Dallara, EVP and President of Diabetes, Mike Marinaro, EVP and President of the Medical Surgical Portfolio, Sean Salmon, EVP and President of the Cardiovascular Portfolio, and Brett Wall, EVP and President of the Neuroscience Portfolio.

Speaker Change: We're, we're in a much better spot there.

Speaker Change: Quite a high level one.

Speaker Change: Now I'll recap our Q1 financials and give you some additional details on our outlook. We started this fiscal year by continuing to deliver on our commitments with revenue growth, at 5.3 percent, a full point above the midpoint of our guidance. This translated into EPS that was 3 cents ahead of our guidance midpoint.

Speaker Change: For today's session, Geoff, Gary, and Ryan are joined by Que Dallara, EVP, and President of Diabetes, Mike Marinero, EVP and President of the Medical Surgical Portfolio, Sean Salman, EVP and President of the Cardiovascular Portfolio, and Brett Wall, EVP and President of the Narrow Science Portfolio.

Unknown Executive: For today's session, Geoff, Gary, and Ryan are joined by Que Dallara, EVP, and President of Diabetes, Mike Marinero, EVP and President of the Medical Surgical Portfolio, Sean Salman, EVP and President of the Cardiovascular Portfolio, and Brett Wall, EVP and President of the Narrow Science Portfolio.

Speaker Change: And I think can focus more of our energies on M&A.

Speaker Change: And the explanation I guess I just gave is where we'll be focused.

Speaker Change: But you know, you guys are now, I guess, getting the benefit of some heavy investment in previous years in the base business.

Speaker Change: And so I guess the question is, does that, how does that make you feel the interplay between, you know, reinvesting for growth on the product support side on innovation, relative to margins of the next year or two?

Speaker Change: For today's session, Geoff, Gary, and Ryan are joined by Que Dallara, EVP and President of Diabetes.

Speaker Change: Thanks, David.

Speaker Change: Like, how do you see that interplay going forward of earnings leverage, and investing in the base business versus, you know, trying to drive the top line?

Speaker Change: Next question, please, Brad.

Speaker Change: Any updated thoughts?

Speaker Change: Mike Marinaro, EVP and President of the Medical Surgical Portfolio, Sean Salmon, EVP and President of the Cardiovascular Portfolio, and Brett Wall, EVP and President of the Neuroscience Portfolio. We'll pause for a few seconds to assemble the queue.

Speaker Change: That would be great.

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

Speaker Change: Next question, please, Brad.

Speaker Change: We'll pause for a few seconds to assemble the queue.

Speaker Change: The next question comes from Matt Taylor at Jeffrey's.

Speaker Change: Thanks.

Speaker Change: We'll pause for a few seconds to assemble the Q.

Unknown Executive: We'll pause for a few seconds to assemble the Q.

Speaker Change: The next question comes from David Roman at Golden Sacks.

Speaker Change: We'll take the first question from Vijay Kumar at Evercore ISI.

Vijay Kumar: We'll take the first question from Vijay Kumar at Evercore ISI. Vijay, please go ahead. Hey, guys. Thanks for taking my question, Geoff. Congrats, and a really nice quarter here. Maybe my first question here is the organic execution in the quarter. Well, about your guidance expectations. I think north of 100 basis points. It's also about your annual guidance, right? It seems like it was pretty broad base. You know, based on your current outlook, it implies like your back half should be below what you've won Q performance was, right? So maybe just talk about sustainability of one Q. Why these trends can't sustain in a back half. Would there any one off the drug Q1 performance? Maybe Jay, good to hear from you.

Speaker Change: We'll take the first question from Vijay Kumar at Evercore ISI.

Speaker Change: Matt, please go ahead.

Speaker Change: Sure.

Speaker Change: Our cardiovascular portfolio accelerated to high single-digit growth, and we saw continued momentum in neuroscience and diabetes.

Speaker Change: David, please go ahead.

Speaker Change: i

Speaker Change: Vijay, please go ahead.

Speaker Change: and

Speaker Change: We'll take the first question from Vijay Kumar at Evercore ISI. Vijay, please go ahead.

Speaker Change: Hey, guys.

Speaker Change: Vijay, please go ahead.

Speaker Change: Hi, thanks for taking the question.

Speaker Change: Thanks, Patrick.

Vijay Kumar: Thanks for taking my question, Geoff.

Speaker Change: Hey guys, thanks for taking my question.

Speaker Change: I guess I wanted to double click on some of the comments that you made on the structural heart market.

Speaker Change: Look, we're committed to driving leverage down the P&L, you know, a company of our size.

Speaker Change: Congrats, and a really nice quarter here.

bj kar: Hey guys, thanks for taking my question. Geoff, congrats on a really nice quarter here.

Speaker Change: Maybe my first question here is the organic execution in the quarter.

bj kar: Maybe my first question here is the organic execution in the quarter, well above your guidance expectations, I think north of 100 basis points. It's also above your annual guidance, right? It seems like it was pretty broad based.

bj kar: Geoff, congrats on a really nice quarter here.

Speaker Change: Well, about your guidance expectations.

bj kar: Maybe my first question here is the organic execution in the quarter, well above your guidance expectations, I think north of 100 basis points.

Speaker Change: I think north of 100 basis points.

bj kar: It's also above your annual guidance rate.

Speaker Change: It's also about your annual guidance, right?

bj kar: It seems like it was pretty broad-based.

Speaker Change: It seems like it was pretty broad base.

Speaker Change: You know, based on your current outlook, it implies like your back half should be below what you've won Q performance was, right?

bj kar: You know, based on your current outlook, it implies like your back half should be below what your one Q performance was, right?

Speaker Change: You know, based on your current outlook, it implies like your back half should be below what your 1Q performance was, right? So maybe just talk about sustainability of 1Q, why these trends can't sustain in the back half. Were there any one-offs that drove Q1 performance?

Speaker Change: So maybe just talk about sustainability of one Q, why these trends can't sustain in the back half.

Speaker Change: So maybe just talk about sustainability of one Q.

Speaker Change: Why these trends can't sustain in a back half.

Speaker Change: Our U.S. growth also accelerated on contributions from cardiac rhythm management, PFA, and neuromodulation.

Speaker Change: Thank you.

Speaker Change: Were there any one-offs that drove Q1 performance?

Speaker Change: And I'm really curious about your thoughts on capacity now and going forward.

Speaker Change: Would there any one off the drug Q1 performance?

Speaker Change: And good morning, everyone.

Speaker Change: I was hoping you could go into a little more detail on, Afera.

Speaker Change: Good to hear from you.

Speaker Change: And I know you said that you haven't seen signs of, you know, a slowdown in the market, but you have concerns about capacity there longer term, or more broadly, is that a limiting factor in that business or any of your businesses?

Speaker Change: Maybe Jay, good to hear from you.

Speaker Change: Yeah, let me just answer that question directly.

Geoffrey Martha: Yeah, let me just answer that question directly. There was no one offs that drove the performance and you know, overall I'd say it's sustainable because like I said in the commentary, we're in the, you know, the beginning stages of some real, you know, really exciting products cycles here into into high growth markets. You know, in our Q1, you know, I see, you know, a couple of things sort of like neuromod, you know, getting to 10 in a double digits that that is really all about the technology that, you know, we've missed the first quarter.

Speaker Change: j good to hear from you let me just

Speaker Change: Jeff, you mentioned that it's still obviously pending FDA review and that you're in limited market release outside the United States.

Speaker Change: There was no one offs that drove the performance and you know, overall I'd say it's sustainable because like I said in the commentary, we're in the, you know, the beginning stages of some real, you know, really exciting products cycles here into into high growth markets.

Speaker Change: Answer that question directly. There was no one-offs that drove the performance.

Speaker Change: You know, overall, I'd say it's sustainable because like I said in the commentary, we're in the, you know, the beginning stages of some real, you know, really exciting, you know, product cycles here into into high growth markets, you know, in our Q1.

Speaker Change: You know, in our Q1, you know, I see, you know, a couple of things sort of like neuromod, you know, getting to 10 in a double digits that that is really all about the technology that, you know, we've missed the first quarter.

Speaker Change: Um, yeah, let me just answer that question directly.

Speaker Change: And how would you deal with that as an organization to help free up more capacity to help your therapies run through?

Speaker Change: You know, I see, you know, a couple of things like Neuromod, you know, getting to 10 in a double digit set.

Speaker Change: We had both our pain stem.

Geoffrey Martha: We had both our pain stem. You know, close up therapy, incentive, as well as, you know, DBS, close up therapy out there at the same time. And that's that that growth is really driven by that's we think that's the new foundational technology sensing in the neuromod market. And it's that growth is driven strictly by demand of these new products and pricing up list that came with them. Instructural hard, there's a lot of questions around the market there.

Speaker Change: That is really all about the new technology that, you know, this is the first quarter we had both our pain stem closed-loop therapy inceptive, as well as, you know, DBS closed-loop therapy out there at the same time. And that growth is really driven by, we think that's the new foundational technology sensing in the neuromod market.

Speaker Change: You know, close up therapy, incentive, as well as, you know, DBS, close up therapy out there at the same time.

Speaker Change: And that's that that growth is really driven by that's we think that's the new foundational technology sensing in the neuromod market.

Speaker Change: And it's that growth is driven strictly by demand of these new products and pricing up list that came with them.

Speaker Change: And our international markets grew in the high single digits, including mid-teens growth in emerging markets.

Speaker Change: Well, look, I'd say overall, I'm going to hand this over to Sean and Matt, but that, you know, the structural heart space TAVR, you know, and mitral is coming, tricuspid, it's very under penetrated still.

Speaker Change: and it's that growth is driven strictly by demand of these new products and pricing uplits that came with them

Speaker Change: Instructural hard, there's a lot of questions around the market there.

Speaker Change: And we're seeing consistent market growth as we've signaled in that high single digit and you know, we're just really getting launching FX plus, you know, going from limited market, at least a full market release, which is, which is exciting plus the accumulation of all the data, smart low risk, et cetera, is a real tailwind for us.

Geoffrey Martha: And we're seeing consistent market growth as we've signaled in that high single digit and you know, we're just really getting launching FX plus, you know, going from limited market, at least a full market release, which is, which is exciting plus the accumulation of all the data, smart low risk, et cetera, is a real tailwind for us. You know, two, two businesses that that had a particularly strong Q1 that, you know, I'm not sure it's going to that that that high level that throughout the year one is diabetes, you know, diabetes should continue to have growth well above the company average.

Speaker Change: You know, structural heart, there's a lot of questions around the market there, and we're seeing consistent market growth as we've signaled in that high single digit, and, you know, we're just really getting, launching FX Plus, you know, going from limited market release to full market release.

Speaker Change: which is which is exciting. Plus the accumulation of all the data, smart, low risk, etc. is a real tailwind for us.

Speaker Change: You know, two, two businesses that that had a particularly strong Q1 that, you know, I'm not sure it's going to that that that high level that throughout the year one is diabetes, you know, diabetes should continue to have growth well above the company average.

Speaker Change: You know, two businesses that had a particularly strong Q1 that, you know, I'm not sure is going to, at that high level that throughout the year, one is diabetes. You know, diabetes should continue to have growth well above the company average.

Speaker Change: So I do see a huge, and the patient benefits are clear.

Speaker Change: But, you know, we're now analyzing the US launch of 70G and so I can see a diabetes in the teams that last quarter, you know, not sure we'll be able to sustain that the whole year.

Geoffrey Martha: But, you know, we're now analyzing the US launch of 70G and so I can see a diabetes in the teams that last quarter, you know, not sure we'll be able to sustain that the whole year. And CRM also had a really good quarter, you know, some great, we have a really nice product portfolio across the sea or all the serum segments, but we're not banking on CRM growing 8% every quarter. Yeah, those two, you know, there was nothing one time about them, but just really strong execution and, and, you know, I think across the company that you just keep going on the list, there's just a lot of new products out there in the early stages.

Speaker Change: But, you know, we're now annualizing the U.S. launch of 780G, and so I can see, you know, diabetes in the teens that last quarter. I'm not sure we'll be able to sustain that the whole year. And CRM also had a really good quarter, you know, some great—we have a really nice—

Speaker Change: And CRM also had a really good quarter, you know, some great, we have a really nice product portfolio across the sea or all the serum segments, but we're not banking on CRM growing 8% every quarter.

Speaker Change: Sean mentioned the data, whether it be low risk or now our SMART trial, the data is clear.

Speaker Change: Product Portfolio across the CRM, all the CRM segments.

Speaker Change: There was no one offs that drove the performance.

Speaker Change: Yeah, those two, you know, there was nothing one time about them, but just really strong execution and, and, you know, I think across the company that you just keep going on the list, there's just a lot of new products out there in the early stages.

Speaker Change: But we're not banking on CRM growing 8% every quarter. Those two, there was nothing one-time about them, but just really strong execution. And, you know, I think across the company, I could just keep going on the list. There's just a lot of new products out there in the early stages.

Speaker Change: And, you know, we overall, I'd say it's sustainable, because like I said, in the commentary, we're in the, you know, the beginning stages of some real, you know, really exciting, you know, product cycles here into into high growth markets, you know, in our Q1, You know, I see, you know, a couple of things sort of like Neuromod, you know, getting to 10, you know, double digits that that is really all about the new technology that, you know, we've missed the first quarter, we had both our pain stem, closed loop therapy, inceptive, as well as, you know, DBS, closed loop therapy out there at the same time. And that's that that growth is really driven by that.

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

Geoffrey Martha: So, you know, overall we feel good about the underlying fundamentals and where we're headed and we're focused on delivering our on our commitments and issuing guidance, you know, on the issue and guidance sets us up for success. That's helpful, Geoff, and maybe one follow-up related to that, and the guidance question.

Speaker Change: We think that's the new foundational technology sensing in the Neuromod market.

Speaker Change: So you know overall we feel good about the underlying fundamentals and where we're headed and you know we're focused on delivering our on our commitments and issuing guidance you know I'll end up issuing guidance that sets us up for success.

Speaker Change: Can you maybe give us a little bit of perspective of what you've seen in Europe now about a year post CE mark and whether we should use that as a proxy for thinking about how this product ramps in the US?

Jeff Gary: That's helpful, Geoff. And maybe one follow-up related to that on the guidance question. Gary, welcome to your first earnings call. The gross margin performance here in Q1 is really strong.

Jeff Gary: And it's that growth is driven strictly by demand of these new products.

Jeff Gary: It's under penetrated.

Jeff Gary: I mean, that's something we should be able to do.

Speaker Change: That's helpful, Geoff, and maybe one follow-up related to that, and the guidance question.

Gary Corona: Gary, welcome to your effort, earnings call. The gross margin performance here in Q1, really strong, but your guidance still does is you have a pretty meaningful step up in operating margins for back half, right? And when I looked at EPS guidance, Loan was tweaked, you know, it looks like there was some benefit from shared repercussions. I don't know if your prior guidance had baked in 1.5 billion shared repo. So maybe just talk about your margin, you know, visibility for a second half, and did that change over the last three months?

Jeff Gary: Moving down the P&L, our adjusted gross margin was 65.9%, down 50 basis points but ahead of expectations. As expected, the decline was entirely driven by the 80 basis point impact of currency. However, we continue to make progress on our underlying margin improvement activities. In Q1, pricing from our new innovation and our cost-out programs offset inflation, resulting in a 30 basis point increase in our gross margin on a constant currency basis.

Jeff Gary: Sure.

Speaker Change: Gary, welcome to your effort, earnings call.

Speaker Change: But your guidance still does assume a pretty meaningful step up in operating margins for back half, right? And when I look at your EPS guidance...

Speaker Change: And pricing uplifts that came with them, you know, structural heart, there's a lot of questions around the market there.

Speaker Change: lowin was tweak but you know it looks like there was some benefit from cherey purchase i don't knowif your prior guidance had bacon at one point five billion chevpo so maybe just talk about your margin

Gary Corona: The gross margin performance here in Q1, really strong, but your guidance still does is you have a pretty meaningful step up in operating margins for back half, right?

Speaker Change: you know visibility for a second half and and did that change over the last three months?

Speaker Change: And so I still think this is a strong growth market.

Speaker Change: We've got a lot of levers to pull that, a lot of levers to pull to achieve that.

Gary Corona: Thanks, VJ, and it's nice to meet you. I look forward to having a chance to meet all of you in person. Let me tackle your question about buyback first, and I'll take you through the puts and takes of the first quarter EPS. You know, our EPS starts with our top line, and as Geoff mentioned, our revenue growth was really strong, a full point higher than the midpoint of our guide. And Geoff talked about the highlights, you know, the midpoint of our guide, two of the three cents was really driven by the top line strength that he mentioned.

Speaker Change: Thanks for the question, David.

Speaker Change: I'll let Sean touch again on kind of where we are, where the market is, if you will, on capacity and what we're seeing.

Speaker Change: Things, and free up, at the same time, free up even more money for investment, which I'll get to.

Speaker Change: Thanks Vijay, and it's nice to meet you. I look forward to having a chance to meet all of you in person. Let me tackle your question about buyback first, and I'll take you through the puts and takes of the first quarter EPS.

Speaker Change: And then maybe come back.

Speaker Change: And when I looked at EPS guidance, Loan was tweaked, you know, it looks like there was some benefit from shared repercussions.

Speaker Change: A lot of interest, obviously, in our CAS business and, AFib right now.

Speaker Change: Go ahead, Sean.

Speaker Change: But we are doing a number of things, measures to hold, you know, our kind of, you know, overhead and enabling expenses low, flat to low, so that we can reinvest more in the top line.

Speaker Change: Our adjusted operating margin was 24.4%, in line with expectations. This was a decline of 40 basis points versus last year, but up 60 basis points in constant currency.

Speaker Change: And maybe I'll go back to Sean on this one.

Speaker Change: I don't know if your prior guidance had baked in 1.5 billion shared repo.

Speaker Change: Yeah, thanks for the question.

Speaker Change: So we're doing things that we've really, really focused on. Just like we have capital allocation focus, we also have a focus on our headcount and allocating human capital, where that goes, and got that under, in a good spot.

Speaker Change: You know, our EPS starts with our top line, and as Geoff mentioned, our revenue growth was really strong, a full point higher than the midpoint of our guide.

Speaker Change: Turning to capital allocation, our philosophy hasn't changed. We continue to balance investments for future growth, including Tuck and M&A, with returning capital to shareholders primarily through our dividend, and from time to time through opportunistic share repurchases. This calendar year, we've seen a significant value opportunity in our shares, and allocated more capital to share repurchase. Since our Q4 earnings call in May, we repurchased an incremental $1.5 billion of our shares, and in total, $4 billion over the past two quarters.

Speaker Change: Yeah, David, thanks for the question.

Speaker Change: We believe these buybacks will have an attractive return, given the conviction we have in growing our revenue, earnings, and free cash flow.

Speaker Change: And as we go forward, we'll continue to focus on Tuck and M&A.

Speaker Change: You know, we're not hearing from our customers about capacity constraints.

Speaker Change: We're driving, you know, we're holding our, really trying to hold our G&A, you know, flat, you know, as a base case, and then target areas we want to add for growth.

Speaker Change: So maybe just talk about your margin, you know, visibility for a second half, and did that change over the last three months?

Speaker Change: Now let's cover guidance. Given our Q1 outperformance and positive momentum, we're raising our full-year revenue and EPS guidance. We now expect fiscal 25 organic revenue growth of 4.5% to 5%, an increase from the prior range of 4% to 5%.

Speaker Change: The demand for PFA has really been unbelievably strong. And, you know, we're ramping up our, capacity, as Jeff mentioned, to meet that stronger growing demand right now.

Speaker Change: For Q2, we're expecting to deliver another quarter of mid-single-digit growth in the top line, and we'd have you model organic revenue growth of approximately 4.5%. Based on recent rates, FX would have an unfavorable impact to fiscal 25 in the range of $110 million to $210 million, including $10 million to $60 million in the second quarter.

Speaker Change: And Geoff talked about the highlights.

Speaker Change: Of course, our sample size may be a little smaller than our competitor.

Speaker Change: Like, for example, as the RDN reimbursement comes in, you know, we'll be adding more on our direct distribution for that.

Jeff Gary: You know, the midpoint of our guide, two of the three cents was really driven by the top line strength that he mentioned. Gross margins were strong, about 40 bps ahead of consensus.

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

Speaker Change: And, you know, those gains that we're seeing are more than offsetting that cryobusiness, of course.

Speaker Change: Taking this all together, we're raising our fiscal 25 non-GAAP diluted EPS guidance to a new range of $542 to $550, an increase from the prior range of $540 to $550.

Speaker Change: Thanks, VJ, and it's nice to meet you.

Gary Corona: Gross margins were strong, about 40 bips ahead of consensus, and operating margin was in line. Below the line, there were some moving pieces, and that netted to about a penny with the benefit that you mentioned from the share count helping, but we also had lower interest income and some pressure on the tax rate. So that's a little bit more visibility into Q1. You know, as we think about the leverage first half, second half, you know, the underlying leverage for driving is pretty similar on a constant currency basis, you know, with high single digit every quarter.

Jeff Gary: But, you know, we ask about the future for the service line as they add additional, you know, things into the structural heart component of it.

Jeff Gary: For the second quarter, we expect EPS of 124 to 126. The fiscal year 25 guidance range continues to include an unfavorable 5% impact from foreign, currency, including an 8% impact in Q2.

Jeff Gary: It doesn't seem like at the operator level, there's concerns.

Jeff Gary: In the US, of course, the freedom of beds for post procedure that goes beyond TAVR, that's been a challenge.

Jeff Gary: Further details on our annual guidance can be found in the guidance slide in our presentation.

Speaker Change: I look forward to having a chance to meet all of you in person.

Jeff Gary: But we're seeing some shifting of procedures to lower acute settings to make room.

Jeff Gary: And of course, the valve clinic, which works these patients up, that's, That's something you just add a capacity to when you need future capacity to expand it and you get a long runway to look at it.

Speaker Change: and Operating Margin was in line. Below the line there were some moving pieces and that netted to about a penny with the benefit that you mentioned from the share count helping, but we also had lower interest income and some pressure on the tax rate.

Speaker Change: So I think with expanding indications, we're pursuing a moderate aorist stenosis population, which is about two and a half million people in the US and transcatheter mitral replacement valves and things like that.

Speaker Change: So we'll work with centers to make sure that they have adequate training of operators and help them to expand capacity if it needs to be.

Speaker Change: But in the short run, I really don't see a challenge.

Speaker Change: To wrap up, I want to emphasize that we are laser focused on driving top line growth and, restoring the earnings power of the company.

Speaker Change: And I think hospitals have a long enough runway to plan for for space that they need it.

Speaker Change: Yeah, and I look, I agree on this one.

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

Speaker Change: And, but you know, when we see situations like that, when there's capacity, in the past, we've stepped in and helped the hospital, our hospital partners with capacity, like in Europe, you know, many, several years ago, we helped build out a number of and manage number of cath labs, when there was cath lab capacity constraints across Western Europe.

Speaker Change: You know, I could see us doing this in the ASC space in the US, you know, to help build out that.

Speaker Change: So that's how we would handle it, if we were to see an issue.

Speaker Change: So a very disciplined process to put, hold our expenses flat as a base case for G&A, and then, you know, invest in the high growth areas.

Speaker Change: But you know, we're not like Sean said, we're not hearing that in TAVR.

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

Speaker Change: You know, our EPS starts with our top line, and as Geoff mentioned, our revenue growth was really strong, a full point higher than the midpoint of our guide.

Speaker Change: So that's a little bit more visibility into Q1. You know, as we think about the leverage, first half, second half, you know, the underlying leverage we're driving is pretty similar on a constant currency basis, you know, with high single digit every quarter.

Speaker Change: And we're seeing consistent market growth, as we've signaled in that high single digit.

Speaker Change: Great.

Speaker Change: And also through, you know, a number of programs to drive efficiencies in our enabling functions, including the use of AI to drive some of these efficiencies.

Speaker Change: You saw that in our Q1 results, and you see it in our outlook for the rest of the year. We expect our EPS growth to accelerate in the back half as the impact from currency, lessens, exiting the year with high single digit growth.

Speaker Change: Thank you guys.

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

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

Speaker Change: Geoff, back to you.

Speaker Change: And Geoff talked about the highlights, you know, the midpoint of our guide, two of the three cents was really driven by the top line strength that he mentioned.

Gary Corona: The ramp is really an FX story, significant pressure on the first half due to FX, and that'll wane in the back half, constant currency growth ticks up slightly as we drive stronger revenue growth as a number of our therapies get to full market release. And as you know, we tend to have a pretty strong fourth quarter on the margin front. So, you know, that's the story on how the leverage will play out throughout the year. Great, thanks, guys. Thanks, DJ.

Speaker Change: Appreciate it.

Speaker Change: So that's how we're thinking about it.

Speaker Change: The ramp is really an FX story. Significant pressure on the first half due to FX, and that'll wane in the back half. Constant currency growth ticks up slightly as we drive stronger revenue growth.

Speaker Change: All right.

Speaker Change: Thanks, Gary.

Speaker Change: And, you know, we're just really getting launching FX plus, you know, going from limited market release to full market release, which is which is exciting, plus the accumulation of all the data, smart, low risk, etc, is a real tailwind for us, you know, to two businesses that had a particularly strong q1.

Speaker Change: Gross margins were strong, about 40 bips ahead of consensus, and operating margin was in line.

Speaker Change: as a number of of our therapies get to full market release and as you know we have we tend to have a pretty strong fourth quarter on the margin front so you that's the that's the story on on how the leverage of plant i'll play out throughout the year

Speaker Change: Now, before we go to the analyst questions, I want to close with a few thoughts.

Speaker Change: I think we can drive that earning, that leverage down the P&L.

Speaker Change: We've got a lot of different levers to pull to, to do that, at the same time, freeing up even more investment, both from our income statement into R&D, but also using the strong cash flow from the balance sheet, for tuck in M&A.

Speaker Change: Below the line, there were some moving pieces, and that netted to about a penny with the benefit that you mentioned from the share count helping, but we also had lower interest income and some pressure on the tax rate.

Speaker Change: And now you're seeing the payoff, as we are at the front end of some exciting new product, cycles.

Speaker Change: So that's a little bit more visibility into Q1.

Speaker Change: Thanks, Matt.

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

Speaker Change: You're seeing it in diabetes and in neuromodulation, in TAVR, and PFA, and as I look at our pipeline, I expect this momentum to continue as we invest heavily in future growth opportunities like hypertension and surgical robotics.

Speaker Change: Next question, please, Brett.

Speaker Change: That's how we're looking at it.

Speaker Change: Great, thanks guys.

Speaker Change: So, you know, that's the story on how the leverage will play out throughout the year.

Brad Welnick: Take the next question, please, Brad.

Speaker Change: We've also been working on the fundamentals. The foundation of this company is now much stronger.

Speaker Change: Great, thanks, guys.

Robbie Marcus: The next question comes from Robbie Marcus at JPMorgan. Robbie, please go ahead. Oh, great.

Speaker Change: The next question comes from David Roman at Golden Sacks.

Speaker Change: You know, again, prioritizing these high growth areas, but at the same time, making sure that the rest of our businesses are competitive.

Speaker Change: Thanks, Vijay. Take the next question, please, Brad. The next question comes from Robbie Marcus at J.P. Morgan. Robbie, please go ahead.

Speaker Change: David, please go ahead.

Speaker Change: And I feel like we've gotten to a good spot on that.

DJ: Thanks, DJ.

Speaker Change: Quality and operations are in a better spot, and we're investing in enhancing our digital, capabilities across the company to improve our speed.

Speaker Change: And we're really in a unique position having this offering of both a kind of single shot approach with our Pulse Select and then the point-by-point approach with Afera.

Speaker Change: Thank you.

DJ: Take the next question, please, Brad.

Que Dallara: Thanks for taking the question and congrats on a good quarter. With my one, I wanted to ask about diabetes. This is a pretty big shift in strategy for you. You've always been, you know, the provider with both the pump and the algorithm and the CGM all in one. Now with some plera about, you know, about to launch, maybe just walk us through the strategy of why partnering with Abbott was in your best interest.

Ravi Markecus: okaygreat thanks forre taking the question and congreats on a good quarter

Speaker Change: The next question comes from Robbie Marcus at JPMorgan.

Ravi Markecus: That, you know, I'm not sure is going to at that that high level that throughout the year one is diabetes, you know, diabetes should continue to have growth well above the company average.

Ravi Markecus: We're playing more offense.

Ravi Markecus: Pulse Select, you know, it's really gotten more case volume so far, because we're moving that launch both within Europe and the United States.

Ravi Markecus: And what we're hearing from customers is the precision and, predictability of the handling of the catheter.

Ravi Markecus: And importantly, that it shows up really well, both on mapping systems and on ultrasound.

Robbie Marcus: Robbie, please go ahead.

Speaker Change: With my one, I wanted to ask about diabetes. This is a pretty big shift in strategy for you. You've always been...

Speaker Change: Oh, great.

Speaker Change: You know, the provider with both the pump and the algorithm and the CGM all in one.

Ravi Markecus: We're building capacity in strategic growth areas.

Robbie Marcus: Thanks for taking the question and congrats on a good quarter.

Speaker Change: But you know, we're now annualizing the US launch of 780 g. And so I can see diabetes in the teams that last quarter, you're not sure we'll be able to sustain that the whole year.

Speaker Change: Now with Simplera about...

Speaker Change: We're looking to further increase organic investments, and are on the hunt for the right, tuck-in M&A opportunities.

Speaker Change: We've integrated a performance-driven mindset and an incentive structure that reinforces this.

Speaker Change: You know, about to launch, maybe just walk us through the strategy of why partnering with Abbott was in your best interest. Does this change your strategy at all? And how do we think about external versus internal investment in diabetes moving forward? Thanks.

Speaker Change: And in some cases, we've changed leadership to add increased operating rigor to our mission-driven, culture.

Que Dallara: Does this change your strategy at all? And how do we think about external versus internal investment in diabetes moving forward? Thanks. Thanks, Robby. Yeah, let's, like, you answer that question. Go ahead, cute. Thanks, Robby. I would say our strategy hasn't changed at all. I think what's really changed in the market is really a widespread recognition that AID really does provide better outcomes than CGM alone or MDI alone. And we always knew that there was a large install base of users that wanted access to our technology, our AID system.

Speaker Change: I'll take it all together.

Speaker Change: With my one, I wanted to ask about diabetes.

Speaker Change: This is now translating into the top-line growth momentum and improved earnings power, that you're seeing in our results, and as we continue to execute, this will create meaningful value for society and for shareholders.

Speaker Change: Finally, I'd like to thank all of our employees around the world.

Speaker Change: And that's important because you've got to put the electrodes in the right spot in the tissue, so you get good ablation and isolation without doing extraneous injury.

Speaker Change: i

Speaker Change: Thanks Robbie. I would say our strategy hasn't changed at all. I think what's really changed in the market is

Speaker Change: And CRM also had a really good quarter, you know, some great, we have a really nice product portfolio across the CRM, all the CRM segments, but we're not banking on CRM growing 8% every quarter.

Speaker Change: Those two, there was nothing one time about them, but just really strong execution.

Speaker Change: I realize that we've driven a lot of change, and that can be uncomfortable.

Speaker Change: And that's really been appreciated.

Speaker Change: This is a pretty big shift in strategy for you.

Speaker Change: And I think across the company, I could just keep going on the list.

Speaker Change: You've always been, you know, the provider with both the pump and the algorithm and the CGM all in one.

Speaker Change: I appreciate all that you've done to embrace these changes, and it's rewarding to see your, efforts paying off.

Speaker Change: And, of course, the point-by-point approach with Afera is really unique and differentiated for us as well.

Speaker Change: You know, the same catheter being able to create this beautiful map.

Speaker Change: There's just a lot of new products out there in the early stages.

Speaker Change: And you can use either energy source, depending on where you want to be anatomically, to avoid things like coronary spasm and the isthmus lines.

Speaker Change: So overall, we feel good about the underlying fundamentals and where we're headed.

Speaker Change: And also the lattice tip, it's a really maybe underappreciated part of this Sphere 9 catheter.

Speaker Change: really a wites be recognition that a id really does provide better outcomes than cgm alone or mdii alone and we always knew that there was a large and sbase of users that one it access to our technology a id system

Speaker Change: It's got this lattice that has excellent electrode stability, and it's three times wider than a normal kind of ablation electrode you use for RF.

Speaker Change: So the precision and speed of that is really fantastic.

Speaker Change: Now with some plera about, you know, about to launch, maybe just walk us through the strategy of why partnering with Abbott was in your best interest.

Speaker Change: So, look, on the technology side, everything's going really well.

Speaker Change: Does this change your strategy at all?

Que Dallara: We still believe in the system benefits exceed to some of the parts, as you mentioned, wrapping it all together without algorithm, the CGM, the pumping devices. And the typical integration you see in the market is puts a burden, puts a technology burden on the part of patients. And so we wanted to find a way to provide the one metronic experience, the one phone number you can call for patients that may prefer a different sensor.

Speaker Change: You're asking about ramping in Europe.

Speaker Change: We still believe in the system benefits exceed the sum of the parts, as you mentioned.

Speaker Change: There are more cost constraints in Europe, of course, than what we see in markets like the U.S. and Japan, where new technology, even at a higher price, seems to get adopted.

Speaker Change: Wrapping it all together with our algorithm, the CGM, the pumping devices.

Speaker Change: And how do we think about external versus internal investment in diabetes moving forward?

Speaker Change: So, you know, the uptake of PFA would be relatively slower, but still robust as we go ahead with this technology.

Speaker Change: And the typical integration you see in the market is, puts a technology burden on the part of patients. And so we wanted to find a way to provide the one Medtronic experience, the one phone number you can call.

Speaker Change: I think there's some lingering questions on durability, and we'll see some data at the, upcoming APHRS meeting, where we'll still... Longer-term durability of our pulse-select catheters.

Speaker Change: Thanks.

Speaker Change: As we look to the next 75 years of Medtronic, I'm excited about the possibilities before, us.

Speaker Change: We've already demonstrated that with SPHERE 9.

Speaker Change: Together, we're building a stronger and more resilient company.

Speaker Change: And I'd say, look, the opportunity to offer patients something that's really safe, really effective, lasts a long time, I think really does open up the aperture for more and more patients to flow through.

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

Speaker Change: You know, waiting lists are a challenge for that business. And I think having a more efficient procedure with great workflow really helps.

Speaker Change: And then, of course, we can leverage the larger portfolio of Medtronic to help with sort of the economics of this in any country and around the world.

Speaker Change: So with that, let's move to Q&A, where we're going to try to get as many analysts as possible.

Speaker Change: So, look, I think the future for pulse-filled ablation, we're just getting going, but this is going to be a really robust growth market for a long time to come.

Speaker Change: And just to emphasize something Sean said, we're really, you know, excited to be the only player with, you know, differentiated offerings in both the single-shot and this point-by-point segments of the market.

Speaker Change: Both pulse-select and Afera have, you know, differentiated features.

Speaker Change: And we're focused on delivering on our commitments and issuing guidance.

Speaker Change: And, and we'll see, we're seeing the benefits of that now.

Speaker Change #100: Thanks, Robby.

Que Dallara: And, you know, we're pleased to say that we found a path that works for patients from an experienced standpoint, as well as for Abbott and for ourselves. And so that's what I would say would be the response to your question. The strategy hasn't changed. We just found a way to expand access to a broader install base. And I think what hasn't changed is really our commitment towards the system, our confidence in our CGM, the Semplera launches, Semplera and Semplera Sink launches in Europe.

Speaker Change: You know, Sean mentioned the handling of the catheter and pulse-select, and that's really ramping for us, you know, quite well right now.

Speaker Change: for patients that may prefer a different sensor. And, you know, we're pleased to say that we found a path that works for patients from an experience standpoint, as well as for Abbott and for ourselves.

Speaker Change: So we ask that you limit yourself to just one question and only, if needed, a related, follow-up.

Speaker Change: And Afera's, the ramp, you know, obviously we don't have approval yet in the U.S., and the ramp for that will be a little behind, you know, where we are with pulse-select.

Speaker Change: You know, I'll end up issuing guides that set this up for success.

Speaker Change: And we're going to continue to see the benefits of that on into the future.

Speaker Change: Okay, thanks, Patrick.

Speaker Change #101: Yeah, let's, like, you answer that question.

Speaker Change: If you have additional questions, you can reach out to Ryan and the Investor Relations, team after the call.

Speaker Change: But pulse-select is doing really well.

Speaker Change: And so that's what I would say would be the response to your question. The strategy hasn't changed. We've just found a way to expand access to a broader install base. And I think...

Speaker Change: Geoff, please go ahead with your closing remarks.

Speaker Change #102: Go ahead, cute.

Speaker Change: With that, Brad, can you please give the instructions for asking a question?

Speaker Change: And I think it's, you know, I think you just don't, yeah, I think the analyst community is kind of, has moved past pulse-select a little bit, and I'm not sure that's the right call.

Speaker Change: Okay, thanks, Ryan.

Speaker Change #103: Thanks, Robby.

Speaker Change #104: I would say our strategy hasn't changed at all.

Speaker Change: Thank you.

Speaker Change: For the cell site analysts that would like to ask a question, please select the Participants button and click Raise Hand.

Speaker Change: What hasn't changed is really our commitment towards the system, our confidence in our CGM. The Simplera launches, Simplera and Simplera Sync launches in Europe have gone very well. We're very pleased with the early experience.

Speaker Change: If you're using the mobile app, press the More button and select Raise Hand.

Speaker Change: But, I mean, it's doing really well.

Que Dallara: It's gone very well. We're very pleased with the early experience. And we're pleased that we now have FDA approval for Semplera in the U.S. And we're working with the agency to get Semplera Sink approved as well for integration with the SMAG system.

Robbie Marcus: Great. Thanks a lot. Thanks, Robbie.

Speaker Change: Your lines are currently on mute.

Speaker Change: Thanks, David.

Speaker Change: And we're pleased that we now have FDA approval for Templar in the U.S.

Speaker Change: And we're working with the agency to get Sinclaira Sync approved as well for integration with the 7AIG system.

Speaker Change: We'll take the next question, please, Brad.

Speaker Change: That's helpful, Geoff, and maybe one follow-up related to that on the guidance question.

Speaker Change: Gary, welcome to your first earnings call.

Speaker Change: And thanks, everybody, for the great questions.

Speaker Change: right thanks lot

Travis Diet: Next question, please, Brad. The next question comes from Travis Diet at Bank of America Global Research. Travis, please go ahead. Hey, guys, congrats on the quarter. I lost my one question on, on Tava and just wanted to get kind of what you're sensing in the market today given some of the comments from the competitor there and looking forward when you think about the effects plus launch. How do you expect that to impact the market, impact the share? And is that going to help you, you know, with some of the smart data and how you see the Tava market playing out. Thanks a lot.

Speaker Change: The gross margin performance here in Q1, really strong, but your guidance still does assume a pretty meaningful step up in operating margins for back half, right?

Speaker Change: And we certainly appreciate your support and interest in Medtronic.

Speaker Change: When called upon, you will receive a request to unmute your line, which you must respond to before asking your question.

Speaker Change: The next question comes from Jason Bedford at Raymond James.

Travis: Thanks Robbie. Next question please Brad. The next question comes from Travis Steed at Bank of America Global Research. Travis please go ahead.

Travis: And when I look at your EPS guidance, low-end was tweaked.

Travis: We hope you'll join us for our Q2 earnings broadcast, which we anticipate holding on Tuesday, November 19th. Now, that's the week before Thanksgiving in the U.S. this year.

Travis: Lastly, please be advised that this Q&A session is being recorded.

Travis: Jason, please go ahead.

Travis: You know, it looks like there was some benefit from share repurchase.

Travis: Again, as usual, we'll update you on our progress against our long-term strategies and our commitments, both short and long term.

Speaker Change #105: I think what's really changed in the market is really a widespread recognition that AID really does provide better outcomes than CGM alone or MDI alone.

travis ded: Hey guys, congrats on the quarter. I lost my one question on TAVR and just wanted to get kind of what you're sensing in the market today given some of the comments from the competitor there and looking forward when you think about the FX Plus launch.

Travis: For today's session, Jeff, Gary, and Ryan are joined by Que Dallara, EVP and President of Diabetes, Mike Marinaro, EVP and President of the Medical Surgical Portfolio, Sean Salmon, EVP and President of the Cardiovascular Portfolio, and Brett Wall, EVP and President of the Neuroscience Portfolio.

Travis: We'll pause for a few seconds to assemble the queue.

Speaker Change #106: And we always knew that there was a large install base of users that wanted access to our technology, our AID system.

travis ded: How do you expect that to impact the market, impact the share, and is that going to help you with some of the smart data and how you see the Tavern market playing out? Thanks a lot.

Speaker Change #106: We still believe in the system benefits exceed to some of the parts, as you mentioned, wrapping it all together without algorithm, the CGM, the pumping devices.

Travis: We'll take the first question from Vijay Kumar at Evercore ISI.

Speaker Change #106: And the typical integration you see in the market is puts a burden, puts a technology burden on the part of patients.

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

Sean Salmon: Hi, Travis. I'm going to hand that one over to Sean. I have sex with a question with the temper mark. We think it's pretty solid. I think we're growing in line with the market in high single digits right now. And of course, you know, the data momentum that we have the lowest data versus surgery. I think that's been very compelling and going to read up five year on that data in the coming year here as well.

travis ded: Vijay, please go ahead.

travis ded: Hey Travis, I'm gonna hand that one over to Sean.

Sean: Thanks for the question. The capital market we think is pretty solid. I think we're growing in line with the market in high single digits right now.

Sean: And of course, you know, the data momentum that we have.

Sean: The low-risk data versus surgery, I think that's been very compelling.

Sean Salmon: And of course, smart days really gotten a lot of attention for the right treatment strategy for small annals and particularly women. And that's resonated really globally to as small annals as a sort of a function of body habit as well. You know, FX plus has done exceptionally well and it's really much. We did a full of limited market release in the month of July. And we saw that momentum really pick up.

Speaker Change: I'm going to read up five year on that data in the coming year here as well.

Speaker Change: And of course, Smart Day has really gotten a lot of attention for the right treatment strategy for...

Speaker Change: Small animals, and particularly women, and that's resonated really globally too.

Speaker Change: FxPlus has done exceptionally well in its early launch. We did a full limited market release in the month of July and we saw that momentum really pick up

Sean Salmon: So I think that'll afford ten of really good continued access or continued growth of that part of the segment. What people really like is those bigger windows, you can then align onto the native cornering anatomy. So overlapping the costs to making sure that you get that I'm sure alignment and preserving future access. So that's all done without any trade off and deliverability. It's, you know, got the features of effects which really improve the usability of that device.

Speaker Change: So I think that'll, a 4.10, a really good...

Speaker Change: continued to access or continued growth to that are of the segment what people really like is those bigger windows you can then align onto the native coronarian anomy so over' belapping the costs

Speaker Change: to making sure that you get that commercial alignment and preserving future access so that that's all done without any trade-off on deliverability it's

Speaker Change: You know, got the features of FX, which really improved the usability of that device. And of course, the U.S. is moving into full market launch right now. And within this year, we'll also obtain approvals in other geographies, which will keep the momentum going. So, you know, for us, I think the market's working really well.

Sean Salmon: And of course, the US is moving into full market launch right now and within this year will also tame approvals and other geographies, which will keep them momentum going. So, you know, for us, I think the markets working really well. And we're excited to bring this new technology. Thank you. Great. Thanks a lot. Thanks, Travis.

Speaker Change: And we're excited to bring this new technology.

travis ded: Hey, guys, thanks for taking my question.

Speaker Change: I don't know if your prior guidance had baked in a 1.5 billion share repo.

Danielle Antalffy: Next question, please, Brad. The next question comes from Danielle and Talfi with UBS security. Danielle, please go ahead. Great. Thanks so much for taking the question. Good morning, everyone. Congrats on a good start to the year here.

Speaker Change: Great, thanks a lot.

Speaker Change: So maybe just talk about your margin, uh you know visibility uh for a second half and and did that change uh over the last three months?

Davis: thanks davis next question please read

Speaker Change: The next question comes from Danielle Antalffy with UBS Securities. Danielle, please go ahead.

Speaker Change: Can you hear me okay?

Speaker Change: Yeah, thanks, Vijay.

Speaker Change: And good morning, everyone.

Speaker Change: Jeff, congrats on a really nice quarter here. Maybe my first question here is the organic execution in the quarter, well above your guidance expectations, I think north of 100 basis points.

Speaker Change: Yep, we can, Jason.

Speaker Change: And it's nice to meet you.

Speaker Change: I was hoping you could go into a little bit more detail on Oniferra.

Speaker Change: I look forward to having a chance to meet all of you in person.

Daniel: Great. Thanks so much for taking the question. Good morning, everyone. Congrats on a good start to the year here. Q, I just wanted to follow up on diabetes and just how should we be thinking about this partnership with Abbott? Appreciating you're not giving timelines here.

Speaker Change: It's also above your annual guidance rate.

Speaker Change: Okay.

Que Dallara: Q, I just wanted to follow up on on diabetes and just how should we be thinking about this partnership with Abbott appreciating you're not giving timelines here. But how are you thinking about it and how it could grow the installed base sort of what are you thinking about? I mean, Abbott has a pretty large installed base today. So we'd be thinking about that as well, hanging fruit for the pump side of the business.

Daniel: Let me tackle your question about buyback first.

Daniel: Geoff, you mentioned that it's still obviously pending FDA review and that you're in limited market release outside the United States.

Daniel: It seems like it was pretty broad based.

Daniel: And I'll take you through the puts and takes of the first quarter EPS.

Daniel: Can you maybe give us a little bit of perspective of what you've seen in Europe now about a year post CE mark and whether we should use that as a proxy for thinking about how this product ramps in the U.S.?

Daniel: You know, our EPS starts with our top line.

Daniel: And as Geoff mentioned, our revenue growth was really strong, a full point higher than the midpoint of our guide.

Daniel: And Geoff talked about the highlights.

Daniel: So that's a little bit more visibility into Q1.

Daniel: Sure.

Daniel: You know, the midpoint of our guide, two of the three cents was really driven by the top line strength that he mentioned.

Daniel: Gross margins were strong, about 40 bps ahead of consensus, and operating margin was in line. Below the line, there were some moving pieces. And that netted to about a penny with the benefit that you mentioned from the share count helping.

Daniel: But we also had lower interest income and some pressure on the tax rate.

Speaker Change: but how are you thinking about it and how it could grow the installed base sort of what are you thinking about i mean abt

Speaker Change: You know, as we think about the leverage, first half, second half, you know, the underlying leverage we're driving is pretty similar on a constant currency basis, you know, with high single digit every quarter.

Speaker Change: Thanks for the question, David.

Speaker Change: The ramp is really an FX story, significant pressure on the first half due to FX, and that'll wane in the back half.

Speaker Change: Constant currency growth ticks up slightly as we drive stronger revenue growth, as a number of our therapies get to full market release.

Speaker Change: And as you know, we tend to have a pretty strong fourth quarter on the margin front.

Speaker Change: A lot of interest, obviously, in our CAS business and AFIB right now, and maybe I'll go back to Sean on this.

Speaker Change: has a pretty large installed base today, so should we be thinking about that as low-hanging fruit for the pump side of the business? Any more color you can give on how we should think about this changing the trajectory for the diabetes business? Thanks so much.

Speaker Change: Yeah, Dave, thanks for the question.

Speaker Change: You know, the demand for PFA has really been unbelievably strong.

Que Dallara: Any more color you can give on how we should think about this changing the trajectory for the diabetes business. Thanks so much. I mean, I think the most obvious opportunity are for a very large install base of users that prefer the Abbott sensor to now have access to our technology. So unfortunately, I can't give you timelines that rest assured that we're working as fast as we can to get to incorporate that sense into our system.

Speaker Change #107: And so we wanted to find a way to provide the one metronic experience, the one phone number you can call for patients that may prefer a different sensor.

Speaker Change: And, you know, we're ramping up our capacity, as Jeff mentioned, to meet that stronger growing demand right now.

Speaker Change: I mean, I think the most obvious opportunity...

Speaker Change: are for a very large in-store base of users that prefer the Abbott sensor to now have access to our technology so

Speaker Change #108: And, you know, we're pleased to say that we found a path that works for patients from an experienced standpoint, as well as for Abbott and for ourselves.

Speaker Change: Unfortunately, I can't give you timelines, but rest assured that we're working as fast as we can to get

Speaker Change: Incorporated,

Speaker Change #108: And so that's what I would say would be the response to your question.

Que Dallara: And really providing that one maternal experience where there's one single app. Patients can choose between two sensor options, but still experience our, our AID system and the automation that comes with our algorithm. And so that's the that's the use experience we want to bring to the market. We think that's pretty differentiated. And it allows us to tap into the largest CGM install base in the world in addition to our own growing our own install base. Thank you. Thanks, Danielle.

Speaker Change: that sends into our system.

Speaker Change: and really providing that one Medtronic experience where there's one single app.

Speaker Change #108: The strategy hasn't changed. We just found a way to expand access to a broader install base.

Speaker Change: Patients can choose between two sensor options, but still experience our.

Speaker Change: Our AI ID system and the automation that comes with our algorithm. And so that's the that's the user experience we want to bring to the market. We think that's pretty differentiated. And it allows us to tap into the largest CGM install base.

Speaker Change: So, you know, that's the story on how the leverage will play out throughout the year.

Speaker Change #109: And I think what hasn't changed is really our commitment towards the system, our confidence in our CGM, the Semplera launches, Semplera and Semplera Sink launches in Europe.

Speaker Change: Great.

Speaker Change #109: It's gone very well.

Speaker Change #109: We're very pleased with the early experience.

Speaker Change: Thanks, guys.

Speaker Change: in the world, in addition to our own and growing our own install base.

Speaker Change #110: And we're pleased that we now have FDA approval for Semplera in the U.S.

Speaker Change: Thanks, Vijay.

Speaker Change #111: And we're working with the agency to get Semplera Sink approved as well for integration with the SMAG system.

Speaker Change: Take the next question, please, Brad.

Speaker Change: Thank you.

Speaker Change #111: Great.

Larry Beagleson: Next question, Brad. The next question comes from Larry Beagleson and Wells Farrow securities Larry, please go ahead. Thanks for taking the question for my one question. I wanted to ask about the progress with you go for Mike and Jeff. So it sounds like you've reached the target enrollment in expand your out the pivotal US trial. When are we going to see the data? You know, what's the timeline for US filing? You know, could we see potential launch this year? Or next year? And Jeff, there's still questions around that your commitment to you go just maybe, you know, put any of those concerns to rest here. Thank you. All right, thanks, Larry.

Speaker Change: You know, based on your current outlook, it implies like your back half should be below what your one queue performance was, right?

Speaker Change #111: Thanks a lot.

Speaker Change: The next question comes from Robbie Marcus at J.P. Morgan.

Daniel: Thanks, Danielle. Next question, Brett. The next question comes from Larry Biegelsen at Wells Fargo Securities. Larry, please go ahead.

Daniel: Robbie, please go ahead.

Daniel: So maybe just talk about sustainability of one queue, why these trends can't sustain in the back half.

Daniel: Were there any one offs that drove Q1 performance?

Daniel: Maybe just to follow along just on the cast question.

Daniel: Oh, great.

Robbie Marcus: Thanks, Robbie.

Daniel: Good to hear from you.

Daniel: One, I guess, do you find that folks are waiting for, in the U.S., for Afera slash Sphere 9?

Daniel: Yeah, let me just answer that question directly.

Brad: Next question, please, Brad.

Larry Biegelsen: Good morning. Thanks for taking the question. For my one question, I wanted to ask about the progress with UGO.

Daniel: There was no one offs that drove the performance.

Brad: The next question comes from Travis Diet at Bank of America Global Research.

Speaker Change: for Mike and Jeff, so.

Speaker Change: It sounds like you've reached the targeted enrollment in Expand Euro, the pivotal U.S. trial.

Travis Diet: Travis, please go ahead.

Speaker Change #114: Hey, guys, congrats on the quarter.

Jeff Gary: When are we going to see the data, you know, what's the timeline for U.S. filing, you know, could we see potential launch this year or next year? And, Geoff, there's still questions around your commitment to UGO. Just maybe, you know, put any of those concerns to rest here. Thank you.

Travis Diet: I lost my one question on, on Tava and just wanted to get kind of what you're sensing in the market today given some of the comments from the competitor there and looking forward when you think about the effects plus launch.

Speaker Change #115: How do you expect that to impact the market, impact the share?

Speaker Change #115: And is that going to help you, you know, with some of the smart data and how you see the Tava market playing out.

Daniel: And then, second, you did talk about an acceleration in cash revenue growing forward, an acceleration in growth.

Speaker Change #115: Thanks a lot.

Speaker Change #116: Hi, Travis.

Speaker Change #116: I'm going to hand that one over to Sean.

Mike Marinaro: Well, maybe I'll have Mike answer the first couple questions and I'll come in afterwards. Yeah, good morning, Larry. So on Hugo, we are happy with the progress for making and the clinical work. As mentioned, we have reached targeted enrollment. There's still work to do. As we reach the final endpoints and then completing the filing. So we won't be giving a specific date in terms of submission, but, but very good progress and a very appreciative of the work that we're doing together with our surgeon partners and our teams.

Jeff Gary: Alright, thanks Larry. Maybe I'll have Mike answer the first couple questions and then I'll come in afterwards.

Daniel: And, you know, overall, I'd say it's sustainable because, like I said in the commentary, we're in the beginning stages of some real, you know, really exciting product cycles here.

Daniel: Do you expect to be in a position to grow faster than the market exiting the year?

Jeff Gary: Thanks for taking the question and congrats on a good quarter.

Speaker Change #117: I have sex with a question with the temper mark.

Jeff Gary: With my one I wanted to ask about diabetes.

Speaker Change #118: We think it's pretty solid.

Mike Marinaro: Also, as noted, we're making good progress in the enrollment of Boltonia and the gynecology clinical series that will allow us to then have a cadence of indications, which will be critical to the US launch. So it's a very good work across the clinical series and, again, appreciative of the work of of our surgeon partners and teams. Jeff Yeah, so look, as Mike said, look, there's a couple of things on Hugo here, two inflection points that you need to happen for us to see the impact of the metronic level, you know, the US approval and then just getting, getting our, you know, leading instrumentation onto the robot and other capabilities, as Mike mentioned, you know, we're making, we're making progress on on both.

Jeff Gary: Yeah, good morning Larry. So on Hugo, we are happy with the progress we're making in the clinical

Jeff Gary: Sean, do you want to take these?

Jeff Gary: This is a pretty big shift.

Jeff Gary: Strategy for you, you've always been.., provider with both the pump and the algorithm and the CGM all in one.

Speaker Change #119: I think we're growing in line with the market in high single digits right now.

Jeff Gary: Now with Simplera about, about to launch.

Speaker Change: work as mentioned we have reached targeted enrollment there still work to do

Speaker Change: as we reach the final endpoints and then completing the filing.

Speaker Change: We won't be giving a specific date in terms of submission, but very good progress and very appreciative of the work that we're doing together with our surgeon partners and our teams.

Speaker Change: Also, as noted, we're making good progress in the enrollment of both hernia and the gynecology.

Speaker Change: clinical series that will allow us to then have a cadence of indications which will be critical to the U.S. launch. So very good work across the clinical series and again appreciative of the work of our surgeon partners and teams. Geoff?

Jeff Gary: You know, in our Q1, you know, I see, you know, a couple of things like Neuromod, you know, getting to 10, you know, double digits.

Jeff Gary: Yeah, I guess on the first question, Jason, of course people really, really want Afera.

Jeff Gary: That that is really all about the new technology that, you know, we've missed the first quarter.

Jeff Gary: You know, the vast majority of the ablation market favors point-by-point solutions with mapping in the United States in particular.

Jeff Gary: We had both our pain stem, closed loop therapy, inceptive, as well as, you know, DBS, closed loop therapy.

Jeff Gary: So, the, you know, the appeal of that product is really strong.

Jeff Gary: And so, you know, we're in the early stages of that.

Jeff Gary: But no one's waiting for it.

Speaker Change: Maybe just walk us through the strategy of why partnering with Abbott was in your best interest.

Speaker Change: And that's that that growth is really driven by that.

Speaker Change: We think that's the new foundational technology sensing in the Neuromod market.

Speaker Change: I mean, we're getting as much usage, maybe actually more, from traditional point-by-point users as we are getting from single-shot users.

Speaker Change: not believe that

Jeff Gary: Yeah, so look, as Mike said, look, there's a couple of things on Hugo here, two inflection points that you need to happen for us to see the impact at the Medtronic level, you know, the U.S. approval and then just getting

Speaker Change: And it's that growth is driven strictly by demand of these new products and pricing uplifts that came with them.

Speaker Change: And, you know, as we bring that technology out, I think the uptake's going to be pretty robust and rapid on top of what we're already doing with Pulse Select.

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

Jeff Gary: getting our leading instrumentation on to the robot and other capabilities as as mike mented we're making 're making progress on both so this is this is like a midterm growth driver for us i'd say beyond the fiscal year but

Mike Marinaro: So this is, this is like a, you know, a midterm growth driver for us. I'd say beyond the fiscal year. But, you know, just get back to your question on our commitment, Larry, and we're absolutely committed to this. I, you know, and I, with all due, it's a, it's a, we do think surgery as robotics is really across many different surgical areas, including orthopedics where we plan spine is a big driver in the space.

Mike Marinaro: And we're committed to being not just part of it, but being, you know, helping to lead that like we're doing in spine. And with, you know, no, we're up against that really strong and trans competitor here in the soft tissue space. But we are, we are committed. We have leveraged the poll. We have a great surgery franchise. You know, we've learned quite a bit about the robotics over the years and also the understanding that it's more than just the robot.

Speaker Change: You know, to get back to your question on our commitment, Larry, you know, we're absolutely committed to this, you know, and I, with all due, it's a, it's a, we do think surgery, robotics is really across many different surgical areas, including orthopedics, where we plan spine is a big driver in the space.

Speaker Change #120: And of course, you know, the data momentum that we have the lowest data versus surgery.

Speaker Change #121: I think that's been very compelling and going to read up five year on that data in the coming year here as well.

Speaker Change: and we're committed to being not just part of it but being you know helping to lead that like we're doing in spine and with you know know we're up against a really strong entrenched competitor here in the soft tissue space.

Speaker Change #121: And of course, smart days really gotten a lot of attention for the right treatment strategy for small annals and particularly women.

Speaker Change #121: And that's resonated really globally to as small annals as a sort of a function of body habit as well.

Speaker Change #121: You know, FX plus has done exceptionally well and it's really much.

Speaker Change #122: We did a full of limited market release in the month of July. And we saw that momentum really pick up.

Speaker Change: But we are committed. We have leveraged the pull. We have a great surgery franchise. We've learned quite a bit about robotics over the years and also the understanding that it's more than just the robotics. A lot of other technology that goes in there, imaging, navigation.

Speaker Change #122: So I think that'll afford ten of really good continued access or continued growth of that part of the segment.

Speaker Change #122: What people really like is those bigger windows, you can then align onto the native cornering anatomy.

Mike Marinaro: It's a lot of other technology that goes in their imaging navigation. You know, the instrumentation AI, so the digital piece. So there's a lot to it. A lot of levers to pull and we're committed and, and we're confident. And that just point back to, you know, a couple of years ago, other franchises that, that people are questioning. Can you, can you compete whether it's spine or whether it's diabetes or neuromod. You know, we're focused on it.

Speaker Change #122: So overlapping the costs to making sure that you get that I'm sure alignment and preserving future access.

Speaker Change: the instrumentation ai so the digital piece so ' a lot to a lot of levers the pool and we're committed and we're confident and that' just point back to

Speaker Change #122: So that's all done without any trade off and deliverability.

Speaker Change #122: It's, you know, got the features of effects which really improve the usability of that device.

Speaker Change #122: And of course, the US is moving into full market launch right now and within this year will also tame approvals and other geographies, which will keep them momentum going.

Speaker Change: You know a couple years ago other franchises that that people were questioning can you can you compete whether it's spine or whether it's diabetes or neuromod

Speaker Change #122: So, you know, for us, I think the markets working really well.

Speaker Change #122: And we're excited to bring this new technology.

Speaker Change #122: Thank you.

Mike Marinaro: You see those, you see those all, you know, get to a much, much better spot with the focus and investment. And that's where we are on surgery and my level confidence on this is high because of the levers we have to pull the team. We have in place the franchise we have. But, but, but, but knowing that the entrenched competitors are strong. So understanding that, but still knowing, you know, having confidence in our team.

Speaker Change: we're focused on it you see those you seeing those all get to a much much better spot with the focus and investment and that's where we are on surgery and level confidence on this

Speaker Change #122: Great.

Geoffrey Martha: Thank you. Thanks, Larry.

Speaker Change #122: Thanks a lot.

Speaker Change: is high because of the levers we have to pull, the team we have in place, the franchise we have, but knowing that the entrenched competitor is very strong, so understanding that, but still knowing, you know, having confidence in our team.

Speaker Change #123: Thanks, Travis.

Speaker Change: Does this change your strategy at all?

Speaker Change #124: Next question, please, Brad.

David Rescott: Next question, please, Brad. The next question comes from David Rascott at Barrett equity research. David, please go ahead. Great, thanks for clicking the questions and congratulating the strong start to the year here. Jeff, I heard your comments on being on the hunt for M&A. I'm curious if you could help us kind of understand maybe what areas strategically you think make the most sense in the portfolio when you kind of think about the size of the Medtronic portfolio. I guess how do you balance that kind of near term, what can be needle moving versus what can move the needle over the two to three year period and three to four years?

Speaker Change: Thank you.

Speaker Change: And how do we think about external versus internal investment in diabetes moving forward?

Speaker Change #125: The next question comes from Danielle and Talfi with UBS security.

Larry Biegelsen: Thanks, Larry. Next question, please, Brad. The next question comes from David Rescott at Barrett Equity Research. David, please go ahead.

Larry Biegelsen: Thanks.

Danielle: Danielle, please go ahead.

Larry Biegelsen: Thanks, Jason.

Larry Biegelsen: Thanks, Robbie.

Danielle: Great.

Speaker Change: Oh, great. Thanks for taking the questions and congrats on the strong start to the year here. Geoff, I heard your comments on, you know, being on the hunt for M&A. I'm curious if you could help us kind of understand, you know, maybe what areas strategically you think make the most sense in the portfolio when you...

Larry Biegelsen: Thank you, Jason.

Speaker Change #127: Thanks so much for taking the question.

Larry Biegelsen: Next question, please, Brett.

Speaker Change #128: Good morning, everyone.

Speaker Change #129: Congrats on a good start to the year here.

Speaker Change: And think about the size of the Medtronic portfolio. I guess, how do you balance that kind of near term, what can be needle moving versus, you know, what can move the needle over the two to three year period and three to five year period? Thank you.

Speaker Change #130: Q, I just wanted to follow up on on diabetes and just how should we be thinking about this partnership with Abbott appreciating you're not giving timelines here.

Geoffrey Martha: Thank you, thank you for the question, David. Yeah, I mean, look, it on the M&A side, this is one of the areas, it's part of a larger capital allocation strategy, right? We talk about, you know, little C capital allocation and big C capital allocation, we're talking about allocating our money to the areas of highest growth. And the M&A strategy has to play with our organic strategy and both are pointed towards the highest growth areas, you know, ablation, you know, eighth of ablation is the cases point where we did the affair acquisition as well as a needle crossing acquisition.

Larry Biegelsen: The next question comes from Joanne Lynch at Citi.

Speaker Change: Yeah, let's let Q answer that question.

Speaker Change: Joanne, please go ahead.

Speaker Change #130: But how are you thinking about it and how it could grow the installed base sort of what are you thinking about?

Speaker Change: Thanks. Thanks for the question, David. Yeah, I mean, look, it's...

Speaker Change: Go ahead, Q.

Speaker Change: Good morning, and thank you so much for taking the question.

Speaker Change: On the M&A side, this is one of the areas, it's part of our larger capital allocation strategy, right? We talk about little C capital allocation and big C capital allocation. We're talking about allocating our money.

Speaker Change #130: I mean, Abbott has a pretty large installed base today.

Speaker Change: Thanks, Robbie.

Speaker Change #131: So we'd be thinking about that as well, hanging fruit for the pump side of the business.

Speaker Change: to the areas of highest growth and the M&A strategy has to play with our organic strategy and both are pointed towards the highest growth areas.

Speaker Change: Ablation, you know, ACE of ablation is a case in point where we did the affair acquisition as well as a needle crossing acquisition.

Speaker Change #131: Any more color you can give on how we should think about this changing the trajectory for the diabetes business.

Geoffrey Martha: Yeah, that's those are the areas that were that were pointed to, but we're, you know, we are still focused on, you know, value creating tuck in M&A, so with that growth and margin profile that I that I just talked about so it's, I don't want to point out specific areas other than the high growth areas that are, you know, whether they be a product tuck into an existing business or an adjacency to an existing business tuck in. And that's what we're focused and I think, you know, nothing nothing's changed there, except that I think over the last year and a half or so, you know, we've had a lot of operational focus areas that we've had and and and and that's been the focus is is really getting the operations.

Speaker Change: I would say our strategy hasn't changed at all.

Speaker Change: I think what's really changed in the market is, um really a widespread recognition that AID really does provide better outcomes than CGM alone or MDI alone and we always knew that there was a large install base of users that wanted access to our technology our AID system, We still believe in the system benefits exceed the sum of the parts, as you mentioned.

Speaker Change: Those are the areas that were pointed to, but we are still focused on value-creating tuck-in M&A with that growth and margin profile that I just talked about. I don't want to point out specific areas.

Speaker Change: Other than the high growth areas.

Speaker Change: that are, you know.

Speaker Change: whether it be a product tuck into an existing business or or an adjacency to an existing business tuck in, that's where we're focused. And I think, you know, nothing, nothing's changed there, except that I think over the last year and a half or so, you know, we've had a lot of

Speaker Change #131: Thanks so much.

Speaker Change: Operational focus areas that we've had and and and and that's been the focus is is is really getting the operations

Speaker Change #132: I mean, I think the most obvious opportunity are for a very large install base of users that prefer the Abbott sensor to now have access to our technology.

Geoffrey Martha: Our operations footprint in a better spot or back orders down things like that quality is a better spot where we're in a much better spot there and I think it focused more of our energies on M&A and the the escalation I guess I just gave is where we'll be focused.

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

Speaker Change: Can we spend some time talking about the renal denervation market and the CMS MTAP for simplicity?

Speaker Change: Wrapping it all together with our algorithm, the CGM, the pumping devices, and the typical integration you see in the market puts a technology burden on the part of patients.

Speaker Change #132: So unfortunately, I can't give you timelines that rest assured that we're working as fast as we can to get to incorporate that sense into our system.

Sean Salmon: And thanks David next question please breath the next question that comes from Matt Taylor at Jeffries Matt please go ahead. Hi, thanks for taking the question. I guess I wanted to double click on some of the comments that you made on the structural heart market and I'm really curious about your thoughts on capacity now and going forward and I know you said that you haven't seen signs of, you know, a slow down in the market, but.

Speaker Change: And so we wanted to find a way to provide the one Medtronic experience, the one phone number you can call, for patients that may prefer a different sensor.

Speaker Change: How do you see this market developing now that reimbursement is getting behind the product?

Speaker Change: And, you know, we're pleased to say that we found a path that works for patients from an experience standpoint, as well as for Abbott and for ourselves.

David: Thanks, David. Next question, please, Brett. The next question comes from Matt Taylor at Jeffreys. Matt, please go ahead.

David: And so that's what I would say would be the response to your question.

David: Thank you.

Speaker Change #132: And really providing that one maternal experience where there's one single app.

David: The strategy hasn't changed. We've just found a way to expand access to a broader install base.

David: You know, structural heart, there's a lot of questions around the market there.

David: Yeah, thanks for the question, Joanne.

Speaker Change #133: Patients can choose between two sensor options, but still experience our, our AID system and the automation that comes with our algorithm. And so that's the that's the use experience we want to bring to the market.

Mat Tayor: Hi, thanks for taking the question.

David: And we're seeing consistent market growth as we've signaled in that high single digit.

David: I mean, look, we're, like I said before, I'm, super excited about REIN and it's good to see the reimbursement taking shape.

David: You know, with the CMS, with the outpatient payment determined, I'm sorry, the inpatient payment now determined and the outpatient payment, you know, on the table here, you know, it's getting closer to that unlock, that reimbursement unlock.

Mat Tayor: I guess I wanted to...

David: And, you know, we're just, you know, we're seeing a lot of growth.

David: And I'll let, you know, maybe Sean comment on this as well.

Mat Tayor: Double click on some of the comments that you made on the structural heart market, and I'm really curious about your thoughts on capacity now and going forward. And I know you said that you haven't seen signs of slowdown in the market, but

David: We're seeing consistent market growth as we've signaled in that high single digit.

David: Yeah, thanks, Jeff.

David: And, you know, we're just really getting launching FX plus, you know, going from limited market release to full market release, which is exciting.

Speaker Change #133: We think that's pretty differentiated.

Sean Salmon: You have concerns about capacity there longer term or more broadly is that a limiting factor in that business or any of your businesses and how would you deal with that as an organization to help free up more capacity to help your therapies run through. Well, look, I'd say overall I'm going to hand this over to Sean Matt but that you know the the the structural heart space taver, you know, and Michael's coming try custody it's it's very under penetrated still so I do see a huge and the patient benefits are clear Sean mentioned the data whether it be low risk or now our smart trial the data is clear it's under penetrated. And so I still think this is a strong growth market.

Speaker Change: Do you have concerns about capacity there longer term, or more broadly, is that a limiting factor in that business or any of your businesses, and how would you deal with that as an organization to help free up more capacity to help your therapies run through?

David: Plus, the accumulation of all the data, smart, low risk, et cetera, is a real tailwind for us.

David: And Joanne, thanks for the question.

David: You know, two businesses that had a particularly strong Q1 that, you know, I'm not sure is going to at that high level that throughout the year.

Speaker Change #133: And it allows us to tap into the largest CGM install base in the world in addition to our own growing our own install base.

Shaan Mat: Well, look, I'd say overall, I'm going to hand this over to Sean, Matt, but that, you know,

Shaan Mat: The structural heart space, TAVR, you know, mitral is coming, tricuspid, it's very under penetrated still, so I do see a huge, and the patient benefits are clear, Sean mentioned the data, whether it be low risk or now our SMART trial, the data is clear.

Speaker Change #133: Thank you.

Speaker Change: It's underpenetrated, and so I still think this is a strong growth market. I'll let Sean touch again on kind of where we are, where the market is, if you will, on capacity and what we're seeing, and then maybe come back. Go ahead, Sean.

Speaker Change #134: Thanks, Danielle.

Sean Salmon: I'll let Sean touch again on kind of where we are, where the market is if you will on capacity and what we're seeing and then they come back. Yeah, thanks for the question. We're not hearing from our customers about capacity constraints. Of course, our sample size may be a little smaller than our competitor, but we ask about the future for the service line as they add additional things into the structural heart component of it.

David: One is diabetes.

David: You know, the payment is one, part of it.

David: You know, diabetes should continue to have growth well above the company average.

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

Speaker Change #135: Next question, Brad.

Speaker Change #135: The next question comes from Larry Beagleson and Wells Farrow securities Larry, please go ahead.

David: But, you know, we're now annualizing the U.S. launch of 780G.

David: So, you know, the codes are already established.

Sean: Yeah, thanks for the question. You know, we're not hearing from our customers about capacity constraints. Of course, our sample size may be a little smaller than our competitor. But, you know, we ask about the future for the service line as they add additional, you know, things into the structural heart.

David: And so I can see, you know, diabetes in the teams that last quarter.

Speaker Change #136: Thanks for taking the question for my one question.

David: We've got the, as you noted, in NTAP, we have inpatient coding, but outpatient is going to be more of the kind of procedure volume.

David: We think, you know, less than 10% of the procedures are going to be done with more than a single midnight stay on the inpatient setting.

Speaker Change #137: I wanted to ask about the progress with you go for Mike and Jeff.

Sean Salmon: It doesn't seem like at the operator level there's concerns in the US, of course, the freedom of beds for post procedures that goes beyond tavern. That's been a challenge. But we're seeing some shifting of procedures to lower acute settings to make room that, of course, the valve clinic which works these patients up. That's that's something you just add capacity to when you need future capacity to expand it and you get a long runway to look at it.

David: I'm not sure we'll be able to sustain that the whole year.

David: And CRM also had a really good quarter, you know, some great.

bas: component of it. It doesn't seem like at the operator level there's there's concerns.

David: We have a really nice product portfolio across the CRM, all the CRM segments.

Speaker Change: In the U.S., of course, the freedom of beds for post-procedure, that goes beyond TAVR. That's been a challenge, but we're seeing some shifting of procedures to lower acuity settings to make room. And, of course, the valve clinic, which works these patients up.

Speaker Change #138: So it sounds like you've reached the target enrollment in expand your out the pivotal US trial.

Speaker Change #139: When are we going to see the data?

Speaker Change #140: You know, what's the timeline for US filing?

Speaker Change: That's something you just add capacity to when you need future capacity to expand it and you get a long runway to look at it. So I think with the expanding indications, you know, we're pursuing a moderate aerostenosis population, which is about two and a half million people in the U.S.

Sean Salmon: So I think with the expanding indications, you know, we're pursuing a moderate airstenosis population, which is about two and a half million people in the US. And, you know, trans catheter or Michael replacement valves and things like that. So it won't work with centers to make sure that they have adequate training of operators and help them to expand capacity if it needs to be. But in the short run, I really don't see a challenge. And I think hospitals have a long run way to plan for for space that they need it. So I don't think it's a constraint on the future growth prospects of structural heart and total.

Speaker Change: Transcatheter mitral replacement valves and things like that. So we'll work with centers to make sure that they have adequate training of operators.

Speaker Change: Help them to expand capacity if it needs to be. But in the short run, I really don't see a challenge. And I think hospitals have a long enough runway to plan for space that they need it. So I don't think it's a constraint on the future growth prospects of structural heart and total.

Geoffrey Martha: Yeah, and I look, I agree on this one. And, but, you know, when we see situations like that, when there's capacity in the past, we've stepped in and, and helped a hospital, our hospital partners with capacity, like in Europe, you know, many, several years ago, we helped build out a number of and manage number of cat labs when there was cat lab capacity constraints across Western Europe, you know, I can see us doing this in the ASC space in the US.

Speaker Change: to

Speaker Change: Yeah, and look, I agree with Sean on this one, but you know, when we see situations like that, when there's capacity,

Speaker Change: In the past, we've stepped in and helped our hospital partners with capacity, like in Europe .

Speaker Change: You know, many, several years ago, we helped...

Speaker Change: Billed out a number of and managed a number of CAF labs when there was CAF lab capacity constraints across Western Europe .

Geoffrey Martha: You know, to help build out that and, you know, partner, we talked with the imaging companies because a lot of the capacity, a lot of the capacities tied to imaging and work with them and work with our, you know, healthcare delivery partners to build out that capacity. So that's how we would handle it if we were to see an issue, but, you know, we're not, like Sean said, we're not hearing that. Great. Thank you guys. Appreciate it. Thanks, Matt.

Speaker Change: i can see us doing this in the asc space and the u s you to help build up that and part and we talkked the imaging companies because a lot ofthe capacity alot of the capacities

Speaker Change: Typed Imaging and work with them and work with our health care delivery partners to build out that capacity. So that's how we would handle it if we were to see an issue. You know, we're not hearing that in Tavern.

David: But we're not banking on CRM growing 8% every quarter.

David: You know, those two, you know, there was nothing one time about them, but just really strong execution.

David: And, you know, I think across the company, I could just keep going on the list.

Speaker Change: Thank you guys, appreciate it.

David Roman: Next question, please, Brad. The next question comes from David Roman at Golden Sex. David, please go ahead. Thank you, and good morning, everyone. I was hoping you could go into a little more detail on on a Farah. Jeff, you mentioned that it's obviously pending FDA review and that you're in limited market release outside the United States. Can you maybe give us a little bit of perspective of what you've seen in Europe now that a year post CE mark and whether we should use that as a proxy for thinking about how does product ramps in the US?

David: There's just a lot of new products out there in the early stages.

Speaker Change #141: You know, could we see potential launch this year?

Matt: Thanks, Matt. Next question, please, Brett. The next question comes from David Roman at Goldman Sachs. David, please go ahead.

Speaker Change #141: Or next year?

Matt: And I think.

Matt: So, you know, overall, we feel good about the underlying fundamentals and where we're headed.

Matt: So really, it's that TPT or transitional pass-through payment that we're really waiting on.

Speaker Change #141: And Jeff, there's still questions around that your commitment to you go just maybe, you know, put any of those concerns to rest here.

Matt: What hasn't changed is really our commitment towards the system, our confidence in our CGM, the Simplera launches, Simplera and Simplera Sync launches in Europe, it's gone very well.

Matt: We're very pleased with the early experience, and we're pleased that we now have FDA approval for Templar in the U.S, and we're working with the agency to get Sinclaira Sync approved as well for integration with the seminary system.

Speaker Change #141: Thank you.

David Roman: Thank you and good morning everyone. I was hoping you could go into a little bit more detail on

Speaker Change #142: All right, thanks, Larry.

Jeff Gary: on a farara jeffyou mentioned that it's still obviously pending fda review in that year in limited market release outside the united states

Speaker Change #142: Well, maybe I'll have Mike answer the first couple questions and I'll come in afterwards.

Speaker Change: Can you maybe give us a little bit of perspective of what you've seen in Europe now about a year post CE Mark and whether we should use that as a proxy for thinking about how this product ramps in the U.S.?

Matt: And we're focused on delivering on our commitments and issuing guidance.

Matt: And we did hear from CMS on that this summer, just this month, where they're supporting our approach here for that application.

Speaker Change #143: Yeah, good morning, Larry.

Speaker Change: Great.

Speaker Change #144: So on Hugo, we are happy with the progress for making and the clinical work.

David Roman: Sure. Thanks for the question, David. A lot of interest, obviously, and in our cast business and an eighth right now and maybe I'll go back to Sean on this one. Yeah, David, thanks for the question. You know, the demand for PFA has really been unbelievably strong. And, you know, we're ramping up our capacity as Jeff mentioned to meet that strong and growing demand right now. And, you know, those gains that we're seeing are more than not saying that crowd is, of course, and we're really in a unique position having this offering of both a single shot approach with our post select and then the point by point approach with a Farah.

Speaker Change: You know, issuing guidance sets us up for success.

Speaker Change: This is a breakthrough device, so that helps to get into those kind of payment codes.

Speaker Change #145: As mentioned, we have reached targeted enrollment.

Speaker Change: Thanks for the question, David. A lot of interest, obviously, in our CAST business and AFIB right now, and maybe I'll go back to Sean on this one.

Speaker Change: That's helpful, Geoff, and maybe one follow-up related to that on the guidance question.

Speaker Change: Thanks a lot.

Speaker Change #146: There's still work to do.

Speaker Change #147: As we reach the final endpoints and then completing the filing.

Speaker Change: Gary, welcome to your first earnings call.

Speaker Change: Thanks, Robbie.

Sean: Yeah Dave, thanks for the question. You know, the demand for PFA has really been unbelievably strong.

Speaker Change #148: So we won't be giving a specific date in terms of submission, but, but very good progress and a very appreciative of the work that we're doing together with our surgeon partners and our teams.

Sean: Next question, please, Brad.

Sean: The gross margin performance here in Q1, really strong, but your guidance still does assume a pretty meaningful step up in operating margins for back half, right?

Sean: And when I look at the EPS guidance, low-end was tweaked, but it looks like there was some benefit from share repurchase.

Sean: I don't know if your prior guidance had baked in a 1.5 billion share repo.

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

Sean: And, you know, we're ramping up our capacity, as Geoff mentioned, to meet that stronger growing demand right now.

Speaker Change #148: Also, as noted, we're making good progress in the enrollment of Boltonia and the gynecology clinical series that will allow us to then have a cadence of indications, which will be critical to the US launch.

Sean: Travis, please go ahead.

Sean: And, you know, those those gains that we're seeing are more than offsetting that cryo business, of course, and we're really in a unique position having this offering of both a single shot approach with our pulse select and then that the point by point approach with FARA.

Speaker Change: And, you know, those gains that we're seeing are more than offsetting that cryo-business, of course, and we're really in a unique position having

Speaker Change: This offering of both a single-shot approach with our PulseSelect and then the point-by-point approach with Afera. PulseSelect, you know, it's really gotten more case volume so far as we're moving that launch.

Speaker Change: Pulse Select, you know, it's, it's really got more case volume so far, as we were moving that launch, both within Europe and the United States.

Speaker Change #148: So it's a very good work across the clinical series and, again, appreciative of the work of of our surgeon partners and teams.

David Roman: Post select, you know, it's, it's really gotten more case volume so far because we were moving that launch both within Europe and the United States. And what we're hearing from customers is the precision and predictability of the handling of the catheter. And importantly that it shows up really well, both on mapping systems and on ultrasound. And that's important because you've got to put the electrodes in the right spot in the tissue.

Speaker Change: And what we're hearing from customers is the precision and predictability of the handling of the catheter.

Speaker Change #100: Both within Europe and the United States, and what we're hearing from customers is the precision and predictability of the handling of the catheter, and importantly, that it shows up really well, both on mapping systems and on ultrasound, and that's important because you've got to put the electrodes

Speaker Change #100: And importantly, that it shows up really well both on mapping systems and on ultrasound.

Speaker Change #100: And that's important because you gotta put the electrodes, in the right spot in the tissue. So you get, you get good ablation and isolation without doing extraneous injury.

Speaker Change #100: And that's really been appreciated.

Speaker Change #100: And of course, the point by point approach with with Affair is really unique and differentiated for us as well.

David Roman: So you get, you get good ablation and isolation without doing extraneous injury. And that's really been appreciated. And, of course, the point by point approach with with a Farah is really unique and differentiated for us as well. You know, the same catheter being able to create this beautiful map. And you can, you can use either energy source depending on where you want to be anatomically to avoid things like coronary spasm and the is this lines.

Speaker Change #100: in the right spot in the tissue so you get

Speaker Change #100: You get good ablation and isolation without doing extraneous injury, and that's really been appreciated.

Speaker Change #100: And, of course, the point-by-point approach with a ferro is really unique and differentiated for us as well. You have the same catheter being able to create this beautiful map, and you can use either energy source, depending on where you want to be anatomically, to avoid things like coronary spasm and the isthmus lines.

David Roman: And also the lattice tip. It's a really, you know, maybe under a preshade part of this sphere non catheter. It's got this lattice that has excellent electrodes stability and it's three times wider than a normal kind of oblation electrode you use for RF. So the precision and speed of that is really fantastic. So look on the technology side, everything's going really well. And you're asking about ramping in Europe. There are more cost constraints in Europe, of course, than, than what we see in markets like the US and Japan where new technology, even at a higher price seems to get adopted.

Speaker Change #101: and also the lattice tip it's a really maybe underappreciate

Speaker Change #101: You know, the same catheter being able to create this beautiful map.

Speaker Change #101: And you can you can use either energy source depending on where you want to be anatomically to avoid things like coronary spasm and the isthmus lines.

Speaker Change #101: And also the lattice tip.

Speaker Change #102: A part of this.

Speaker Change #103: Sphere 9 catheter, it's got this lattice that has excellent electrode stability, and it's three times wider than a normal kind of ablation electrode you use for RF.

Speaker Change #103: It's a really maybe underappreciated part of this Sphere 9 catheter.

Speaker Change #148: Jeff Yeah, so look, as Mike said, look, there's a couple of things on Hugo here, two inflection points that you need to happen for us to see the impact of the metronic level, you know, the US approval and then just getting, getting our, you know, leading instrumentation onto the robot and other capabilities, as Mike mentioned, you know, we're making, we're making progress on on both.

Speaker Change #104: So the precision and speed of that is really fantastic. So, look, on the technology side, everything's going really well. You're asking about ramping in Europe . There are more cost constraints in Europe , of course, than...

Speaker Change #104: It's got this lattice that has excellent electrode stability and it's three times wider than a normal kind of ablation electrode you use for RF.

Speaker Change #149: So this is, this is like a, you know, a midterm growth driver for us.

Speaker Change #150: I'd say beyond the fiscal year.

Speaker Change #105: and what we see in markets like the U.S. and Japan, where new technology, even at a higher price, seems to get adopted. So, you know, the uptick of PFA would be relatively slower, but still

Speaker Change #150: But, you know, just get back to your question on our commitment, Larry, and we're absolutely committed to this.

David Roman: So, you know, the, the uptake of PFA would be relatively slower, but still, still robust as we go ahead with this, with this technology. You know, I think there's some lingering questions on on durability. And we'll see some data at the upcoming AP AP HRS meeting, where we'll show. Longer-term durability of our pulse-select catheters. We've already demonstrated that with Tier IX. And I'd say that the opportunity to offer patients something that's really safe, really effective, lasts a long time.

Speaker Change #151: I, you know, and I, with all due, it's a, it's a, we do think surgery as robotics is really across many different surgical areas, including orthopedics where we plan spine is a big driver in the space.

Speaker Change #105: I think there's some lingering questions on durability, and we'll see some data at the upcoming APHRS meeting where we'll show

Speaker Change #152: And we're committed to being not just part of it, but being, you know, helping to lead that like we're doing in spine.

Speaker Change #153: And with, you know, no, we're up against that really strong and trans competitor here in the soft tissue space.

Speaker Change #153: But we are, we are committed.

Speaker Change #106: Longer-term durability of our pulse-select catheters. We've already demonstrated that with the SPHERE-9.

Speaker Change #153: We have leveraged the poll.

Speaker Change #106: And I'd say, look, the opportunity to offer patients something that's...

Speaker Change #153: We have a great surgery franchise.

David Roman: I think really just open up the aperture for more and more patients to flow through. You know, waiting lists are a challenge for that business. And I think having a more efficient procedure with great workflow really helps. And then of course, we can leverage the larger portfolio of metropolis. And I think it's a great opportunity to help with the economic of this in any country and around the world. So I think the future for a pulse-filled ablation, we're just getting going.

Speaker Change #106: really safe, really effective, lasts a long time, I think really does open up the aperture for more and more patients to flow through. You know, waiting lists are a challenge for that business, and I think having a more efficient procedure with great workflow.

Speaker Change #153: You know, we've learned quite a bit about the robotics over the years and also the understanding that it's more than just the robot.

Speaker Change #153: It's a lot of other technology that goes in their imaging navigation.

Speaker Change #154: You know, the instrumentation AI, so the digital piece.

Speaker Change #106: Really helps and then of course we can leverage the larger portfolio of Medtronic To help with sort of the economics of this in any country and around the world So I think the future for pulsed field ablation, we're just getting going But this is going to be a really robust growth market for a long time to come

Speaker Change #154: So there's a lot to it.

Speaker Change #154: A lot of levers to pull and we're committed and, and we're confident.

Speaker Change #154: And that just point back to, you know, a couple of years ago, other franchises that, that people are questioning.

David Roman: But this is going to be a really robust growth market for a long time to come. And just to emphasize something Sean said, we're really, you know, excited to be the only player with, you know, differentiated offerings in both the single shot and this point by point segments of the market. Both pulse-select and affair have, you know, differentiated features, you know, Sean mentioned the handling of the catheter and pulse-select. And that's really ramping for us, you know, quite, quite well right now.

Speaker Change #154: Can you, can you compete whether it's spine or whether it's diabetes or neuromod.

Speaker Change #106: Hey guys, congrats on the quarter.

Speaker Change #107: Yep, and just to emphasize something Sean said, we're really, you know, excited to be the...

Speaker Change #108: The only player with, you know, differentiated offerings in both the single shot and this point-by-point segments of the market. Both Pulse Select and Afera have, you know, differentiated features. You know, Sean mentioned the handling of the catheter in Pulse Select, and that's really ramping.

Speaker Change #154: You know, we're focused on it.

Speaker Change #108: I lost my one question on TAVR and just want to get kind of what you're sensing in the market today, given some of the comments from the competitor there.

Speaker Change #154: You see those, you see those all, you know, get to a much, much better spot with the focus and investment.

Speaker Change #108: And looking forward, when you think about the FX Plus launch, how do you expect that to impact the market, impact the share?

Speaker Change #108: for us, you know, quite, quite well right now.

Speaker Change #108: And is that going to help you, you know, with some of the smart data and how you see the TAVR market playing out?

Speaker Change #155: And that's where we are on surgery and my level confidence on this is high because of the levers we have to pull the team.

David Roman: And in affairs, the ramp, you know, obviously don't have approval yet in the US and the ramp for that will be a little behind, you know, where we are pulse-select. But pulse-select is doing really well. And I think it's, you know, I think you just don't, yeah, I think the analyst community is kind of has moved past pulse-select a little bit. And I'm not sure that's the right call. I mean, it's doing really well. Thanks, David.

Speaker Change #109: and Affairs. The ramp, obviously we don't have approval yet in the U.S. and the ramp for that will be a little behind, you know, where we are with Pulse Select, but Pulse Select is doing really well and I think it's, you know, I think

Speaker Change #109: So the precision and speed of that is really fantastic.

Speaker Change #155: We have in place the franchise we have.

Speaker Change #155: But, but, but, but knowing that the entrenched competitors are strong.

Speaker Change #110: You just don't yeah I think the analyst community is kind of has moved past Pulselect a little bit and I I'm not sure that's that's the right that the right call I mean it's it's it's doing really well.

Speaker Change #155: So understanding that, but still knowing, you know, having confidence in our team.

Speaker Change #110: So look, on the technology side, everything's going really well.

Speaker Change #155: Thank you.

Speaker Change #110: Thanks a lot.

Speaker Change #110: You were asking about ramping in Europe.

Speaker Change #156: Thanks, Larry.

Speaker Change #157: Next question, please, Brad.

Jason Bedford: Take the next question, please, Brad. The next question comes from Jason Bedford at Raymond James. Jason, please go ahead. Can you hear me? Okay. We can Jason. Okay. Maybe just to follow along just on the cast question. One, I guess, do you find that folks are waiting for in the US for a Ferris last, sphere nine. And then second, you did talk about an acceleration and cast revenue growing forward and acceleration and growth.

Speaker Change #110: Hey, Travis.

Speaker Change #110: There are more cost constraints in Europe, of course, than what we see in markets like the US and Japan where new technology, even at a higher price, seems to get adopted.

Speaker Change #157: The next question comes from David Rascott at Barrett equity research.

David Roman: Thanks, David. We'll take the next question, please, Brett. The next question comes from Jayson Bedford at Raymond James. Jayson, please go ahead.

David Roman: I'm gonna hand that one over to Sean.

David Roman: So the uptake of PFA would be relatively slower, but still robust as we go ahead with this technology.

Speaker Change #158: David, please go ahead.

David Roman: Perhaps thanks for the question.

David Roman: I think there's some lingering questions on durability and we'll see some data at the upcoming APHRS meeting where we'll show, longer-term durability of our pulse-select catheters.

Speaker Change #159: Great, thanks for clicking the questions and congratulating the strong start to the year here.

David Roman: So maybe just talk about your margin visibility for a second half, and did that change over the last three months?

Speaker Change #159: Jeff, I heard your comments on being on the hunt for M&A.

David Roman: Yeah, thanks, Vijay, and it's nice to meet you.

David Roman: The talent market, we think is pretty solid.

David Roman: We've already demonstrated that with the Sphere 9.

Speaker Change #160: I'm curious if you could help us kind of understand maybe what areas strategically you think make the most sense in the portfolio when you kind of think about the size of the Medtronic portfolio.

David Roman: And I'd say, look, the opportunity to offer patients something that's really safe, really effective, lasts a long time, I think really does open up the aperture for more and more patients to flow through.

Jason Bedford: Can you hear me okay?

David Roman: I look forward to having a chance to meet all of you in person.

Jason Bedford: You know, waiting lists are a challenge for that business. And I think having a more efficient procedure with great workflow really helps.

Jason Bedford: Let me tackle your question, about buyback first, and I'll take you through the puts and takes of the first quarter EPS. Our EPS starts with our top line, and as Geoff mentioned, our revenue growth was really strong, a full point higher than the midpoint of our guide.

Speaker Change #161: I guess how do you balance that kind of near term, what can be needle moving versus what can move the needle over the two to three year period and three to four years?

Jason Bedford: And then, of course, we can leverage the larger portfolio of Medtronic to help with sort of the economics of this in any country and around the world.

Speaker Change #161: Thank you, thank you for the question, David.

Jason Bedford: And Geoff talked about the highlights.

Jason Bedford: So I think the future for pulse-filled ablation, we're just getting going.

Speaker Change #112: Yep, we can, Jayson.

Jason Bedford: The midpoint of our guide, two of the three cents was really driven by the top line strength that, he mentioned.

Speaker Change #112: Okay, maybe just to follow along just on the on the cast question. One, I guess.

Speaker Change #112: But this is going to be a really robust growth market for a long time to come.

Speaker Change #112: Gross margins were strong, about 40 bps ahead of consensus, and operating margin was in line.

Speaker Change #112: Below the line, there were some moving pieces, and that netted to about a penny with the benefit that you mentioned from the share count helping, but we also had lower interest income and some pressure on the tax rate.

Jason Bedford: do you find that folks are waiting for in the u s for a fairous slash sphere nine and then second you did talk about an acceleration and cash revenue growing forward and acceleration and growth you expect to be in a position to grow faster than the market exiting the year

Speaker Change #112: So that's a little bit more visibility into Q1.

Jason Bedford: Do you expect to be in a position to grow faster than the market exiting the year? Are you sure you want to take this? Yeah, I guess in the first question, Jason, of course, people really, really want a fairer, you know, the vast majority of the inflation market, favors point by point solutions with mapping in the United States in particular. So the, you know, the appeal of that product is really strong, but no one's waiting for it.

Jason Bedford: I think we're growing in line with the market in high single digits right now.

Jason Bedford: And of course, you know, the data momentum that we have, the lowest data versus surgery, I think that's been very compelling.

Jason Bedford: And just to emphasize something Sean said, we're really, you know, excited to be the only player with, you know, differentiated offerings in both the single shot and this point by point segments of the market, both Pulse Select and Afera have, you know, differentiated features.

Jason Bedford: You know, Sean mentioned the handling of the catheter and Pulse Select, and that's really ramping for us, you know, quite, quite well right now.

Jason Bedford: And we're going to read up five year on that data in the coming year here as well.

Jason Bedford: And Afera's, the ramp, obviously we don't have approval yet in the U.S. and the ramp for that will be a bit behind, a little behind, you know, where we are with Pulse Select.

Jason Bedford: Sean, do you want to take these?

Speaker Change #114: yeah i guess 'm the first question jason of course people really really want a faah you know the vast majority of the abblation market favorous point by point solutions with mping in the united states in particular

Speaker Change #115: sothe the appeal of that product is really strong but noones waiting for it i mean there's we're getting this much usage maybe actually more from traditional point by point uses as weare ting from the single shot users

Jason Bedford: I mean, there's, we're getting as much usage, maybe actually more from traditional point by point users as we're getting from single shot users. And, you know, as we bring that technology out, I think the uptakes going to be pretty robust robust and rapid on top of what we're already doing with whole select. So yes, I think that we've got the opportunity to go fast in the market within this fiscal year, paying the launch timing.

Speaker Change #116: And, you know, as we bring that technology out, I think the uptake is going to be pretty robust and rapid on top of what we're already doing with Pulse Select. So, yes, I think that we've got the opportunity to grow fast in the market within this fiscal year, depending on the launch timing.

Speaker Change #116: But Pulse Select is doing really well.

Speaker Change #116: You know, as we think about the leverage first half, second half, you know, the underlying leverage, we're driving is pretty similar on a constant currency basis, you know, with high single digit every quarter.

Jason Bedford: Thanks, Jason. Thank you, Jason. Next question, please breath. The next question comes from Joanne Lynch at city. Joanne, please go ahead. Good morning, and thank you so much for taking the question. Can we spend some time talking about the regional innovation market and the CMS and tap for simplicity? How do you see this market developing now that reimbursement is getting behind the product? Thank you. Yeah, thanks for the question, Joanne. I mean, look, we're, like I said before, I'm super excited about Ariane, and it's good to see the reimbursement taking shape, you know, with the CMS, with the outpatient payment, determined, I'm sorry, the inpatient payment, now determined, and the outpatient payment, you know, on the table here, you know, it's getting closer to that unlock, that reimbursement unlock, and I'll let, you know, maybe Sean comment on this as well.

Speaker Change #116: And I think it's, you know, I think you just don't, yeah, I think the analyst community is kind of has moved past Pulse Select a little bit.

Speaker Change #116: i

Speaker Change #116: And I'm not sure that's.

Speaker Change #116: And of course, smart data has really gotten a lot of attention for the right treatment strategy for small analysts, and particularly women.

Speaker Change #116: That's the right call.

Jason Bedford: thanks jason

Speaker Change #117: Thank you, Jayson. Next question, please, Brett. The next question comes from Joanne Wuensch at Citi. Joanne, please go ahead.

Speaker Change #117: And that's resonated really globally to as small analysts is a sort of a function of body habitats as well.

Speaker Change #117: I mean, it's doing really well.

Speaker Change #117: You know, FX Plus has done exceptionally well in its early launch, we did a full limited market release in the month of July.

Speaker Change #117: And we saw that momentum really pick up, So I think that'll, a 4.10, a really good, continued access or continued growth of that part of the segment.

Speaker Change #117: What people really like is those bigger windows that you can then align onto the native coronary anatomy.

Speaker Change #117: So overlapping the cuffs, to making sure that you get that commercial alignment and preserving future access.

Joanne Lynch: Good morning and thank you so much for taking the question. Can we spend some time talking about the renal denervation market and the CMS NTAP for simplicity? How do you see this market developing now that reimbursement is getting behind the product? Thank you.

Speaker Change #162: Yeah, I mean, look, it on the M&A side, this is one of the areas, it's part of a larger capital allocation strategy, right?

Jason Bedford: Yeah, thanks, Geoff, and Joanne, thanks for the question. You know, the payment is one part of it. We have coding and coverage, most importantly, that need to come. So, you know, the codes are already established. We've got the, as you noted, an end tap, we have inpatient coding, but outpatient is going to be more of the kind of procedure volume. We think less than 10% of the procedures are going to be done with more than a single midnight stay or on the inpatient settings.

Joanne Lynch: So that's all done without any trade-off on deliverability.

Speaker Change #163: We talk about, you know, little C capital allocation and big C capital allocation, we're talking about allocating our money to the areas of highest growth.

join: Yeah, thanks for the question, Joanne. I mean, look, we're, like I said before, I'm super excited about REIN, and it's good to see the reimbursement taking shape, you know, with the CMS, with the outpatient payment

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

Sean: It's got the features of FX, which really improved the usability of that device.

Speaker Change #164: And the M&A strategy has to play with our organic strategy and both are pointed towards the highest growth areas, you know, ablation, you know, eighth of ablation is the cases point where we did the affair acquisition as well as a needle crossing acquisition.

Speaker Change #164: Yeah, that's those are the areas that were that were pointed to, but we're, you know, we are still focused on, you know, value creating tuck in M&A, so with that growth and margin profile that I that I just talked about so it's, I don't want to point out specific areas other than the high growth areas that are, you know, whether they be a product tuck into an existing business or an adjacency to an existing business tuck in.

Sean: Yeah, thanks, Geoff. And Joanne, thanks for the question.

Speaker Change #164: And that's what we're focused and I think, you know, nothing nothing's changed there, except that I think over the last year and a half or so, you know, we've had a lot of operational focus areas that we've had and and and and that's been the focus is is really getting the operations.

Sean: You know, the payment is one part of it. We have coding and coverage, most importantly, that need to come. So, you know, the codes are already established. We've got the, as you noted, in NTAP we have inpatient.

Speaker Change #165: Our operations footprint in a better spot or back orders down things like that quality is a better spot where we're in a much better spot there and I think it focused more of our energies on M&A and the the escalation I guess I just gave is where we'll be focused.

Speaker Change #166: And thanks David next question please breath the next question that comes from Matt Taylor at Jeffries Matt please go ahead.

Speaker Change #167: Hi, thanks for taking the question.

Speaker Change #120: Coating, but outpatient is going to be more of the kind of procedure volume. We think

Speaker Change #120: Less than 10% of the procedures are going to be done.

Speaker Change #168: I guess I wanted to double click on some of the comments that you made on the structural heart market and I'm really curious about your thoughts on capacity now and going forward and I know you said that you haven't seen signs of, you know, a slow down in the market, but.

Jason Bedford: So really it's, it's that TPP or transitional pass through payment that, that we're really waiting on, and we did hear from CMS on that this summer, just this month, where they're supporting our, our approach here for, where that application, this is a breakthrough device, so that helps to get into those kind of payment codes. And we expect to see that, you know, happen pretty soon. And of course, we're working really closely with CMS and with commercial pairs on making sure we have coverage policies that are going to facilitate patient access.

Speaker Change #120: with more than a single midnight stay or on the inpatient settings. So really it's that TPT or transitional pass-through payment.

Speaker Change #120: And of course, the US is moving into full market launch right now.

Speaker Change #120: And within this year, we'll also obtain approvals in other geographies, which will keep the momentum going.

Speaker Change #120: That we're really waiting on. And we did hear from CMS on that this summer, just this month.

Speaker Change #120: where they're supporting our approach here for that application.

Speaker Change #121: this is a breakthrough device

Speaker Change #169: You have concerns about capacity there longer term or more broadly is that a limiting factor in that business or any of your businesses and how would you deal with that as an organization to help free up more capacity to help your therapies run through.

Speaker Change #120: And we expect to see that, you know, happen pretty soon.

Speaker Change #121: so that helps to get into those kind of payment codes and we expect to see that happen

Speaker Change #169: Well, look, I'd say overall I'm going to hand this over to Sean Matt but that you know the the the structural heart space taver, you know, and Michael's coming try custody it's it's very under penetrated still so I do see a huge and the patient benefits are clear Sean mentioned the data whether it be low risk or now our smart trial the data is clear it's under penetrated.

Speaker Change #120: And of course, we're working really closely with CMS and with commercial payers on making sure we have coverage policies that are going to facilitate patient access.

Speaker Change #121: pretty soon and of course we're working really close to with c mms n with commercial payers ion making sure we have coverage policies that are going to facilitate patient access

Speaker Change #120: And again, being a breakthrough technology, that helps you with the kind of urgency and speed at which we'll see CMS move.

Speaker Change #170: And so I still think this is a strong growth market.

Jason Bedford: And again, being a breakthrough technology that that helps you with the kind of urgency and speed at which we'll see CMS moves. So, you know, look, I think all things on the reimbursement front are pointing exactly in the direction we're hoping to to get them. And we're excited to ramp this technology up and make it available. The, I will say that the, the level of excitement we're getting from physicians and from hospital systems about this new service line that can offer as well as patients.

Speaker Change #121: And again, being a breakthrough technology, that helps you with...

Speaker Change #121: So for us, I think the market's working really well, and we're excited to bring this new technology.

Speaker Change #170: I'll let Sean touch again on kind of where we are, where the market is if you will on capacity and what we're seeing and then they come back.

Speaker Change #121: the kind of curgency and speed at which we'll see cms move so

Speaker Change #121: So, you know, look, I think all things on the reimbursement front are pointing exactly in the direction we're hoping to get them, and we're excited to ramp this technology up and make it available.

Speaker Change #121: The ramp is really an FX story.

Speaker Change #121: Look, I think all things on the reimbursement front are pointing exactly in the direction we were hoping to get them.

Speaker Change #171: Yeah, thanks for the question.

Speaker Change #172: We're not hearing from our customers about capacity constraints.

Speaker Change #121: Significant pressure on the first half due to FX, and that'll wane in the back half.

Speaker Change #121: I will say that the level of excitement we're getting from physicians and from hospital, systems about this new service line they can offer, as well as patients, and the early outcomes for patients that have been treated on a sort of case-by-case basis have been really phenomenal.

Speaker Change #121: We're excited to ramp this technology up and make it available. I will say that the level of excitement we're getting from physicians and from hospital systems about this new service line they can offer,

Speaker Change #121: Constant currency growth ticks up slightly as we drive stronger revenue growth, as a number of our therapies get to full market release.

Speaker Change #121: And as you know, we tend to have a pretty strong fourth quarter on the margin front.

Speaker Change #121: So, you know, that's the story on how the leverage will play out throughout the year.

Speaker Change #173: Of course, our sample size may be a little smaller than our competitor, but we ask about the future for the service line as they add additional things into the structural heart component of it.

Jason Bedford: And the early outcomes for patients that have been treated on the sort of case by case basis have been really phenomenal. So, you know, look, I think that unlock is we've said all along is going to be reimbursement and we're, we're marching toward that. So we're excited about the opportunity here. Hey, thank you, Joanne. I think we've got time for maybe two more questions. Take the next question, Brad. The next question comes from Matt Mixick, F.R.

Speaker Change #121: As well as patients. And the early outcomes for patients that have been treated on a sort of case-by-case basis have been really phenomenal. So, you know, look, I think that unlock, as we've said all along, is going to be reimbursement, and we're marching toward that. So we're excited about the opportunity here.

Speaker Change #121: So, you know, look, I think that unlock, as we've said all along, is going to be reimbursement, and we're marching toward that.

Speaker Change #174: It doesn't seem like at the operator level there's concerns in the US, of course, the freedom of beds for post procedures that goes beyond tavern.

Speaker Change #121: So we're excited about the opportunity here.

Speaker Change #174: That's been a challenge.

Speaker Change #121: Great.

Speaker Change #121: Thank you, Joanne.

Speaker Change #121: Great.

Speaker Change #121: Thanks, David.

Speaker Change #175: But we're seeing some shifting of procedures to lower acute settings to make room that, of course, the valve clinic which works these patients up.

Speaker Change #176: That's that's something you just add capacity to when you need future capacity to expand it and you get a long runway to look at it.

Speaker Change #121: Thanks a lot.

Speaker Change #121: We'll take the next question, please, Brett.

Speaker Change #176: So I think with the expanding indications, you know, we're pursuing a moderate airstenosis population, which is about two and a half million people in the US.

Speaker Change #121: Thanks, guys.

Speaker Change #121: I think we've got time for maybe two more questions, so we'll take, the next question, Brad.

Matt: Thank you, Joanne. I think we've got time for maybe two more questions. We'll take the next question, Brad. The next question comes from Matt Miksic at Barclays. Matt, please go ahead.

Matt: Thanks, Travis.

Matt: The next question comes from Jayson Bedford at Raymond James.

Speaker Change #176: And, you know, trans catheter or Michael replacement valves and things like that.

Speaker Change #177: So it won't work with centers to make sure that they have adequate training of operators and help them to expand capacity if it needs to be.

Jason Bedford: Clay's Matt. Please go ahead. Hey, thanks so much for the question. And I just, if I could just two quick follow ups on some of the topics that have already been kind of explored here. The first for Sean just on on tab or I seem to remember that with the FX launch there was some effective price premium. There was some period of kind of stockings. You got into the launch. And I'm just wondering if you could set any light on on the sort of shape of the next few quarters as you as you really begin to roll out FX plus.

Matt: Next question, please, Brad.

Matt: Jayson, please go ahead.

Matt: Thanks, DJ.

Matt: The next question comes from Matt Miksic at Barclays.

Speaker Change #177: But in the short run, I really don't see a challenge.

Matt: Take the next question, please, Brad.

Matt: Matt, please go ahead.

Speaker Change #177: And I think hospitals have a long run way to plan for for space that they need it.

Speaker Change #177: So I don't think it's a constraint on the future growth prospects of structural heart and total.

Matt: Hey, thanks so much for the question. And I just, if I could, two quick follow-ups on some of the topics that have already been kind of explored here. The first,

Speaker Change #177: Yeah, and I look, I agree on this one.

Matt: For Sean, just on TAVR, I seem to remember that with the FX launch, there was some effect of price premium. There was some period of kind of stocking as you got into the launch.

Speaker Change #178: And, but, you know, when we see situations like that, when there's capacity in the past, we've stepped in and, and helped a hospital, our hospital partners with capacity, like in Europe, you know, many, several years ago, we helped build out a number of and manage number of cat labs when there was cat lab capacity constraints across Western Europe, you know, I can see us doing this in the ASC space in the US.

Speaker Change #179: You know, to help build out that and, you know, partner, we talked with the imaging companies because a lot of the capacity, a lot of the capacities tied to imaging and work with them and work with our, you know, healthcare delivery partners to build out that capacity.

Speaker Change #180: So that's how we would handle it if we were to see an issue, but, you know, we're not, like Sean said, we're not hearing that.

Speaker Change #122: I'm just wondering if you could shed any light on the sort of shape of the next few quarters as you as you really begin to roll out FX Plus, and then the second for Gary on that.

Speaker Change #180: Great.

Jason Bedford: And then the second on Gary on on. On effects. I think, you know, there's some questions around the fact that the, you know, top line effects impact actually ease a little bit, but the effects impact on the bottom line. And the headwind 5% remain the same. You can maybe just flesh out for us again where some of the impacts of effects are in the T&L and how we think about those as the year progresses.

Speaker Change #180: Thank you guys.

Speaker Change #180: Appreciate it.

Speaker Change #123: On FX, I think, you know, there's some questions around the fact that the, you know, top line FX impact actually eased a little bit, but the FX impact on the bottom line, the headwind at 5% remained the same.

Speaker Change #181: Thanks, Matt.

Speaker Change #182: Next question, please, Brad.

Speaker Change #124: You can maybe just flesh out for us again where some of the impacts of FX are in the P&L and how we think about those as the year progresses. Thanks so much.

Speaker Change #183: The next question comes from David Roman at Golden Sex.

Matt: The next question comes from Robbie Marcus at J.P. Morgan.

Matt: Hey, thanks so much for the question.

David Roman: David, please go ahead.

Jason Bedford: Thanks so much. Sean, you would take that question. Yeah, sure, so, you know, that we are across the board, we've priced for value when you think there's a more value, so we'll modest price premium is built into our, our taver launch, but it really is about picking up more volume on cases, more implants and the dynamics that you typically see when you're bringing your product out are, you know, customers burning down their shelf inventory as they, they put a small amount of stocking per valve size.

Speaker Change #124: The next question comes from Danielle Antalffy with UBS Securities.

Speaker Change #124: Can you hear me okay?

Speaker Change #124: Danielle, please go ahead.

Speaker Change #124: Yep, we can Jayson.

Speaker Change #185: Thank you, and good morning, everyone.

Speaker Change #124: i

Speaker Change #125: Dawn, you want to take that question?

Speaker Change #125: Okay, maybe just to follow along just on the on the cash question.

Speaker Change #126: Yeah, sure. So, you know, we are.

Speaker Change #127: Across the board, we price for value. When you think there's a more value...

Speaker Change #127: So while modest price premium is built into our TAVR launch,

Speaker Change #127: But it really is about picking up more volume on cases, more implants and...

Speaker Change #127: The dynamics that you typically see when you bring a new product out are customers burning down their shelf inventory as they put a small amount of stocking per vowel size, like a par level.

Speaker Change #186: I was hoping you could go into a little more detail on on a Farah.

Jason Bedford: So, it's like a par level as they ramp up for new technologies, and we saw both those dynamics occur in the early launch accounts for people picking up a little bit of inventory, but also taking down inventory for the prior model, the effects in the case of the US, so it's always a sort of switching dynamics, but you know, I think that that's that's already baked into everything we're forecasting for the continue growth of this product. Hi, Matt, this is this is Gary and as you said, as you mentioned, the US dollar has weakened a bit in the first quarter and you'll see the benefits of that in the in the top line, where we've communicated improvement in the impact of the effects.

Speaker Change #127: As they ramp up for new technologies and we saw both those dynamics occur, you know, in the early launch accounts where people are picking up a little bit of inventory, but also taking down inventory for the prior model, the effects in the case of the U.S.

Speaker Change #127: So it's always a sort of switching dynamics, but I think that that's already baked into everything that we're forecasting for the continued growth of this product.

Speaker Change #125: Robbie, please go ahead.

Speaker Change #125: And I just, if I could, two quick follow-ups on, some of the topics that have already been kind of explored here.

Speaker Change #187: Jeff, you mentioned that it's obviously pending FDA review and that you're in limited market release outside the United States.

Speaker Change #127: Great, thanks so much for taking the question.

Speaker Change #127: One, I guess, do you find that folks are waiting for in the US for a FARA slash sphere nine, and then second, you did talk about an acceleration in cash revenue growing forward and acceleration and growth.

Speaker Change #127: Oh, great.

Speaker Change #127: The first, for Sean, based on TAVR, I seem to remember that with the FX launch, there was some effect of price premium. There was some period of kind of stocking as you got into the launch.

matthis: Hi Matt, this is Gary. As you mentioned, the U.S. dollar has weakened a bit in the first quarter, and you'll see the benefits of that in the top line, where we've communicated improvement in the impact of the FX.

Speaker Change #127: Thanks for taking the question, and congrats on a good quarter.

Speaker Change #127: With my one, I wanted to ask about diabetes.

Jason Bedford: You know, a recent rates hold, we now expect effects on revenue to be a negative impact of 120 to 210, and that compares to 275 to 375, you know, on the bottom line, the benefit is delayed due to our hedging program, but we do expect to to realize the benefits in in future years, you know, where effects will show up for us this year will be a little bit different. It's going to show up a bit more in the gross margin line for us this year, and as we mentioned, the impact of foreign exchange will wane in the back half of the year, and as our strong underlying earnings growth on a constant currency basis continues, you know, after we delivered a really nice shape of the PNL in the first quarter, we'll see that benefit flow through to reporter EPS in the second half.

Speaker Change #127: This is a pretty big shift in strategy for you.

Speaker Change #127: I'm just wondering if you could shed any light on the sort of shape of the next few quarters as you really began to roll out FX+.

Speaker Change #127: You've always been, you know, the provider with both the pump and the algorithm and the CGM all in one.

Speaker Change #127: And then the second, for Gary, on FX, I think, you know, there's some questions around the fact that, you know, top line FX impact actually eased a little bit, but the FX impact on the bottom line, the headwind 5% remained the same.

Speaker Change #127: Now with Simplera about, you know, about to launch, maybe just walk us through the strategy, of why partnering with Abbott was in your best interest.

Speaker Change #127: Does this change your strategy at all?

Speaker Change #129: You know, if recent rates hold, we now expect FX on revenue to be a negative impact of 120 to 210, and that compares to 275 to 375. You know, on the bottom line, the benefit is delayed due to our hedging program.

Speaker Change #127: And how do we think about external versus internal investment in diabetes moving forward?

Speaker Change #127: Thanks.

Speaker Change #127: Yeah, let's let Q answer that question.

Speaker Change #127: Thanks, Robbie.

Speaker Change #127: Go ahead, Q.

Speaker Change #127: Thanks, Robbie.

Speaker Change #127: I would say our strategy hasn't changed at all. I think what's really changed in the, market is really a widespread recognition that AID really does provide better outcomes than CGM alone or MDI alone.

Speaker Change #127: And we always knew that there was a large install base of users that wanted access to our technology, our AID system.

Speaker Change #127: We still believe in the system benefits exceed the sum of the parts, as you mentioned, wrapping it all together with our algorithm, the CGM, the pumping devices.

Speaker Change #127: And the typical integration you see in the market is puts a technology burden on the part of patients.

Speaker Change #127: And so we wanted to find a way to provide the one Medtronic experience, the one phone number you can call for patients that may prefer a different sensor.

Speaker Change #129: Do you expect to be in a position to grow faster than the market exiting the year?

Speaker Change #129: And we're pleased to say that we found a path that works for patients from an experience standpoint, as well as for Abbott and for ourselves.

Speaker Change #129: Sean, you want to take these?

Speaker Change #129: And so that's what I would say would be the response to your question.

Speaker Change #129: The strategy hasn't changed. We've just found a way to expand access to a broader install base.

Speaker Change #129: And I think what hasn't, changed is really our commitment towards the system, our confidence in our CGM, the Simplera launches, Simplera and Simplera Sync launches in Europe has gone very well.

Speaker Change #129: We're very pleased with the early experience and we're pleased that we now have FDA approval for Simplera in the U.S, and we're working with the agency to get Simplera Sync approved as well for integration with the 7AG system.

Speaker Change #129: Great.

Speaker Change #129: Thanks a lot.

Speaker Change #129: but we do expect to realize the benefits in future years.

Speaker Change #129: Thanks, Robbie.

Speaker Change #129: You can maybe just flesh out for us again where some of the impacts of FX are in the, P&L and how we think about those as the year progresses.

Speaker Change #129: where fx will show up for us this year will be a little bit different

Speaker Change #129: Thanks so much.

Speaker Change #129: It's going to show up a bit more in the gross margin line for us this year, and as we mentioned, the impact of foreign exchange will wane in the back half of the year, and as our strong underlying earnings growth on a constant currency basis continues, you know, after we delivered a really nice shape of the P&L in the first quarter.

Speaker Change #129: Sean, do you want to take that question?

Speaker Change #129: Yeah, sure.

Speaker Change #129: So, you know, we are, across the board, we price for value when you think there's more, value.

Speaker Change #129: But, you know, I think that that's already baked into everything that we're forecasting, for the continued growth of this product.

Speaker Change #129: So while modest price premium is built into our TAVR launch, but it really is about picking, up more volume on cases, more implants, and, you know, the dynamics that you typically see when you're bringing your product out are, you know, customers burning down their shelf inventory as they put a small amount of stocking per valve size, like a par level, as they ramp up for new technologies.

Speaker Change #129: And we saw both those dynamics occur, you know, in the early launch accounts where people, are picking up a little bit of inventory, but also taking down inventory for the prior model, the FX, in the case of the U.S. So it's always a sort of switching dynamics.

Speaker Change #129: Hi, Matt, this is Gary.

Speaker Change #129: And yeah, as you mentioned, the U.S. dollar has weakened a bit in the first quarter, and, you'll see the benefits of that in the top line, where we've communicated improvement in the impact of the FX. You know, if recent rates hold, we now expect FX on revenue to be a negative impact of 120, to 210, and that compares to 275 to 375.

Speaker Change #129: We'll see that benefit flow through to reported EPS in the second half.

Speaker Change #129: You know, on the bottom line, the benefit is delayed due to our hedging program. But we do expect to realize the benefits in future years.

Speaker Change #129: You know, where FX will show up for us this year will be a little bit different. It's going to show up a bit more in the gross margin line for us this year.

Speaker Change #129: Okay.

Speaker Change #129: And as we mentioned, the impact of foreign exchange will wane in the back half of the, year. And as our strong underlying earnings growth on a constant currency basis continues, you, know, after we delivered a really nice shape of the P&L in the first quarter, we'll see that benefit flow through to reported EPS in the second half.

Speaker Change #129: Thanks, Matt.

Speaker Change #129: Yeah, I guess in the first question, Jason, of course, people really, really want a Farah, you know, the vast majority of the ablation market favors point by point solutions with mapping in the United States in particular.

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

Speaker Change #130: Okay, thanks Matt. We've got time for one more question. If we didn't get your question, if there's any analysts on the line that still have questions, feel free to follow up with me after the call. We'll go to our last question please, Brad.

Speaker Change #129: Next question, please, Brad.

Speaker Change #129: We've got time for one more question.

Speaker Change #129: The next question, comes from Travis Steed at Bank of America Global Research.

Speaker Change #130: So the, you know, the appeal of that product is really strong, but no one's waiting for it.

Matt Mixick: Yeah, the final question comes from Patrick Wood at Morgan Stanley Patrick, please go ahead. Beautiful. Thank you so much for taking the question. Quite a high level one, but you know, you guys are now, I guess, getting the benefit of some heavy investment in previous years in the base business. And so I guess the question is, does that, how does that make you feel of the interplay between, you know, reinvesting for growth on the product support side on innovation relative to margins of the next year or two.

Speaker Change #130: Travis, please go ahead.

Speaker Change #130: If we didn't get to your question, if there's any analysts on the line that still have questions, feel free to follow up with me after the call.

Speaker Change #130: The final question comes from Patrick Wood at Morgan Stanley . Patrick, please go ahead.

Speaker Change #130: Hey, guys.

Speaker Change #130: We'll go to our last question, please, Brad.

Speaker Change #130: I mean, there's, we're getting as much usage, maybe actually more from traditional point by point users as we are getting from single shot users.

Speaker Change #130: Congrats on the quarter.

Speaker Change #130: I lost my one question on TAVR and just want to get kind of what, you're sensing in the market today, given some of the comments from the competitor there.

Speaker Change #130: The final question comes from Patrick Wood at Morgan Stanley.

Speaker Change #130: And, you know, as we bring that technology out, I think the uptake is going to be pretty robust, robust and rapid on top of what we're already doing with pulse select.

Speaker Change #130: So yes, I think that we've got the opportunity to grow fast in the market within this fiscal year, depending on the launch, Thanks, Jayson.

Speaker Change #188: Can you maybe give us a little bit of perspective of what you've seen in Europe now that a year post CE mark and whether we should use that as a proxy for thinking about how does product ramps in the US?

Speaker Change #130: Patrick, please go ahead.

Speaker Change #130: And looking forward, when you think about the FX Plus launch, how do you expect that to impact the market, impact the share?

Speaker Change #130: Beautiful.

Speaker Change #131: Beautiful. Thank you so much for taking the question. Quite a high level one. But you know, you guys are now, I guess, getting the benefit of

Speaker Change #130: Thank you so much for taking the question.

Speaker Change #130: It's quite a high level one.

Speaker Change #130: But, you know, you guys are now, I guess, getting the benefit of some heavy investment, in previous years in the base business.

Speaker Change #130: And is that going to help you with some of the smart data and how you see the TAVR market playing out?

Speaker Change #130: And so I guess the question is, does that, how does that make you feel the interplay, between, you know, reinvesting for growth on the product support side on innovation relative to margins of the next year or two?

Speaker Change #188: Sure.

Speaker Change #130: Thanks a lot.

Patrick Wood: some heavy investment previous years in the base business and so i guess the question is does that how does i make you feel of the interplay between you know reinvesting for growth

Speaker Change #133: on the product support side on innovation relative to margins of the next, I don't know, year or two. Like, how do you see that into play going forward of earnings leverage and investing in the base business versus, you know, trying to drive the top line? Any updated thoughts there would be great. Thanks.

Speaker Change #189: Thanks for the question, David.

Matt Mixick: Like, how do you see that interplay going forward of earnings leverage and investing in the base business versus, you know, trying to drive the top line. Any updated thoughts that would be great. Thanks. Sure, thanks, Patrick. Look, we're committed to driving leverage down the PNL, you know, a company of our size, I mean, that's something we should be able to do. We've got a lot of love to pull that to a lot of leverage to pull to achieve that things in and I'll and free up at the same time, free up even more money for investment, which I'll get to, but we are doing a number of things, measures to hold.

Speaker Change #130: Like how do you see that interplay going forward of earnings leverage and investing in the, base business versus, you know, trying to drive the top line?

Speaker Change #130: I mean, I think that would be great.

Speaker Change #130: Thanks.

Speaker Change #130: Sure.

Speaker Change #130: Hey, Travis.

Speaker Change #130: Thanks, Patrick.

Speaker Change #133: Thank you, Jayson.

Speaker Change #190: A lot of interest, obviously, and in our cast business and an eighth right now and maybe I'll go back to Sean on this one.

Speaker Change #133: I'm going to hand that one over to Sean.

Speaker Change #133: Look, we're committed to driving leverage down the P&L, you know, a company of our size.

Speaker Change #133: Next question, please, Brett.

Speaker Change #133: Thanks for the question.

Speaker Change #191: Yeah, David, thanks for the question.

Speaker Change #133: The TAVR market, we think, is pretty solid.

Speaker Change #133: I think we're growing, in line with the market in high single digits right now.

Speaker Change #134: thanks pattorrick but we're committed to driving leverage on the p nl ouany of our size that'ssomething we should be able to do we've got a lot of to pu that lot of lever a puol to achieve that

Speaker Change #133: And of course, the data momentum that we have, the lowest data versus surgery, I think that's been very compelling.

Speaker Change #133: And I'm going to read up five-year on that data in the coming year here as well.

Speaker Change #133: And of course, smart data has really gotten a lot of attention for the right treatment strategy for small annulus, and particularly women.

Speaker Change #133: So that's all done without any tradeoff on deliverability.

Speaker Change #133: I mean, that's something we should be able to do.

Speaker Change #133: And that's resonated really globally, too, as small annulus is sort of a function of body, habitat as well.

Speaker Change #133: It's got the features of FX, which really improved the usability of that device.

Speaker Change #133: FX Plus has done exceptionally well in its early launch. We did a full limited market release in the month of July, and we saw that momentum really pick up.

Speaker Change #133: And, of course, the U.S. is moving into full market launch right now.

Speaker Change #133: The next question comes from Danielle Antolfi with UBS Securities.

Speaker Change #133: We've got a lot of levers to pull that, a lot of levers to pull to achieve that things, and free up, at the same time, free up even more money for investment, which I'll get to.

Speaker Change #192: You know, the demand for PFA has really been unbelievably strong. And, you know, we're ramping up our capacity as Jeff mentioned to meet that strong and growing demand right now.

Speaker Change #133: So I think that'll foretell a really good continued access or continued growth of that part of the segment.

Speaker Change #133: And within this year, we'll also obtain approvals in other geographies, which will keep the momentum going.

Speaker Change #133: Danielle, please go ahead.

Speaker Change #133: What people really like is those bigger windows that you can then align onto the native coronary anatomy, so overlapping the cusps to making sure that you get that commissural alignment and preserving future access.

Speaker Change #133: So, you know, for us, I think the market's working really well and we're excited to bring this new technology.

Speaker Change #133: Great.

Speaker Change #133: Thanks so much for taking the question.

Speaker Change #133: Thanks a lot.

Speaker Change #133: Thanks, Travis.

Speaker Change #133: Good morning, everyone.

Speaker Change #133: Next question, please, Brad.

Speaker Change #134: things, and free up, at the same time, free up even more money for investment, which I'll get to. But we are.

Speaker Change #133: Congrats on a good start to the year here.

Speaker Change #133: Q, I just wanted to follow up on diabetes and just how should we be thinking about this partnership with Abbott?

Speaker Change #133: Appreciating you're not giving timelines here, but how are you thinking about it and how it could grow the installed base?

Speaker Change #133: But we're also doing a number of things, measures to hold, you know, our kind of, you, know, overhead and enabling expenses low, flat to low so that we can reinvest more in the top line.

Speaker Change #193: And, you know, those gains that we're seeing are more than not saying that crowd is, of course, and we're really in a unique position having this offering of both a single shot approach with our post select and then the point by point approach with a Farah.

Matt Mixick: And, you know, our kind of overhead and enabling expenses low flat to low so that we can reinvest more in the top line. So we're doing things that we've really, really focused on just like we have capital allocation of focus, we also have a focus on our headcount and allocating human capital where that goes. And, and it got that under and in a good spot, we're driving, you know, we're holding our really hold trying to hold our DNA, you know, flat, you know, as a base case.

Speaker Change #134: doing a number of things.

Speaker Change #134: measures to hold, you know, our kind of, you know, overhead and enabling expenses.

Speaker Change #133: Sort of what are you thinking about?

Speaker Change #134: The next question comes from Joanne Wuensch at Citi.

Speaker Change #134: I mean, Abbott has a pretty large installed base today.

Speaker Change #134: low flat to low so that we can reinvest more in the top line. So we're doing things that we've really, really focused on.

Speaker Change #194: Post select, you know, it's, it's really gotten more case volume so far because we were moving that launch both within Europe and the United States.

Speaker Change #134: So should we be thinking about that as low hanging fruit for the pump side of the business?

Speaker Change #134: So we're doing things that we've really, really focused on, just like we have capital allocation, focus, we also have a focus on our headcount and allocating human capital where that goes.

Speaker Change #134: Any more color you can give on how we should think about this changing the trajectory for the diabetes business?

Speaker Change #134: Thanks so much.

Speaker Change #134: I mean, I think the most obvious opportunity for a very large installed base of users that prefer the Abbott sensor to now have access to our technology.

Speaker Change #134: So, unfortunately, I can't give you timelines, but rest assured that we're working as fast as we can to get to incorporate that sensor into our system and really providing that one electronic experience where there's one single app.

Speaker Change #134: Patients can choose between two sensor options, but still experience our AID system and the automation that comes with our algorithm. And so that's the user experience we want to bring to the market.

Speaker Change #134: We think that's pretty differentiated.

Speaker Change #134: And it allows us to tap into the largest CGM installed base in the world, in addition to our own and growing our own installed base.

Speaker Change #134: just like we have capital allocation

Speaker Change #134: Thank you.

Speaker Change #134: Thanks, Danielle.

Speaker Change #194: And what we're hearing from customers is the precision and predictability of the handling of the catheter.

Matt Mixick: And then, and then target areas you want to add for growth, like, for example, as the already in reimbursement comes in, you know, we'll be adding more on our direct distribution for that. So, so a very disciplined process to put a hold our expenses flat as a base case for DNA and then, you know, invest in the high growth areas and also through, you know, a number of programs to drive efficiencies in our enabling functions, including the use of AI to drive some of these efficiencies.

Speaker Change #134: We also have a focus on our headcount and allocating human capital and where that goes.

Speaker Change #134: Next question, Brad.

Speaker Change #134: And, Jeff, there's still questions around your commitment to UGO.

Speaker Change #134: And got that under, in a good spot.

Speaker Change #134: The next question comes from Larry Beagleson at Wells Fargo Securities.

Speaker Change #134: Larry, please go ahead.

Speaker Change #134: Good morning.

Speaker Change #134: Thanks for taking the question.

Speaker Change #134: and got that under, in a good spot. We're driving, you know, we're holding our, really trying to hold our GNA, you know, flat.

Speaker Change #134: Just maybe put any of those concerns to rest here.

Speaker Change #134: We're driving, you know, we're holding our, really trying to hold our G&A, you know, flat, you know, as a base case.

Speaker Change #134: For my one question, I wanted to ask about the progress with the UGO for Mike and Jeff.

Speaker Change #134: So it sounds like you've reached the target enrollment in Expand Euro, the pivotal U.S. trial.

Speaker Change #134: When are we going to see the data?

Speaker Change #134: What's the timeline for U.S. filing?

Speaker Change #134: Could we see potential launch this year or next year?

Speaker Change #134: Thank you.

Speaker Change #194: And importantly that it shows up really well, both on mapping systems and on ultrasound.

Speaker Change #134: Joanne, please go ahead.

Speaker Change #134: Thanks Larry.

Speaker Change #134: And then, and then target areas we want to add for growth, like, for example, as the, Ardian reimbursement comes in, you know, we'll be adding more on our direct distribution for that.

Speaker Change #134: as a base case, and then target areas we want to add for growth. For example, as the RDN reimbursement comes in, we'll be adding more on our direct distribution for that. So a very disciplined process.

Speaker Change #134: Maybe I'll have Mike answer the first couple questions and then I'll come, in afterwards.

Speaker Change #134: Yeah, good morning, Larry.

Speaker Change #134: Good morning and thank you so much for taking the question.

Speaker Change #134: So on Hugo, we are happy with the progress we're making in the clinical work.

Speaker Change #195: And that's important because you've got to put the electrodes in the right spot in the tissue. So you get, you get good ablation and isolation without doing extraneous injury.

Speaker Change #134: As mentioned, we have reached targeted enrollment.

Speaker Change #134: So a very disciplined process to put, hold our expenses flat as a base case for G&A.

Speaker Change #134: to

Speaker Change #134: Put, hold our expenses flat as a base case for GNA and then, you know, invest in the high growth areas and also through, you know, a number of programs to drive efficiencies in our enabling functions, including the uses of AI to drive some of these efficiencies. So,

Speaker Change #134: There's still work to do as we reach the final endpoints and then completing the filing.

Speaker Change #134: And then, you know, invest in the high growth areas.

Speaker Change #134: So we won't be giving a specific date in terms of submission, but very good progress and very appreciative of the work that we're doing together with our surgeon partners and our teams.

Speaker Change #134: Also, as noted, we're making good progress in the enrollment of both hernia and the gynecology clinical series that will allow us to then have a cadence of indications, which will be critical to the U.S. launch.

Speaker Change #134: Yeah, so look, as Mike said, look, there's, a couple of things on Hugo here, two inflection points that need to happen for us to see the impact at the Medtronic level, the U.S. approval, and then just getting our leading instrumentation onto the robot and other capabilities.

Speaker Change #134: And also through, you know, a number of programs to drive efficiencies in our enabling functions, including the use of AI to drive some of these efficiencies.

Speaker Change #134: So very good work across the clinical series.

Speaker Change #134: And as Mike mentioned, we're making progress on both.

Speaker Change #134: And again, appreciative of the work of our surgeon partners and teams.

Speaker Change #134: So this is like a midterm growth driver for us, I'd say, beyond the fiscal year.

Speaker Change #134: Jeff?

Speaker Change #134: But to get back to your question on our commitment, Larry, we're absolutely committed to this.

Speaker Change #134: With all due respect, we do think robotics is really across many different surgical areas, including orthopedics, where we play in spine, is a big driver in the space.

Speaker Change #134: And we're committed to being not just part of it, but being, you know, helping to lead that, like we're doing in spine.

Speaker Change #134: And with, you know, no, we're up against a really strong entrenched competitor here in the soft tissue space.

Speaker Change #134: But we are committed.

Speaker Change #134: We have levers to pull.

Speaker Change #134: We have a great surgery franchise.

Speaker Change #134: So there's a lot to it, a lot of levers to pull.

Speaker Change #134: So a lot going on there and really committed to investing in, back into the business for, growth, whether it be on the direct distributor, the sales side, but more importantly, even on the R&D side.

Speaker Change #195: And that's really been appreciated.

Matt Mixick: So, a lot going on there and really committed to investing in back into the business for growth, whether it be on the director's to be on the sales side, but more importantly, even on the R&D side. And so we've raised that organic investment, despite some of the challenges we've had over the last couple of years, we've raised that organic investment. And look, it's, you know, the tuck in M&A, as I mentioned earlier, would like to kind of maybe over over time here, increase the cadence of that to support the, because the cash flow to companies strong, you know, to support that organic that organic R&D.

Speaker Change #134: We've learned quite a bit about robotics over the years and also the understanding that it's more than just the robotics, a lot of other technology that goes in there, imaging, navigation, you know, the instrumentation, AI, so the digital piece.

Speaker Change #134: And we're committed and we're confident.

Speaker Change #135: A lot going on there and really committed.

Speaker Change #135: to investing in back into the business for growth, whether it be on the direct distributor, the sales side, but more importantly, even on the R&D side. And so we've raised.

Speaker Change #134: And I just point back to, you know, a couple of years ago, other franchises that people, were questioning, can you compete, whether it's spine or whether it's diabetes or neuromod.

Speaker Change #134: And so we've, we've raised that organic investment of, despite some of the challenges we've had, over the last couple of years, we've raised that organic investment and look, it's, you know, the, the tuck in M&A, as I mentioned earlier, we'd like to kind of maybe over, over time here, increase the cadence of that to support the, because the cashflow of the balance sheet is going to be strong, you know, to support that organic, that organic, R&D.

Speaker Change #195: And, of course, the point by point approach with with a Farah is really unique and differentiated for us as well.

Speaker Change #136: And we've been able to embrace that organic investment despite some of the challenges we've had over the last couple of years, we've embraced that organic investment. And look, the tuck in M&A, as I mentioned earlier, I'd like to kind of maybe over time here, increase the cadence of that to support, because the cash flow of the company is strong, to support that organic R&D. So that's how we're thinking about it. I think we can drive that leverage down the P&L. We've got a lot of different levers to pull to, to do that.

Speaker Change #196: You know, the same catheter being able to create this beautiful map.

Speaker Change #197: And you can, you can use either energy source depending on where you want to be anatomically to avoid things like coronary spasm and the is this lines.

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

Speaker Change #134: We're focused on it.

Speaker Change #134: So that's, that's how we're thinking about it.

Speaker Change #134: You see those, you've seen those all, you know, get to a much, much, better spot with the focus and investment.

Speaker Change #134: I think we can drive that earning, that leverage down the P&L.

Speaker Change #197: And also the lattice tip.

Speaker Change #134: And that's where we are on surgery.

Speaker Change #197: It's a really, you know, maybe under a preshade part of this sphere non catheter.

Speaker Change #198: It's got this lattice that has excellent electrodes stability and it's three times wider than a normal kind of oblation electrode you use for RF.

Speaker Change #198: So the precision and speed of that is really fantastic.

Speaker Change #134: And my level of confidence on this is high because of the levers we have to pull, the team we have in place, the franchise we have.

Speaker Change #134: We've got a lot of different levers to pull to, to do that at the same time, freeing up, even more investment, both from our, in our income statement into R&D, but also using the strong cashflow from the balance sheet for tuck in M&A.

Speaker Change #134: But knowing that the entrenched competitor is very strong.

Speaker Change #134: So understanding that, but still knowing, you know, having confidence in our team.

Speaker Change #134: Thank you.

Speaker Change #134: Thanks, Larry.

Speaker Change #134: The next question comes from David Rescott at Barrett Equity Research.

Speaker Change #134: Next question, please, Brad.

Speaker Change #136: At the same time, freeing up even more investment.

Speaker Change #134: David, please, go ahead.

Speaker Change #134: Great.

Speaker Change #136: both from on our income statement into randd but also using the strong cash flow from the balance sheet for tuckking and a that's how we're looking at it again prioritizing these high growth areas at the same time making sure that the rest ofour businesses are compeitive i feel likewe've gottento a spot on that

Speaker Change #134: Thanks for taking the questions and congrats on the strong start to the year here.

Speaker Change #134: That's how we're looking at it.

Speaker Change #198: So look on the technology side, everything's going really well.

Speaker Change #134: You know, again, prioritizing these high growth areas, but at the same time, making, sure that the rest of our businesses are competitive.

Speaker Change #134: And I feel like we've gotten to a good spot on that and, and we'll see, we're seeing the, benefits of that now, and we're going to continue to see the benefits of that on into the future.

Speaker Change #199: And you're asking about ramping in Europe. There are more cost constraints in Europe, of course, than, than what we see in markets like the US and Japan where new technology, even at a higher price seems to get adopted.

Speaker Change #134: Okay.

Speaker Change #199: So, you know, the, the uptake of PFA would be relatively slower, but still, still robust as we go ahead with this, with this technology. You know, I think there's some lingering questions on on durability.

Speaker Change #136: And we're seeing the benefits of that now, and we're going to continue to see the benefits of that on into the future.

Speaker Change #134: Geoff, I heard your comments on, you know, being on the hunt for M&A.

Speaker Change #134: Thanks, Patrick.

Speaker Change #134: I'm curious if you could help us kind of understand, you know, maybe what areas strategically you think make the most sense in the portfolio when you kind of think about the size of the Medtronic portfolio.

Speaker Change #134: Geoff, please go ahead with your closing remarks.

Speaker Change #134: I guess, how do you balance that kind of near term what can be needle moving, versus, you know, what can move the needle over the two to three year period and three to five year period?

Speaker Change #199: And we'll see some data at the upcoming AP AP HRS meeting, where we'll show.

Geoffrey Martha: Okay, thanks Patrick, Geoff, please go ahead with your closing remarks.

Speaker Change #134: Thank you.

Speaker Change #134: Okay.

Jeff Gary: Okay, thanks Patrick. Geoff, please go ahead with your closing remarks.

Jeff Gary: Good morning, everyone.

Jeff Gary: Can we spend some time talking about the renal denervation market and the CMS MTAP for Simplicity?

Speaker Change #200: Longer-term durability of our pulse-select catheters. We've already demonstrated that with Tier IX.

Geoffrey Martha: Okay, I try and thank you and thanks everybody for the great questions and we certainly appreciate your support and interest in Medtronic and we hope you'll join us for our Q2 earnings broadcast, which we anticipate holding on Tuesday, November 19th.

Jeff Gary: Thanks, Ryan.

Speaker Change #137: Okay, thanks Ryan. Thank you. And thanks everybody for the great questions and we certainly appreciate your support and interest in Medtronic.

Speaker Change #137: Congrats on a good start to the year here.

Speaker Change #137: How do you see this market developing now that reimbursement is getting behind the product?

Speaker Change #137: Thanks.

Speaker Change #137: Thank you.

Speaker Change #137: Q, I just wanted to follow up on on diabetes.

Speaker Change #137: And just how should we be thinking about this partnership with Abbott?

Speaker Change #137: Appreciating you're not giving timelines here.

Speaker Change #137: Thank you.

Speaker Change #137: Thanks for the question, David.

Speaker Change #137: And thanks, everybody, for the great questions.

Speaker Change #137: Yeah, I mean, look, on the M&A side, this is one of the areas, just it's part of a larger capital allocation strategy, right?

Speaker Change #138: We hope you'll join us for our Q2 earnings broadcast, which we anticipate holding on Tuesday, November 19th. Now, that's the week before Thanksgiving in the U.S. this year. Again, as usual, we'll update you on our progress.

Geoffrey Martha: Now that's the week before Thanksgiving in the US this year. You know, again, as you who update you on our progress against our long term stress, strategies and our commitments both short and long term.

Speaker Change #201: And I'd say that the opportunity to offer patients something that's really safe, really effective, lasts a long time.

Speaker Change #202: I think really just open up the aperture for more and more patients to flow through.

Speaker Change #202: You know, waiting lists are a challenge for that business.

Speaker Change #202: And I think having a more efficient procedure with great workflow really helps.

Speaker Change #202: And then of course, we can leverage the larger portfolio of metropolis.

Speaker Change #202: And I think it's a great opportunity to help with the economic of this in any country and around the world.

Speaker Change #202: So I think the future for a pulse-filled ablation, we're just getting going.

Speaker Change #202: But this is going to be a really robust growth market for a long time to come.

Speaker Change #138: against our long-term strategies and our commitments both short and long-term. So with that, thanks for joining us and have a great rest of your day.

Speaker Change #138: But how are you thinking about it?

Speaker Change #138: Yeah, thanks for the question, Joanne.

Speaker Change #138: Or we talk about, you know, little C capital allocation and big C capital allocation.

Speaker Change #138: And we, certainly appreciate your support and interest in Medtronic.

Speaker Change #203: And just to emphasize something Sean said, we're really, you know, excited to be the only player with, you know, differentiated offerings in both the single shot and this point by point segments of the market.

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

Speaker Change #138: And how it could grow the installed base?

Speaker Change #138: I mean, look, we're, like I said before, I'm super excited about our end.

Speaker Change #204: Both pulse-select and affair have, you know, differentiated features, you know, Sean mentioned the handling of the catheter and pulse-select.

Speaker Change #138: Sort of what are you thinking about?

Speaker Change #138: And, and it's good to see the reimbursement taking shape, you know, with the CMS with the outpatient payment, determined, I'm sorry, the inpatient payment now determined and the outpatient payment, you know, on the table here.

Speaker Change #205: And that's really ramping for us, you know, quite, quite well right now.

Speaker Change #138: I mean, Abbott has a pretty large installed base today.

Speaker Change #138: You know, it's getting closer to that, that unlock that reimbursement unlock.

Speaker Change #206: And in affairs, the ramp, you know, obviously don't have approval yet in the US and the ramp for that will be a little behind, you know, where we are pulse-select.

Speaker Change #138: So is should we be thinking about that as low hanging fruit for the pump side of the business?

Speaker Change #138: And I'll let you know, maybe Sean comment on these this as well.

Speaker Change #207: But pulse-select is doing really well.

Speaker Change #138: Any more color you can give on how we should think about this changing the trajectory for the diabetes business?

Speaker Change #138: Yeah, thanks, Jeff.

Speaker Change #207: And I think it's, you know, I think you just don't, yeah, I think the analyst community is kind of has moved past pulse-select a little bit.

Speaker Change #207: And I'm not sure that's the right call.

Speaker Change #208: I mean, it's doing really well.

Speaker Change #208: Thanks, David.

Speaker Change #208: Take the next question, please, Brad.

Speaker Change #208: The next question comes from Jason Bedford at Raymond James.

Speaker Change #209: Jason, please go ahead.

Speaker Change #210: Can you hear me?

Speaker Change #210: Okay.

Speaker Change #211: We can Jason.

Speaker Change #211: Okay.

Speaker Change #212: Maybe just to follow along just on the cast question.

Speaker Change #213: One, I guess, do you find that folks are waiting for in the US for a Ferris last, sphere nine.

Speaker Change #213: And then second, you did talk about an acceleration and cast revenue growing forward and acceleration and growth.

Speaker Change #214: Do you expect to be in a position to grow faster than the market exiting the year?

Speaker Change #215: Are you sure you want to take this?

Speaker Change #216: Yeah, I guess in the first question, Jason, of course, people really, really want a fairer, you know, the vast majority of the inflation market, favors point by point solutions with mapping in the United States in particular.

Speaker Change #217: So the, you know, the appeal of that product is really strong, but no one's waiting for it.

Speaker Change #218: I mean, there's, we're getting as much usage, maybe actually more from traditional point by point users as we're getting from single shot users.

Speaker Change #219: And, you know, as we bring that technology out, I think the uptakes going to be pretty robust robust and rapid on top of what we're already doing with whole select.

Speaker Change #219: So yes, I think that we've got the opportunity to go fast in the market within this fiscal year, paying the launch timing.

Speaker Change #219: Thanks, Jason.

Speaker Change #220: Thank you, Jason.

Speaker Change #221: Next question, please breath.

Speaker Change #221: The next question comes from Joanne Lynch at city.

Speaker Change #222: Joanne, please go ahead.

Speaker Change #223: Good morning, and thank you so much for taking the question.

Speaker Change #224: Can we spend some time talking about the regional innovation market and the CMS and tap for simplicity?

Speaker Change #225: How do you see this market developing now that reimbursement is getting behind the product?

Speaker Change #226: Thank you.

Speaker Change #226: Yeah, thanks for the question, Joanne.

Speaker Change #227: I mean, look, we're, like I said before, I'm super excited about Ariane, and it's good to see the reimbursement taking shape, you know, with the CMS, with the outpatient payment, determined, I'm sorry, the inpatient payment, now determined, and the outpatient payment, you know, on the table here, you know, it's getting closer to that unlock, that reimbursement unlock, and I'll let, you know, maybe Sean comment on this as well.

Speaker Change #228: Yeah, thanks, Geoff, and Joanne, thanks for the question.

Speaker Change #229: You know, the payment is one part of it.

Speaker Change #230: We have coding and coverage, most importantly, that need to come.

Speaker Change #231: So, you know, the codes are already established.

Speaker Change #232: We've got the, as you noted, an end tap, we have inpatient coding, but outpatient is going to be more of the kind of procedure volume.

Speaker Change #232: We think less than 10% of the procedures are going to be done with more than a single midnight stay or on the inpatient settings.

Speaker Change #233: So really it's, it's that TPP or transitional pass through payment that, that we're really waiting on, and we did hear from CMS on that this summer, just this month, where they're supporting our, our approach here for, where that application, this is a breakthrough device, so that helps to get into those kind of payment codes.

Speaker Change #233: And we expect to see that, you know, happen pretty soon.

Speaker Change #234: And of course, we're working really closely with CMS and with commercial pairs on making sure we have coverage policies that are going to facilitate patient access.

Speaker Change #234: And again, being a breakthrough technology that that helps you with the kind of urgency and speed at which we'll see CMS moves.

Speaker Change #234: So, you know, look, I think all things on the reimbursement front are pointing exactly in the direction we're hoping to to get them.

Speaker Change #234: And we're excited to ramp this technology up and make it available.

Speaker Change #234: The, I will say that the, the level of excitement we're getting from physicians and from hospital systems about this new service line that can offer as well as patients.

Speaker Change #234: And the early outcomes for patients that have been treated on the sort of case by case basis have been really phenomenal.

Speaker Change #234: So, you know, look, I think that unlock is we've said all along is going to be reimbursement and we're, we're marching toward that.

Speaker Change #234: So we're excited about the opportunity here.

Speaker Change #234: Hey, thank you, Joanne.

Speaker Change #234: I think we've got time for maybe two more questions.

Speaker Change #234: Take the next question, Brad.

Speaker Change #235: The next question comes from Matt Mixick, F.R.

Speaker Change #236: Clay's Matt.

Speaker Change #237: Please go ahead.

Speaker Change #238: Hey, thanks so much for the question.

Speaker Change #239: And I just, if I could just two quick follow ups on some of the topics that have already been kind of explored here.

Speaker Change #240: The first for Sean just on on tab or I seem to remember that with the FX launch there was some effective price premium.

Speaker Change #241: There was some period of kind of stockings.

Speaker Change #242: You got into the launch.

Speaker Change #243: And I'm just wondering if you could set any light on on the sort of shape of the next few quarters as you as you really begin to roll out FX plus.

Speaker Change #244: And then the second on Gary on on.

Speaker Change #245: On effects.

Speaker Change #246: I think, you know, there's some questions around the fact that the, you know, top line effects impact actually ease a little bit, but the effects impact on the bottom line.

Speaker Change #247: And the headwind 5% remain the same.

Speaker Change #248: You can maybe just flesh out for us again where some of the impacts of effects are in the T&L and how we think about those as the year progresses.

Speaker Change #248: Thanks so much.

Speaker Change #249: Sean, you would take that question.

Speaker Change #250: Yeah, sure, so, you know, that we are across the board, we've priced for value when you think there's a more value, so we'll modest price premium is built into our, our taver launch, but it really is about picking up more volume on cases, more implants and the dynamics that you typically see when you're bringing your product out are, you know, customers burning down their shelf inventory as they, they put a small amount of stocking per valve size.

Speaker Change #251: So, it's like a par level as they ramp up for new technologies, and we saw both those dynamics occur in the early launch accounts for people picking up a little bit of inventory, but also taking down inventory for the prior model, the effects in the case of the US, so it's always a sort of switching dynamics, but you know, I think that that's that's already baked into everything we're forecasting for the continue growth of this product.

Speaker Change #251: Hi, Matt, this is this is Gary and as you said, as you mentioned, the US dollar has weakened a bit in the first quarter and you'll see the benefits of that in the in the top line, where we've communicated improvement in the impact of the effects.

Speaker Change #252: You know, a recent rates hold, we now expect effects on revenue to be a negative impact of 120 to 210, and that compares to 275 to 375, you know, on the bottom line, the benefit is delayed due to our hedging program, but we do expect to to realize the benefits in in future years, you know, where effects will show up for us this year will be a little bit different.

Speaker Change #253: It's going to show up a bit more in the gross margin line for us this year, and as we mentioned, the impact of foreign exchange will wane in the back half of the year, and as our strong underlying earnings growth on a constant currency basis continues, you know, after we delivered a really nice shape of the PNL in the first quarter, we'll see that benefit flow through to reporter EPS in the second half.

Speaker Change #253: Hey, thanks, Matt.

Speaker Change #254: We've got time for one more question.

Speaker Change #255: If we didn't get your question, if there's any analyst on the line that still have questions, feel free to follow up with me after the call, go to our last question, please press.

Speaker Change #255: Yeah, the final question comes from Patrick Wood at Morgan Stanley Patrick, please go ahead.

Speaker Change #255: Beautiful.

Speaker Change #256: Thank you so much for taking the question.

Speaker Change #257: Quite a high level one, but you know, you guys are now, I guess, getting the benefit of some heavy investment in previous years in the base business.

Patrick Wood: And so I guess the question is, does that, how does that make you feel of the interplay between, you know, reinvesting for growth on the product support side on innovation relative to margins of the next year or two.

Speaker Change #259: Like, how do you see that interplay going forward of earnings leverage and investing in the base business versus, you know, trying to drive the top line.

Speaker Change #259: Any updated thoughts that would be great.

Speaker Change #259: Thanks.

Speaker Change #259: Sure, thanks, Patrick.

Speaker Change #260: Look, we're committed to driving leverage down the PNL, you know, a company of our size, I mean, that's something we should be able to do.

Speaker Change #261: We've got a lot of love to pull that to a lot of leverage to pull to achieve that things in and I'll and free up at the same time, free up even more money for investment, which I'll get to, but we are doing a number of things, measures to hold.

Speaker Change #261: And, you know, our kind of overhead and enabling expenses low flat to low so that we can reinvest more in the top line.

Speaker Change #262: So we're doing things that we've really, really focused on just like we have capital allocation of focus, we also have a focus on our headcount and allocating human capital where that goes.

Speaker Change #262: And, and it got that under and in a good spot, we're driving, you know, we're holding our really hold trying to hold our DNA, you know, flat, you know, as a base case.

Speaker Change #262: And then, and then target areas you want to add for growth, like, for example, as the already in reimbursement comes in, you know, we'll be adding more on our direct distribution for that.

Speaker Change #263: So, so a very disciplined process to put a hold our expenses flat as a base case for DNA and then, you know, invest in the high growth areas and also through, you know, a number of programs to drive efficiencies in our enabling functions, including the use of AI to drive some of these efficiencies.

Speaker Change #264: So, a lot going on there and really committed to investing in back into the business for growth, whether it be on the director's to be on the sales side, but more importantly, even on the R&D side.

Speaker Change #264: And so we've raised that organic investment, despite some of the challenges we've had over the last couple of years, we've raised that organic investment. And look, it's, you know, the tuck in M&A, as I mentioned earlier, would like to kind of maybe over over time here, increase the cadence of that to support the, because the cash flow to companies strong, you know, to support that organic that organic R&D.

Speaker Change #264: So, that's that's how we're thinking about it.

Speaker Change #264: I think we can drive that earning that leverage down the P&L.

Speaker Change #264: We've got a lot of different levers to pull to, to do that at the same time, freeing up even more investment, both from our income statement into R&D, but also using the strong cash flow from the balance sheet for tucking M&A.

Speaker Change #264: That's how we're looking at it, you know, again, prioritizing these high growth areas, but at the same time, making sure that the rest of our businesses are competitive.

Speaker Change #264: And I feel like we've gotten to a good spot on that. And we'll see, we're seeing the benefits of that now, and we're going to continue to see the benefits of that on into the future.

Speaker Change #265: Okay, thanks Patrick, Geoff, please go ahead with your closing remarks.

Geoff: Okay, I try and thank you and thanks everybody for the great questions and we certainly appreciate your support and interest in Medtronic and we hope you'll join us for our Q2 earnings broadcast, which we anticipate holding on Tuesday, November 19th.

Speaker Change #267: Now that's the week before Thanksgiving in the US this year.

Speaker Change #267: You know, again, as you who update you on our progress against our long term stress, strategies and our commitments both short and long term.

Speaker Change #267: So with that, thanks for joining us and have a great rest of your day.

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