GALWAY, Ireland, May 23, 2025 /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced it will participate in Bernstein's 41st Strategic Decisions Conference on Thursday, May 29, 2025.Geoff Martha, Medtronic chairman and chief executive officer, will make a formal presentation beginning at 11:00 a.m. EDT (10:00 a.m. CDT). Immediately following the presentation, Martha will be joined by Thierry Piéton, Medtronic executive vice president and chief financial officer, ...

Medtronic (MDT -4.12%) has been a dividend stalwart for decades. The medical device maker recently raised its dividend payment, extending its growth streak to 48 straight years. That means it is two years away from joining dividend royalty as a Dividend King. The increase pushed the healthcare company's dividend yield further above 3%, which is more than double the S&P 500's sub-1.5% dividend yield. With a growing business and a healthy financial profile, Medtronic is an excellent option for investors seeki ...

Abbott (ABT) and Medtronic (MDT) , two leading giants in the global medical device space, are demonstrating strong momentum in 2025 despite various macroeconomic challenges, including significant tariff pressures.Medtronic just wrapped up a strong fiscal 2025 with 10.9% earnings growth and a 5.4% revenue improvement year over year, fueled by momentum in cardiovascular, neuromodulation and diabetes segments. The company reached new milestones with its Cardiac Ablation Solutions (CAS) and ENT businesses cross ...

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $8.9 billion, growing 5.4% organically, with adjusted EPS of $1.62, up 11% [46][49] - For the full fiscal year 2025, revenue grew 5% organically and EPS grew 6% or 10% on a constant currency basis [50][56] - Adjusted gross margin was 65.1%, down 70 basis points year over year, while adjusted operating margin increased to 27.8%, up 90 basis points [47][49] Business Line Data and Key Metrics Changes - The cardiovascular portfolio grew 8%, with nearly 30% growth in cardiac ablation solutions [6][9] - Neuromodulation and diabetes segments delivered double-digit growth, while cranial and spinal technologies saw high single-digit growth in the US [7][25] - The diabetes business grew 12%, marking the sixth consecutive quarter of double-digit growth [25][26] Market Data and Key Metrics Changes - The US market experienced its strongest quarterly growth in 15 quarters, growing 5% [46] - Japan grew high single digits, while Western Europe and emerging markets grew mid single digits [46] - The company noted strong growth in India, Southeast Asia, and Eastern Europe [46] Company Strategy and Development Direction - The company plans to separate its diabetes business into a standalone public company, which is expected to enhance focus on high-margin growth markets [28][29] - The separation is seen as a strategic move to improve capital allocation and increase growth accretive investments in core businesses [44][45] - The company aims to continue delivering mid single-digit organic revenue growth and accelerating earnings leverage [30][61] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth drivers, highlighting strong positions in key markets and the potential for continued growth [88][90] - The company anticipates a return to high single-digit EPS growth in fiscal year 2027, driven by strong revenue growth and benefits from the diabetes separation [55][101] - Management emphasized the importance of operational improvements and cost management to enhance profitability [92][95] Other Important Information - The company announced an increase in its dividend for the 48th consecutive year [50] - The new CFO, Thierry Piéton, emphasized the focus on enhancing operations and driving value creation [39][42] - The company is investing significantly in R&D for the first time in four years, planning to grow R&D faster than revenue [53][92] Q&A Session Questions and Answers Question: Guidance philosophy with the new CFO - The company is bullish on growth drivers, with markets growing 7% even without diabetes, and expects strong contributions from key portfolios [88][90] Question: EPS growth expectations and below-the-line items - The company anticipates operating profit growth around 7%, despite pressures from tax and interest expenses [92][93] Question: Impact of tariffs and diabetes business separation - The impact of tariffs is expected to be between $200 million to $350 million, while the diabetes business separation is projected to be immediately accretive to EPS [106][101]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $8.9 billion, representing a 5.4% organic growth year-over-year, with adjusted EPS of $1.62, up 11% [46][50]. - For the full fiscal year 2025, revenue grew 5% organically, and EPS increased by 6% or 10% on a constant currency basis [50][56]. - The adjusted gross margin was 65.1%, down 70 basis points year-over-year, while the adjusted operating margin increased by 90 basis points to 27.8% [47][49]. Business Line Data and Key Metrics Changes - The cardiovascular portfolio grew 8%, with nearly 30% growth in cardiac ablation solutions [4][5]. - Neuromodulation and diabetes segments delivered double-digit growth, while cranial and spinal technologies saw high single-digit growth in the U.S. [5][24]. - The diabetes business grew 12%, marking the sixth consecutive quarter of double-digit growth [24][27]. Market Data and Key Metrics Changes - U.S. revenue growth was 5%, the strongest quarterly growth in 15 quarters, with Japan growing high single digits and Western Europe and emerging markets growing mid-single digits [46][47]. - The company noted strong growth in India, Southeast Asia, and Eastern Europe [47]. Company Strategy and Development Direction - The company announced plans to separate its diabetes business into a standalone public company, which is expected to enhance focus on high-margin growth markets [28][29]. - The strategy aims to increase investments in core businesses with higher margins, allowing for improved capital allocation and growth potential [30][41]. Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying fundamentals of the business, indicating that growth drivers are gaining momentum [58][60]. - The company expects to continue delivering mid-single-digit organic revenue growth and return to high single-digit EPS growth in fiscal year 2027 following the diabetes separation [56][59]. Other Important Information - The company plans to increase R&D investments for the first time in four years, aiming to grow R&D faster than revenue [52][54]. - The adjusted tax rate is expected to rise from 16.7% to about 18% due to changes in tax regulations [54][91]. Q&A Session Summary Question: Guidance philosophy with the new CFO - Management is optimistic about growth drivers, with markets growing 7% even without diabetes, and expects strong positions in key markets [86][87]. Question: Clarification on EPS growth expectations - EPS growth is expected to be high single digits in fiscal year 2027, even without the benefits from the diabetes separation, as growth drivers remain strong [98][99]. Question: Impact of tariffs and diabetes business on margins - The impact of tariffs is estimated to be between $200 million to $350 million, affecting gross margins, while the rollout of new diabetes products is expected to pressure margins initially [105][106].

Medtronic (MDT) came out with quarterly earnings of $1.62 per share, beating the Zacks Consensus Estimate of $1.58 per share. This compares to earnings of $1.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.53%. A quarter ago, it was expected that this medical device company would post earnings of $1.36 per share when it actually produced earnings of $1.39, delivering a surprise of 2.21%.Over the last four quarters, the co ...

Q4 FY25 Earnings Presentation May 21, 2025 Contact: investor.relations@medtronic.com Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade ...

Financial Performance - Q4 revenue reached $8.9 billion, a 3.9% increase as reported and 5.4% organic growth[3] - Q4 GAAP diluted EPS was $0.82, up 67%, while non-GAAP diluted EPS increased 11% to $1.62[3] - FY25 revenue totaled $33.5 billion, reflecting a 3.6% increase as reported and 4.9% organic growth[5] - FY25 GAAP diluted EPS rose 31% to $3.61, with non-GAAP diluted EPS increasing 6% to $5.49[8] - The company reported a total revenue of $33,537 million for FY25, a 3.6% increase from $32,364 million in FY24[44] - Net income for Q4 FY25 was $1,061 million, up from $659 million in Q4 FY24, marking a significant increase[58] - Basic earnings per share for Q4 FY25 were $0.82, compared to $0.49 in Q4 FY24, indicating strong earnings growth[58] - For the fiscal year ended April 25, 2025, total net sales reached $33,537 million, a 3.61% increase from $32,364 million in the previous fiscal year[69] - The diluted EPS for the fiscal year was $5.49, compared to $5.20 in the previous year, marking a 5.58% increase[69] Segment Performance - The Cardiovascular Portfolio generated FY25 revenue of $12.481 billion, a 5.5% increase as reported and 6.3% organic growth[14] - Cardiovascular segment revenue increased by 6.6% to $3,336 million in the fourth quarter of FY25, with organic growth of 7.8%[44] - Cardiac Rhythm & Heart Failure segment saw a revenue increase of 9.2% to $1,733 million in the fourth quarter, with organic growth of 10.3%[44] - Diabetes segment revenue grew by 10.4% to $728 million in the fourth quarter, with organic growth of 12.0%[44] - Neuroscience segment revenue increased by 2.9% to $2,620 million in the fourth quarter, with organic growth of 3.7%[44] - Cardiovascular segment revenue for FY25 reached $5,804 million, with an organic growth of 3.7% from FY24's $5,597 million[49] - Neuroscience segment reported revenue of $6,713 million for FY25, reflecting a 6.5% increase from FY24's $6,305 million[49] - Diabetes segment revenue grew by 8.3% in FY25, totaling $923 million compared to $852 million in FY24[49] Cash Flow and Shareholder Returns - Q4 cash from operations was $7.0 billion, with free cash flow of $5.2 billion[5] - The company returned $6.3 billion to shareholders in FY25, marking the 48th consecutive year of dividend increases[5] - The company reported a free cash flow of $5,185 million for the fiscal year 2025, slightly down from $5,200 million in 2024[85] Future Guidance - FY26 organic revenue growth is projected at approximately 5%, with reported growth expected between 4.8% and 5.1%[26] - FY26 diluted non-GAAP EPS is guided to be in the range of $5.50 to $5.60, considering potential tariff impacts[28] - The company plans to report its FY26 quarterly results on August 19, November 18, February 17, and May 20, 2026[31] - The company plans to separate its Diabetes business into a standalone public company within 18 months[21] Operational Insights - Medtronic's management emphasizes the importance of non-GAAP financial measures for understanding operational performance and trends[38] - Forward-looking statements indicate potential risks related to competitive factors and economic conditions that may impact future performance[35] - Research and development expenses for FY25 were $2,732 million, slightly down from $2,735 million in FY24[58] Balance Sheet Highlights - Cash and cash equivalents increased to $2,218 million as of April 25, 2025, compared to $1,284 million a year earlier[89] - Total assets rose to $91,680 million as of April 25, 2025, up from $89,981 million on April 26, 2024[89] - Current liabilities increased to $12,879 million from $10,789 million year-over-year[89] - Long-term debt increased to $25,642 million from $23,932 million in the previous year[89] - The company experienced a net income of $4,691 million for the fiscal year 2025, compared to $3,705 million in 2024[91] - The company recognized $151 million of accelerated amortization on certain intangible assets related to product line exits within the Cardiovascular Segment[70]

Building momentum in key franchises including Pulsed Field Ablation, TAVR, Cardiac Rhythm Management, Diabetes, Spine, and NeuromodulationGALWAY, Ireland, May 21, 2025 /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced financial results for its fourth quarter (Q4) and fiscal year 2025 (FY25), which ended April 25, 2025.Q4 Key Highlights View PDF Medtronic FY25 Q4 Earnings View PDF Medtronic FY25 Q4 Earnings Medtronic reports strong finish to its fisca ...

Enables intense focus on highest margin growth drivers where Medtronic has leading core competenciesLeading, scaled, direct-to-consumer Diabetes business poised to become standalone company; only company with a complete ecosystem to address intensive insulin managementGALWAY, Ireland, May 21, 2025 /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced its intent to separate its Diabetes business into a new standalone company ("New Diabetes Company"). This strate ...