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- **Revenue Acceleration**: Q2 organic growth 5.5%, CAS up 71%, driving FY26 guidance raise to 5.5% from 5.0%.
- **PFA Dominance**: Affera system adoption surging, with U.S. share +300%, targeting $2 billion revenue soon.
- **Symplicity Breakthrough**: Medicare NCD enables broad access, with 30 million lives covered by commercial payers.
- **Altaviva Launch Success**: Physician training oversubscribed, consumer demand strong for 16M U.S. incontinence patients.
- **EPS Growth**: Q2 EPS $1.36 (+8%), FY26 EPS guidance $5.62-$5.66, up from $5.60-$5.66.
- **Investment Strategy**: R&D > sales growth, SG&A leverage in FY26, with FY27 targeting high single-digit EPS growth.

**【CEO Summary Section】**
- **Revenue Growth and Acceleration**: Q2 revenue of $9 billion grew 6.6% reported and 5.5% organic, with CAS (Cardiac Ablation Systems) revenue up 71% year-over-year. PFA (Pulmonary Vein Ablation) franchise grew 71%, driven by Affera system adoption, with U.S. share increasing over 300%.
- **Strategic Growth Drivers**: 
  - **Symplicity (Hypertension)**: Received Medicare NCD enabling broader access, with commercial payer wins covering 30 million lives. 3-year clinical data shows 18.5mmHg systolic BP reduction.
  - **Altaviva (Incontinence)**: U.S. launch shows strong physician demand, with consumer search activity surge. Addresses 16 million U.S. patients.
  - **Hugo Robotics**: Expected FDA approval for urology indication in Q3 FY26, with international expansion ongoing.
- **Investment in Growth**: Increased OpEx for PFA, Symplicity, and Altaviva launches, while maintaining EPS growth. R&D and SG&A investments to accelerate pipeline.

**【CFO Financial Commentary】**
- **Financial Performance**: Adjusted EPS of $1.36 (+8%), beating midpoint by $0.05. Gross margin 65.9% (+70bps YoY), driven by pricing and COGS efficiency, offset by CAS and Diabetes mix headwinds.
- **Guidance Update**: Full year revenue guidance raised to 5.5% growth (from 5.0%), with Q3 and Q4 acceleration. FY26 EPS guidance $5.62-$5.66, up from $5.60-$5.66.
- **Margin Dynamics**: Gross margin expected to decline 40bps YoY due to tariffs, but operating margin to improve sequentially. FY27 targets high single-digit EPS growth with reduced CAS/ Diabetes mix impact.

**【Q&A Highlights】**
- **Symplicity Commercial Momentum**: Medicare NCD faster than expected, with commercial payers covering 30 million lives. Q3/Q4 revenue contribution to be modest, but ramping in FY26.
- **Altaviva Launch**: Oversubscribed physician training, with early cases showing procedure simplicity and patient satisfaction.
- **R&D and SG&A**: R&D to grow > sales, with focus on PFA, Symplicity, Hugo, and core franchises. SG&A to leverage in FY26, with long-term targets for 10% R&D and improved SG&A efficiency.
- **Tuck-in M&A**: Prioritizing high-growth segments like Cardiology and Neuroscience, with active ventures arm supporting pipeline.


Medtronic plc (MDT) Q2 2026 Earnings Call Transcript

- **CAS Growth Acceleration**: CAS revenue up nearly 50% YoY, with Q2 growth expected to surpass Q1. PFA systems and Affera mapping systems driving $1B+ incremental revenue by FY26.
- **EPS Guidance Raised**: FY26 EPS range raised to $5.60-$5.66, reflecting strong Q1 performance and back-half growth drivers like CAS, Ardian, and Surgical Robotics.
- **Strategic Separation**: Diabetes business separation to enhance focus on high-growth med tech, with MiniMed expected to be immediately EPS accretive post-split.
- **Innovation Focus**: New Board committees to accelerate R&D investment in CAS, Ardian, and Hugo, targeting 4.5%+ EPS growth through 2026.

**【CEO Summary Section】**
- **Revenue Growth**: Q1 FY26 organic revenue grew 4.8% YoY, in line with guidance, driven by mid-single-digit growth across segments. CAS (Cardiac Ablation Solutions) led cardiovascular growth with nearly 50% YoY expansion, fueled by Pulsed Field Ablation (PFA) systems and Affera mapping systems.
- **Strategic Initiatives**: Announced separation of Diabetes business (MiniMed) to sharpen focus on high-growth med tech opportunities. Raised FY26 EPS guidance to $5.60-$5.66, up from $5.50-$5.60, reflecting strong Q1 performance and expected back-half acceleration.
- **Pipeline Highlights**: CAS expected to add $1B in annual revenue by FY26, driven by Sphere-360 catheter launches. Renal denervation (Ardian) poised for U.S. launch post-CMS coverage decision in October. Surgical robotics (Hugo) to begin U.S. launch in Q2 FY26.

**【CFO Financial Commentary】**
- **Financial Results**: Q1 revenue $8.6B, +8.4% reported/+4.8% organic. Adjusted EPS $1.26, +$0.03 vs. midpoint guidance. Gross margin 65.1%, down 80bps YoY due to business mix (CAS, Diabetes) and COGS inefficiencies.
- **Expense Management**: R&D up 7.7% YoY, SG&A +170bps below revenue growth. Operating margin 23.6%, driven by cost control and FX tailwinds ($550M-$650M FY26 revenue boost).
- **Guidance Update**: FY26 organic revenue growth ~5%, EPS growth 4.5% (vs. prior 4%). Q2 EPS $1.30-$1.32, including $18M tariff impact.

**【Q&A Highlights】**
- **CAS Growth**: Q2 CAS growth to exceed Q1's 50% YoY, with U.S. and Japan leading. Supply ramp and mapper hiring on track for $1B+ incremental revenue by FY26.
- **Board Committees**: New Growth and Operating Committees to accelerate innovation (e.g., CAS, Ardian) and drive efficiency, with focus on WAMGR (weighted average margin growth rate) and R&D reinvestment.
- **Diabetes Separation**: U.S. Diabetes growth constrained by Simplera sensor ramp, but international +11% Q1. Instinct (Abbott CGM) launch expected in coming months, alongside MiniMed Flex pump submission.
- **Surgical Robotics**: Hugo to launch in U.S. Q2 FY26 with urology indication, supported by >30k global procedures and modular design for general surgery.

Medtronic plc (MDT) Q1 2026 Earnings Call Transcript

- **Revenue Growth**: Q4 up 5.4% organically, driven by 30% CAS growth and 12% Diabetes expansion. FY26 guided for 5% revenue growth.
- **Strategic Separation**: Diabetes spin-off to boost Medtronic's gross margin by 50bps and operating margin by 100bps, with FY27 EPS targeting high single-digit growth.
- **Pipeline Momentum**: CAS on track to double $1B annual revenue, Hugo robotics in 30 countries, and Simplicity procedure awaiting CMS coverage.
- **Tariff Mitigation**: FY26 COGS impact $200M-$350M, with 70%+ offset via pricing and cost savings. FY27 to benefit from FX tailwind.
- **Investment Focus**: R&D up 7%, targeting CAS, Surgical Robotics, and RDN. FY26 op profit growth 7.6%, despite $200M R&D increase.


**【CEO Summary Section】**
- **Q4 Strong Finish**: Revenue grew 5.4% organically, driven by 8% growth in Cardiovascular (CAS up 30%), 10% in Neuromodulation, and 12% in Diabetes. CAS reached $1B annual revenue, with plans to double this within the year.
- **Strategic Separation**: Diabetes business to be spun off via IPO and split-off, expected to complete within 18 months. This will improve Medtronic's gross margin by 50bps and operating margin by 100bps, with immediate EPS accretion post-separation.
- **Pipeline Momentum**: Hugo robotic surgery platform expanding to 30 countries, Simplicity hypertension procedure awaiting CMS coverage, and Tibial nerve stimulation for pelvic health pending FDA approval.

**【CFO Financial Commentary】**
- **Q4 Financials**: Adjusted EPS of $1.62 (+11%), revenue $8.9B (+5.4%). Gross margin 65.1%, operating margin 27.8% (up 90bps). FY26 guidance: 5% revenue growth, 4% EPS growth (ex-tariffs), with FY27 targeting high single-digit EPS growth.
- **Tariff Impact**: FY26 COGS impact $200M-$350M, with 60% of impact in Q4. Medtronic expects to offset 70%+ through pricing, FX hedging, and cost savings.
- **Investment Strategy**: R&D spend to grow 7% vs. 5% revenue growth, focusing on CAS, Surgical Robotics, and RDN. SG&A leverage to drive 7.6% op profit growth.

**【Q&A Highlights】**
- **Diabetes Separation**: Medtronic will retain 80% of Diabetes shares post-split, reducing dividend liability and freeing capital for high-margin growth. FY26 Diabetes headwinds (~60bps GM) to ease as Simplera sensor ramps.
- **PFA Growth**: CAS business to contribute 70bps to total growth in Q4, with Sphere-360 catheter entering US trials. FY26 CAS growth to accelerate beyond Q4's 30%.
- **FX & Tariffs**: FY26 FX neutral, FY27 tailwind. Tariffs mitigation efforts include $100M+ savings from COGS efficiency programs.
- **Spine Business**: CST growing mid-single digits, driven by AiBLE ecosystem adoption. Leading centers switching to Medtronic due to workflow integration and capital equipment upgrades.


Medtronic plc (MDT) Q4 2025 Earnings Call Transcript

- **Revenue Resilience**: 4.1% organic growth in Q3, with CAS (22%) and Neuromodulation (13%) leading. FY25 guidance maintained at 4.75-5% growth.
- **PFA Momentum**: CAS on track for $1B+ in FY25, with $2B+ line of sight as PFA expands globally. Affera supply constraints resolved.
- **Earnings Power**: Adjusted EPS +6.9% to $1.39, with gross margin up 50bps to 66.6%. FY25 EPS guidance of $5.44-5.50 supported by margin expansion.
- **Hugo Robotics**: FDA submission for urology in late Q1; FY26 to become Surgical growth driver with doubled procedure volume.
- **RDN Catalysts**: U.S. CMS NCD expected in Q3, enabling Medicare coverage by Q4. International reimbursement progress in Europe and China.
- **FX Mitigation**: Proactive measures (dynamic pricing, U.S. dollar incentives) reducing FY26 FX impact vs. FY25.


**【CEO Summary Section】**
- **Revenue Growth**: Q3 organic revenue of $8.3 billion grew 4.1%, driven by mid-single-digit growth in Cardiovascular, Neuroscience, and Diabetes, offsetting challenges in Surgical. CAS (Cardiac Ablation Solutions) grew 22% on PFA portfolio momentum.
- **Key Growth Drivers**: 
  - **PFA Portfolio**: CAS expected to exceed $1 billion in FY25, with line of sight to $2 billion as PFA expands globally. Affera and PulseSelect platforms lead with safety, efficacy, and flexibility.
  - **Neuromodulation**: 13% growth, driven by Inceptiv SCS and Percept DBS systems with closed-loop technology.
  - **Diabetes**: 10% growth, fueled by MiniMed 780G adoption and Simplera Sync sensor launches.
  - **Hugo Robot**: Q4 FDA submission for urology indications; FY26 to become Surgical growth driver with expanded features and procedure volume doubling YoY.
- **Earnings Power**: Adjusted EPS of $1.39 (+6.9%), with gross margin improving 50bps to 66.6% due to COGS efficiency and pricing.

**【CFO Financial Commentary】**
- **Top Line**: FY25 organic growth guidance maintained at 4.75-5%, with Q4 acceleration in Cardiovascular and CAS.
- **Bottom Line**: FY25 EPS guidance of $5.44-5.50, driven by high single-digit EPS growth in H2. Gross margin to expand further in H2, offsetting $275-325M FX headwind.
- **Investments**: Funding growth drivers (e.g., 200+ mappers for PFA) while maintaining SG&A below sales growth.
- **FX Management**: Proactive measures (dynamic pricing, U.S. dollar incentives) reducing FY26 FX impact vs. FY25.

**【Q&A Highlights】**
- **Surgical Business**: Distributor destocking (200bps impact) expected to resolve in Q1. Hugo to become FY26 growth driver with FDA submission for urology in late Q1.
- **CAS Growth**: CAS to accelerate in Q4, with $2B+ line of sight as Affera supply expands and PulseSelect gains global traction.
- **RDN Outlook**: U.S. CMS NCD expected in Q3, enabling Medicare coverage by Q4. International reimbursement progress in Europe and China.
- **Margin Expansion**: Gross margin to grow sequentially in H2, supporting high single-digit EPS growth despite Surgical headwinds.


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