Robert Ford: I think that’s a good cadence. I think we’re forecasting here about 70 basis points of improvement this year. Feel good about that. I’ve talked about this not being a question of if, just a question of when, so I think that’s not a bad cadence. And we’re going to focus on the things that we can control and the things that we can control are obviously our cost and our cost teams and the teams that are working on improving gross margin, they’re delivering great results here, while at the same time maintaining high service levels not running to back orders, et cetera. But probably the biggest the biggest opportunity we have here Travis, is just to expand the gross margin through portfolio mix. When you have our medical device businesses growing at mid-teens consistently over the last, whatever, four or five quarters, that has a real strong impact on our gross margin.
So a lot of focus on what we control our gross margin, the cadence. That’s what we are targeting. It’s not really a question of if it’s just a question of when.
Operator: Our next question will come from Vijay Kumar from Evercore, ISI.
Vijay Kumar : Robert, I had a two forward question. A lot of questions on pipeline, but I’m curious when people ask us on sustainability of growth, if you could elaborate on pipeline, what else is there? When you look at the future, that gives us the confidence of sustaining its premium growth within the med tech industry. My second part was on the financial modeling side, looks like FX headwinds came in a little bit higher. Prior guidance that is $0.20 headwind to EPS from FX. Did that increase? I’m just curious on because some questions on why the high end of the guidance was not raised. I suspect the FX headwind increase.
Robert Ford : As I said, there are certain challenges that still remain with us from January and FX is one of them. I’ll let Phil answer that one. On your question on pipeline, listen, I could spend a whole hour on this just going through the pipeline, but I guess I would bucket them into like three categories, Vijay. I would say you got your current contributors and Libre and Alinity, they still operate like pipeline projects and products. We still got multiple innovations going through them. MitraClip, great familiarity, AVEIR, Navitor, TriClip, Amulet, PROTALITY or our concussion tests, I think got great opportunity and CardioMEMS, I mean, these are all products that I would still characterize them as early innings. Yes, they’re established, but they’re still early innings and they got a lot of growth rate there.
The second group of products I would call, probably near-term future contributors, so think about it in the next 12 to 18 months, these products coming to market and starting to kind of generate revenue there. Our lingo product, I’m very excited about that and bringing that to the U.S. and expanding that globally. Our dual analyte sensor, our Volt system Esprit, which is our drug eluding bioabsorbable stent for below the knee. It will be the first of its kind. We are developing a whole new Alinity system that will target a segment of the market that we currently don’t participate in. And there’ll be more to come on that. And then just the great opportunity we have with biosimilars into the emerging markets and doing it in a very capital efficient way.
And bringing that and leveraging our position there. That’s our next 12 to 18 month kind of catalyst there. Then thinking about beyond 2026, I mean, we are working on a PFA, RF catheter. You got leadless, another kind of leadless pacing system that would be launching. We have a second generation Amulet, excited about entry into the IVL market sometime in 2027, coronary DCB, we’re working on kind of new TAVR systems also that allow us to branch out into other segments. We’ve got a whole plethora of new analytes in our bio wearables market that will start to come out and have different applications in 2026. And then on top of that, all the clinical work that we’re doing to expand indications, expand market, whether it’s in TAVR, whether it’s in LAA, whether it’s in mitral.
So we’ve got, I’d say a real nice cadence here of products and pipeline beyond, I’d say, the next 12, 18 months. We’re looking at this ’26, ’27, ’28 and I feel really excited about that. There’s obviously more that we need to do and add, but I think the base here looks really good in terms of the pipeline. And then I think your question on FX, Phil, you want to take that?
Phil Boudreau: Yes. I mentioned at the onset here, Vijay, in Q1, we saw about a 2.9% headwind on sales growth and we kind of the current rates anticipate something similar here in Q2. From a full year perspective at the current rates, it’s about a 2.5% headwind on the top-line. That said, kind of the earnings guide that we have here is in line with the organic sales performance and drop through to earnings on the increased midpoint on EPS guidance.
Operator: Our next question will come from Joanne Wuensch from Citi.
Joanne Wuensch: Good morning. May I add my compliments and congratulations to the quarter? I have two questions put them right up front. The first one is on concussion testing. I’d love to understand the go-to-market strategy for that, how you think about the financial benefit impact and all that kind of good stuff? But I think my second question is a little bit more big picture. As you step back in a post-pandemic environment a couple of years into the CEO seat, how do you think about taking Abbott sort of to the next level? I mean, we all sit here and take a look at an incredibly strong balance sheet. How do you put that cash to work? Are these segments, divisions, ones you want to keep? Or how do you think about adding to it?
