Financial Analysis

Debt Supplier Financing Arrangements The Company participates in a supplier financing program that provides participating suppliers the ability to finance payment obligations from the Company with third-party financial institutions in order to receive earlier payment. The Companys standard payment term is 90 days. The Companys outstanding payables to its suppliers, including amounts due and payment terms, are not affected by a suppliers participation in the program. At April 24, 2026 and April 25, 2025, the Company had $15 million and $25 million, respectively, of outstanding payables associated with the supplier financing program recorded in Accounts payable in the consolidated balance sheets. The historical financial statements previously reported by the Company covering periods prior to the Separation included the supplier financing arrangements of $9 million as of April 25, 2025 which did not convey to the Company following the Separation. The following table presents a roll-forward of outstanding payables confirmed as valid associated with the program during fiscal year 2026: Fiscal Year (in millions) 2026 Beginning Balance $ 25 Adjustments for non-conveying balances at Separation (9) Invoices confirmed during the year 73 Confirmed invoices paid during the year (74) Ending Balance $ 15 Revolving Credit Facility On January 15, 2026, the Company entered into a credit agreement that provides for a five-year senior secured revolving credit facility (the Revolving Credit Faci …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The table below includes net sales by geography for the fiscal years ended April 24, 2026, April 25, 2025, and April 26, 2024: Fiscal Year (in millions) 2026 2025 2024 U.S. (1) $ 917 $ 903 $ 833 International (2) 2,185 1,812 1,636 Total $ 3,102 $ 2,715 $ 2,469 (1) U.S. includes the United States and U.S. territories. (2) International includes all other non-U.S. countries. The table below includes net sales by product category for the fiscal years ended April 24, 2026, April 25, 2025, and April 26, 2024: Fiscal Year (in millions) 2026 2025 2024 Pumps $ 546 $ 541 $ 540 Consumables 956 854 777 CGM 1,553 1,313 1,117 Other (1) 46 6 34 Total $ 3,102 $ 2,715 $ 2,469 (1) Primarily includes revenue generated from the sale of smart insulin pens and services. Amounts in this line also reflect adjustments to the Company's Italian payback accruals resulting from two rulings in 2024 by the Constitutional Court of Italy and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. Refer to Note 12. Commitments and Contingencies, for more information. Fiscal Year (in millions) 2026 2025 2024 Pumps $ 546 $ 541 $ 540 Consumables 956 854 777 CGM 1,553 1,313 1,117 Other (1) 46 6 34 Total $ 3,102 $ 2,715 $ 2,469 (1) Primarily includes revenue generated from the sale of smart insulin pens and services. Amounts in this line also reflect adjustments to the Company's Italian payback accruals resulting from two rulings in 2024 by the Constitutiona …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-based Compensation Medtronic Plans and Conversion of Medtronic Awards Prior to the Separation, Medtronic granted stock awards under the 2021 Medtronic plc Long Term Incentive Plan (Medtronic 2021 Plan). The Medtronic 2021 Plan provides for the grant of stock options, restricted stock units (RSUs), performance share units (PSUs), other stock-based awards, and cash awards to employees and directors, including the Companys personnel. Stock-based compensation granted pursuant to the Medtronic 2021 Plan was denominated in shares of Medtronics common stock. As such, all awards granted prior to the Companys completion of its IPO on March 9, 2026, (the Conversion Date) were issued under the Medtronic 2021 Plan. In connection with the Separation, on the Conversion Date, Medtronic outstanding RSUs and certain PSUs held by MiniMed employees were converted to MiniMed RSUs under the 2026 MiniMed Long-Term Incentive Plan. The awards were converted using the conversion ratio that was determined in accordance with the Employee Matters Agreement (as defined in Note 14. Related Party Transactions). The conversion ratio was based on the average closing prices of the Medtronic common stock for the last three trading days prior to the Separation and the Companys common stock for the first three trading days following the Separation. Additionally, as part of the conversion, one of the Medtronic PSU awards was deemed satisfied at the target level, and one was deemed satisfied at the latest fo …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Incomes Taxes The income tax provision is based on income before income taxes reported for financial statement purposes. Prior to the Separation, income taxes have been calculated using a separate return method. The separate return method applies the accounting guidance for income taxes to the standalone financial statements as if the Company were a separate taxpayer and a standalone entity. For all periods prior to the Separation, the Company was part of Medtronics consolidated U.S. federal income tax return, as well as Medtronics separate and combined income tax returns in numerous state and international jurisdictions. The Companys current tax liabilities computed under the separate return method are considered to be effectively settled in the Consolidated Financial Statements at the time the transaction is recorded, with the offset recorded against Net Parent investment from Medtronic. The components of income/(loss) before income taxes, based on tax jurisdiction, are as follows: Fiscal Year (in millions) 2026 2025 2024 U.S. $ (381) $ (281) $ (176) International 192 134 106 Loss before income taxes $ (189) $ (147) $ (70) The income tax provision consists of the following: Fiscal Year (in millions) 2026 2025 2024 Current tax expense: Federal $ 23 $ 24 $ 11 State 2 2 2 International 153 28 21 Total current tax expense 178 54 34 Deferred tax expense (benefit): Federal 2 State International (52) (2) 3 Net deferred tax expense (benefit) (50) (2) 3 Income tax provision $ 128 $ …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company leases office, manufacturing, and research facilities and warehouses, as well as transportation and other equipment. The Company determines whether a contract is a lease or contains a lease at inception date. Right-of-use assets represent the Company's right to use the underlying asset for the lease term. Lease liabilities are the Company's obligation to make the lease payments arising from a lease. As the Companys leases typically do not provide an implicit rate, the Companys lease liabilities are measured on a discounted basis using the Company's incremental borrowing rate. Lease terms used in the recognition of right-of-use assets and lease liabilities include only options to extend the lease that are reasonably certain to be exercised. Additionally, lease terms underlying the right-of-use assets and lease liabilities consider terminations that are reasonably certain to be executed. The Company's lease agreements include leases that have both lease and associated nonlease components. The Company has elected to account for lease components and the associated nonlease components as a single lease component. The combined balance sheets do not include recognized assets or liabilities for leases that, at the commencement date, have a term of twelve months or less and do not include an option to purchase the underlying asset that is reasonably certain to be exercised. The Company recognizes such leases in the consolidated statements of operations on a straight …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

"Recently Adopted Accounting Standards Income Taxes In December 2023, the FASB issued Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures (Topic 740), which requires incremental annual disclosures on income taxes, including rate reconciliations, income taxes paid, and other disclosures. The Company adopted this guidance prospectively beginning in the fourth quarter of fiscal year 2026 for the annual report. The adoption of this guidance did not have a material impact to the Companys consolidated financial statements but did require additional disclosures. Refer to Note 8. Income Taxes, for additional information. Accounting Pronouncements Issued and Not Yet Adopted Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Topic 220-40), which requires tabular disclosures disaggregating certain costs and expenses within relevant income statement captions. The Company will adopt this guidance beginning in the fourth quarter of fiscal year 2028 for its annual reports and for interim periods starting in fiscal year 2029. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures. Internal-Use Software In September 2025, the FASB issued ASU 2025-06, Targeted Improvements to the Accounting for Internal-Use Software (Subtopic 350-40), to increase the operability of the recognition guidance by removing all …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Pension Historically, certain employees of MiniMed participated in retirement plans sponsored by Medtronic. In connection with the Separation, MiniMed assumed certain non-U.S. defined benefit pension plan obligations and, for certain plans, plan assets related to active MiniMed employees that were legally transferred from Medtronic to MiniMed. These amounts are disclosed as Transfers from Medtronic in the following tables, and the net periodic benefit costs are included in the consolidated statement of operations. Prior to these employee transfers, these plans were accounted for as multi-employer plans and a proportionate allocation of service costs associated with MiniMed employees was reflected in the consolidated statements of operations. As the plans are now sponsored by MiniMed, the Company accounts for these plans as single-employer plans. The funded status of the plans is recognized on the consolidated balance sheet, and the net periodic benefit costs are reflected in the consolidated statements of operations. The Company makes deposits for certain funded defined benefit plans with independent trustees. Trust funds and/or deposit with insurance companies are maintained to provide pension benefits to plan participants and their beneficiaries. Certain plans are unfunded in nature and therefore have no plan assets. Net periodic benefit costs for the fiscal years ended April 24, 2026, April 25, 2025, and April 26, 2024 were approximately $7 million, $8 million, and $8 mill …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Separation from Medtronic and Related Transactions On March 6, 2026, the Company initiated its IPO pursuant to which 28,000,000 shares of its common stock were issued, at an offering price of $20.00 per share. The IPO closed on March 9, 2026. In connection with the IPO and the Separation, the Company entered into a series of transactions with Medtronic pursuant to which Medtronic transferred the assets and liabilities comprising Medtronics Diabetes Business to the Company, and the Company issued shares of common stock to Medtronic. Immediately prior to the IPO, on March 5, 2026, the Companys outstanding common stock was converted from 100 shares of common stock to 252,813,348 shares of common stock. The Company (i) retained approximately $309 million of the net proceeds from the IPO, for general corporate purposes, and (ii) used the excess of the net proceeds to repay intercompany indebtedness owed to Medtronic under an intercompany note. Following the IPO, Medtronic owned 90% of the outstanding shares of the Companys outstanding common stock. Medtronic has informed the Company that it intends to make a generally tax-free distribution to its shareholders of all or a portion of its remaining equity interest in the Company, but Medtronic has no obligation to complete such distribution. In connection with the Separation, the Company entered into a series of agreements with Medtronic that establish the framework for the ongoing relationship between the parties, including: a separ …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring Total restructuring, associated, and other costs for the fiscal years ended April 24, 2026, April 25, 2025, April 26, 2024 were $142 million, $25 million and $29 million, respectively. Contract Termination Activity In December 2025, management approved and committed to a plan to terminate a third-party manufacturing agreement. In conjunction with this plan, the Company recorded pre-tax charges of $ 118 million during the fiscal year ended April 24, 2026, including $84 million recognized within cost of products sold related to asset write-offs and $34 million recognized within other operating expense (income), net related to contract termination costs in the consolidated statements of operations. As of April 24, 2026, $24 million and $10 million were recorded within other accrued expenses and other liabilities, respectively, in the consolidated balance sheet. There were no comparable liabilities recorded in the consolidated balance sheets as of April 25, 2025. Other Restructuring Activities The Company also incurred restructuring charges during the fiscal years ended April 24, 2026 and April 25, 2025 for individually immaterial restructuring activities. The restructuring, associated, and other costs for these activities primarily related to employee termination benefits provided to employees who have been involuntarily terminated, facility related and asset write-offs. The following table presents the classification of these restructuring, associated, and other c …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue The Company's revenues are principally derived from the sale of reusable and single-use products which together comprise automated insulin delivery (AID) systems and smart multiple daily injection (MDI) systems for diabetes management to individuals, distributors, healthcare providers, and other institutions globally. The table below includes net sales by geography for the fiscal years ended April 24, 2026, April 25, 2025, and April 26, 2024: Fiscal Year (in millions) 2026 2025 2024 U.S. (1) $ 917 $ 903 $ 833 International (2) 2,185 1,812 1,636 Total $ 3,102 $ 2,715 $ 2,469 (1) U.S. includes the United States and U.S. territories. (2) International includes all other non-U.S. countries. The table below includes net sales by product category for the fiscal years ended April 24, 2026, April 25, 2025, and April 26, 2024: Fiscal Year (in millions) 2026 2025 2024 Pumps $ 546 $ 541 $ 540 Consumables 956 854 777 CGM 1,553 1,313 1,117 Other (1) 46 6 34 Total $ 3,102 $ 2,715 $ 2,469 (1) Primarily includes revenue generated from the sale of smart insulin pens and services. Amounts in this line also reflect adjustments to the Company's Italian payback accruals resulting from two rulings in 2024 by the Constitutional Court of Italy and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. Refer to Note 12. Commitments and Contingencies, for more information. At April 24, 2026, $45 million of rebates and other adjustments w …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment and Geographic Data The Company derives its revenue primarily from sale of products focused on diabetes management, including insulin pumps, continuous glucose monitoring systems and sensors, and smart insulin pens. The Company manages its business activities on a consolidated basis and operates as one operating and reportable segment. The Companys chief operating decision maker (CODM) is the Companys Chief Executive Officer. The CODM makes decisions about resource allocation, assesses performance of the business, and monitors budget versus actual results using net income (loss). Income or loss from operations is also considered when monitoring budget versus actual results. Significant expenses include cost of products sold, research and development expenses, selling, general and administrative expenses, and certain litigation charges, which are each separately presented on the Companys consolidated statements of operations. Other segment items include other operating expense (income), net, non-operating expense (income),net, and income tax provision. The Companys CODM is provided with segment assets information on a consolidated basis for the evaluation of Company performance. Total segment assets were consistent with total assets reported in the Companys consolidated balance sheets for the fiscal years ended April 24, 2026 and April 25, 2025. Sales by Geographic Region and Customer Sales Channel Net sales are attributed to the country based on the location of the cu …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Estimates are used when accounting for items such as income taxes, contingencies, goodwill and intangible assets, equity investments, rebates, and liability valuations. Actual results may or may not differ from those estimates. Fiscal Year-End The Company utilizes a 52/53-week fiscal year, ending the last Friday in April, for the presentation of its consolidated financial statements and related notes thereto at April 24, 2026 and April 25, 2025, and for each of the fiscal years ended April 24, 2026 (fiscal year 2026), April 25, 2025 (fiscal year 2025) and April 26, 2024 (fiscal year 2024). Cash Equivalents The Company considers highly liquid investments with maturities of three months or less from the date of purchase to be cash equivalents. These investments are carried at cost, which approximates fair value. Investments The Company invests in marketable equity securities, including investments that do not have readily determinable fair values and investments accounted for under the equity method. Certain of the Companys investments in marketable equity securities are long-term, strategic investments in companies that are in various stages of development and are included in other a …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Debt Supplier Financing Arrangements The Company participates in a supplier financing program that provides participating suppliers the ability to finance payment obligations from the Company with third-party financial institutions in order to receive earlier payment. The Companys standard payment term is 90 days. The Companys outstanding payables to its suppliers, including amounts due and payment terms, are not affected by a suppliers participation in the program. At January 23, 2026 and April 25, 2025, the Company had $19 million and $25 million, respectively, of outstanding payables associated with the supplier financing program recorded in Accounts payable in the condensed combined balance sheets. Revolving Credit Facility On January 15, 2026, the Company entered into a credit agreement that provides for a five-year senior secured revolving credit facility (the Revolving Credit Facility) with an aggregate principal amount of $500 million, with Citibank, N.A. serving as administrative agent for a syndicate of lenders. Subject to the conditions to borrowings contained therein, the commitments under the Revolving Credit Facility became available upon the completion of the Companys IPO on March 9, 2026. The Revolving Credit Facility is available in U.S. dollars and certain approved alternative currencies, initially including Euros. Borrowings under the Revolving Credit Facility may be used for working capital and other general corporate purposes. Subject to specified conditi …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

The table below includes net sales by geography for the three and nine months ended January 23, 2026 and January 24, 2025: Three Months Ended Nine Months Ended (in millions) January 23, 2026 January 24, 2025 January 23, 2026 January 24, 2025 U.S. (1) $ 242 $ 231 $ 679 $ 668 International (2) 548 456 1,586 1,323 Total $ 790 $ 687 $ 2,265 $ 1,991 (1) U.S. includes the United States and U.S. territories. (2) International includes all other non-U.S. countries. The table below includes net sales by product category for the three and nine months ended January 23, 2026 and January 24, 2025: Three Months Ended Nine Months Ended (in millions) January 23, 2026 January 24, 2025 January 23, 2026 January 24, 2025 Pumps $ 151 $ 136 $ 401 $ 387 Consumables 244 213 707 632 CGM 390 330 1,133 968 Other (1) 5 8 24 4 Total $ 790 $ 687 $ 2,265 $ 1,991 (1) Primarily includes revenue generated from the sale of smart insulin pens and services. Amounts in this line also reflect adjustments to the Company's Italian payback accruals resulting from two rulings in 2024 by the Constitutional Court of Italy and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. Refer to Note 15, Commitments and Contingencies, for more information. …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock Purchase and Award Plans The following table presents the expense classification of stock-based compensation expense recognized by the Company for stock options, restricted stock, performance share units, and employee stock purchase plans during the three and nine months ended January 23, 2026 and January 24, 2025: Three Months Ended Nine Months Ended (in millions) January 23, 2026 January 24, 2025 January 23, 2026 January 24, 2025 Stock options $ 1 $ 2 $ 5 $ 5 Restricted stock 6 5 18 16 Performance share units 3 3 12 8 Employee stock purchase plan 1 1 2 2 Total stock-based compensation expense $ 11 $ 11 $ 38 $ 32 Cost of products sold $ 2 $ 1 $ 5 $ 4 Research and development expense 2 2 7 6 Selling, general, and administrative expense 8 8 26 22 Total stock-based compensation expense 11 11 38 32 Income tax benefits (2) (2) (7) (5) Total stock-based compensation expense, net of tax $ 9 $ 10 $ 30 $ 27 During the three months ended January 23, 2026 and January 24, 2025, the Company recognized $8 million and $6 million, respectively, of stock compensation expense related to direct Company employees, and $4 million and $4 million, respectively, of stock compensation expense related to allocations of Medtronic's corporate and shared employee stock-based compensation expenses. During the nine months ended January 23, 2026 and January 24, 2025, the Company recognized $23 million and $17 million, respectively, of stock compensation expense related to direct Company employees, an …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets Goodwill As of January 23, 2026 and April 25, 2025, the carrying amount of goodwill was $2.3 billion in each period. The Company did not engage in any business combinations or other transactions that would affect the carrying amount of goodwill. The Company did not recognize any goodwill impairment charges during the three and nine months ended January 23, 2026, and January 24, 2025. Intangible Assets The following table presents the gross carrying amount and accumulated amortization of intangible assets: January 23, 2026 April 25, 2025 Intangible Assets Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Purchased technology and patents $ 245 $ (142) $ 246 $ (125) Customer-related 70 (63) 68 (60) Trademarks, tradenames and other 5 (3) 5 (3) Total $ 320 $ (208) $ 320 $ (188) The Company did not recognize any definite-lived intangible asset impairment charges during the three and nine months ended January 23, 2026 and January 24, 2025. Amortization Expense The following table presents the intangible asset amortization expense classification for the three and nine months ended January 23, 2026 and January 24, 2025: Three Months Ended Nine Months Ended (in millions) January 23, 2026 January 24, 2025 January 23, 2026 January 24, 2025 Cost of products sold $ 6 $ 6 $ 18 $ 18 Selling, general, and administrative expense 1 1 2 5 Total amortization expense $ 7 $ 7 $ 20 $ 22 Estimated aggregate amortization …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes On July 4, 2025, the U.S. Government enacted The One Big Beautiful Bill Act of 2025 which includes, among other provisions, changes to the U.S. corporate income tax system including the allowance of immediate expensing of qualifying research and development expenses and permanent extensions of certain provisions within the Tax Cuts and Jobs Act. Certain provisions are effective for the Company beginning fiscal year 2026 and the impact for the three and nine months ended January 23, 2026 was not material. The Organization for Economic Co-operation and Development (OECD) published Pillar Two Model Rules defining the global minimum tax, which calls for the taxation of large multinational corporations at a minimum rate of 15% in each jurisdiction in which the group operates. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of the Pillar Two Global Minimum Tax. A number of countries, including Ireland, have enacted legislation to implement the core elements of Pillar Two, which were effective for the Company in fiscal year 2025. Based on the Company's analysis of Pillar Two provisions, these tax law changes did not have a material impact on the Company's financial statements for the three and nine months ended January 23, 2026 and January 24, 2025. The Company's effective tax rate for the three and nine months ended January 23, 2026 was (11.8)% and (36.0)%, respectively, as compared to 132.5% and 2, …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases The Company leases office, manufacturing, and research facilities and warehouses, as well as transportation and other equipment. The Company determines whether a contract is a lease or contains a lease at inception date. The right-of-use assets, lease liabilities, lease costs, cash flows, and lease maturities associated with finance leases were not material to the condensed combined financial statements at January 23, 2026 and April 25, 2025. The following table summarizes the balance sheet classification of the Company's operating leases, including the amounts of the right-of-use assets and lease liabilities at January 23, 2026 and April 25, 2025: (in millions) Balance Sheet Classification January 23, 2026 April 25, 2025 Right-of-use assets Other assets $ 60 $ 66 Current liability Other accrued expenses $ 11 $ 11 Non-current liability Other liabilities $ 50 $ 56

LesseeOperatingLeasesTextBlock

"Recently Adopted Accounting Standards For the nine months ended January 23, 2026, there were no newly adopted accounting pronouncements that materially impacted the Companys condensed combined financial statements . Refer to Note 1, Summary of Significant Accounting Policies, in the audited combined financial statements for the fiscal year ended April 25, 2025, in the Companys IPO Prospectus, for pronouncements recently adopted. Not Yet Adopted Accounting Standards Income Taxes In December 2023, the FASB issued Accounting Standards Update (ASU) 2023-09, Improvements to Income Tax Disclosures (Topic 740), which requires incremental annual disclosures on income taxes, including rate reconciliations, income taxes paid, and other disclosures. The Company will adopt this guidance beginning in the fourth quarter of fiscal year 2026 for the annual report. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures. Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Topic 220-40), which requires tabular disclosures disaggregating certain costs and expenses within relevant income statement captions. The Company will adopt this guidance beginning in the fourth quarter of fiscal year 2028 for the annual report and for interim periods starting in fiscal year 2029. The Company is currently evaluating the potential effect that the upd …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Related Party Transactions The condensed combined financial statements have been prepared on a stand-alone basis and are derived from the consolidated financial statements and accounting records of Medtronic. The following discussion summarizes activity between the Company and Medtronic. Allocation of General Corporate Expenses During the periods presented, the Companys operations were integrated with Medtronic and its affiliates, and the Company received services including, but not limited to finance and accounting, legal, information technology, employee benefits and incentives, and stock-based compensation. These condensed combined financial statements reflect charges for these services. When specific identification was not practicable, a proportional cost allocation method was utilized, depending on the nature of the services received. See Note 1, Description of the Business and Basis of Presentation, for a discussion of the methodology used to allocate corporate-related costs for purposes of preparing these condensed combined financial statements on a carve-out basis. The major components of Medtronic corporate and shared expenses were as follows: Three Months Ended Nine Months Ended (in millions) January 23, 2026 January 24, 2025 January 23, 2026 January 24, 2025 Cost of products sold $ 12 $ 11 $ 34 $ 31 Research and development expense 10 8 24 23 Selling, general, and administrative expenses 68 67 206 197 Other operating expense (income), net 1 2 5 7 Total $ 90 $ 89 $ …

RelatedPartyTransactionsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring Total restructuring, associated, and other costs for the three and nine months ended January 23, 2026 were $138 million and $142 million, respectively, as compared to $2 million and $8 million for the three and nine months ended January 24, 2025, respectively. Contract Termination Activity In December 2025, management approved and committed to a plan to terminate a third-party manufacturing agreement. In conjunction with this plan, the Company recorded pre-tax charges of $118 million during the three and nine months ended January 23, 2026, including $84 million recognized within cost of products sold related to asset write-offs and $34 million recognized within other operating expense (income), net related to contract termination costs in the condensed combined statements of operations. As of January 23, 2026, $24 million and $10 million were accrued within other accrued expenses and other liabilities relating in the condensed combined balance sheet to the contract termination. Other Restructuring Activities The Company also incurred restructuring charges during the three and nine months ended January 23, 2026 and January 24, 2025 for individually immaterial restructuring activities. The restructuring, associated, and other costs for these activities primarily related to employee termination benefits provided to employees who have been involuntarily terminated, facility related and asset write-offs. The following table presents the classification of these restru …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

Revenue The Company's revenues are principally derived from the sale of reusable and single-use products which together comprise automated insulin delivery (AID) systems and smart multiple daily injection (MDI) systems for diabetes management to individuals, distributors, healthcare providers, and other institutions globally. The table below includes net sales by geography for the three and nine months ended January 23, 2026 and January 24, 2025: Three Months Ended Nine Months Ended (in millions) January 23, 2026 January 24, 2025 January 23, 2026 January 24, 2025 U.S. (1) $ 242 $ 231 $ 679 $ 668 International (2) 548 456 1,586 1,323 Total $ 790 $ 687 $ 2,265 $ 1,991 (1) U.S. includes the United States and U.S. territories. (2) International includes all other non-U.S. countries. The table below includes net sales by product category for the three and nine months ended January 23, 2026 and January 24, 2025: Three Months Ended Nine Months Ended (in millions) January 23, 2026 January 24, 2025 January 23, 2026 January 24, 2025 Pumps $ 151 $ 136 $ 401 $ 387 Consumables 244 213 707 632 CGM 390 330 1,133 968 Other (1) 5 8 24 4 Total $ 790 $ 687 $ 2,265 $ 1,991 (1) Primarily includes revenue generated from the sale of smart insulin pens and services. Amounts in this line also reflect adjustments to the Company's Italian payback accruals resulting from two rulings in 2024 by the Constitutional Court of Italy and the Legislative Decree published by the Italian government on June 30, 20 …

RevenueFromContractWithCustomerTextBlock · excerpt; the full note is in the filing

Segment and Geographic Data As described in Note 1, Description of the Business and Basis of Presentation, the primary products from which the Company derives its revenue include those focused on diabetes management, including insulin pumps, continuous glucose monitoring systems and sensors, and smart insulin pens. The Company manages its business activities on a consolidated basis and operates as one operating and reportable segment. The Companys chief operating decision maker (CODM) is the Companys Chief Executive Officer. The CODM makes decisions about resource allocation, assesses performance of the business, and monitors budget versus actual results using net income (loss). Income or loss from operations is also considered when monitoring budget versus actual results. Significant expenses include cost of products sold, research and development expenses, selling, general and administrative expenses, and certain litigation charges, which are each separately presented on the Companys condensed combined statements of operations. Other segment items include other operating expense (income), net, non-operating expense (income),net, and income tax provision. Geographic Information Net sales are attributed to the country based on the location of the customer taking possession of the products or in which the services are rendered. The following table presents net sales for the three and nine months ended January 23, 2026 and January 24, 2025 for countries with significant concent …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Subsequent Events Separation from Medtronic and Related Transactions On March 6, 2026, the Company initiated its IPO pursuant to which 28,000,000 shares of its common stock were issued, at an offering price of $20.00 per share. The IPO closed on March 9, 2026. In connection with the IPO and related separation transactions (the Separation), the Company entered into a series of transactions with Medtronic pursuant to which Medtronic transferred the assets and liabilities comprising the Diabetes Business to the Company, and the Company issued shares of common stock to Medtronic. As contemplated by the IPO Prospectus, the Company (i) retained approximately $309 million of the net proceeds from the IPO, for general corporate purposes, and (ii) used the excess of the net proceeds to repay intercompany indebtedness owed to Medtronic under an intercompany note. Following the IPO, Medtronic owned 90.03% of the outstanding shares of the Companys outstanding common stock. Medtronic has informed the Company that it intends to make a generally tax-free distribution to its shareholders of all or a portion of its remaining equity interest in the Company, but Medtronic has no obligation to complete such distribution. In connection with the Separation, the Company entered into a series of agreements with Medtronic that establish the framework for the ongoing relationship between the parties, including: a separation agreement setting forth the transfer of certain assets and liabilities relatin …

SubsequentEventsTextBlock · excerpt; the full note is in the filing