China: Early Signs of Recovery
After several quarters of double-digit declines, China showed a turnaround with approximately 5–6% growth quarter-over-quarter following tightened go-to-market focus, local investments and weekly pipeline oversight.
Majority of Ship-Held Products Returned to Market
Management reported that ~70% of products placed on ship hold have been released back into markets after patient-safety reviews; ~30% remain under remediation.
Mid-term Plan and Margin Commitment Intact
Management reiterated the midterm '3,4,5' plan and the target of >100 basis points of annual margin improvement beginning FY27, maintaining the longer-term goal of mid-single-digit revenue growth and 20%+ operating margin.
Leadership Actions to Drive Execution
New senior appointments (new President of China Rosa Chen, global operations lead David Shan, and continued CTO leadership) aimed at strengthening go-to-market execution, operations and R&D; management emphasized building Japanese leadership depth as well.
Commercial Execution Plan for U.S. GI
Management identified U.S. GI underperformance as an execution/pipeline conversion issue (not a competitiveness problem) and outlined disciplined pipeline management and oversight actions to restore growth, expressing confidence in returning to growth in Q4.
Guidance Presented Transparently as Ranges
Company moved to range-based guidance to reflect dynamic factors (product releases timing, pipeline conversion) and stated ranges do not assume additional ship holds.