Core Viewpoint - The medical-device maker reported a 16% increase in sales but provided a weak forecast for the year, leading to a decline in shares during premarket trading [1] Group 1 - Sales increased by 16% year-over-year, indicating strong demand for the company's products [1] - The company issued a soft forecast for the upcoming year, which has raised concerns among investors [1] - Following the forecast announcement, shares of the company experienced a drop in premarket trading [1]

Financial Data and Key Metrics Changes - Fourth quarter consolidated revenue reached $5.286 billion, representing a 15.9% reported growth compared to Q4 2024, with operational revenue growth of 14.3% after excluding a $74 million foreign exchange tailwind [19] - Full year 2025 consolidated revenue was $20.074 billion, marking a 19.9% reported growth versus 2024, with operational revenue growth of 19.2% after excluding a $114 million foreign exchange tailwind [20] - Adjusted EPS for Q4 was $0.80, growing 15% year-over-year, exceeding guidance [19] - Full year 2025 adjusted EPS was $3.06, reflecting a 22% increase compared to 2024, marking the third consecutive year of 20%+ adjusted EPS growth [20] Business Line Data and Key Metrics Changes - Urology sales grew 13% operationally in Q4 and 23% operationally for the full year, but performance was below expectations [5] - Endoscopy achieved 8% organic growth in both Q4 and for the full year, driven by endoluminal surgery and imaging systems [5] - Neuromodulation grew 10% in Q4 and 8% organically for the full year, with strong performance from the brain franchise [6] - Cardiovascular segment delivered 16% operational growth in Q4 and 22% operational growth for the full year [7] - Watchman business grew 29% in Q4 and strong double-digit growth for the full year, driven by concomitant procedures [13] Market Data and Key Metrics Changes - U.S. market grew 17% in Q4 and 26% for the full year, with strong performance in EP, Watchman, and ICTX [3] - Asia Pacific region grew 15% operationally in Q4 and 14% for the full year, led by Japan and China [4] - Europe, Middle East, and Africa grew 5% in Q4 and 3% for the full year, with high single-digit growth excluding Acclarent discontinuation [3] Company Strategy and Development Direction - The company anticipates continued momentum in EP and Watchman, with expectations for higher growth in the second half of 2026 [4] - Strategic acquisitions, including Penumbra and Valencia Technologies, are aimed at entering high-growth segments and expanding product offerings [24][25] - The company is focused on maintaining a strong pipeline of innovative products and expanding its market share in key areas [52][63] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10%-11% organic revenue growth for 2026, with adjusted EPS growth of 12%-14% [27][28] - The company expects to face challenges in the first half of 2026 due to product discontinuations but anticipates a stronger performance in the second half [46] - Management highlighted the importance of ongoing investments in R&D and strategic M&A to drive future growth [63] Other Important Information - The company expects full-year 2026 adjusted gross margin to be in line with 2025, with a slight expansion in operating margin anticipated [21] - Free cash flow for 2025 was $3.659 billion, exceeding expectations, with a target of approximately $4.2 billion for 2026 [24] Q&A Session Summary Question: Concerns about U.S. EP and Watchman performance - Management noted that U.S. EP grew 35% in Q4, exceeding internal targets, and Watchman grew 29%, indicating strong market performance despite concerns [34][36] Question: Impact of recent trials on Watchman - Management confirmed no negative impact from recent trials on Watchman uptake, with robust growth continuing [41] Question: Expectations for EP growth in 2026 - Management expects EP growth to be around 15%, with confidence in maintaining market leadership despite increased competition [44][51] Question: Diversification of growth drivers - Management emphasized ongoing investments in various business units, including Neuromodulation and Urology, to ensure consistent performance across the portfolio [60][62] Question: Confidence in long-term growth targets - Management reaffirmed confidence in achieving long-term revenue growth targets of 10%+, supported by strategic acquisitions and market leadership [86]

Financial Data and Key Metrics Changes - Fourth quarter consolidated revenue reached $5.286 billion, representing a 15.9% reported growth compared to Q4 2024, with operational revenue growth of 14.3% after excluding a $74 million foreign exchange tailwind [18] - Full year 2025 consolidated revenue was $20.074 billion, marking a 19.9% reported growth versus 2024, with operational revenue growth of 19.2% after excluding a $114 million foreign exchange tailwind [19] - Adjusted EPS for Q4 2025 was $0.80, a 15% increase from 2024, exceeding guidance [18] - Full year 2025 adjusted EPS was $3.06, growing 22% versus 2024, also exceeding guidance [19] - Adjusted gross margin for Q4 was 70.7%, with a full year adjusted gross margin of 70.6%, reflecting a 30 basis point expansion [20] Business Line Data and Key Metrics Changes - Urology sales grew 13% operationally in Q4 and 23% operationally for the full year, but performance was below expectations [4] - Endoscopy achieved organic growth of 8% in both Q4 and for the full year, driven by endoluminal surgery and imaging systems [4] - Neuromodulation grew 10% in Q4 and delivered 8% organic growth for the full year, with strong performance from the brain franchise [5] - Cardiovascular segment delivered 16% growth operationally in Q4 and 22% operationally for the full year [6] - Watchman business grew 29% in Q4 and maintained strong double-digit growth for the full year [12] Market Data and Key Metrics Changes - U.S. operational growth was 17% in Q4 and 26% for the full year, with strong performance in EP, Watchman, and ICTX [2] - Asia Pacific region grew 15% operationally in Q4 and 14% for the full year, led by Japan and China [3] - Europe, Middle East, and Africa grew 5% in Q4 and 3% for the full year, with high single-digit growth excluding Acclarent discontinuation [2] Company Strategy and Development Direction - The company anticipates continued momentum in EP and Watchman, with expectations for higher growth in the second half of 2026 [3] - Strategic acquisitions, including Penumbra and Valencia Technologies, are aimed at entering high-growth markets and expanding product offerings [24][6] - The company is focused on maintaining a strong pipeline of innovative products and expanding its market share in key segments [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 10%-11% organic revenue growth for 2026, with adjusted EPS growth of 12%-14% [27] - The company expects to face challenges in the first half of 2026 due to product removals and market adjustments but anticipates stronger performance in the latter half [25][43] - Management highlighted the importance of ongoing investments in R&D and strategic M&A to drive long-term growth [61] Other Important Information - The company reported free cash flow of $3,659 million for the full year 2025, exceeding expectations [22] - The legal reserve was $242 million as of December 31, with $46 million already funded [24] - The company maintains a strong balance sheet with cash on hand of $1.965 billion and a gross debt leverage ratio of 1.9 times [23] Q&A Session Summary Question: Concerns about U.S. EP and Watchman performance - Management reassured that Q4 results exceeded internal targets, with EP growing 35% and Watchman growing 29%, indicating strong market share gains [30][34] Question: Impact of recent trials on Watchman - Management confirmed no negative impact from recent trials and emphasized robust uptake of Watchman procedures [36][38] Question: Expectations for EP growth in 2026 - Management expects EP growth to exceed 15%, driven by new product approvals and market expansion [41][42] Question: Diversification of growth drivers - Management highlighted strong performance expected in Neuromod, Urology, and Endoscopy, with ongoing investments to ensure consistent growth across all business units [59][60]

Core Insights - Zynex, Inc. has entered into a provider agreement with Humana Inc., effective February 1, 2026, marking a significant partnership for the company in the healthcare sector [1][3] Company Overview - Zynex, founded in 1996, specializes in non-invasive medical devices for pain management, aiming to improve the quality of life for patients suffering from debilitating pain [2][5] - The company offers advanced electrotherapy products, including the NexWave™ device, which is now available to in-network Humana members [2] Partnership Details - The partnership with Humana is expected to expand patient access to Zynex's products, as Humana serves nearly 20 million people across the United States and is a leading provider of Medicare Advantage plans [2][3] - Zynex will participate in various health benefits plans offered or administered by Humana, including Medicare-PPO Plans, HMO Plans, and several state Medicaid plans [3] Agreement Terms - Specific terms of the agreement between Zynex and Humana have not been disclosed [4]

Core Insights - Dexcom, Inc. is launching an advanced AI-enabled enhancement to its Stelo glucose biosensor, aimed at improving user understanding of glucose health and supporting long-term health goals [1][6] Product Features - The new features include an expanded Smart Food Logging capability, integrating a comprehensive nutrition database with over one million food options, allowing users to log meals through text search, barcode scanning, or photo capture [1][5] - The redesigned Daily Insights feature will provide users with personalized recommendations based on their glucose, activity, nutrition, and sleep data, utilizing a sophisticated card-based system [4][5] User Impact - After 30 days of using Stelo, most users reported positive changes in dietary habits, physical activity, and weight management, indicating the effectiveness of the product in managing metabolic health [3] - The updates aim to reduce friction in nutrition tracking, empowering users to make informed dietary decisions and achieve health goals with greater confidence [2][4] Company Background - Dexcom has been a leader in glucose biosensing technology for over 25 years, helping individuals manage diabetes and track glucose levels effectively [8] - The company is set to launch a completely reimagined Stelo app experience later this year, following the completion of development and regulatory approvals [6]

Core Insights - Dexcom, Inc. is launching an advanced AI-enabled enhancement to its Stelo glucose biosensor, aimed at improving user understanding of glucose health and supporting long-term health goals [1][6] Product Features - The new features include an expanded Smart Food Logging capability, integrating a comprehensive nutrition database with over one million food options, allowing users to log meals through text search, barcode scanning, or photo capture [1][5] - The redesigned Daily Insights feature will provide users with personalized recommendations based on their glucose, activity, nutrition, and sleep data, utilizing a sophisticated card-based system [4][5] User Impact - After 30 days of using Stelo, most users reported positive changes in dietary patterns, physical activity, and weight management, indicating the effectiveness of the product in managing metabolic health [3] - The integration of behavioral science techniques in the new features aims to help users reflect on and act upon their metabolic health insights, ensuring personalized coaching that adapts to individual progress [5] Company Background - Dexcom has been a leader in glucose biosensing technology for over 25 years, empowering individuals to manage diabetes and track glucose levels effectively [8]

Market Overview - US stock futures are slightly up, with the S&P futures rising 0.2% and Nasdaq futures also up 0.2%, despite concerns over a rotation in tech stocks [1][3] - The AI narrative has shifted, with a focus on perceived losers in the Software sector, leading to significant declines in stocks like AMD, which fell 9% after disappointing sales forecasts [1][3] - Economically sensitive shares, particularly in the Russell 2000 index, gained 0.4%, while tech stocks faced pressure due to fears of AI disruption [4] Company Performance - Alphabet's stock is up 1% ahead of its earnings report, while other major tech stocks like Microsoft, Amazon, and Apple also saw slight increases [3] - Eli Lilly's shares rose 7% after a positive sales forecast driven by strong demand for its weight loss drug [3] - Johnson Controls increased by 8% after raising its adjusted earnings per share forecast for the year [3] - Silicon Laboratories surged 53% after agreeing to be acquired by Texas Instruments for $231 per share [3] - Uber Technologies fell 6% due to a weak profit outlook and a leadership change signaling a focus on driverless vehicles [3] Sector Analysis - The Software sector is experiencing indiscriminate selling, with analysts noting a lack of confidence among investors, leading to reduced software holdings [5][6] - The mood among investors regarding software stocks is grim, with many companies facing punishment for not meeting elevated expectations [5] - European stocks are also facing losses in sectors like software, IT, and data services due to ongoing concerns about AI disruption [10] Economic Indicators - Today's macro data focus is on the ISM Services index, with expectations for a reading that could influence stock market sentiment [1][15] - The dollar is stronger, and bond yields have increased by 1-2 basis points, reflecting a cautious market environment [1][15] Commodities - Gold prices have rebounded above $5,000 per ounce, and silver has risen above $90 per ounce, indicating a recovery in precious metals [1][15]

Core Viewpoint - Hologic has received FDA approval for its Aptima® HPV Assay as a primary screening option, which enhances its cervical health portfolio [1] Company Summary - The FDA approval allows Hologic to expand its offerings in cervical health, indicating a strategic move to strengthen its market position in women's health diagnostics [1] - The Aptima® HPV Assay is designed to improve cervical cancer screening processes, potentially leading to better patient outcomes [1] Industry Summary - The approval reflects ongoing advancements in the healthcare industry, particularly in the area of women's health and cervical cancer screening [1] - This development may influence market dynamics by increasing competition among companies offering similar diagnostic solutions [1]

The medical-device maker beats quarterly earnings expectations but offers a disappointing outlook for the current quarter. ...

Core Viewpoint - Boston Scientific Corp's forecast for modest revenue growth and profit in 2026 fell short of Wall Street expectations, leading to a significant drop in share price despite a strong fourth-quarter performance [1][2]. Group 1: Financial Performance - The company reported adjusted earnings of 80 cents per share, exceeding the consensus estimate of 78 cents [3]. - Revenue for the fourth quarter was $5.29 billion, slightly above forecasts of $5.28 billion [3]. - For the first quarter of 2026, Boston Scientific anticipates adjusted earnings of 78 to 80 cents per share, compared to the analyst consensus of 79 cents [3]. Group 2: Future Outlook - Boston Scientific projected adjusted earnings per share for 2026 to be between $3.43 and $3.49, with a midpoint of $3.46, which is below the average analyst estimate of $3.47 [1][2]. - The company expects organic revenue growth of 10% to 11% for 2026, a decrease from the 15.8% organic growth recorded in 2025 [2]. - The subdued outlook is influenced by the upcoming integration of its $14.5 billion acquisition of Penumbra, announced last month [2].