Rick Wise

David explained the da Vinci 5 platform enables regular feature additions, with three submitted for 510(k) clearance focused on usability and efficiency.

Rosa confirmed telesurgery is on the roadmap as a subset of telecollaboration use cases. Described cardiac surgery investment with minimally invasive approach for appropriate patients. Emphasized surgeons applying dV5 to areas not originally envisioned.

Samath attributed the gap primarily to lumpy distributor ordering patterns, stocking orders from strong capital placements, and FX benefit. Noted he had not looked at OUS specifically in deep detail.

Jamie explained MIA+ includes Telepresence, simulation, and case insights. Free period extended through Q2 2026; renewals start creating recurring revenue thereafter based on demonstrated value.

Dan attributed the increase primarily to benign procedure validation and supportive economics, with modest contributions from new clearances like NSM and demographic aging.

Dan noted bariatric is less than 3% of overall procedures with no trajectory change predicted. Jamie said China environment is consistent with slow tenders, healthy competition, and ongoing price pressure.

Dave described the digital ecosystem as progressive layers, data collection via hub, AI/ML analysis, then augmented dexterity and intraoperative guidance, with DV5 as the foundational platform.

Jamie said most features will be included to enhance DV5 value proposition and drive conversions, with some digital capabilities potentially charged separately based on demonstrated incremental value.

Dave highlighted ASCs as a growing opportunity, with trade-in Xi/X systems being redeployed to outpatient environments, increasing access to care.

Dave explained after-hours is driven by customers wanting equal access to MIS for emergent patients. For cardiac, DV5 technology creates the right time to invest, growing off a small base.

Jamie highlighted India, Taiwan, UK, and distributor markets driving growth, with long-term OUS growth in the 20s reflecting early adoption stage. Watch-out is capital constraints in Germany, Japan, UK.

Gary described three categories: real-time OR tools enabling access to more patients, accelerated learning/confidence building for care teams, and value analysis using customer's own data.

Jamie said Ion's next growth phase is international expansion and new lung indications, with margin improvement over midterm. SP leverages common Xi components so margin work is less intensive.

Bryan said the $125M is less than a full quarter and burns through in Q3; Wayde confirmed a mirror minus-$0.34 EPS reversal and no repeat of the tariff benefit in the second half.

CEO noted confidence increasing to 80-90% of coding potentially autonomous; targeting ~50% customer adoption during strategic plan period; value proposition: reduce FTE cost, improve speed, capture more revenue.

CFO reiterated recommendation not to change Q2 models; expect overachievement from phasing; will disclose precise amount when reporting Q2 and adjust H2 guidance accordingly.

CEO cited current growth momentum (3.5% normalized vs pre-spin base) proving trajectory; CFO noted 90% TSAs and ERPs complete in 2026, EPS 10% CAGR confident, FCF already at target ex-separation costs.

CEO emphasized portfolio optimization as perpetual lever; must be mission-centric, attractive market, strong profitability; declined timing specifics but confirmed financial flexibility exists.

CEO outlined timeline: smaller implementations through 2025, two large cutovers in 2026, complete by end of 2027. CFO noted significant FCF improvement expected in 2026 and 2027.

CEO declined to provide timeline specifics for drinking water transaction; emphasized finding the right home and not rushing given multiple concurrent workstreams.

CEO clarified tariff impact is bottom-line only; order timing from Q1 expected to reverse mostly in Q3 after ERP/distribution changes complete.

CEO said they're early-stage but believe 50-90% of coding cases can be automated; need to prove accuracy vs human coders; exciting given high Encompass 360 penetration.

CEO identified three factors for upper end: successful ERP cutovers (biggest variable), commercial execution in growth drivers, and capacity management for strong-demand products.

Polen laid out the margin algorithm (revenue growth, favorable mix, BD Excellence productivity, procurement, AI) but deferred a long-term op-margin target to the upcoming Analyst Day.

Vitor emphasized continuity over disruption: driving growth, executing without disruption, maintaining clear communications, and disciplined capital allocation. Tom stressed alignment on commercial and innovation excellence.

Tom identified high-growth investment areas (UCC, pharmacy automation, Connected Care, APM, tissue regeneration, biologics) as natural upside areas. Mike Feld as new Chief Revenue Officer applying BD Excellence commercially. New compensation plans, tech stacks, and management systems for selling organization.

Tom declined to give a target but pointed to continued gross margin expansion from BD Excellence, portfolio mix shift toward higher-margin innovation areas, and network consolidation. Noted BD portfolio has lower gross margin versus peers with an extremely efficient cost base, suggesting room to grow.

Tom detailed: (1) Commercial excellence with Mike Feld as new Chief Revenue Officer, moving sales direct-line into businesses. (2) $50M corporate costs reallocated to R&D in tissue regeneration, biologics, PureWick adjacencies, Connected Care. (3) $200M cost-out addressing stranded costs. Commercial investments expected to pay off within FY26.

Chris explained Q4 gross margin flat year-over-year despite absorbing $90M tariffs (150bps). Operating margin sequential step-down driven by timing of commercial investments. Raised EPS midpoint above prior top end at 9.5% growth.

Chris explained this reflects stronger cash position allowing buybacks while deleveraging to 2.5x, not a change in M&A priorities.

Ivan said the go-to-market changes are going better than expected, evidenced by ~6% Hips and 53% technology growth; framed higher SG&A as a deliberate growth investment (retention agreements, 200 tech reps, best comp plan), not cost savings.

Ivan expressed high confidence but noted it is early in a transition year with substantial changes in U.S. go-to-market, emerging markets (China), innovation investments, and talent changes. Chose to wait ~90 days before potentially raising further. Salesforce disruption modest and in line with expectations.

Ivan identified three factors in 2026 guide: (1) U.S. salesforce transition (largest factor, upside or downside depending on execution), (2) new product adoption cycle continuation, (3) international go-to-market fragility. Growth expected roughly consistent throughout the year.

Ivan described three innovation waves: Wave 1 (catching up) = Magnificent 7, driving 5.6% U.S. growth, should accelerate in 2026. Wave 2 (customer-centric) = autonomous robotics, iodine devices, digital ecosystem, already underway. Wave 3 (diversification) = innovation beyond core ortho via inorganic means leveraging balance sheet.

Ivan expects to exceed 1,000 trained surgeons by year-end from ~400 today. Contract penetration at 50-55%, targeting 70-80% by H2 2025. Training events held in Dallas, Chicago, Nashville upcoming.

Ivan highlighted Z1 and HAMMR for U.S. hip share gains, Persona OsseoTi cementless at 25% penetration with 15% ASP uplift, and Oxford Partial Cementless as the single most differentiated product, only PMA-approved partial knee in U.S.

Both Saccaro and Arduini affirmed the midterm targets, grounding the answer in the innovation cycle, the Heartbeat operating system and pricing on new products.

Arduini was candid that new products are still under 20% of the value and Photonova contributed minimally, crediting core portfolio and commercial execution instead.

Pete highlighted new anesthesia platform launch, monitoring system refresh in 18-24 months with AI enhancements, diagnostic cardiology and prenatal/baby business AI disruption potential. New CEO Jeannette Bankes already having impact.

Pete confirmed on-track second half filing. Differentiated by deep silicon spectral imaging capability, seeing molecular/tissue-level changes that current competitor products cannot, potentially altering therapy decisions.

Monson gave the phasing, over half of savings realized exiting 2027, and said savings show up in SG&A first then COGS, while high-growth programs stay fully funded.

CEO expects PFA share to reduce somewhat but remain clear leader by year-end. Growth drivers: geographic expansion in Japan and China, US mapping footprint growth, FARAPOINT approval. Pipeline products won't materially impact 2026 but widen portfolio for 2027+.

CEO acknowledged more tailwinds than headwinds, cited FerraPulse and regional momentum. Flagged possible PFA competition, China VBP, and lower-cost competitors as risks.