Question-and-Answer SessionJohn GallagherSVP, Principal Accounting Officer & Chief Financial Officer Yes. Yes. Thank you, Craig, and thanks for having me. Yes, the -- I mean, look, the overall end market environment is subdued. We've talked about that through some of our meetings and -- and on the quarter, we talked about that, of course. But that doesn't stop us from being able to accelerate growth for the company. So you pointed out and cited what our -- what our organic growth is looking like. And we're ...

Financial Data and Key Metrics Changes - The company is experiencing a significant moment with transformational innovation, as noted by management, indicating a potential inflection point in growth [5] - Management aims to improve R&D as a percentage of sales from 8% to 9-10% without sacrificing EPS [10] - The company expects to deliver high single-digit EPS improvement starting in 2027, driven by margin improvements and operational efficiencies [40][60] Business Line Data and Key Metrics Changes - The company is focusing on high-growth areas such as cardiac ablation and AFib, with recent acquisitions like Afera contributing to growth [20][22] - The diabetes segment is expected to improve with the launch of two new sensors, which are anticipated to drive growth in the U.S. market [52][54] - CAS growth accelerated from about 30% to almost 50% from Q4 to Q1, with expectations to add an incremental $1 billion in revenue by early 2027 [63] Market Data and Key Metrics Changes - The U.S. TAVR business showed slight growth of above 6% in Q1, while international markets performed stronger [88] - The company is optimistic about the Ardian product line, anticipating significant market development following a favorable CMS announcement [80] Company Strategy and Development Direction - The management is committed to capitalizing on current growth drivers and accelerating margin improvement through M&A and portfolio optimization [6][20] - The company is not considering a wholesale breakup but is open to trimming down the portfolio if it enhances shareholder value [13][17] - The focus remains on innovation and operational improvements to drive differentiated top-line and bottom-line growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the operational foundation of the company, stating that past supply chain and quality issues are now behind them [20] - The company is optimistic about the back half of the year, expecting growth drivers to contribute positively to performance [50] - Management is closely monitoring the competitive landscape and is committed to evaluating the performance of key investments like the Hugo system [45] Other Important Information - The company is experiencing gross margin pressures due to tariffs and product mix but expects improvements as operational efficiencies are realized [31][34] - The management highlighted the importance of pricing strategies and cost management as key drivers for margin improvement [36][39] Q&A Session Summary Question: What areas does Elliott want to see improvement in? - Management indicated alignment with Elliott's focus on capitalizing on growth drivers and accelerating margin improvement through M&A and portfolio management [5][6] Question: Why has the company done less M&A compared to peers? - Management attributed the lower M&A activity to operational issues during COVID but expressed confidence in pursuing more deals moving forward [20][28] Question: How does the company plan to improve gross margins? - Management outlined strategies including better pricing management, cost controls, and innovation to drive gross margin improvements over time [36][39] Question: What is the outlook for the diabetes business? - The diabetes segment is expected to improve significantly with the launch of new sensors and a new durable pump, enhancing competitive positioning [52][54] Question: How does the company view the TAVR business? - Management remains confident in the TAVR franchise, citing recent product improvements and strong data supporting their market position [89]