Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was $1,024 million, representing a slight growth of 0.4% year-over-year, exceeding guidance by approximately $14 million [6][16] - Non-GAAP earnings per share reached $1.08, a 1.9% increase compared to the previous year, and slightly above the high end of guidance [6][31] - Non-GAAP operating margin was maintained just above 30%, reflecting effective expense control [6][31] Business Line Data and Key Metrics Changes - **Diagnostics**: Revenue was $448.9 million, growing 0.9% overall and 2.9% organically, excluding COVID-related sales [17] - **Breast Health**: Revenue declined 5.8% to $365.2 million, with a 10.8% organic decline when excluding Endomagnetics and SSI [24] - **Surgical**: Revenue increased 6.3% to $178.4 million, with international growth leading at 24.8% [25][26] - **Skeletal**: Revenue grew significantly by 62.1% to $31.3 million, driven by resumed shipping of DEXA models [28] Market Data and Key Metrics Changes - The diagnostics business faced challenges due to geopolitical issues, particularly in China and funding cuts in Africa, impacting growth [17][18] - The Breast Health business showed sequential improvement, indicating a potential rebound in Q4 [24] - International markets for surgical products showed strong adoption, particularly in regions with newly established reimbursement [26] Company Strategy and Development Direction - The company aims to return to mid-single-digit organic revenue growth in FY 2026, supported by a strengthening Breast Health business and improved commercial execution [7][36] - Focus on innovation in Breast Health, including the launch of new AI solutions and the integration of Endomagnetics into the product portfolio [11][13] - Continued emphasis on operational efficiency and mitigating tariff impacts through supply chain adjustments [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about returning to solid growth, citing progress in overcoming recent challenges [5][7] - The company anticipates that headwinds from China and HIV funding will continue to affect growth in FY 2026 [46][88] - Confidence in the Breast Health business is growing, with expectations for improved performance in Q4 and beyond [60][61] Other Important Information - Non-GAAP gross margin for Q3 was 60.3%, reflecting an 80 basis point decline year-over-year due to product mix and strategic decisions [32] - The company expects to incur $10 to $12 million in tariffs per quarter moving forward, significantly lower than previous estimates [30][40] Q&A Session Summary Question: Outlook for fiscal 2026 and potential headwinds - Management expects mid-single-digit growth for FY 2026, with considerations for the discontinuation of FloraScan and ongoing challenges in China and HIV funding [46][47] Question: Capital allocation and M&A considerations - The company has focused on share buybacks and is not currently pursuing significant M&A opportunities [51] Question: Visibility into Breast Health business for Q4 - Management is confident in the sales force's performance and expects a return to growth in the Breast Health segment [58][60] Question: Impact of tariffs and mitigation strategies - The company has successfully mitigated about half of the anticipated tariff impacts through operational efficiencies [29][112] Question: Updates on molecular diagnostics and future growth - Management anticipates diagnostics growth to remain in the mid-single-digit range, with strong potential in molecular diagnostics [120][122]