Core Insights - The company experienced its strongest growth in the Cardiovascular portfolio in 10 years, achieving an 11% increase, primarily due to the rapid adoption of Pulse Field Ablation (PFA) [1] - Cardiac Ablation Solutions (CAS) saw an 80% growth attributed to the successful launch of the Affera mapping and navigation system and Sphere-9 catheter [1] - The company is shifting from foundational market-building to active commercial scaling for the Symplicity Spyral hypertension treatment and Altaviva for incontinence [1] - Strategic positioning in the spine market is being enhanced by the Stealth AXiS platform, which integrates AI-powered planning and robotics into existing surgical workflows [1] - A 30-basis-point benefit from pricing helped to mitigate negative impacts from inflation, prior-year non-recurring items, and a 20-basis-point headwind from cost-efficiency programs [1] - The Diabetes business experienced accelerated growth in the U.S. following the launch of Simplera Sync and Instinct, supported by expanded pharmacy channel access for the 780G system [1]

Core Insights - The inclusion of atrial fibrillation (AF) catheter ablation in the ASC Covered Procedures List (CPL) marks a significant shift towards outpatient treatment for cardiac electrophysiology, effective January 1, 2026 [2][33] - This regulatory change is seen as a watershed event, driven by multiple trends converging between 2023 and 2025, facilitating the outpatient transition for electrophysiology [11][33] Group 1: Impact on Companies - The three leading companies in the PFA space—Boston Scientific, Medtronic, and Johnson & Johnson MedTech—are expected to be the primary beneficiaries of this reimbursement update [5][21] - Boston Scientific is focusing on its Farapulse brand as a key growth engine, with the ASC payment change enhancing its operational pathways [6] - Medtronic views the ASC setting as an additional market expansion opportunity, with its Affera and PulseSelect systems driving revenue growth [7] - Johnson & Johnson MedTech supports the decision, emphasizing its goal to shape the future of cardiac ablation in the ASC environment [8] Group 2: Trends in Outpatient Electrophysiology - The ASC model is expanding in the U.S., recognized for its efficiency, predictability, and cost control, making it a suitable environment for cardiac ablation procedures [2] - The transition to PFA technology has reduced operation times and complication risks, aligning with the ASC's safety and high turnover logic [14][18] - The payment system is evolving towards outpatient pathways, with CMS opening reimbursement for complex procedures since 2021 [15][21] Group 3: Market Dynamics and Future Outlook - The inclusion of AF ablation in the CPL is expected to increase patient access to treatment, breaking through previous capacity constraints in the healthcare system [22] - Competition is shifting from technology leadership to scene leadership, with companies focusing on comprehensive solutions rather than just energy source differences [23] - The ASC environment may reshape physician skill requirements, favoring standardized processes over complex decision-making [24] - Companies are likely to accelerate the development of differentiated product lines tailored for ASC settings, leading to a more outpatient-oriented business model [25][30]