“This quarter we experienced a change in U.S. distributor buying patterns, which had a couple of hundred basis point impact on our surgical performance. We expect this to resolve as we start fiscal ‘26.”

In context

“n brain modulation, we grew 15%, including 26% in the U.S., driven by the adoption of our Percept DBS systems. Percept and its brain-computer interface technology is transforming treatment for patients with movement disorders like Parkinson's, essential tremor, dystonia, and epilepsy. Last month we received CE mark clearance for our BrainSense adaptive DBS for people with Parkinson's. With this groundbreaking technology, Percept devices through a software upgrade can become personalized, fully closed-loop systems with real-time automatic therapy adjustments based on brain activity feedback. We expect this launch to drive continued, above-market growth for our brain mod business in the quarters ahead. Now turning to our medical surgical portfolio, let's discuss our performance in surgical. This quarter we experienced a change in U.S. distributor buying patterns, which had a couple of hundred basis point impact on our surgical performance. We expect this to resolve as we start fiscal ‘26. Apart from this distributor dynamic, our U.S. hospital customer purchasing, direct from us and through distributors, has been stable. And while we continue to see market and competitive pressures in our stapling franchise, we're offsetting this by winning share with our LigaSure Advanced Energy Products globally, and by driving strong, high-single-digit growth in emerging markets. With our Hugo Soft-Tissue robotic platform, we're approaching some important milestones, including entering the U.S. market, expanding indications, adding features, and enhancing system performance. In international markets, utilization continues to increase, and we've more than doubled Hugo procedure volume year-over-year. In the U.S., we are on track to submit for FDA approval for Hugo with urology indications”