Core Insights - Medtronic's growth efforts in medical technology, particularly through its pulsed field ablation (PFA) technology, are beginning to yield results, although Q3 results fell short of consensus forecasts, indicating a longer timeline for stock price recovery [1][2] - The company reported Q3 net revenue of $8.3 billion, a 2.5% increase year-over-year, with organic growth of 4.1%, driven mainly by a nearly 10.5% increase in the Diabetes segment, while the Medical/Surgical segment contracted by 0.4% [2][4] - Improved gross and operating margins were reported, with adjusted EPS growing by 7%, outperforming expectations by 220 basis points, indicating enhanced operational efficiency and growth outlook [3][5] Financial Performance - Q3 results were described as decent but below analyst expectations, with revenue growth expected to accelerate in Q4, projecting an annual increase of 4.75% to 5% [4][5] - The company maintains a healthy balance sheet supported by strong cash flow, allowing for solid dividends and aggressive share buybacks, despite a 3% decline in equity [5][6] - Analysts have a positive sentiment towards Medtronic, with 40% of ratings at Buy and a consensus price target of $95, indicating a potential upside of 7.78% [7][8] Market Outlook - Medtronic's stock shows signs of reversal with bullish market bias due to growth prospects and capital returns, although it remains within a trading range [8] - The stock's current yield is near 3%, providing an attractive option for investors while waiting for a breakout to higher price levels [8]

合作伙伴征集：2025全球手术机器人大会 报名：首届全球眼科大会 | 展位有限 报名：首届全球心血管大会 | 奖项评选 报名：首届全球骨科大会 | 奖项评选 2025年2月18日，美敦力公司（纽约证券交易所代码：MDT）公布了其2025财年第三季度（Q3）的财务业绩。 *美敦力以每年的4月27日为财年结束日，因此，2025财年第三季度于2025年1月24日结束。 #财报亮点 美敦力董事长兼首席执行官 Geoff Martha 表示："本季度我们实现了强劲的盈利，在 连续第九个季度 实现中个位数有机收入增长的推动下， 毛 利率和营业利润率均显著提升。 我们开始看到在突破性创新领域的长期投资成果，例如脉冲场消融技术，这些投资正在推动增长。" # 心血管业务 心血管业务组合包括 心脏节律与心力衰竭（CRHF）、结构性心脏病与主动脉（SHA）以及冠状动脉与外周血管（CPV）部门 。营收为 30.37亿 美元 ，按报告基准增长 3.7% ，按有机基准增长 5.0% 。 其中，CRHF和SHA部门实现中个位数增长，CPV部门实现低个位数增长。 CRHF： 心脏节律管理业务实现中个位数增长，主要得益于 心脏起搏治疗业务 的 ...

Core Viewpoint - Medtronic's shares declined by 7.3% following the announcement of its fiscal 2025 third-quarter results, which revealed a revenue miss despite better-than-expected earnings [1][2]. Financial Performance - Medtronic reported third-quarter revenue of $8.3 billion, reflecting a year-over-year increase of 2.5%, but slightly below the Wall Street estimate of $8.33 billion [2]. - The diluted earnings per share (EPS) were reported at $1.01 under GAAP, while the adjusted EPS was $1.39, marking a 7% increase year-over-year and surpassing the analysts' average estimate of $1.35 [2]. Revenue Concerns - The revenue miss is attributed to a change in U.S. distributor buying patterns, as explained by CEO Geoff Martha, who indicated that this disruption is expected to be resolved soon [3]. - Despite the revenue miss, the company projects organic revenue growth for fiscal 2025 to be between 4.75% and 5% [4]. Future Outlook - Medtronic anticipates adjusted EPS for the current fiscal year to be in the range of $5.44 to $5.50, with the midpoint exceeding the consensus Wall Street EPS estimate of $5.45 [4]. Investment Considerations - The stock may not appeal to growth investors, but it could be attractive to income investors due to a forward dividend yield of 3.24% [5]. - Medtronic is close to potentially joining the Dividend Kings, having a track record of 47 consecutive years of dividend increases [5].

Core Insights - Medtronic reported revenue of $8.29 billion for the quarter ended January 2025, reflecting a year-over-year increase of 2.5% [1] - The earnings per share (EPS) was $1.39, up from $1.30 in the same quarter last year, resulting in an EPS surprise of +2.21% against the consensus estimate of $1.36 [1] Revenue Performance - U.S. Revenue reached $4.24 billion, slightly below the average estimate of $4.28 billion, with a year-over-year change of +2.8% [4] - Worldwide revenue from Diabetes was $694 million, exceeding the average estimate of $676.84 million, marking an increase of +8.4% year over year [4] - Worldwide revenue from Neuroscience was $2.46 billion, matching the six-analyst average estimate, with a year-over-year change of +4.4% [4] - Worldwide revenue from Cardiovascular was $3.04 billion, slightly below the estimated $3.05 billion, reflecting a +3.7% change year over year [4] - Worldwide revenue from Medical Surgical was $2.07 billion, below the average estimate of $2.13 billion, indicating a year-over-year decrease of -3.5% [4] Segment Performance - Neuroscience - Specialty Therapies generated $419 million, close to the average estimate of $419.80 million, with a +3% year-over-year change [4] - Cardiovascular - Cardiac Rhythm & Heart Failure revenue was $1.55 billion, slightly above the estimated $1.54 billion, showing a +5.1% increase year over year [4] - Medical Surgical - Surgical & Endoscopy revenue was $1.60 billion, below the average estimate of $1.62 billion, reflecting a -1.2% change year over year [4] Stock Performance - Medtronic shares returned +5.4% over the past month, outperforming the Zacks S&P 500 composite's +4.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Core Insights - Medtronic plc reported adjusted earnings per share (EPS) of $1.39 for Q3 fiscal 2025, reflecting a 6.9% increase year-over-year and surpassing the Zacks Consensus Estimate by 2.2% [1] - Worldwide revenues reached $8.29 billion, marking a 2.5% year-over-year increase on a reported basis, but fell short of the Zacks Consensus Estimate by 0.4% [3] - The company maintains its fiscal 2025 organic revenue growth projection at 4.75-5% [10] Financial Performance - Adjusted EPS for the quarter was $1.39, while GAAP EPS was reported at $1.01, a 2% improvement from the previous year [1][2] - Gross margin expanded by 88 basis points to 66.5%, with research and development expenses decreasing by 2.9% to $675 million [9] - Adjusted operating margin increased by 161 basis points year-over-year to 25.6% [9] Revenue Breakdown - Cardiovascular segment revenues grew 5% organically to $3.04 billion, with notable increases in Cardiac Rhythm & Heart Failure sales [5] - Medical Surgical revenues totaled $2.07 billion, down 0.4% year-over-year organically [6] - Neuroscience revenues rose 5.2% organically to $2.46 billion, driven by growth in Neuromodulation [7] - Diabetes segment revenues increased 10.4% organically to $694 million, supported by the adoption of the MiniMed 780G system [8] Future Outlook - For fiscal 2025, adjusted EPS is expected to be in the range of $5.44-$5.50, with the Zacks Consensus Estimate at $5.45 per share [12] - The company anticipates adjusted revenue growth of 3.4-3.8% for fiscal 2025, with worldwide revenues estimated at $33.56 billion [11]

Core Insights - Medtronic Plc reported third-quarter 2025 sales of $8.29 billion, slightly missing the consensus estimate of $8.32 billion, while adjusted EPS was $1.39, surpassing the consensus of $1.36 [1][2] - The company experienced a year-over-year revenue increase of 2.5% and an organic growth of 4.1% [1] Revenue Breakdown - Cardiovascular segment revenue reached $3.04 billion, reflecting a 3.7% increase year-over-year and a 5% organic growth, with mid-single digit increases in Cardiac Rhythm & Heart Failure and Structural Heart & Aortic segments [3] - Neuroscience revenues amounted to $2.46 billion, up 4.4% as reported and 5.2% organically, driven by low-double-digit growth in Neuromodulation [4] - Medical Surgical revenue was $2.07 billion, showing a decrease of 1.9% as reported and 0.4% organically, with flat results in Surgical & Endoscopy [4] - Diabetes revenue increased to $694 million, marking an 8.4% rise as reported and 10.4% organically [5] Guidance and Market Reaction - Medtronic reaffirmed its fiscal year 2025 organic revenue growth guidance of 4.75%-5%, with adjusted EPS expectations of $5.44-$5.50, compared to the consensus of $5.45 [5] - Following the earnings report, MDT stock declined by 5.94% to $87.30 in premarket trading [6]

Financial Data and Key Metrics Changes - The company reported Q3 revenue of $8.3 billion, representing a 4.1% organic growth year-over-year [31] - Adjusted EPS was $1.39, up 6.9%, exceeding consensus by three cents [31][32] - Adjusted gross margin improved to 66.6%, up 50 basis points year-over-year, while adjusted operating margin was 26.2%, up 100 basis points [32][33] Business Line Data and Key Metrics Changes - The cardiovascular portfolio grew mid single digits overall, with cardiac ablation solutions growing 22% [9][10] - Structural heart business grew high single digits, driven by the Evolut FX plus TAVR system [13] - Cardiac pacing therapies grew 9%, supported by the leadless pacemaker franchise [14] - The diabetes segment achieved 10% growth, marking the fifth consecutive quarter of double-digit growth [28] Market Data and Key Metrics Changes - International markets grew 5%, with high single-digit growth in Japan and emerging markets showing high teens growth in India [32] - The U.S. market saw a change in distributor buying patterns impacting surgical performance, but overall purchasing remained stable [23][24] Company Strategy and Development Direction - The company is focusing on innovation in key growth areas such as renal denervation and expanding its PFA portfolio [8][12] - There is a commitment to maintaining disciplined pricing and controlling SG&A growth to enhance margins while investing in growth drivers [66][68] - The company is actively evaluating tuck-in acquisitions to enhance growth and margin profiles [34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory, expecting revenue and EPS growth to accelerate in Q4 [9][35] - The company is optimistic about the impact of new technologies and market expansions, particularly in hypertension and diabetes [16][28] - Management acknowledged temporary distributor dynamics affecting surgical performance but expects resolution in the upcoming quarters [23][90] Other Important Information - The company is preparing for significant product launches and regulatory submissions, including for the HUGO robotic platform and renal denervation procedures [25][29] - Management highlighted the importance of maintaining a diversified portfolio to manage risks and drive earnings [39] Q&A Session Summary Question: Guidance for fiscal 2026 - Management reiterated guidance for FY 2025 organic revenue growth of 4.75% to 5% and high single-digit EPS growth in the back half of the year [46][47] Question: Drivers of AF Solutions growth - Management highlighted strong demand for PFA technology and improved supply capabilities, indicating confidence in reaching a $2 billion revenue target [54][55] Question: Balancing investment and margin expansion - Management emphasized the ability to invest in growth drivers while maintaining margin improvement through disciplined pricing and operational efficiencies [66][68] Question: Confidence in U.S. Surgical business recovery - Management noted that distributor inventory adjustments were temporary and expected to normalize, with confidence in returning to growth aligned with corporate averages [92][93] Question: Peripheral vascular business decline - Management attributed the decline to specific market dynamics in China and expressed confidence in overcoming these challenges [100] Question: International renal denervation opportunities - Management discussed the importance of country-specific reimbursement efforts and the potential for global market expansion following U.S. coverage developments [108][109]

Financial Performance - Medtronic reported quarterly earnings of $1.39 per share, exceeding the Zacks Consensus Estimate of $1.36 per share, and up from $1.30 per share a year ago, representing an earnings surprise of 2.21% [1] - The company posted revenues of $8.29 billion for the quarter ended January 2025, slightly missing the Zacks Consensus Estimate by 0.43%, but up from $8.09 billion year-over-year [2] - Over the last four quarters, Medtronic has surpassed consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance - Medtronic shares have increased approximately 16.2% since the beginning of the year, outperforming the S&P 500's gain of 4% [3] - The current Zacks Rank for Medtronic is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.61 on revenues of $8.85 billion, and for the current fiscal year, it is $5.45 on revenues of $33.56 billion [7] - The outlook for the Medical - Products industry is favorable, ranking in the top 31% of over 250 Zacks industries, suggesting that stocks in this sector are likely to outperform those in the bottom 50% [8]

Revenue Performance - Revenue for Q3 FY25 was $8.3 billion, an increase of 2.5% as reported and 4.1% organic[4] - Total reported revenue for Q3 FY25 was $8,292 million, representing a 2.5% increase compared to $8,089 million in Q3 FY24[34] - Organic revenue growth for the year-to-date period was 4.1%, with total reported revenue reaching $24,610 million, up from $23,775 million in the previous year[34] - Cardiovascular Portfolio revenue was $3.037 billion, up 3.7% as reported and 5.0% organic[8] - Neuroscience Portfolio revenue reached $2.458 billion, increasing 4.4% as reported and 5.2% organic[10] - Diabetes segment revenue was $694 million, reflecting an 8.4% increase as reported and 10.4% organic[14] - Total reportable segments revenue for Q3 FY25 was $8,260 million, reflecting a 2.8% growth from $8,035 million in Q3 FY24[34] Earnings and Profitability - GAAP diluted EPS was $1.01, a 2% increase, while non-GAAP diluted EPS was $1.39, a 7% increase[6] - FY25 diluted non-GAAP EPS guidance is projected to be between $5.44 and $5.50, indicating growth of 4.6% to 5.8%[17] - Operating profit for the third quarter was $1,646 million, representing a 10.9% increase from $1,483 million in the same quarter last year[52] - Net income attributable to Medtronic for the third quarter was $1,294 million, slightly down from $1,322 million in FY24[52] - Basic earnings per share for the third quarter were $1.01, compared to $0.99 in the prior year[52] - Non-GAAP net income for the nine months ended January 24, 2025, was $6,162 million, representing a 24.9% profit margin[60] - The company reported a diluted EPS of $3.87 for the nine months ended January 24, 2025, with an effective tax rate of 17.0%[60] Segment Performance - Cardiac Ablation Solutions revenue increased in the low-20s percentage range, driven by pulsed field ablation products[4] - Cardiovascular segment revenue for Q3 FY25 was $3,037 million, a 3.7% increase from $2,929 million in Q3 FY24[34] - Neuroscience segment showed strong performance with Q3 FY25 revenue of $2,458 million, up 4.4% from $2,355 million in Q3 FY24[34] - Neuromodulation segment experienced significant growth, with Q3 FY25 revenue of $476 million, a 12.0% increase compared to $425 million in Q3 FY24[34] - Medical Surgical segment reported a decline of 1.9% in Q3 FY25, with revenue of $2,072 million compared to $2,112 million in Q3 FY24[34] - Cardiovascular segment reported sales of $1,632 million, growing 4.9% year-over-year, with year-to-date sales of $4,904 million, up 7.7%[45] - Cardiac Rhythm & Heart Failure segment achieved $770 million in sales, reflecting a 6.1% increase for the quarter and 8.7% growth year-to-date[45] - Diabetes segment saw a significant sales increase of 9.9% in the third quarter, totaling $457 million, with year-to-date sales of $1,344 million, up 12.0%[45] Cash Flow and Financial Position - Free cash flow for the nine months ended January 24, 2025, was $3,116 million, an increase from $2,849 million in the prior year[72] - Total current assets increased to $22,513 million from $21,935 million, a growth of 2.6%[76] - Cash and cash equivalents decreased to $1,240 million from $1,284 million, a decline of 3.4%[79] - Total liabilities rose to $40,358 million, compared to $39,561 million, reflecting an increase of 2.0%[76] - Long-term debt remained stable at $23,985 million, slightly up from $23,932 million[76] - Net cash provided by operating activities was $4,516 million, an increase of 12.6% from $4,010 million[79] - Cash paid for income taxes was $1,515 million, compared to $1,403 million, indicating a rise of 8.0%[79] - Total shareholders' equity decreased to $49,387 million from $50,214 million, a decline of 1.6%[76] - The company repurchased ordinary shares amounting to $2,961 million, significantly higher than $510 million in the previous period[79] Regulatory and Market Developments - Recent U.S. FDA approval for an additional pulsed field ablation manufacturing site is expected to enhance supply[11] - CMS announced coverage for Renal Denervation for hypertension treatment, expected to finalize by October 11, 2025[5] - The company faced incremental costs of $27 million due to compliance with new EU medical device regulations[67] Currency Impact - The company noted a currency impact of $104 million on total revenue for Q3 FY25[34] - The company experienced a currency impact of $104 million on revenue, affecting the gross margin[55] - Medtronic's gross margin improved to 66.4% when adjusted for currency impacts[60] - The effect of exchange rate changes on cash and cash equivalents was a negative $95 million, compared to a negative $170 million last year[79]

Core Insights - Medtronic reported Q3 FY25 revenue of $8.292 billion, reflecting a 2.5% increase as reported and 4.1% on an organic basis, with notable growth in several key segments [2][11][27] - The company achieved a GAAP net income of $1.294 billion and diluted EPS of $1.01, with non-GAAP net income of $1.787 billion and diluted EPS of $1.39, representing increases of 3% and 7% respectively [2][9][27] - Medtronic reiterated its FY25 revenue growth guidance of 4.75% to 5% on an organic basis, with diluted non-GAAP EPS expected in the range of $5.44 to $5.50 [8][9] Financial Results - Q3 worldwide revenue was $8.292 billion, up 2.5% as reported and 4.1% organically [2][11] - GAAP net income was $1.294 billion, a decrease of 2%, while diluted EPS increased by 2% to $1.01 [2][27] - Non-GAAP net income was $1.787 billion, with diluted EPS of $1.39, marking increases of 3% and 7% respectively [2][27] Segment Performance - **Cardiovascular Portfolio**: Revenue of $3.037 billion, up 3.7% as reported and 5.0% organically, driven by growth in Cardiac Rhythm & Heart Failure and Structural Heart [4][12] - **Neuroscience Portfolio**: Revenue of $2.458 billion, an increase of 4.4% as reported and 5.2% organically, with strong performance in Neuromodulation [5][12] - **Medical Surgical Portfolio**: Revenue of $2.072 billion, down 1.9% as reported and 0.4% organically, impacted by flat results in Surgical & Endoscopy [6][12] - **Diabetes Segment**: Revenue of $694 million, up 8.4% as reported and 10.4% organically, reflecting strong adoption of the MiniMed™ 780G system [7][12] Guidance - The company maintains its FY25 organic revenue growth guidance of 4.75% to 5%, with total revenue growth expected to be in the range of 3.4% to 3.8% when including foreign currency impacts [8][9] - Diluted non-GAAP EPS guidance for FY25 is set between $5.44 and $5.50, indicating growth of 4.6% to 5.8% [9][10] Strategic Developments - Medtronic is seeing results from long-term investments in innovation, particularly in pulsed field ablation technologies, which are driving growth in attractive MedTech markets [3][12] - The company has received recent FDA approvals that enhance its product supply and market presence, particularly in the carotid market [12]