Geoff Martha
Chairman & Chief Executive Officer at Medtronic
Hello, everyone, and thanks for tuning in today. As you saw in our results, we're exceeding our commitments and increasing our outlook for the rest of the year. This is now our seventh quarter in a row of delivering mid single-digit revenue growth and we drove earnings growth increasing adjusted EPS to 3% on a reported basis and 8% constant currency and we're tracking to delivering high single-digit EPS growth on a reported basis as we exit the fiscal year. Our underlying markets are healthy. We're driving operating rigor and new product innovation is fueling our diversified growth across many large secular growth markets that matter.
At the same time, we continue to invest in our pipeline, which we expect to drive growth in the short, medium and the long-term. We're at the front end of many new product cycles in markets like diabetes, pulsed field ablation, TAVR, neuromodulation, hypertension and robotics. We're focused on driving scale across our manufacturing, technology and commercial organizations and making progress on our ongoing portfolio management work. Now as we deliver innovation and continue to execute on our transformation, this will lead to strong returns for our shareholders.
Now let's turn to the details of our Q1 results and discuss our performance. Looking first at our highest gross business. Combined they grew 8% and made up 21% of our revenue. We expect their contribution to our overall growth to increase in the coming quarters as we continue to launch new technology. Starting with cardiac ablation solutions. We're at one of those moments in med tech where a new technology is causing a rapid shift in the treatment of a disease. In this case, PFA is that technology for Afib. We've been investing in and developing this technology over many years. We're well positioned here and we're confident in our ability to execute and take advantage of this opportunity.
In line with what we said last quarter, our CAS growth rate accelerated in Q1 growing over 6%. We're seeing rapid market adoption of our PulseSelect PFA catheters and its growth is more than offsetting cryo declines. The PulseSelect launch has been successful with more than 550 physicians in 20 countries having treated over 10,000 patients. To meet the strong market demand, we're dramatically increasing our PulseSelect catheter manufacturing capacity and expanding into new accounts. As a result, we expect PulseSelect to meaningfully accelerate our overall CAS growth rate through this fiscal year, including a strong acceleration in Q2.
And then we have our differentiated Sphere9 focal catheter. This all in one catheter can perform high density mapping as well as pulse field and RF ablations. We expect Sphere9 will allow us to capture more revenue per procedure as it will take the place of other competitors mapping and RF catheters. We're in live it [Phonetic] and launch in Europe and we've submitted to FDA for approval earlier this calendar year. As we launch and scale Sphere9 and our affair mapping system, we expect our CAS growth will accelerate even further over time as we reach and then exceed market growth in this large and fast growing $9 billion cardiac ablation space.
Next, in structural heart, we continue to deliver high single-digit growth excluding the impact of our Harmony pulmonary valve that we relaunched last year. During the quarter, we started with the limited U.S. launch of our Evolut FX plus TAVR valve and have now begun full market launch this month. FX plus is important for two reasons. One, it allows for easier coronary access due to the large windows in its frame and two, it creates an additional opportunity to reiterate our positive smart trial results with our customers. Smart showed our superior valve performance in small annulus patients who are primarily women and this was just another proof point in our broader focus on health equity.
The smart patient population is sizable making up about 40% of the TAVR space. With this combination of FX plus, our superior four year low risk data and smart data, we expect to continue to grow at or above the market in the quarters ahead. In surgical robotics, we're investing in building a foundation for future growth. In Q1, our install base continued to grow and utilization per system steadily increased and in the U.S., we've now achieved the target enrollment for the Expand URO trial. This is a meaningful milestone and beyond that, enrollment and procedures in our other two U.S. indication studies, hernia and gynecology, are going well. We also continue to make progress bringing our advanced surgical technologies to Hugo such as ICG fluorescent imaging and LigaSure vessel ceiling.
Next in diabetes, we had another strong quarter growing 13% with double-digit growth in both the U.S. and international markets. In the U.S., we reached the one year milestone of the launch of the MiniMed 780G AID system. We're driving high single-digit growth in pump revenue and over 30% growth in CGM revenue with our high CGM attachment. In international markets, we initiated the full market release of the Simplera Sync sensor and we're just getting great feedback on the ease of insertion and its usage. This adds to the already high satisfaction of our 708G system where we've been the number one rated AID system by dQ&A for the past two quarters.
So we're confident in Simplera and our CGM. Pipeline. And to add to this, two weeks ago, we announced our global partnership with Abbott where we'll bring to market an integrated CGM based on Abbott's most advanced CGM platform. The sensor will integrate exclusively with our AID and smart MDI systems. It will also allow us to offer more choice to patients, increase our installed base and grow our diabetes revenue and we expect to do this while maintaining the same revenue per patient and being neutral to diabetes gross margin. Look, we're committed to being number one in the fast growing AID and smart MDI space and this partnership will help ensure just that.
Now turning to hypertension. Securing broad reimbursement remains key to unlocking the opportunity to our simplicity blood pressure procedure. We were pleased that CMS has finalized the inpatient payment and has now proposed an outpatient payment and we continue to engage with CMS at the national and local levels to establish coverage, a key enabler so that this therapy can reach patients. Now, this is important as hypertension affects more than 1 billion people globally and nearly half of all U.S. adults. Despite the availability of numerous classes of pharmaceuticals, only one in four adults in the U.S. have their hypertension under control. Furthermore, more than 700,000 deaths in the U.S. every year are directly attributable to hypertension and the burden of hypertension costs the U.S. healthcare system between $100 billion and $200 billion a year. So you can see why there's just an important role for our simplicity procedure to cost effectively improve public health.
Now turning to our synergistic businesses. Neuromodulation was a highlight this quarter growing 10%, well above the market. This is a business where the investments we've made over several years in sensing technology in the brain and the nervous system are now paying off. Sensing and closed loop technology is becoming foundational for the neuromod space. It's reinvigorating these markets and we have a clear lead. First in paint stem, we grew 11%. This was the first quarter of our Inceptiv launch in the U.S. Inceptiv is our first closed loop spinal cord stimulator and it's transforming the way we treat chronic pain. The device automatically senses and adjust stimulation 50 times a second, 24/7 with no required interaction from the patient and the therapy is delivered from the smallest and the thinnest closed loop SCS device on the market. It also has the best full body conditional MRI access.
The other big driver of neuromod growth was our brain modulation business, which grew 14% on the continued launch of Percept RC with brain sense technology. Percept transmits electrical signals to specific brain targets affected by debilitating neurological disorders, like Parkinson's. It then captures and records these signals equipping physicians with the valuable data and the insights needed to personalize the therapy. And just last week, we became the first and only DVS company to receive FDA approval to offer DBS surgery while the patient is asleep. Now this innovation means a less stressful surgery for the patient and potentially shorter procedure times. We look forward to continuing to advance our leadership position in brain modulation.
Now looking at our established market leaders. Combined they made up just under half of our revenue and grew 5%. Collectively, we can depend on this diversification not only for reliable revenue growth, but also their disproportionate contribution to our profits and cash flow that we can then invest in higher growth areas. Cardiac rhythm management grew high single-digits with high single-digit growth and defibrillation solutions and low double-digit growth in cardiac pacing therapies. Our micro leadless pacemaker franchise grew over 20% as the market continues to adopt our latest generation of devices.
In surgical, we grew low single-digits. This was lower growth than prior quarters, primarily driven by the difficult comparison from back order fulfillments in the first half of the last fiscal year as well as the Korean market slowdown from the ongoing physician strikes. Now, we expect that surgical will return to more normalized growth in the back half of the fiscal year as these comparisons ease and in cranial and spinal technologies, we grew mid single-digits. Our spine business continues to just really outperform the market with 7% global and 9% U.S. core spine growth. This sustained share capture is being driven by our able ecosystem.
Abel's differentiated features and the sheer scale around the world is it's a winning formula for our spine business. It's good for patients and surgeons and it's changing the competitive dynamics in spine. Able is helping us win share and attract the best sales reps and distributors to join our Medtronic team.
With that, I now want to welcome Gary Corona, our Interim Chief Financial Officer, to his first Medtronic earnings broadcast. Gary's taken over for Karen Parkhill to whom we wish all the best as she starts her next chapter. Gary joined us a little less than two years ago after an impressive career with General Mills. He's been leading our corporate finance team and has been instrumental in enhancing both our capabilities and our rigor, which has been a key enabler to our beats and raises and as he stepped into the role, we haven't missed a beat. So I want to welcome, Gary.
