Question · Q3 2025
Brett Fishman asked about the preliminary 2026 outlook, specifically the 4% to 7% organic growth for the rest of the portfolio compared to the typical 6%-8% range, and sought elaboration on the nature of expected headwinds in Cardio and Vascular (loss of share vs. end market demand). He also inquired about the visibility into the return to market growth by Q4 2026.
Answer
Payman Khales, President and CEO-elect, explained that the rest of the portfolio grows at the market rate without new product introductions, and the current headwinds are from declining new products. He clarified that there are no lost products, loss of share, insourcing, or products being pulled from the market. The headwinds are related to two electrophysiology products with slower-than-anticipated market adoption, impacting 2026. Khales affirmed good visibility with a steady backlog of around $730 million, noting that new product launches are inherently lumpy, and the current situation of multiple programs experiencing significant changes simultaneously is unusual. He expressed confidence in a Q4 2026 recovery due to anniversarying strong Q1 2025 growth.