AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-3: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 05/11/2026
Moat—
Awaiting a sourced assessment under the current scoring policy and financial basis.
Pricing power—
Awaiting a sourced assessment under the current scoring policy and financial basis.
Predictability99
5 consecutive published annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 100.00
- Revenue growth volatility (pp)
- 5.10
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 3.75
- observedAnnualPeriods
- 5.00
Financial strength68
Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or reported pretax profit plus reported gross interest expense. Reported EBIT is distinct from GAAP operating income and gross interest. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 69.62
- netDebtEbitGrade
- 47.57
- interestCoverageGrade
- 85.02
- currentRatioGrade
- 69.35
- Debt / FCF (x)
- 3.13
- Net debt / operating income (x)
- 2.62
- Interest coverage (x)
- 10.35
- Current ratio (x)
- 1.62
Capital allocation79
Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income, an original issuer-reported unadjusted EBIT reconciled to net income, income tax and signed net interest, or EBIT calculated from reported pretax profit plus reported gross interest expense; the issuer-reported EBIT is distinct from GAAP operating income and gross interest; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. ROIC remains undefined for nonpositive invested capital; the explicit asset-return alternative does not change the ROIC chart. Missing financial inputs alone never trigger an alternative. Does not establish acquisition quality or buyback timing.
- 3-year pre-tax operating return (%)
- 9.45
- 3-year average dilution (%)
- 1.15
- 3-year average SBC / revenue (%)
- 1.57
- cashConversionGrade
- 100.00
Management—
Awaiting a sourced assessment under the current scoring policy and financial basis.
Evidence
We own numerous U.S. and foreign patents and have numerous patent applications pending.
2025 Form 10-K, filed 2026-02-17; intellectual-property risk passage · Filed 17/02/2026
In the first quarter of 2026, reported net sales growth was primarily driven by our Electrophysiology business unit, led by our Farapulse™ Pulsed Field Ablation (PFA) System, our WATCHMAN™ Left Atrial Appendage Closure Devices, and our coronary therapies franchise, led by our AGENT™ Drug-Coated Balloon.
First-quarter 2026 Form 10-Q, filed 2026-05-01; net-sales drivers · Filed 01/05/2026
◦The AVANT GUARD study of FARAPULSE™ Pulsed Field Ablation (PFA) for the treatment of persistent atrial fibrillation (AF) in patients who had not previously been treated for their condition.
Second-quarter 2026 earnings release, filed 2026-07-29; AVANT GUARD study population and treatment · Filed 29/07/2026
Data met all safety and effectiveness endpoints and demonstrated statistical superiority of FARAPULSE PFA over anti-arrhythmic drugs with significantly higher primary effectiveness.
Second-quarter 2026 earnings release, filed 2026-07-29; reported AVANT GUARD results · Filed 29/07/2026
Our primary competitors include Abbott Laboratories and Medtronic plc, as well as a wide range of medical device companies that sell a single or limited number of competitive products or participate in only a specific market segment.
2023 Form 10-K, filed 2024-02-20; named primary competitors · Filed 20/02/2024
Net sales for the first quarter of 2026 were impacted by increased competition within our Electrophysiology business unit and a deceleration of certain WATCHMAN™ procedures.
First-quarter 2026 Form 10-Q, filed 2026-05-01; realized competition and procedure deceleration · Filed 01/05/2026
No assurance can be made that any pending or future patent applications will result in the issuance of patents, that any current or future patents issued to, or licensed by, us will not be challenged or circumvented by our competitors, or that our patents will not be found invalid.
2025 Form 10-K, filed 2026-02-17; patent protection uncertainties · Filed 17/02/2026
In the current environment of managed care, with economically motivated buyers, consolidation among health care providers, increasing prevalence and importance of regional and national tenders, increased competition and declining reimbursement rates, we are also required to compete on the basis of price, value, reliability and efficiency.
2025 Form 10-K, filed 2026-02-17; price competition, tenders and buyer consolidation · Filed 17/02/2026
We continue to experience pressures across many of our businesses due to competitive activity, increased market power of our customers as the health care industry consolidates, national and regional government tenders, economic pressures experienced by our customers, capacity shortages within health care facilities that have and may continue to negatively impact demand for our products, public perception of our products, and the impact of managed care organizations and other third-party payers.
2025 Form 10-K, filed 2026-02-17; ongoing competitive and purchasing pressures · Filed 17/02/2026
•Reported net sales of $5.442 billion, representing an increase of 7.5 percent on a reported basis, compared to the company's guidance range of 5.5 to 7.5 percent; and 7.0 percent on an operational and organic basis, compared to the company's guidance range of 5 to 7 percent, all compared to the prior year period.
Second-quarter 2026 earnings release, filed 2026-07-29; reported sales and growth against guidance · Filed 29/07/2026
The following is a reconciliation of our gross profit margin and a description of the drivers of the change from period to period:
Gross Profit Margin
Period ended March 31, 2025
68.8%
Sales pricing, volume and mix
0.8%
Net impact of foreign currency fluctuations
(0.8)%
All other, including inventory charges and other period expenses
0.7%
Period ended March 31, 2026
69.4%
The primary factors that impacted gross profit margin for 2026 compared to 2025 were increased sales of higher margin products and a decrease in the impact of inventory step-up adjustments associated with acquisitions, offset by an unfavorable impact from foreign currency.
First-quarter 2026 Form 10-Q, filed 2026-05-01; gross-margin reconciliation and drivers · Filed 01/05/2026
We also compete on ease of use, comparative effectiveness, reliability and physician familiarity.
2025 Form 10-K, filed 2026-02-17; physician familiarity as a competitive factor · Filed 17/02/2026
•Invested $1.5 billion in MiRus LLC, which is developing and commercializing proprietary biomaterials, implants and procedural solutions for the treatment of cardiovascular and orthopedic diseases, including the SIEGEL™ Balloon Expandable Transcatheter Aortic Valve Replacement (TAVR) system, in return for an approximately 34% equity stake and exclusive option to acquire the MiRus TAVR business.4
Second-quarter 2026 earnings release, filed 2026-07-29; MiRus investment, ownership and acquisition option · Filed 29/07/2026
On May 19, 2026, under the terms of the ASR agreement, we made an aggregate upfront payment of $2.000 billion to JPMorgan and received an initial delivery of approximately 30 million shares of our common stock, representing approximately 80 percent of the transaction value based on the closing price of our common stock on May 15, 2026.
Second-quarter 2026 Form 10-Q, filed 2026-08-03; accelerated repurchase payment and initial delivery · Filed 03/08/2026
In addition to $210 million invested in money market funds and time deposits as of June 30, 2026 and $1.075 billion as of December 31, 2025, we held $409 million in interest-bearing and non-interest-bearing bank accounts as of June 30, 2026 and $965 million as of December 31, 2025.
Second-quarter 2026 Form 10-Q, filed 2026-08-03; cash holdings at June 30, 2026 and December 31, 2025 · Filed 03/08/2026
In February 2025, our Compensation Committee approved long-term equity incentive awards for our NEOs based on target values as shown in the table below.
2026 proxy statement, filed 2026-03-18; actual approval of 2025 executive equity awards · Filed 18/03/2026
For 2025, approximately 92.3% of the target value of the primary elements of TDC for our CEO and approximately 83.6% of the target value of the primary elements of TDC for our other NEOs, as a group, consisted of at-risk, performance-based incentive compensation.
2026 proxy statement, filed 2026-03-18; 2025 target compensation composition · Filed 18/03/2026
Do not permit pledging or hedging of the economic value of our common stock by executives or directors.
2026 proxy statement, filed 2026-03-18; executive and director hedging and pledging prohibition · Filed 18/03/2026
2026 Proxy Statement
101
Executive Compensation
(4)All equity awards granted to our executives require both a change in control and subsequent termination without Cause or by the executive for Good Reason in order to accelerate vesting.
2026 proxy statement, filed 2026-03-18; equity acceleration requirements · Filed 18/03/2026
However, if the surviving or acquiring entity in a change in control transaction does not provide for the substitution or assumption of outstanding equity awards, such awards will become fully vested upon the change in control.
2026 proxy statement, filed 2026-03-18; exception to equity acceleration requirements · Filed 18/03/2026
During 2025, our independent directors met in executive session without non-independent directors five times.
2026 proxy statement, filed 2026-03-18; independent-director executive sessions during 2025 · Filed 18/03/2026
All of the members of the Audit Committee, Compensation Committee, and Nominating and Governance Committee meet the applicable independence requirements of the NYSE and the SEC.
2026 proxy statement, filed 2026-03-18; key committee independence · Filed 18/03/2026
For
Against
Abstain
Broker Non-Votes
1,205,130,032
2,818,667
2,445,694
81,271,529
(5) The stockholders approved the amendment of the Company’s Third Restated Certificate of Incorporation to remove supermajority voting provisions.
Annual-meeting results Form 8-K, filed 2026-05-05; approval of supermajority removal · Filed 05/05/2026
For
Against
Abstain
Broker Non-Votes
1,189,271,431
17,774,053
3,348,909
81,271,529
(6) The stockholders approved the amendment of the Company’s Third Restated Certificate of Incorporation to provide for exculpation of certain officers as permitted by Delaware law.
Annual-meeting results Form 8-K, filed 2026-05-05; approval of officer exculpation · Filed 05/05/2026
For
Against
Abstain
Broker Non-Votes
1,057,086,923
150,458,633
2,848,837
81,271,529
(7) The stockholders did not approve the amendment of the Company’s Third Restated Certificate of Incorporation and Amended and Restated By-Laws to permit stockholders owning not less than 25% of the Company’s common stock to call a special meeting of stockholders.
Annual-meeting results Form 8-K, filed 2026-05-05; special-meeting amendment not approved · Filed 05/05/2026
The company now estimates net sales growth for the full year 2026, versus the prior year period, to be approximately 7.0 to 8.5 percent on a reported basis and 6.5 to 8.0 percent on an organic basis.
First-quarter 2026 earnings release, filed 2026-04-22; full-year sales-growth guidance · Filed 22/04/2026
The company now estimates net sales growth for the full year 2026, versus the prior year period, to be approximately 5.5 to 6.5 percent on a reported basis and 5 to 6 percent on an organic basis.
Second-quarter 2026 earnings release, filed 2026-07-29; revised full-year sales-growth guidance · Filed 29/07/2026
