Financial Data and Key Metrics Changes - The second quarter revenue reached $9 billion, growing 6.6% reported and 5.5% organic, marking an acceleration from the previous quarter and exceeding guidance by 75 basis points [26][28] - Adjusted EPS was $1.36, an increase of 8% and 5 cents above the midpoint of guidance [30][33] - Adjusted gross margin improved to 65.9%, up 70 basis points year-over-year, driven by pricing and COGS efficiency programs [28][30] Business Line Data and Key Metrics Changes - The cardiovascular portfolio grew 9%, the strongest growth in over a decade, with PFA now accounting for 75% of cardiac ablation revenue [17] - Cardiac rhythm management grew 5%, with notable growth in Micra leadless pacemakers (18%) and Aurora EV-ICDs (nearly 80%) [17] - The diabetes business grew high single digits, particularly strong in international markets (11%), while U.S. growth was lower due to anticipation of new sensor launches [23][25] Market Data and Key Metrics Changes - Revenue growth was balanced geographically, with double-digit growth in Japan and mid-single-digit growth in the U.S., Western Europe, and China [27] - The addressable market for Simplicity is estimated at 18 million people in the U.S. with uncontrolled hypertension, representing a significant opportunity for growth [13] Company Strategy and Development Direction - The company is focused on accelerating revenue growth through enterprise growth drivers, including PFA for AFib, Simplicity for hypertension, and AltaViva for incontinence [6][10] - There is a commitment to pursuing tuck-in M&A and strategic portfolio management to enhance growth [6][36] - The planned separation of the diabetes business is on track, with expectations for a two-step IPO by the end of calendar year 2026 [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the acceleration of revenue growth in the back half of the fiscal year, driven by strong demand for new products and market opportunities [5][31] - The company anticipates a strong contribution from PFA, Simplicity, and AltaViva in the upcoming quarters, with a focus on capturing market share [52][56] - Management highlighted the importance of maintaining a growth mindset and investing in R&D to support long-term growth [6][30] Other Important Information - The company is experiencing high demand for its Affera mapping systems, which have doubled in installed base during the quarter [8] - The final Medicare NCD for Simplicity has been received, enabling broader access and removing patient pathway barriers [10][11] Q&A Session Summary Question: How are commercial payers looking to introduce Simplicity within their patient pool? - Management noted that commercial payers are coming online faster than anticipated, with the NCD being broader and better than expected, allowing for physician discretion in patient treatment [40][42] Question: What are the assumptions for RDN in the second half and the base business? - Management indicated that the second half will see contributions primarily from PFA, Simplicity, and AltaViva, with expectations for a slight rebound in med-surg and continued strength in diabetes and neuromodulation [46][52] Question: How are the investments in SG&A and R&D expected to impact operating margins? - Management explained that investments are focused on growth drivers and maintaining technological leadership, with expectations for SG&A leverage in the second half of the year [65][68]