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CLAIM #40622 · Medtronic PLC (MDT) · 2025Q3 earnings call · Feb 18, 2025 · due Jul 31, 2025

However, we do expect these dynamics to resolve as we enter Q1, when these distributors reach their target inventory levels.

Geoff Martha · CEO

PENDING
graded after results covering Jul 31, 2025 are reported

In context

nings, right? I feel like that's what we got here. You know, when I look at the print here, U.S. Surgical, I think you called out a distributor timing, impact. But what gives you the confidence this is not a share loss? And I think related to that P&L management rate, this gross margin stood out. Any one-timers in gross margins, maybe talk about what drove the sequential step up in gross margins and sustainability? Thank you. Geoff Martha: Sure. Well, thanks for the question. I'd say on the surgical question, first, like I said in the commentary, the performance there was driven by the -- a couple of our larger distributors stepping down their carried inventory levels of Medtronic inventory below their normal levers. Like I said, this dynamic cost us about a 200 basis points in Q3 growth. However, we do expect these dynamics to resolve as we enter Q1, when these distributors reach their target inventory levels. So when they get to those inventory levels that they communicated that they want to get to us, that's when this resolves and that's going to be as we enter Q1. Now your question about share, we do have the ability to see through, we track this very closely, the end customer purchases. And one, we know they're stable and two, you know, we're not losing share. You know, we continue, I think to, you know, outperform slightly in the non-robotic space. You know, robotics in the U.S. obviously is a headwind for us. So that's what I'd say to that one. And on the second one, I'll let Gary handle the gross margin question. Gary Corona: Thanks. And Vijay, thanks for your comments on balancing the puts and takes. You know, as Geoff and I have talked about, we're really focused on delivering the earn

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SEC filings for MDT · Claim quote is verbatim from the 2025Q3 earnings call.