Jon Block

Morici confirmed the offset explicitly and explained the ASP upside from product mix and list price.

Hogan declined to claim a macro inflection and explicitly stated guidance assumes no macro improvement.

John said NOAA is not material in FY2026 forecast given time-nature of rollout; if adoption is faster than expected it would be upside. Q2 guidance reflects balanced view of Q1 puts and takes plus April data, not overly cautious.

Joe described Invisalign trends as consistent month-to-month across all countries, no pockets of weakness different from Q4. Felt good about how they entered Q2. John called it a balanced view.

John confirmed 1-2% YoY ASP decline for FY2026 from country/product mix. Q4 sequential miss was FX deterioration intra-quarter plus strong growth in lower-ASP countries (Latin America, Turkey, India). Would have been flat ex-FX.

Joe said no tax stimulus is built into guidance, just stable execution. NOAA products vary by geography (US vs Europe vs APAC); full rollout expected by end of Q1 into Q2 2026. Customers gaining confidence with lower refinement needs.

John explained China's seasonal strength in Q3 lowers blended ASP; Q4 reverses with Europe's larger share. Joe framed no-refinement plan as evolutionary (5x5 to 3x3 to moderate), not a phase transformation.

Joe acknowledged 9 of top 10 countries improved Q2-to-Q3 and North America retail is the biggest issue, but explicitly declined to provide 2026 top-line direction.

Joe identified the weakness as concentrated in North America, France, and Germany. On July trends, stated they've projected what they saw at end of quarter forward into guidance.

John cited expected Systems and Services recovery plus teen products (First, IPE, MAOB) driving Q3-to-Q4 growth. Did not directly address the 6% vs 1% historical comparison.

John confirmed the raise from low-single-digits to 3.5%-5.5% reflects updated FX assumptions while underlying volume and ASP expectations are unchanged.

Joe highlighted breadth of teen growth across geographies and products (IPE + First + MAOB), with good distribution capability to take technology forward.

Joe described DSOs as force multipliers but did not provide specific percentage of North American business. Discussed transferability of DSO best practices to retail doctors.

Management explained Q1 softness from scanner timing and FX, with new products (IPE Europe launch, restorative scanner) driving rest-of-year growth without assuming macro improvement.

Mike framed the field-presence expansion as international sector development with a proven, reliable ROI playbook, not capacity-driven, noting 40% of inVue Dx placements are now international.

Andrew attributed the second-half raise to strong Q2 momentum and a launch pipeline (SDMA CLIPs, Fecal Dx, FNA, Cancer Dx mast cell panel) plus high-90s customer loyalty.

Andrew cited global execution, innovation contributions (inVue, Catalyst menu), expanded utilization, and modestly improved clinical visit outlook. Noted upper bound of guidance range more consistent with current trends.

Andrew confirmed utilization is within the communicated band before F&A full launch. Mike underscored they are well within range with more upside ahead as F&A moves to unconstrained launch.

Andrew noted Q1 includes ~50bps days benefit lapping a prior-year days headwind, making it more consistent when normalized. Clinical visit planning at ~2% decline for both Q1 and full-year. Some pricing dynamics as headwind into full-year math. Declined to comment on January specifically but said nothing to call out and felt good about Q1 positioning.

Jay reiterated international offers higher growth profile than US due to earlier-stage diagnostics adoption (more sick-patient testing market). Investments in Germany, UK/Ireland, Australia now complete. Reference lab network and enabling infrastructure in place. Sustained double-digit international growth for multiple years expected to continue.

Jay cited early-stage international diagnostics adoption, synchronized commercial ecosystem maturity (account managers, VDCs, FSRs, inside sales), reference lab network build-out, and software localizations. Guided 200bps faster international growth vs US at Investor Day. Andrew noted ~100bps equivalent days benefit in Q3 international.

Andrew confirmed 20,000 5-year target unchanged. Implied Q4 placements of 1,500-1,600 described as still very solid. Highlighted FNA mast cell tumor as example of platform extensibility driving continued demand.

Andrew noted no notable intra-quarter trend changes. US CAG recurring improved 150bps+ on days-adjusted basis vs Q1. Jay noted international markets have rapid uptake of specialty tests like PL.

Andrew showed H2 implied CAG recurring at 7.8% vs Q2's 7.4%, so growth actually accelerates. Cortisol adds H2 benefit plus lapping of large customer agreements should help pricing.

Andrew confirmed Q2 is approximately days-neutral, H2 will benefit from days comparison. FX is ~1% headwind for Q2. Visit sample size of 7,000-8,000 is consistent with recent quarters.

Jay declined to share updated backlog now that inVue is in volume launch. FNA still targeted later 2025. April acceleration attributed to completing controlled launch process, not a specific bottleneck fix.

Brian attributed the Q4 premium to installed base growth, pancreatic lipase innovation benefit, and strong international momentum driving faster-than-sector growth.

Jay noted compliance-based pricing and complementary offerings (VetConnect PLUS, Cancer Dx at $15) but did not directly address whether pricing headwinds contribute to wellness declines.

Al confirmed the entire CVI second-half reduction is channel destock, not consumption, which has held steady at mid-single digits.

Brian attributed first-half EPS strength to FX favorability that reverses in H2 rather than conservatism, explaining the unchanged EPS guidance.

CVI organic growth miss vs guidance and January weakness in Japan. Management responded with context on this topic.

APAC geographic recovery as main driver of FY2026 CVI improvement. Management responded with context on this topic.

Market growth assumptions for FY2026 at 4-5% with pricing fading. Management responded with context on this topic.

CVI ex-MiSight lagging market and fiscal 2026 growth construct. Management responded with context on this topic.

Why MyDay success is cannibalizing Clarity rather than competitors. Management responded with context on this topic.

Fertility tone change from blip to potential new trend line. Management responded with context on this topic.

Channel inventory levels and outlook for remainder of year. Management responded with context on this topic.

CVI acceleration drivers beyond capacity including 2026 timeline. Management responded with context on this topic.

Gross margin sustainability and product mix drivers. Management responded with context on this topic.

Timeline for MyDay supply normalization and link to modest APAC numbers. Management responded with context on this topic.

Tightening spread between toric/multifocal growth and overall CVI. Management responded with context on this topic.

Wetteny said 2026 price realization is now 0% to negative 1%, potentially negative 2% at the low end, reflecting gross-to-net; Kristin defended Apoquel/Trio/Cytopoint differentiation on safety and efficacy.

Wetteny acknowledged the channel headwind but said it is difficult to separate from softer end market demand and macro effects, attributing it to promotions underperforming expectations.

Kristin clarified that list prices are not being lowered but loyalty programs are being redesigned for more point-of-sale affordability relief rather than delayed cashback.

Wetteny clarified no extra month, both segments will report 12 months. Fiscal year alignment shifts January-December vs December-November. Recast financials will provide comparable periods. Change not yet implemented; expected in Q1 2026.

Wetteny cited Librela stabilization expected to turn to growth in 2026, launch promotions being historically short-lived, Livestock continuing above-market growth. Patient share gains by competitors still very limited despite macro headwinds amplifying their impact.

Kristin attributed International slowdown to social media headwinds bleeding from US into English-speaking markets. Applying same strategy internationally: third-party data, vet education. Already moved into moderate dogs internationally.

Wetteny said alt channels at 22% of US CA, growing 25-30%. Retail stocking from a customer building position was largely offset by Apoquel Chew prior-year launch stocking headwind. China tariff-related uptick and US livestock supply timing all wash out.

Wetteny attributed EPS raise almost entirely to FX reversal (dollar weakening), two-thirds from EUR/GBP/JPY. Tariff headwind of ~$20M net of mitigations. Without tariffs, organic operational ANI growth unchanged from February.

Kristin pushed back on flat assumption, citing ongoing investment in DTC, medical education, and post-launch studies. Noted long-acting will be a different brand with a unique antibody.

Wetteny said R&D investment follows pipeline needs rather than being a deliberately leverageable line, consistent with prior Investor Day messaging.

Wetteny confirmed stronger H1 vs H2 implied by competition timing in back half, and noted Q4 2024 organic operational growth was 9%, not an easy comp.

Ron explained remeasurement gain was within range of expectations but slightly higher than anticipated. Stripping out remeasurement effects, non-GAAP OI grew about 4.5% YoY. Stanley attributed improvement to post-cyber momentum and market share gains.

Stanley described stable dental and medical markets in the US with no visible impact from macro uncertainty. Noted the THRIVE customer meeting was well attended with good mood, and equipment bookings remain strong.

Ron confirmed 1.5% FX headwind in Q1 driven primarily by the euro, but expects FX to be largely neutral for the balance of the year. Did not quantify the specific dollar impact on top and bottom line as asked.

Ron identified two specific headwinds: full-year depreciation on the global e-commerce platform and normalization of management incentive compensation, partially offset by restructuring savings.

Stanley tempered expectations for IDS, noting incremental rather than breakthrough innovation in digital and materials, with continued specialty innovation in implants and endodontics.

Attributed the raise to underlying throughput rather than oil, and confirmed the Ireland startup is what offsets the 15-day tailwind in the second half.

Jereme acknowledged Q1 OUS strength partly reflects easier first-half comps internationally. US has coverage wins like Prime Therapeutics ahead. Still believes balanced growth across both businesses. Will update if slightly different by year-end.

Jereme emphasized OpEx efficiency is structural not deferral-driven, citing tools, geographic hiring strategies, and leveraging prior technology investments. Gross margin opportunities expected in 2026 alongside continued OpEx leverage. Goal is continued operating margin improvement while balancing investment.