Gracia Mahoney
BofA Securities, Research Division

Today, I'm joined by Dev Kurdikar, CEO and President of Embecta. Thanks for joining us today, Dev.

Devdatt Kurdikar
President, CEO & Chairman

It's a pleasure to be here. Thank you for having us.

Gracia Mahoney
BofA Securities, Research Division

Maybe just to start out Q1 earnings last week, talking a little bit about a U.S. business reset. So the U.S. business was stable around $1 billion post spin, but you started to see some instability earlier this year and then worsening in March, leading to cutting fiscal year '26 guidance. So can you just maybe start out by walking us through what changed? How much was customer-specific share loss versus broader market softness?

Devdatt Kurdikar
President, CEO & Chairman

Yes, happy to do so, listen. So Q1 calendar year, Q2 fiscal year, unquestionably a challenging quarter for the company, right? The U.S. business, which is approximately 50% of our global business, right, has been stable for a long period of time. And this is now our fifth year post spin, even while we've had COVID waves and inflation and disruptions, that business has been stable.

But this quarter, most recent quarter that we reported, we did see some signs of some of instability. But also, we had a confluence of factors that really sort of all unfortunately came together in the quarter. So if I just sort of listing them, right? I think the one that you referred to or a couple that you referred to share loss. So with us in the U.S., our customers are certainly retailers where most patients would get