Financial Data and Key Metrics Changes - The company reported Q1 revenue of €8.6 billion, growing 8.4% reported and 4.8% organic, in line with guidance [38] - Adjusted EPS was €1.26, exceeding the midpoint of guidance by €0.03 [42] - Adjusted gross margin was 65.1%, down 80 basis points year over year, but stable compared to Q4 [38][39] Business Line Data and Key Metrics Changes - Cardiovascular grew 7% this quarter, with cardiac ablation solutions achieving nearly 50% growth [20][21] - Neuroscience grew 3%, with high single-digit growth in neurosurgery and neuromodulation [10][27] - MedSurg grew 2%, with advanced energy showing high single-digit growth [31] - Diabetes grew 8%, driven by the strength of the 780G system and Simplera Sync Sensor in international markets [34] Market Data and Key Metrics Changes - The U.S. market showed slower growth in certain segments, particularly in diabetes and pelvic health, while international markets performed better [61] - CAS growth was particularly strong in the U.S. and Japan, with low 70s growth in the U.S. and low 30s growth internationally [20][21] Company Strategy and Development Direction - The company is focused on accelerating growth through innovation in med tech and has raised its EPS guidance for the full year [6][7] - A planned separation of the diabetes business is expected to sharpen focus on core high-growth opportunities [17][37] - New board committees have been established to enhance focus on growth and operational efficiency [49][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to accelerate growth throughout fiscal 2026, citing strong demand and a robust product pipeline [6][17] - The company anticipates significant growth from the cardiac ablation solutions and renal denervation segments [12][13] - Management highlighted the importance of operational efficiency and innovation to drive long-term shareholder value [18][46] Other Important Information - The company expects to finalize the national coverage determination for the simplicity procedure for hypertension by October 8 [25] - The company is investing significantly in R&D, with a 7.7% increase in adjusted R&D spending [40] Q&A Session Summary Question: Update on CAS growth and its impact on U.S. growth - Management confirmed confidence in CAS growth, noting strong demand and utilization, and expects it to positively impact U.S. growth in the future [56][60] Question: Impact of new board committees on governance and capital allocation - Management explained that the new committees will provide focused oversight on growth and operational performance, enhancing communication with management [70][72] Question: Commitment to CAS annual sales target - Management reiterated commitment to the $2 billion annual sales target for CAS, indicating strong momentum and confidence in achieving this goal [76][78] Question: Discussion on capital allocation and EPS growth - Management emphasized a renewed focus on value creation, including potential M&A opportunities and increased investment in growth drivers [81][86] Question: Overall portfolio growth expectations - Management indicated that while significant growth drivers are emerging, the overall business will continue to improve, with a focus on maintaining operational efficiency and EPS growth [95][100]