Oct 28, 2026 earnings call — Q3 results and 2027 outlook
Fourth-quarter revenue guide: organic decline of -1% to -3% and adjusted EPS of $0.77 to $0.79.
Revenue $5.1B (est $5.1B) · EPS $0.73 (est $0.73)
Key quotes
"Our Q3 results were impacted by our previously reported cyber security incident which we estimate reduced our sales growth by approximately 300 basis points adjusted EPS by $0.07 in the quarter."
"In 2026, we have seen that cycle turn and those 2 businesses are now weighing on our total-company growth as we navigate competition and market dynamics."
"So anticipate to achieve over $500 million of savings from the program over the next 3 years."
Analyst Q&A 11
Cyber attack impact on sales
Q (Robert Marcus · JPMorgan): Analyst asked how the cyber hack affected Q3 revenue and why the impact continues into Q4, and how much the 2027 no-growth view is due to the hack versus other factors.
A: Management said Q3 had a roughly 300 basis point revenue headwind (about $150 million) and an EPS headwind of $0.07. They expect a continuing 200 to 300 basis point impact in Q4 as customers stocked inventory that will be burned off, and Q4 EPS impact of about $0.04 to $0.05.
"So in Q3, we estimate a roughly 300 basis point headwind to our revenue from cyber." — Jonathan Monson (CFO)
Confidence in 2028 recovery
Q (Larry Biegelsen · Wells Fargo): Analyst asked how confident management is in improving sales and EPS growth in 2028 and how pipeline competition affects that view.
A: Management said they are very confident the company will return to growth and move off the bottom in 2027 into 2028. They expect strong growth from interventional cardiology, vascular and Penumbra, solid mid-single-digit med-surg, and improving CRM, EP and WATCHMAN performance in 2028 with product launches and label changes.
"We are very confident about the return to growth and kind of pushing off the bottom in 2027 as we enter 28." — Michael F. Mahoney (CEO·CHAIR)
Cost cuts and Penumbra timing
Q (Joanne Wuensch · Citi): Analyst asked what internal actions (salesforce realignment, expense cuts) are being taken to bridge to 2028 and asked for details on the Penumbra closing delay.
A: Management said they are implementing a meaningful restructuring to align cost to the 2027 outlook, including discretionary spend cuts, headcount reductions and delayering, and expect over $500 million of savings over the next 3 years with over half of savings exiting 2027. They said they are very bullish on Penumbra, see strong synergies, and anticipate an early first quarter close.
"anticipate to achieve over $500 million of savings from the program over the next 3 years." — Jonathan Monson (CFO)
MedSurg growth drivers
Q (Frederick Wise · Stifel): Analyst asked why MedSurg cannot return to prior 7%–8% growth and what each piece (urology, endoscopy, neuro) needs to improve.
A: Management said neuromodulation is doing well and will be accretive over time, Endo is strong but will face China pricing headwinds in 2027 and should accelerate in 2028, and urology has underperformed due to commercial turnover but should improve in 2027 as new hires and product approvals ramp.
"I would assume, kind of over period of time, the neuromod business will continue to be accretive to the MedSurg growth profile." — Michael F. Mahoney (CEO·CHAIR)
Pipeline delays and forecasting fixes
Q (Travis Steed · BofA): Analyst asked if there is a bigger issue causing pipeline push-outs and asked about improvements in forecasting.
A: Management said 2026 was a tough year driven by EP and WATCHMAN dynamics and forecasting missed those turns. They described enhancements to forecasting: scenario analysis, objective models, third-party data, a new operating model, and expect improved forecasting accuracy going forward while acknowledging some pipeline platform delays of about 6 months due to clinical and regulatory complexity.
"We feel with all of that together, you will see improved forecasting accuracy from us on a go forward basis." — Jonathan Monson (CFO)
WAMGR assumption and market growth
Q (Joshua Jennings · TD Cowen): Analyst asked whether management assumes WAMGR remains at 7% in out years and for an update on the U.S. EP market.
A: Management said they view WAMGR around 7% today and roughly 7% to 8% over the next 3 years, noting WATCHMAN has pulled the WAMGR down but new markets and Penumbra should be accretive. They described EP market as strong and expect to return toward WAMGR in 2028 and beyond.
Why EPS may not grow in 2027
Q (Marie Thibault · U.S. Bank BTIG): Analyst asked why adjusted EPS is expected to be flat in 2027 despite restructuring and cost actions.
A: Management said mix is the biggest factor because pressure is mainly in WATCHMAN and EP, which hurts gross margin, and China pricing pressure will further impact gross margin in 2027. They will continue to invest in the portfolio and use restructuring savings to offset costs, but expect EPS roughly in line with revenue next year.
"We will feel the mix impact of that within gross margin." — Jonathan Monson (CFO)
Vitalist and TIVUS trial shifts
Q (Pito Chickering · Deutsche Bank): Analyst asked why Thrive data and TIVUS launch were delayed and why Vitalist is focusing on shock instead of high-risk PCI; also asked if the market remains attractive.
A: Management said a competitor's data reduced enthusiasm for broad high-risk PCI use, so they pivoted to study AMI cardiogenic shock where mortality is very high and mechanical circulatory support can help. They said Vitalist has differentiated catheter stability and management advantages for shock, and they remain confident in TIVUS though enrollment has been slower during the Relievant integration.
"That is why we are so excited about the potential for the Vitalist platform and why actually we like the move." — Ken Stein
Penumbra update and product delays
Q (Matthew O'Brien · Piper Sandler): Analyst asked what is slowing Ultra and Flex and pressed for more details on Penumbra timing and causes.
A: Management declined to add to prior Penumbra timing comments, saying they are bullish on the deal and expect a close likely in early 2027. They pointed to product delays being due to design verification/validation and V&V, clinical, regulatory and operational execution issues across different programs.
"We will not provide any more updates on Penumbra other than what I commented on." — Michael F. Mahoney (CEO·CHAIR)
Ultra and FARAFLEX delays reasons
Q (Joseph Fitzgerald · Piper Sandler): Analyst asked whether delays for Ultra and FARAFLEX are product issues, enrollment, or manufacturing, and for specifics.
A: Management said Ultra is a PMA supplement that does not need clinical study and the delay is from design verification and validation for a hardware-software-catheter project, causing about a one-quarter delay. For FARAFLEX, delays are due to IDE negotiations with FDA, CMS approval timing, and operational site expansion and supply chain readiness, with expected ramp in enrollment.
Penumbra growth and dilution
Q (Matthew Taylor · Jefferies): Analyst asked for updated expectations for Penumbra growth contribution and whether the prior $0.06 to $0.08 first-year dilution estimate changed.
A: Management said they remain excited to add Penumbra and that the earlier $0.06 to $0.08 dilution estimate assumed no divestiture and interest rates at that time. They noted interest rates have risen, which will increase financing costs and put additional pressure on EPS dilution; they will provide more detail after the deal closes.
"At the time of announcement, we had so we expected $0.06 to $0.08 of dilution." — Jonathan Monson (CFO)