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Performance in the first quarter aligned with internal expectations, characterized by the strategic completion of the Exact Sciences acquisition to establish a high-growth beachhead in cancer diagnostics.<\/p>\n<\/li>\n
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Medical Device growth of 8.5% was underpinned by double-digit performance in Electrophysiology, Heart Failure, and Rhythm Management, offsetting a weaker-than-expected respiratory testing season.<\/p>\n<\/li>\n
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Nutrition results reflect a deliberate transition toward volume-driven growth following strategic pricing actions in 2025, with early data indicating that volume recovery is beginning to follow these adjustments.<\/p>\n<\/li>\n
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The Core Lab Diagnostics business is navigating a recovery phase as it laps significant prior-year headwinds in China related to volume-based procurement (VBP) and post-COVID dynamics.<\/p>\n<\/li>\n
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Management attributes the 7.5% growth in Diabetes Care to a temporary international tender renewal delay and a difficult year-over-year comparison involving 2025 shelf-restocking cycles.<\/p>\n<\/li>\n
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Strategic positioning in Electrophysiology was bolstered by the earlier-than-planned launch of two new pulsed field ablation (PFA) catheters, Volt and TactiFlex Duo.<\/p>\n<\/li>\n<\/ul>\n
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Full-year 2026 comparable sales growth is projected at 6.5% to 7.5%, assuming the full-year inclusion of Exact Sciences in both current and prior periods.<\/p>\n<\/li>\n
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Management anticipates a growth acceleration in the second half of the year, driven by the normalization of Nutrition volumes and the broadening of new product launches in Electrophysiology.<\/p>\n<\/li>\n
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Guidance for the remainder of the year adopts a conservative stance on respiratory testing, choosing not to forecast a compensatory strong season in Q4 following the weak Q1 results.<\/p>\n<\/li>\n
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The Exact Sciences acquisition is expected to contribute approximately $3 billion in incremental sales for 2026, though it introduces a $0.20 dilutive impact to adjusted EPS due to financing costs.<\/p>\n<\/li>\n
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Future growth in Diabetes Care is predicated on upcoming catalysts, including potential CMS coverage expansion for type 2 non-insulin users and the launch of a dual-analyte glucose-ketone sensor.<\/p>\n<\/li>\n<\/ul>\n
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The acquisition of Exact Sciences closed on March 23, 2026, leading to the adoption of ‘comparable sales growth’ as the primary metric to provide an apples-to-apples portfolio view.<\/p>\n<\/li>\n
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Financing costs related to the Exact Sciences transaction were absorbed earlier than originally planned, impacting first-quarter adjusted earnings per share.<\/p>\n<\/li>\n
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Structural changes included moving the left atrial appendage (LAA) closure business from Structural Heart to Electrophysiology to better align with physician call points and accelerate adoption.<\/p>\n<\/li>\n
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Management noted that while shipping lanes in the Middle East have become constrained, there has been no material impact on demand or reimbursement, with mitigation strategies focused on localized inventory.<\/p>\n<\/li>\n<\/ul><\/div>\n
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