Financial Data and Key Metrics Changes - The company reported revenue of $9 billion, reflecting an 8.7% increase year-over-year and a 6% organic growth, which is a 50 basis point acceleration from the previous quarter [18][19] - Adjusted gross margin was 64.9%, ahead of expectations, with a 30 basis point benefit from pricing [19][20] - Adjusted operating profit was $2.2 billion, resulting in an adjusted operating margin of 24.1%, also ahead of expectations [21] Business Line Data and Key Metrics Changes - The cardiovascular portfolio delivered 11% year-over-year revenue growth, with 13% growth in the U.S., marking the strongest growth in the last 10 years, excluding COVID comparisons [12] - Cardiac rhythm management (CRM) contributed 15% of total revenue and grew 5%, driven by double-digit growth in Micra and over 70% growth in Aurora EV-ICD [12][13] - The neuroscience portfolio grew 3%, with expectations for the pipeline to impact growth in the fourth quarter [14][15] Market Data and Key Metrics Changes - U.S. growth was 6% year-over-year, the strongest performance since fiscal year 2019, excluding COVID comparisons [19] - In China, low single-digit growth was reported while navigating volume-based procurement challenges [19] - Western Europe experienced high single-digit growth, contributing to balanced geographical performance [19] Company Strategy and Development Direction - The company is focused on expanding its innovation pipeline, particularly in high-growth areas such as hypertension treatment with Symplicity and urinary incontinence with Altaviva [2][3] - The launch of the Hugo robotic system is seen as a significant growth driver, with initial installations and positive feedback from early cases [5][6] - The company is committed to M&A strategies, focusing on tuck-in deals that align with existing business segments [59][60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining revenue and earnings growth, highlighting strong contributors like CAS and CRM [10][24] - The company anticipates continued growth from new product launches and market expansions, particularly in the U.S. [10][39] - There is an expectation for high single-digit EPS growth in fiscal year 2027, despite some headwinds from tariffs and M&A activities [24][68] Other Important Information - The planned separation of the MiniMed diabetes business is on track, with expectations for completion by the end of calendar year 2026 [18] - The company is investing in R&D and marketing to support growth areas, particularly in renal denervation and Altaviva [66] Q&A Session Summary Question: Comments on accelerating revenue growth next year and high single-digit earnings growth - Management indicated that growth will continue, driven by strong performance in CAS and other growth drivers like Symplicity and Altaviva [30][39] Question: Monitoring progress for RDN and Altaviva - Management mentioned strong leading indicators, including training of over 500 physicians and opening of new accounts for RDN [43] Question: Thoughts on capital allocation and M&A strategy - The company is focused on tuck-in M&A opportunities that align with existing business segments, prioritizing high-growth areas [59][60] Question: Impact of Hugo on surgical business growth - Management expressed excitement about the Hugo system's potential, noting positive feedback from initial cases and strong leading indicators [87]

Core Insights - Medtronic has received FDA approval for the Altaviva device, a minimally invasive implantable tibial neuromodulation therapy aimed at treating urge urinary incontinence, which affects approximately 16 million people in the U.S. [1][2][3] - The Altaviva device is designed to improve bladder control by sending electrical impulses to the tibial nerve, and it features a 15-year battery lifespan with automatic therapy delivery [2][3]. Company Overview - Medtronic is a global leader in healthcare technology, with a mission to alleviate pain, restore health, and extend life, employing over 95,000 people across more than 150 countries [5]. - The company has a comprehensive portfolio of neuromodulation therapies for bladder control, positioning itself as the only company with such a full offering in this area [3]. Product Details - The Altaviva device is approximately half the length of a stick of chewing gum and is implanted near the ankle without the need for sedation or imaging [2]. - The device is MRI-compatible and designed for real-life needs, allowing patients to return home with therapy activated immediately after the procedure [2][3]. Market Impact - The introduction of the Altaviva device is expected to transform the treatment landscape for urge urinary incontinence, providing new hope and improved quality of life for patients [2][3]. - Medtronic plans to host an investor call to discuss the Altaviva device and its implications for the treatment of urge urinary incontinence on October 9, 2025 [3].