Q2 2026 Medtronic PLC Earnings Call
Speaker #1: Second quarter video earnings webcast. I'm Ryan Weispfenning, Vice President and Head of Medtronic Investor Relations. Joining me here today are Geoffrey Martha, Chairman and Chief Executive Officer, and Thierry Pieton, Chief Financial Officer.
Speaker #1: Geoffrey and Thierry will provide comments on the results of our second quarter, which ended on October 24, 2025, and our outlook for the remainder of fiscal year 2026.
Speaker #1: After our prepared remarks, we'll take questions from the sell-side analysts that cover the company. Today's program should last about an hour. Earlier this morning, we issued a press release discussing our results and containing several financial schedules.
Speaker #1: We also posted an earnings presentation that provides additional details on our performance. The presentation can be accessed in our earnings press release or on our website at investorrelations.medtronic.com.
Speaker #1: During today's program, many of the statements we make may be considered forward-looking statements, and actual results may differ materially from those projected in any forward-looking statement.
Speaker #1: Additional information concerning factors that could cause our actual results to differ is contained in our periodic reports and other filings that we make with the SEC.
Speaker #1: And we do not undertake to update any forward-looking otherwise, all comparisons are on a statement. year-over-year basis. And revenue comparisons Unless we say are made on an organic basis, which excludes the impact of foreign current and prior year from our divestiture this exchange, second quarter revenue in the quarter of the Dutch obesity clinic, quarter revenue in the current and prior year of also known as NOK, and second reported as other.
Speaker #1: References to sequential revenue changes compared to the first quarter of fiscal 2026 are made on an as-reported basis. All share references are on a revenue and year-over-year basis and compare our second fiscal quarter to our competitors' third calendar quarter.
Speaker #1: non-GAAP financial measures can be found in our earnings press release or on Reconciliations of all our website at investorrelations.medtronic.com. And finally, our EPS guidance does not include any charges or gains that would be reported as non-GAAP adjustments to earnings during the fiscal year.
Speaker #1: With that, over to you, Geoff.
Speaker #2: Ryan. And hello, everyone. Last quarter, I told you that Medtronic, okay, thanks, is on the cusp of an acceleration in strategy. Well, today I'm pleased to share that because of our organization's relentless focus, that acceleration is reflected in our financial results, and we delivered a strong second quarter.
Speaker #2: Indeed, we are underway. Both our revenue and EPS beat expectations. Looking across our business, procedure volumes and end markets are robust, and we're bringing Medtronic's full capabilities to bear as we launch innovative technologies and execute ahead of plan in some of the most attractive and fast-growing end markets in medtech.
Speaker #2: We're glad to be able to raise our revenue growth and EPS guidance for the full year on the back of this building progress. This quarter, we accelerated our growth with significant contributions from our cardiac ablations business as promised.
Speaker #2: Looking ahead, there's even more that Medtronic is capable of. We're positioning ourselves for even greater acceleration in revenue growth in the back half of the year and beyond.
Speaker #2: Our momentum is fueled by our enterprise growth drivers, including our PFA franchise for AFib, soft tissue robotics, simplicity for hypertension, and Hugo AltaViva for incontinence.
Speaker #2: Look, these are game changers, and they'll power our trajectory. And at this pivotal inflection point in our growth journey, we recognize the need to capitalize on the incredible market opportunities before us.
Speaker #2: So we've scaled manufacturing to support our acceleration. And this quarter, we took the opportunity to increase OpEx investments to support our revenue growth momentum.
Speaker #2: did all this while still delivering outsized EPS growth relative to our guidance. Overall, We mindset. Besides our organic programs, we're focused we've shifted to a growth on pursuing Tuck and M&A and executing strategic portfolio management.
Speaker #2: Now let's get into the details on our enterprise growth drivers. One of them powered our growth acceleration this quarter. And together, all of them will fuel our total company revenue growth in the quarters ahead.
Speaker #2: In cardiac ablation, our PFA franchise is generating just a ton of momentum. We grew 71%, which is a strong acceleration from last quarter's nearly 50% CASC growth.
Speaker #2: This is the highest growth rate of any company in this large and fast-growing space. We're winning share as our PFA franchise grew over 300% in the U.S.
Speaker #2: International markets were strong, based on the strength of our AFERA mapping system and our Sphere 9 dual energy and high-density mapping catheter.
Speaker #2: Look, physicians tell us that they appreciate not only the shorter procedure times that they're seeing with AFERA, but increasingly they're calling out its outstanding durability as well.
Speaker #2: And demand continues to be extremely high, as we hear repeatedly from customers that they want to purchase additional AFERA systems to expand into even more of their labs.
Speaker #2: And in the vast majority of instances, when a new AFERA system goes into a lab, we take the majority of the AF procedure share in that lab.
Speaker #2: You know, our plants have scaled, as I mentioned earlier, to meet the challenge. And our mapping hiring is going really well. As a result, we've doubled our installed base of AFERA mapping systems during the quarter.
Speaker #2: And given the economics of this business with capital and consumables, our mapping system sales are
Speaker #1: still in the We're Early . parts of early this , and we rollout acceleration to revenue expect continue with an higher even growth cast Q3 We remain .
Speaker #1: track to to revenue of this in double the business soon , adding an on $1 billion incremental the $1 billion FY 25 base .
Speaker #1: there stopping with our pipeline . We're bringing a fair Look , technology to single segment with sphere three . 60 . EPs the tell shot us that most anticipated PFA catheter out there , given the its early strength of clinical We've data .
Speaker #1: submitted the 360 is the IDE the FDA to get approval to US trial , which were expecting to start Q3 in . So the space EP is now over growing It's mid 20s and with our low double pivotal $12 billion .
Speaker #1: submitted the 360 is the IDE the FDA to get approval to US trial , which were expecting to start Q3 in . So the space EP is now over growing It's mid 20s and with our low double pivotal $12 billion . share the high demand I just talked and for the about current portfolio and pipeline , we see a long our runway to significant share and add to .
Speaker #1: on top of that , growth , Now , we're as the gain launching leader two very Medtronic large end clear Our simplicity markets .
Speaker #1: In hypertension Ulta Viva for . And we're excited to have received the final Medicare NCD for simplicity three weeks ago.
Speaker #1: So now , in a broad label FDA , we an from the outcome from coverage CMS final . The NCD enables broad excellent removes certain patient pathway barriers that were in the original proposal , including have reducing in-person visits and , removing a kidney function , exclusion , and cutting in time meds requirement for half the .
Speaker #1: It adherence to highlights patient quality of important as an consideration . So the NCD physicians gives many avenues to simplicity to bring patients Additionally , we are .
Speaker #1: the only company to meet NCD full criteria with an continued evidence approved plan . And commercial on the front payer , we picked up significant wins momentum with during the quarter , including Hcsc regions and several Blue Cross Blue Shield plans that cover collectively 30 million lives .
Speaker #1: Shifting to , Medtronic is the runaway leader with already in clinical data , continue to add efficacy to it . The only and we sustained and blood pressure reductions simplicity term .
Speaker #1: This is definitively unique us as we've seen with the this ultrasound improving not This sets the in the long standard that all other devices must meet now .
Speaker #1: And month at TCT , we from our last three year data On-med trial continued to shared procedure is show the effective over the long that .
Speaker #1: Patients who underwent the Simplicity procedure experienced an 18.5-point average drop in systolic blood pressure. We also enrolled in our Affirm completed spiral aims to which Simplicity high expand risk into subgroups, including people with isolated systolic hypertension.
Speaker #1: The first data from a subset of this trial was also shown at TCT , with very strong We're results . these using results in an ongoing discussions with the FDA simplicity , so represents massive opportunity dollar a for Medtronic multibillion with an market addressable of 18 million people in the US with uncontrolled hypertension and now with a broad NCD in place and commercial payers coming faster than online anticipated , this question of isn't a how or even big .
Speaker #1: if It's how fast . Now we have not incorporated much simplicity , revenue into our back half guidance , but we are sprinting after this opportunity .
Speaker #1: We have supply . We've ramped up physician market development activities with many hospitals initiating simplicity programs country . And now across the increasing we're our consumer awareness programs .
Speaker #1: And as a result, we expect our revenue to pick up in the back half of fiscal year 2026 and ramp over the next few quarters.
Speaker #1: And contribute to Medtronic for years to come meaningfully . Now , shifting to Alta Viva . We're seeing positive signs in the first several weeks of the US launch , physician training programs are oversubscribed , and we're expanding training capacity to meet demand this .
Speaker #1: are stacking Physicians cases early media and coverage driven a surge in consumer search has activity . Alta a is a simple option to treat Viva urinary is involuntary leaks , which affect 16 million people in the US .
Speaker #1: This small device is inserted the just below but above the skin , fascia near the ankle . The procedure is minimally invasive , doesn't require sedation , and the goes patient home with a therapy they're not activated so waiting for follow up appointments feel the to to .
Speaker #1: The device is only recharged once or twice . A year , eliminating the need for daily at charging home equipment . has a And it 15 year battery .
Speaker #1: So, we believe Alta Viva will add meaningful growth to our pelvic health business and be a Medtronic growth driver again for years to come.
Speaker #1: And more importantly, it is meaningful for patients. This is our first patient in South Carolina dancing to "Jingle Bell Rock."
Speaker #1: It's getting that to be that time of the year wonderful , and it's a video . In addition to who these enterprise growth drivers , we're seeing improvements in our other many of businesses execute on as we new product introductions , getting products to ahead of , and market commercial follow through .
Speaker #1: It's getting that to be that time of the year wonderful , and it's a video . In addition to who these enterprise growth drivers , we're seeing improvements in our other many of businesses execute on as we new product introductions , getting products to ahead of , and market commercial follow through schedule So with that , I'm going to turn it over to Thierry to cover the details of our business performance .
Speaker #1: and our Financials guidance
Speaker #2: thanks ,
Speaker #2: . Hi . Hey , Jeff I appreciate everyone us today . joining So I'll start with our cardiovascular portfolio where we grew This was 9% .
Speaker #2: our strongest in over growth a decade . Excluding the easy comparisons we had after the pandemic , the growth acceleration was driven by our building momentum in CAS , which Jeff walked you and through , noting that is PFA now 75% of our cardiac ablation revenue .
Speaker #2: Our PFA significantly offset the 40% declines we had in cryo, and 90% of our remaining cryo revenue is in markets outside of the U.S.
Speaker #2: look , it wasn't And just CAS . rest of our The cardiovascular portfolio grew a combined mid-single digits . Cardiac rhythm management grew 5% , with 18% growth in micro leadless pacemakers and nearly 80% growth Aurora EV .
Speaker #2: ICDs in structural heart . We 7% on the strength of the grew TAVR platform in peripheral grew low , single digits expect and we vascular , we improve continue to as we launch the neuro guard IAP carotid stent and begin the launch of our .
Speaker #2: The Labyrinth Mechanical Thrombectomy System is the next addition to our neuroscience portfolio. Growth has returned to mid-single digits, with an expected growth of 4% in cranial and spinal technologies.
Speaker #2: We grew 5% . That , included 8% growth in core . Both globally and in the US and , 5% in neurosurgery capital equipment .
Speaker #2: spine Aibo ecosystem , which includes AI enabled preoperative planning software and enabling capital equipment including robotics , navigation , imaging and powered surgical instruments continues to attract strong surgeon spine adoption drive meaningful share gains and .
Speaker #2: And this is enabling strong pull through of our spine core hardware . Our specialty therapies businesses had flat results in Q2 expected and improvement from quarter , driven by ENT and last neurovascular .
Speaker #2: We clear line of sight to continued specialty improvement in therapies. Next, we accelerate growth in both neurovascular health and, as the quarter in growth vascular will improve anniversary.
Speaker #2: majority of China in The January . We expect an as we also in growth contribution from the neuro guard carotid stent launch , which is being sold our peripheral vascular and neurovascular businesses pelvic health .
Speaker #2: We expect growth to accelerate out of the viva that Jeff outlined, launched in neuromodulation. We grew 7%; both pain and brain stem modulation grew high.
Speaker #2: Single digits as we continue the rollout incentive , SCS and brain Science ABS systems , the market continues to appreciate our differentiated , fully closed loop technology with responsive , real time therapy adjustments .
Speaker #2: That's available in both of these products . Next , our med search portfolio grew 1% as expected , our surgical business also grew 1% impacted as we anticipated by the timing certain of tenders in emerging markets and the ongoing but stable market pressures from bariatric surgery and the shift to robotics .
Speaker #2: expect a rebound slight We surgical in the back and half over time , we expect growth to continue to improve as we enter new markets .
Speaker #2: With Hugo back half of this in the year , we fiscal expect the FDA to approve Hugo with a urology indication , and we'll start our entrance in the US .
Speaker #2: We also continue to make progress on expanding indications quarter . We presented our during the enable hernia Repair study , met which its safety and effectiveness endpoints , and we kicked off embrace our Gynecology US pivotal study last month .
Speaker #2: This builds on the momentum from the positive results of our guidance international study , which we shared SRS in at July . Given our experience in international markets , we've developed a clear understanding of the differentiated features that will make our robotics program successful .
Speaker #2: This includes Hugo's modularity and open console. It also includes continuously adding advanced technologies such as our ICG imaging and instrumentation like LigaSure, RA, and our Surgery Touch digital ecosystem, which is a force multiplier for robotics and for laparoscopic surgery.
Speaker #2: Adoption is building momentum and bringing AI into operating in over rooms 30 countries . Beyond the features were also leveraging our deep partnerships with customers through our training support through our and service .
Speaker #2: We look forward to robotics becoming a more meaningful growth driver over time . Next , our endoscopy business This was grew 8% . driven by double digit growth in our esophageal products as as well GI in AI powered Our solution used to genius .
Speaker #2: polyps during colonoscopies . Wrapping up our business performance . Our diabetes business , or minimed , as it will be called Post-separation , grew high .
Speaker #2: Single digits . We had particular strength in markets , international which 11% as grew expected , the US was lower this quarter in large due to a decline in new orders as customers part the our new launch sensors we started accepting as simpler simpler I think pent up we materialize continue to .
Speaker #2: We're seeing manufacturing both behind and sensors. There's a lot of support for its European sync launch. As it continues, we plan to roll it out broadly to consumers in the fiscal year that ramps.
Speaker #2: And ahead of that , we started accepting later this orders during the quarter with the sensor . We started taking instinct pre-orders in the US during the last the quarter month of , and we expect to shipping in late begin November .
Speaker #2: We accumulated more than 35,000 U.S. customer orders for Sync Simple and pre-orders for Instinct. Around 25% of these orders are from new pump users or our Medtronic pump users who were not using our CGM. The rest of these orders.
Speaker #2: customers in install our . Upgrading to the new base also saw over 9000 HCP in US The who are new Medtronic prescribers . Look for those of you who follow this space , you know how these numbers are and the impact they're to have expected expected to have on increasing our install base .
Speaker #2: There's a big deal demand for our new sensors to accelerate our U.S. growth in the back half of the fiscal year. Our business is in diabetes, which is experiencing a strong innovation cycle.
Speaker #2: We've had a lot of great news in the last few months as our teams execute on the pipeline. In July, the 780 system was received.
Speaker #2: CE mark for three expanded indications , including for type two for children as young as age two during and pregnancy . In September , the US FDA also approved seven ATG for people with type two diabetes , and they cleared our Smartguard that enabled algorithm integration with the sensor instinct .
Speaker #2: Earlier this month , we received FDA approval to start the US for pivotal our third generation algorithm . We also continue to make progress new ID systems Minimed , flex and Minimed fit remain on track to submit flex , our next generation durable pump .
Speaker #2: US . FDA , and with fit We , our ID patch system . We intend to submit to the US , FDA next by the year .
Speaker #2: Look , finally , our plan Minimed is on separation of track . Our preferred path continues to be a IPO and two step split .
Speaker #2: We continue to expect the separation to be complete by the end of the calendar year 2026. So we have a lot of momentum, given the diabetes.
Speaker #2: Order inflection and progress on the pipeline and separation you're experiencing today signal that this momentum acceleration extends across the enterprise as we advance our pipeline and deliver growth.
Speaker #2: Now turning to the financials , the second quarter revenue of 9 billion grew 6.6% reported . And 5.5% organic . That's an acceleration from last quarter .
Speaker #2: And 75 basis points ahead of the midpoint of our guidance . Our revenue from geographic , from a perspective , was geographic balanced with double digit growth in Japan mid-single digit and growth in the US .
Speaker #2: In Western Europe and China . In China , we're driving growth we go even as through ongoing . But very manageable volume based procurement in a few businesses .
Speaker #2: Our adjusted gross margin was 65.9%, up 70 basis points year over year, similar to last quarter. We'll walk you through the main components.
Speaker #2: So we got 30 basis points again from pricing, as well as 40 basis points from our COGS efficiency programs, net of inflation.
Speaker #2: Importantly, margin headwinds from ramping up our on capacity manufacturing Fara are now behind us. So together, we drove a 70 basis point operational improvement in gross margin in the quarter.
Speaker #2: This was business offset by which mix , represented a headwind of 80 basis points , split roughly equally between cardiac ablation and diabetes .
Speaker #2: As I noted last quarter, CAS was impacted by the mix of margin capital to lower higher margin catheters and diabetes. It is early, and its manufacturing ramp-up will simplify over time.
Speaker #2: We expect both of these to improve as we scale our CAS business and separate the diabetes business. Next, tariffs were a 20 basis point headwind, and finally, FX was about 100 basis points.
Speaker #2: Tailwind adjusted R&D was revenue and 8.4% of increased 8.9%, which is 230 basis points of reported revenue growth ahead. Increased R&D we've invested in our core right-to-end franchises, where we've identified opportunities to accelerate line growth and improve our share in the near, mid, and long term.
Speaker #2: SG&A was 32.7% of revenue , up 20 basis points versus last year . As Jeff mentioned , we proactively took the opportunity to increase spending to accelerate PFA our Rgn launches and in light of the considerable market demand and compelling near and medium term outlooks .
Speaker #2: At the same time , we delivered disciplined on leverage G&A with growth at under half the rate of our revenue growth . Our adjusted profit was 2.2 billion , an increase This of 6% .
Speaker #2: resulted in an adjusted operating margin of 24.1%, down 20 basis points year over year, but an increase of 50 basis points sequentially.
Speaker #2: Our adjusted tax rate was 16.4% , Q2 tax expense was lower than expected , which is largely due due timing and which we expect to offset in the fourth quarter .
Speaker #2: All in all , adjusted EPs was $1.36 , an increase of 8% , and $0.05 above the midpoint of our guidance . Now let's cover our guidance .
Speaker #2: Given our outperformance in the first half of the year , as the as well confidence we have in our revenue growth acceleration , we're raising our full year revenue guidance today , year to date , we've 5.2% organic growth , and we expect this to delivered accelerate in the back half of the .
Speaker #2: As a year result, we now expect fiscal 2026 revenue growth of approximately 5.5%, a 50 basis point increase from the prior guidance in the third quarter.
Speaker #2: We'll in the also also expecting approximately 5.5% growth and Q4 will be even stronger based on recent rates . We now FX see an tailwind to fiscal 26 revenue of 625 to $725 million , including 150 to $200 million tailwind in the third quarter .
Speaker #2: Moving down the P&L, we expect our fiscal 2026 gross margin to be slightly up, tariffs excluded, with pricing effects and COGS efficiency programs more than offsetting the negative impacts of business mix, primarily from cardiac ablation and diabetes.
Speaker #2: We anticipate a tariff impact to Cogs of approximately 185 million , including 90 to $95 million in the third quarter , including tariffs .
Speaker #2: We expect a fiscal 26 gross margin decrease of roughly 40 basis points continue to . We'll fund R&D to grow greater than sales with .
Speaker #2: In light of the SG&A outsized demand and momentum for building our enterprise growth drivers, we are capitalizing on every opportunity to accelerate our top line by strategically investing in key programs.
Speaker #2: But we'll still deliver a leverage on the full year by rigorously managing our line G&A. Taking all of this together, we expect fiscal 2026 adjusted operating profit to grow approximately 5% or 7%, excluding tariffs.
Speaker #2: Our fiscal 26 operating margin is expected to be roughly flat . Ex tariffs and down about 50 basis points , including the tariffs impact now coming to EPs .
Speaker #2: EPs came in $0.05 above the midpoint of our guidance . Three and a half cents of this beat was from reduced tax expense .
Speaker #2: As I mentioned earlier , that we now expect to occur in Q4 flowing through the . We're remainder of the Q2 beat and increasing our fiscal guidance to 20 EPs a new range of versus the $5.62 to $5.66 prior range of 560 to 566 for Q3 .
Speaker #2: We expect EPs in the range of $1.32 to $1.34 . We're expecting margins to be down a couple basis points in Q3 as quarter the includes half the annual of tariffs .
Speaker #2: In addition , impact growth acceleration expected in CAS and diabetes will continue to impact business mix and Q3 is typically our lowest quarter for generating Cogs efficiency savings given the holidays .
Speaker #2: However , we expect do margins to Q4 increase year show and strong sequential improvement . Looking year , next ahead to we continue to expect high single EPs digit growth in fiscal year 27 , driven by revenue accelerating growth .
Speaker #2: Lesser impact of a business mix from CAS and diabetes on the gross margin line and leverage on Sydney. While we continue to drive higher investments in R&D and in marketing, we remain committed to driving both.
Speaker #2: and earnings growth. We believe that our strong financial algorithm will flow from our current focus on building sustained top-line momentum.
Speaker #2: Jeff , back to you .
Speaker #1: Thank you . Terry , before we go to Q&A , let me share quick a few thoughts . So when at our you look top line , you can really see the focus .
Speaker #1: We've had on allocating and capital executing on our Is pipeline . all now coming together to drive meaningful acceleration in our growth . We're on an incredible trajectory with PFA and and we're getting with started some big new opportunities with Simplicity and Ulta , Viva .
Speaker #1: At the same time, our newly formed board committees are helping as we act decisively and with increased speed. We're executing on margin enhancement programs to fuel our enterprise growth drivers.
Speaker #1: The future pipeline and earnings leverage . We continue to the overall evaluate every level , portfolio at well as as tuck in M&A , and we are committed to growing above our warmer also , while raising the of the Wagar time over .
Speaker #1: The future pipeline and earnings leverage . We continue to the overall evaluate every level , portfolio at well as as tuck in M&A , and we are committed to growing above our warmer also , while raising the of the Wagar time over company And I'm forward to to looking deeper into all of this with you at our Investor Day next year .
Speaker #1: So bottom line , we're on our commitments diving . You can see it in our numbers . And with every quarter we're picking up more momentum .
Speaker #1: We're pleased with the progress. We're eager to continue proving that Medtronic has the potential to enter a period of greater earnings growth.
Speaker #1: Finally, I want to thank our employees who are watching today around the world. Thank you. Thank you for your steadfast commitment to the Medtronic mission and to the patients that you and our customers serve every day.
Speaker #1: appreciate patients also continued your execution , which allows us to deliver our on our collectively . Okay , now it's time to move on to where we're going try to get to to as many analysts as possible .
Speaker #1: We ask that you limit yourself to just one question , to if needed . A related follow up if you have additional questions , you can reach out to Ryan and the Investor Relations team .
Speaker #1: After the call so , Ryan , can you please give the Q&A instructions and the queue up analysts ? Jeff , Sure .
Speaker #1: for the .
Speaker #3: analysts that would like to ask a question , please select the button and click Raise Hand . If you're using mobile app , press the the more participants select Raise .
Speaker #3: Hand . Your lines are currently on mute and when called upon , you will receive a request to unmute your line , which you must respond to question .
Speaker #3: Finally, please be advised that this Q&A session is being recorded. Please pause for a few seconds now to join the queue.
Speaker #3: Okay , let's take the first question from Wood at Morgan Patrick . Stanley . Please go ahead . Patrick . Patrick , can you hear us ?
Speaker #4: There we go . Nailed it . Thank you so much for taking the question . Thanks , guys . I'll keep it to one .
Speaker #4: Of course . I'd start with simplicity you . You know , mentioned the discussions commercial happening faster than than kind of expected . Obviously , without diving into any individual love to payer , you how know , are those reflective relative to the NCD ?
Speaker #4: Like are there restrictions being put on , you know , what is the sort of tone of the conversation ? And , and you know , how the commercial payers looking to introduce this their within patient pool , thanks
Speaker #1: Thanks . Thanks for the question , Patrick . The
Speaker #1: like commercial payers , mentioned , I you the commentary , mentioned in they are coming online . Faster than we I believe anticipated .
Speaker #1: you know , . the Medicare NCD is Yeah . broad and it's better than we anticipated . It's it's it's it's better They're than the proposal .
Speaker #1: So we're we're comparing it to that . The one area that I've heard and addition on in NCD , they've incorporated , physician , you know lack of a better word , discretion , physician patient discretion as a hey , patient , can I tolerate these meds or does the physician for feel like the cannot tolerate the meds that gives patient that on , them avenue to move to , to move to Ardian , to simplicity in the commercial payers , we're seeing where there is one difference that I know of is around the medications .
Speaker #1: a More of of an emphasis on , you know , being on a few medications for a while . So that's the one area that I'm aware of .
Speaker #1: Patrick and you know , we'll keep you , we'll keep everyone posted as as this as we get more payers commercial as , online .
Speaker #4: Thanks for the opportunity.
Speaker #3: Thanks , Yeah . Patrick . We'll question take the next from Travis Steed at B of a Global Go ahead . Securities . Travis .
Speaker #5: Hey , congrats on a good guess first of all I , the implied guide second half around 6% . And think about it , two buckets .
Speaker #5: The kind of pipeline and then kind of the base business, and maybe kind of what you're talking about quarter to quarter. DH in the second half.
Speaker #5: And then also the base business , you know why confident in the slide rebound in med surge and kind of the confidence keep the business base humming .
Speaker #5: And to then on the margins . In the second half this quarter we didn't see much quite as margin flow through . Just assuming that changes in the second half revenue on upside to more leads margin in the second half .
Speaker #1: Do you want to take that one?
Speaker #2: So start with a margin maybe I
Speaker #2: question . Hey look , you know , we we described the momentum that we had from a commercial in , perspective in the second quarter .
Speaker #2: And , you know , pretty , early on in the quarter , we saw the pretty pretty intake being the order strong . We also saw that we were going to have a little bit of upside from from a upside perspective , even though that's timely .
Speaker #2: But we we did see it coming on in the quarter . And so we just early made a decision to go invest in in the places that are going to drive the growth going forward .
Speaker #2: So , you know , we made some significant investments in in the mappers structure . For example , in ablation , cardiac we build started to up capability the from a direct marketing on on the simplicity side we took the .
Speaker #2: were going that we to see revenue . upside And a little So tax line . Just to lean into the investment to make sure we we fully capture the that are ahead of opportunities us .
Speaker #2: You saw in R&D. And that second quarter, you know, where we have growth, R&D significantly revenue higher than the growth.
Speaker #2: And this quarter specifically it on the Sdna , you saw line , where we put , as quite a bit of I said , sales and , especially in marketing , while keeping the line pretty constrained .
Speaker #2: So going forward into the rest of the year , we'll keep our investing in these growth areas . You'll see R&D continue to to ramp up , know , as you we're targeting to over time to get roughly about 10% of our revenue on R&D line , on G&A , though , you should expect to see leverage in the second half .
Speaker #2: So, G&A together will start seeing a lift there. And so, excluding tariffs, we will have gross margin and operating margin leverage in the second half.
Speaker #2: And but we'll contend with with the have to impact . So all in all on tariff year basis you know see you'll margin slightly up before tariffs down about 50 basis .
Speaker #2: Post points tariffs . And at the operating level margin , you'll see operating roughly flat year over year ex tariffs and with the of tariffs .
Speaker #2: slightly down So look it's all about capitalizing impact opportunities that we've got ahead of us . And that's keep doing . what we'll again our second half leverage both on those those lines .
Speaker #2: .
Speaker #1: So so on the on the revenue as you see from the guidance , we're seeing a we're at a looking back half ramp here that will extend into , into 27 .
Speaker #1: And the way break it I'd down I mean a big piece of that is these these growth drivers that are kicking in these multibillion dollar opportunities in terms of though half , , most of that is the back coming from in terms of So the new big ones , right .
Speaker #1: When you think PFA . about PFA , simplicity , Alta , Veeva and we have Hugo coming . Those are we would say are big multibillion dollar , you know , market opportunities in the back half .
Speaker #1: The contribution will be more from from PMA in that category PFA is I mean , you know is . right now . We've got a lot of momentum there when it comes to simplicity .
Speaker #1: And obviously simplicity and vivo are approved in the You know , on simplicity , I'd say we're going to see it US . start to , you know , tick up in the back half of the year and then ramp , you know , in the quarters that .
Speaker #1: You know , like I said , the the between NCD and the in the payers commercial coming online , you know , this market is is , you know , really a best case scenario .
Speaker #1: big as what It's as is it we said . It's not about , you know , if or even how big like big as we said .
Speaker #1: it's as It's it's really how fast . And we're measuring that , that speed of adoption in quarters not years . Alta Viva .
Speaker #1: You know , again , just approved a lot of great leading indicators . Physician training's over , you know , booked . And we can about that talk more if I get questions on why we're so excited again , I'll start to half contribute in the back then bit and a little too you know , we but we much on , still expect the approval back in the half of our year .
Speaker #1: Then there's another getting to the business . You know , base diabetes pops , you know , pops back up as our new sensors are available .
Speaker #1: Neuromodulation continues to be strong . be CST will continue to be strong . CRM had two really good good a really Q2 . You know , I don't know if we're going to have that same level of growth there , but still , you strong growth there .
Speaker #1: know , a And then you've got two other businesses that'll it tick up . You I'll call know , incrementally increase their their growth rate , vascular peripheral carotid stent , mechanical thrombectomy And then coming .
Speaker #1: again . also selling like carotid It's stent . Got some hemorrhagic products just coming and they're lapping issues . A some recall . And then lapping VPI here .
Speaker #1: So so business big is a contributor . a big PFA is contributor . And then you're going to start to see simplicity Veeva , Ulta , and a little bit of Hugo .
Speaker #5: Great. Thanks a lot.
Speaker #3: Thank you Travis . Next we'll go to the line of Vijay Kumar at Evercore ISI . Please go ahead . Vijay .
Speaker #6: Hey guys on a nice here print . And Jeff , thanks for . taking my Congrats question . I had maybe a product new two parter if you will , one on if Jeff , do you feel like we have enough mappers now and if if supply in in a place enough where you can hit the 2 billion , you know , how how are about you thinking and supply mapping ?
Speaker #6: And then on some we've got feedback good on cannibalization of , you , whether TBL could cannibalize Botox procedures , could be TBL , you know , $1 billion product for you guys down the road ?
Speaker #6: Thank you .
Speaker #1: So I'll with start the the the PFA questions . You know on the on the supply that you know we are that's that's not holding us So back .
Speaker #1: supply is in a good spot . And then on the mappers the mapper hiring is is is going well right . We're staying ahead .
Speaker #1: know . But You I wish the buffer a little bit more because growth is the the growth is is tremendous . But we are staying ahead on on mappers the and the supply is not an issue .
Speaker #1: And like I said , our business PFA is is really is know , I was just with a humming . big You customer yesterday .
Speaker #1: They've got two systems . They laid out three more that they're going to buy and and just talking about , you know , once they put , you know , Pharah , especially a once they put that in one of their hospitals , how it kind of , you know takes all the market share or the majority of the market share .
Speaker #1: There for , all for cases , there's just all these benefits there . So feeling really , really good about that . And again this mapper hiring has been a Medtronic not just cardiac our ablation business but a medtronic effort .
Speaker #1: And our HR team's doing a hell of a job there. And then on tibial, you know, look, tibial is something I think everyone needs to invest a little bit of time in here.
Speaker #1: It's a it's a huge market . 46 million people in the with US overactive bladder . And of that 16 million with urinary urge incontinence , where this really shines and it therapy versus takes the , which works really sacral It's been well .
Speaker #1: market for a great us been some some channel . There's disruption in the lately , but it's still a great market market , you know , and it works really well for patients .
Speaker #1: But it does take, you know, weeks or months to get that therapy to a patient from when they start, versus tibial left less than a day.
Speaker #1: So what you're seeing here is with the tibial nerve, right? You have to do, I mean, with the sacral nerve, you have to do a trial.
Speaker #1: Then you have to go in for the implant; then the patient leaves without the therapy turned on and has to come back to get it activated.
Speaker #1: Versus tibial . This all happens in a day . And the procedure is easier . And and when patients to get to your core , your question when they're presented with options , all of their options sacral nerve tibial botox .
Speaker #1: They choose they tend to the choose tibial . So we do think take share it will from from Botox . And I would emphasize that this we believe look , there's a very strong place for sacral nerve .
Speaker #1: . Definitely . This is There an incremental opportunity on top of our sacral business . And so this that sacral combined with tibial , given that it's gonna be incremental , this is going to make that , that pelvic health business business a growth driver for the company .
Speaker #1: That's what I'll say about that . It's going to meaningfully improve the growth of of that rate business .
Speaker #3: Okay . Thank you . Vijay . Next let's go to the line of Robbie Marcus at JPMorgan . Please go ahead Robbie .
Speaker #7: Great . Good morning and nice quarter . Thanks for taking the questions , Terry . I wanted to ask you talked about strategically reinvesting into C and A and over time materially increasing R&D .
Speaker #7: I think up to 200 basis points. How are you thinking about where those dollars are? How soon should we be thinking about going that?
Speaker #7: And you just help us think about the cadence and the ability to still grow operating in the face of higher investment.
Speaker #2: Robbie . Thanks .
Speaker #2: Thanks for the question . So , you know , first , where the . dollars Yeah . are Hi , going . So there are really two , two different would say one is categories .
Speaker #2: to as I I said , to capitalize to the maximum extent possible on on the growth drivers that are ahead of us . So there's a significant amount of investment that's going to to to Ardian , to Alta Vivo and to cast to Hugo with a profile that's a little bit more long term .
Speaker #2: There's there are other growth drivers that we're funding at the same time , such as structural heart and neuromodulation , for example , the second category of where we're putting investment is to make sure that we keep the leading edge from a technology perspective in the in the key franchises that that bread and are our butter .
Speaker #2: So know , , you there's a over compared to the investment the average of business CRM in . For example , in next generation of micro , there's and there's significant investment going in test to continue to to develop the ecosystem that that business has created around Abel .
Speaker #2: That has enabled us to , you know , make this business more sticky with the device customers from a perspective and and gradually improve the margins .
Speaker #2: it's it's really those two areas capitalize on So the growth drivers . On one hand . And keep keep the the edge on innovation in the key franchises on the other side from a sequence perspective , look , you know , would say third I quarter , we made a pretty deliberate , strong investment because we saw the upside coming .
Speaker #2: You know, you'll see a bit less of that already in the second half. So, as I said, you know, you should see a change on the leverage A line in the second half of the year already.
Speaker #2: But maybe going into the longer term, look, we've tried to give as much clarity as possible on the gross growth on margin line so that you see the dynamics.
Speaker #2: you look at If happened this what quarter , we had 40 basis points about of pricing and about 30 basis points or 40 basis cost out .
Speaker #2: points of That's of a recurring over the performance last quarters . And we that to continue expect Right . So we're generating between those two lines , 70 to 80 basis points of gross margin improvement .
Speaker #2: Right. And this quarter had you about 80 basis points of negative mix and 20 basis points of tariffs. And that was offset with FX going forward.
Speaker #2: We expect that negative mix impacts will start getting better towards the second half of 2027. So for the rest of the year, it's still going to be pretty significant.
Speaker #2: Headwind as CAS and diabetes continue to accelerate . in the And second half of of 27 , diabetes will be deconsolidated . And then on the CAS we'll start seeing the shift side , between the capital equipment and the catheters , which will an accretive make that business as opposed to being dilutive .
Speaker #2: So what you're going to see there is the 70 to 80 basis points of gross margin improvement operationally starting to show up as the mix becomes a gradually smaller and a positive effect over time.
Speaker #2: And then outside of that , we've got some external factors . So we have to contend with the tariffs . So second half for got , we've you know , about 90% of that 185 million of tariffs that's going to show up in the income statement .
Speaker #2: The portion bigger is in Q3 . And a then we'll have carryover of tariffs going into 27 . And we expect foreign exchange , which is the last item a there to be slight tailwind going into 27 .
Speaker #2: So you go if it's a a long long it's answer . think it's Apologies . But I important that you the understand algorithm going into We'll keep 27 .
Speaker #2: investing in R&D to get to the 10% over time . But you should expect to see leverage on the A line So in 27 .
Speaker #2: look we're confident that with the growth , with what we're doing from a gross margin performance in a sustainable fashion and cogs and pricing and the leverage on the overhead , we'll have a personnel on operating the profit line 2027 .
Speaker #2: that's in we And why we hold on our commitment to have high single digit EPs growth going into next year .
Speaker #1: Yeah , just just to add to that , you know , there's more oxygen here to to create for the investment . You know , it's it's see the improved good to pricing .
Speaker #1: And as we forward we're not go assuming much incremental . But pricing . But at least holding improved the position that we have .
Speaker #1: But there's more oxygen in our cost down . You know , you as know , we there's there's opportunities in scrap obsolescence . And over time , you know , continue to optimize our network .
Speaker #1: So these are areas I think there's incremental opportunity and cost down. And Robbie, I've read some of the stuff in your that you don't think there's much to do for us on SG&A.
Speaker #1: But there's more there's more to go on SG&A for the company , and that's where the scale of the company should , should , should benefit us here .
Speaker #1: And , you know , it's not going to be easy on the company . But but there's opportunities there . And we're committed to doing what it takes to fund these growth drivers , because you know , what we're seeing out there with patients on these different growth .
Speaker #1: drivers And what we're hearing from clinicians , the impact on on them and their staff , it's it's , you know , this is a big opportunity for the company .
Speaker #1: haven't We seen in decades . And we're going to we're going to make it happen . Right . And so there's still , you to go know , room on SG&A as well .
Speaker #1: And, like I said, cogs to make this happen.
Speaker #7: Great . That was a Maybe just one quick follow up . Jeff and Terry , I know even since the beginning of this year , you've talked more and more .
Speaker #7: About M&A: How are you thinking about the environment today? Do you see a lot of opportunities, and are there any areas you see as more interesting than others to help flesh out the portfolio?
Speaker #7: Thanks a lot .
Speaker #1: Yeah . No , look , we're we're very focused on on the on the M&A . I tip our hat in terms of , you know , don't want to exact segments , but we definitely are prioritizing some of the again , it's tuck in .
Speaker #1: It's we're prioritizing higher growth segments . A lot of is these cardiology . Some in neuroscience as well like that . We affair profile .
Speaker #1: Right . Where you're you're you're close to or market you're on the market early stage or close to market would be ideal . Not afraid to , you know , to make the investment that it takes to get those type of companies .
Speaker #1: But as , as Terry said on on your the earlier question on like where's the R&D going ? You know , doesn't the a I wouldn't out some of our rule other key franchises that may need to augment their R&D with a little M&A , but we are more focused on these higher growth segments .
Speaker #1: And then the , you know , the board committees , we've we've set up help with with the the speed enable us to faster .
Speaker #1: So we'll see where it goes. But it's definitely a big focus.
Speaker #2: It one thing that we communicate a don't lot about it , but we've got a pretty active Ventures arm and that arm's been pretty active .
Speaker #2: So it's it's got , you know , over , over 50 companies in which a we have stake right now and we like to use that arm to make investments in , in sort of early stage companies .
Speaker #2: And , and you know , it helps with some of the dilution , etc. . Typically , you know , we we these venture always make investments with a view of going higher into the , into the capital over time .
Speaker #2: So it's never a venture for venture . And and again , it's been it's been the pipeline . There is pretty strong . And we'll keep working that that angle too because it's helpful to feed the pipeline for future M&A .
Speaker #1: Yep .
Speaker #7: Thanks Appreciate it .
Speaker #3: Yeah. Thank you, Robbie. Looking at the clock here, I think we've got time for about three more questions. So next, we'll go to the line of Larry Biegelsen at Wells Fargo Securities.
Speaker #3: Larry please go ahead .
Speaker #8: morning . Thanks for Good taking the question . And congrats on a nice print here . So , Jeff , I wanted to ask about the ramp of Ardian because as you said , it's a question of how how fast .
Speaker #8: So I'm hoping you can add some precision to your earlier comments . You know , I think in our conference in September , I asked if us sales could replicate , you know , the US ramp , which was about 400 million in year five .
Speaker #8: And, you know, I believe you said you'd be disappointed if your U.S. audience sales didn't achieve $400 million by, I believe, year three.
Speaker #8: So so how does the exclusion of isolated systolic hypertension and the NCD impact how you think about the ramp ? And do you still believe you can achieve 400 million US sales by around fiscal 2028 , which I think would be year three and just confirm , just Jeff , that the current run rate in the US is about $50 million .
Speaker #8: Thank you .
Speaker #1: Look, well, let me start by saying yes, I would be disappointed if we're at year five or whatever you said.
Speaker #1: At 400 million , we think it would go faster than that . And this the final won't NCD hold us back . And like I said , we believe it's an improvement on the proposed NCD .
Speaker #1: know , maybe You this is a good time because I know there was , you know that NCD . Like I said , , on it's an improvement to the proposed NCD .
Speaker #1: And if you go back a year , it's better than what we thought a year ago . If you go back five years and and asked you us if we thought we would get this NCD , we'd say , that's the best case scenario this , you know ?
Speaker #1: market , like I said , So is as big as we've said it's going to be . And we believe that this this final NCD as as you dig into and really understand how hypertension today is treated , it actually reduces the requirements for patients this therapy .
Speaker #1: to get reduces the time . And maybe this is a good time that we have our chief scientific and medical officer on the line , knowing that there'd be Doctor Laura mauri , who's also an interventional cardiologist , knowing that there'd be maybe some questions on this on the treatment pathways .
Speaker #1: Maybe we'll ask Laura to comment . You know , since you mentioned that one systolic , you know , question or diastolic question , Laura , can you maybe provide some context here ?
Speaker #9: Sure . Hey , Larry , specific to your question about isolated systolic hypertension , those are patients who , you know , don't don't have an elevation of their diastolic or the lower number of their blood pressure .
Speaker #9: It's only the top one . And just that we're continuing to study those patients . But I think the important note is thing to that this population is actually pretty small for us overall .
Speaker #9: If you look at recent studies, for people with hypertension over age 60, it's less than 15% of patients who have ISH or this condition.
Speaker #9: And for patients who are younger who than 60 , are half of our patients in trials , and then also in it's practice , it's really very unusual .
Speaker #9: So , so Jeff said as at the gate with the NCD , if you just look at that topic , we would estimate that , you know , would be less than 10% .
Speaker #9: That would be affected by isolated hypertension or systolic not , not meet those criteria . And then overall , you know , just to what Jeff said reiterate is that the overall the final NCD makes access more practical for patients with less time delays to treatment , less restrictions .
Speaker #9: And the , you know , the couple of things that they've talked about , screening for are really things that are done in standard practice , you know , by by general practitioners or internists .
Speaker #9: And I think the other part , just to mention is that in their response , really CMS reiterated that quality of life is a really important consideration for patients because lifestyle changes and being on many medications can be really difficult so .
Speaker #9: And I think the other part , just to mention is that in their response , really CMS reiterated that quality of life is a really important consideration for patients because lifestyle changes and being on many medications can be really difficult so they specifically And said the good faith are reasonable attempts before referral rather than specifying some like mandatory minimum doses or number of medications .
Speaker #9: So so overall , you know , whether it's ish or overall the , the the workflow for patients to get into referral for , for for simplicity is is really not restricted .
Speaker #1: All right . .
Speaker #1: Thank you
Speaker #10: Laura
Speaker #10: .
Speaker #3: we'll go
Speaker #3: to the line of Shagun . RBC Next Capital Markets . Please go ahead . Shagun great .
Speaker #11: Thank you so much . You know I wanted to touch on the financial algorithm a key message was growth acceleration . You know how should we think about the base business .
Speaker #11: As it mid-single digits . The $1 billion incremental PFA sales is about 300 basis points . And then I don't know if you could put a finer there in point terms of the growth But as contribution .
Speaker #11: you think about growth acceleration , should we think about Medtronic moving towards that high single digit top on the and line then on portfolio management ?
Speaker #11: I was just wondering how you're thinking about we or should expect beyond pruning diabetes ? Thank you for taking the questions .
Speaker #1: Well , maybe I'll you know , Shannon , thanks for the question . I'll start with the last part of it on the portfolio management .
Speaker #1: Look , this is an ongoing , ongoing focus . For the company , and it's making sure that really beyond diabetes , right .
Speaker #1: of all , that deal First is tracking and on it's on on track and going well . But beyond diabetes we want to make sure that the whole portfolio fits together .
Speaker #1: We're getting the right amount synergies can and we of provide the right amount of these focus on enterprise growth generational drivers like PFA , like and like R.D.
Speaker #1: Viva and Hugo . When it comes to the US , and others . And so it's still it's it remains a focus and it remains a focus of like one of the board committees that we set up .
Speaker #1: we're meeting And frequently on this and looking at that's what it , and I'll say there . And I'll answer .
Speaker #2: And look , overall , you know , if you think about the guidance that that gave we just , you know , five and a half on , on , on the full year , we were at 5.2 at the end of the first half , were guiding at 5.5 and the third quarter .
Speaker #2: So you can do for the math what fourth quarter looks And , you know , we we like . don't want to slow down from .
Speaker #2: look what And I would say is , pretty you know , it's there clear that represents CAS sizable a opportunity . We reiterate the incremental coming 1 billion coming shortly probably in in the beginning of our in the beginning of 27 fiscal year , 27 for us and , you know , we have all these discussions about the speed , etc.
Speaker #2: . But I important to think it's keep in mind that , you know , one 1% of market share in that population is , you know , sort of almost 3 billion of revenue for us .
Speaker #2: So, it's a pretty significant opportunity. And we talked about the size of the Alta Veeva opportunity as 20 million patients overall. So those come in increments to the business.
Speaker #2: rest of the rest of the the business is not standing still . So Therapies specialty is better . getting You saw a a first sign in this quarter going to keep it's going to keep .
Speaker #2: Going with the product and its activity, we've got in neurovascular without Veeva and Pelvic. The key franchises look, our had CRM a great... It's going to be a great quarter.
Speaker #2: to perform for the rest of the year and beyond . We're investing in that business to keep the technology lead . So we don't intend to go backwards .
Speaker #2: Has CST been improving the back of the elbow ecosystem that the team has created? So, look, you know, we're positive about the opportunities of the company going forward.
Speaker #2: And and we'll keep you posted when we when give when next year's we give guidance . the end of And at Q4 .
Speaker #3: you . Okay . Thank . We've got time question Shagun . And I apologize to the analysts that we weren't able to get to .
Speaker #3: you've got additional If questions , feel free reach out to me day . during the So to our last question . Pito from Chickering Deutsche Bank .
Speaker #3: Pito, please go ahead.
Speaker #12: good Hey , guys . Thanks for taking my questions . I have two questions , so I'll ask them up front . first one is as AF The ablation is moving to the ASC setting .
Speaker #12: Can about how you you talk are positioned in ASC in terms of mappers and a fair placement ? And on TAVR , I can talk about what you saw in the US .
Speaker #12: You know , Europe and Japan and how share is looking in those market Thanks so markets . much .
Speaker #1: thanks , Well , Pito . Look for , you know , PFA in ASCs over time see we do that as incremental an opportunity market for for expansion .
Speaker #1: There . There will be a bit of a shift of outside centers to the ASCs over time . But it also , you be a know , market expansion opportunity for us .
Speaker #1: is It is it is a focus for us . We have been across the company , quite frankly , particularly in neuroscience and in cardiovascular folks that are specifically focused on market development in the ASCs for us and what our strategy is and how our product portfolio fits And the there .
Speaker #1: resources we need , including mappers . So this is definitely is in the calculus for Medtronic , not just not , you know , just our cardiac ablation business .
Speaker #1: Like I said , I think this will represent incremental an for us . growth opportunity There . And then on on TAVR , you know what I'll say is , you know , we had a decent here growing Q2 single high a on a digits on global basis .
Speaker #1: executing particularly Internationally , we're well . And getting more than our fair share that of of that Boston exit . we move You know , as forward PFA in .
Speaker #1: You know , I think , you know we may , Q3 , see a deceleration there in TAVR . What did I
Speaker #2: PFA .
Speaker #1: PFA , say ? I'm sorry . No , PFA is going to keep going . I'm . But sorry in TAVR , a little bit of a deceleration in Q3 .
Speaker #1: then it'll pop back up But Q4 . in And we've seen due to a phasing , we've seen this in prior quarters as well .
Speaker #1: I don't know if you want to add anything to that .
Speaker #2: right . that's that's We No , no , saw the Q4 , Q1 effect , and you know , Q2 , Q3 looks kind of similar , a little bit slower in Q3 , but with a pickup in the fourth quarter .
Speaker #2: Yeah .
Speaker #1: And just for clarity , PFA will continue to grow off the off the 71% . It will accelerate into Q3 and beyond . .
Speaker #12: Gosh .
Speaker #3: Thank you Pito . Jeff , if you want to go ahead with your closing remarks .
Speaker #1: Sure . Well so thank you for for joining and all your thoughtful questions this like Ryan morning . And said , the analysts .
Speaker #1: We didn't get to . We certainly appreciate your support and your interest in Medtronic . Please join us again for Q3 earnings broadcast for for more updates and there'll be more .
Speaker #1: continued And our progress . And on the long term expect strategies , and we to hold this on Tuesday , February 17th . And for those of you in the US , I wish you and your families a very happy Thanksgiving week .