Medtronic reports profit that beat estimates and lifted full-year earnings guidance after lowering its forecast for tariff costs https://t.co/VInUi06ATM ...

Corporate Governance - Medtronic is making changes to its board after Elliott Investment Management became one of its largest shareholders [1]

[Medtronic Q1 FY2026 Earnings Release](index=1&type=section&id=Medtronic%20Q1%20FY2026%20Earnings%20Release) [Financial Highlights](index=1&type=section&id=Financial%20Highlights) The company reported its 11th consecutive quarter of mid-single digit organic revenue growth and raised its full-year EPS guidance Q1 FY2026 Key Financial Metrics | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Revenue | $8.6B | +8.4% as reported | | Adjusted Revenue | $8.5B | +4.8% organic | | GAAP Diluted EPS | $0.81 | +1% | | Non-GAAP Diluted EPS | $1.26 | +2% | - The company raised its full-year FY26 EPS guidance while reiterating its organic revenue growth guidance[3](index=3&type=chunk)[10](index=10&type=chunk) - Cardiac Ablation Solutions revenue demonstrated significant strength, increasing by **nearly 50%** overall and **72% in the U.S.**, driven by pulsed field ablation (PFA) products[3](index=3&type=chunk) - Management expressed confidence in accelerating revenue growth in the second half of the fiscal year, citing progress on major growth drivers[4](index=4&type=chunk) [Financial Performance Analysis](index=2&type=section&id=Financial%20Performance%20Analysis) The company saw reported revenue growth of 8.4%, improved GAAP operating margins, and generated $584 million in free cash flow [Revenue Analysis](index=2&type=section&id=Revenue%20Analysis) Q1 FY2026 Revenue Performance | Metric | Q1 FY26 | Q1 FY25 | Growth | | :--- | :--- | :--- | :--- | | Total Reported Revenue | $8.578B | $7.915B | +8.4% | | Total Organic Revenue | $8.347B | $7.967B | +4.8% | - The organic revenue growth calculation for the quarter excludes a **$159 million** benefit from foreign currency and **$72 million** in 'Other revenue'[7](index=7&type=chunk)[28](index=28&type=chunk) [Profitability Analysis](index=3&type=section&id=Profitability%20Analysis) Q1 FY2026 Profitability Metrics (GAAP vs. Non-GAAP) | Metric | GAAP Value | GAAP Change | Non-GAAP Value | Non-GAAP Change | | :--- | :--- | :--- | :--- | :--- | | Operating Profit | $1.445B | +13% | $2.016B | +3% | | Operating Margin | 16.8% | +70 bps | 23.6% | -80 bps | | Net Income | $1.040B | Flat | $1.626B | +2% | | Diluted EPS | $0.81 | +1% | $1.26 | +2% | [Cash Flow Analysis](index=15&type=section&id=Cash%20Flow%20Analysis) Q1 FY2026 Cash Flow Summary | Metric | Q1 FY2026 | Q1 FY2025 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $1,088M | $986M | | Additions to PP&E | ($504M) | ($520M) | | **Free Cash Flow** | **$584M** | **$466M** | - The company's net cash used in financing activities was **$1.381 billion**, primarily driven by payments on long-term debt ($1.162 billion) and dividend payments ($910 million)[60](index=60&type=chunk) [Business Segment Performance](index=2&type=section&id=Business%20Segment%20Performance) All business segments contributed to growth, led by the Cardiovascular portfolio with 7.0% organic growth and Diabetes with 7.9% [Cardiovascular Portfolio](index=2&type=section&id=Cardiovascular%20Portfolio) Cardiovascular Revenue (Organic) | Sub-segment | Q1 FY26 Revenue | Organic Growth | | :--- | :--- | :--- | | **Total Cardiovascular** | **$3.217B** | **+7.0%** | | Cardiac Rhythm & Heart Failure | $1.676B | +9.1% | | Structural Heart & Aortic | $908M | +6.1% | | Coronary & Peripheral Vascular | $633M | +2.9% | [Neuroscience Portfolio](index=2&type=section&id=Neuroscience%20Portfolio) Neuroscience Revenue (Organic) | Sub-segment | Q1 FY26 Revenue | Organic Growth | | :--- | :--- | :--- | | **Total Neuroscience** | **$2.389B** | **+3.1%** | | Neuromodulation | $496M | +8.6% | | Cranial & Spinal Technologies | $1.199B | +4.5% | | Specialty Therapies | $694M | -2.7% | [Medical Surgical Portfolio](index=3&type=section&id=Medical%20Surgical%20Portfolio) Medical Surgical Revenue (Organic) | Sub-segment | Q1 FY26 Revenue | Organic Growth | | :--- | :--- | :--- | | **Total Medical Surgical** | **$2.044B** | **+2.4%** | | Surgical & Endoscopy | $1.580B | +2.3% | | Acute Care & Monitoring | $464M | +2.6% | [Diabetes Business](index=3&type=section&id=Diabetes%20Business) Diabetes Revenue | Metric | Q1 FY26 Revenue | Growth | | :--- | :--- | :--- | | Reported | $721M | +11.5% | | Organic | $698M | +7.9% | [Geographic Performance](index=10&type=section&id=Geographic%20Performance) International markets demonstrated robust organic growth of 6.1%, outpacing the U.S. market's 3.5% organic growth [U.S. Revenue](index=10&type=section&id=U.S.%20Revenue) U.S. Revenue Performance (Organic) | Segment | Q1 FY26 Revenue | Organic Growth | | :--- | :--- | :--- | | **Total U.S.** | **$4.205B** | **+3.5%** | | Cardiovascular | $1.479B | +5.5% | | Neuroscience | $1.624B | +3.8% | | Medical Surgical | $884M | +0.4% | | Diabetes | $217M | +0.9% | [International Revenue](index=11&type=section&id=International%20Revenue) International Revenue Performance (Organic) | Segment | Q1 FY26 Revenue | Organic Growth | | :--- | :--- | :--- | | **Total International** | **$4.142B** | **+6.1%** | | Cardiovascular | $1.737B | +8.3% | | Neuroscience | $765M | +1.7% | | Medical Surgical | $1.159B | +4.0% | | Diabetes | $481M | +11.4% | [FY2026 Financial Guidance](index=3&type=section&id=FY2026%20Financial%20Guidance) The company reiterated its organic revenue growth guidance of approximately 5% and raised its non-GAAP EPS guidance to a new range - The company continues to expect FY26 organic revenue growth of **approximately 5%**[10](index=10&type=chunk) - Reported revenue growth for FY26 is expected to be in the range of **6.5% to 6.8%**, assuming recent foreign currency exchange rates[10](index=10&type=chunk) Updated FY2026 Diluted Non-GAAP EPS Guidance | Guidance | Prior Range | New Range | | :--- | :--- | :--- | | Diluted Non-GAAP EPS | $5.50 - $5.60 | $5.60 - $5.66 | - The EPS guidance was raised due to Q1 outperformance and a reduced potential impact from tariffs, now estimated at **approximately $185 million**[13](index=13&type=chunk)[14](index=14&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) The company uses non-GAAP measures like organic revenue and adjusted EPS to provide insight into core operational performance - Management believes non-GAAP measures are useful for understanding underlying operational performance and facilitating comparisons with other companies in the med-tech industry[22](index=22&type=chunk) - Key non-GAAP adjustments in Q1 FY26 included amortization of intangible assets, restructuring costs, acquisition-related items, and gains/losses on minority investments[45](index=45&type=chunk) - The company does not provide reconciliations for forward-looking non-GAAP guidance to GAAP guidance because the timing and impact of potential charges are inherently uncertain[23](index=23&type=chunk)

Core Viewpoint - Medtronic plc has appointed John Groetelaars and Bill Jellison as independent directors to enhance its strategic focus and operational execution, following constructive engagement with Elliott Management [1][4][5] Group 1: Board Appointments and Committees - John Groetelaars and Bill Jellison have been appointed to the Board of Directors, effective immediately [1] - The Board has formed new Growth and Operating committees to improve strategic portfolio management and capital allocation, with CEO Geoff Martha serving as Chair [2][3] - Groetelaars and Jellison will also serve on one or both of the newly formed committees [2] Group 2: Strategic Focus and Growth Initiatives - The formation of the committees aims to align governance with management's focus on operational improvement and capital allocation [2] - The Growth Committee will guide evaluations of M&A opportunities, R&D investments, and potential divestitures, including the separation of the Diabetes business [6] - The Operating Committee will focus on optimizing operational performance and driving earnings acceleration [6] Group 3: Future Outlook and Investor Engagement - Medtronic plans to host an Investor Day in mid-2026 to discuss strategic priorities and financial algorithms [3] - The company is experiencing strong momentum with multiple growth drivers and plans to launch additional breakthrough therapies [3] - Elliott Management expresses confidence in Medtronic's potential for exceptional value creation through operational improvements and strategic clarity [5] Group 4: New Board Member Backgrounds - John Groetelaars has over 30 years of experience in the medical device sector, previously serving as interim CEO of Dentsply Sirona and CEO of Hillrom [8][9] - William Jellison is a former CFO of Stryker Corporation and has extensive experience in corporate finance within the medical technology industry [10][11]

Core Insights - Medtronic plc reported its first quarter fiscal 2026 financial results, achieving mid-single digit organic revenue growth for the 11th consecutive quarter, with expectations to accelerate growth in the second half of the fiscal year [1][2][3] Financial Performance - The company reported worldwide revenue of $8.578 billion, an increase of 8.4% as reported and 4.8% on an organic basis [3][4] - GAAP operating profit was $1.445 billion with an operating margin of 16.8%, reflecting a 13% increase and a 70 basis point improvement [3][4] - Non-GAAP operating profit was $2.016 billion with a margin of 23.6%, showing a 3% increase but an 80 basis point decrease [3][4] Earnings and Guidance - GAAP net income was $1.040 billion, with diluted earnings per share (EPS) at $0.81, remaining flat, while non-GAAP diluted EPS increased by 2% to $1.26 [4][8] - The company raised its FY26 EPS guidance to a range of $5.60 to $5.66, up from the previous range of $5.50 to $5.60, and reiterated its organic revenue growth guidance of approximately 5% [7][8][9] Segment Performance - Cardiac Ablation Solutions revenue surged nearly 50%, with a 72% increase in the U.S. driven by pulsed field ablation products [4][5] - The Cardiovascular Portfolio generated $3.285 billion in revenue, a 9.3% increase as reported and 7.0% organic [5][19] - The Diabetes business reported revenue of $721 million, an increase of 11.5% as reported and 7.9% organic [5][19] International and U.S. Revenue - International revenue reached $4.354 billion, a 13.6% increase, while U.S. revenue was $4.224 billion, reflecting a 3.5% increase [22][19] - The Cardiovascular segment in the international market grew by 12.6%, with notable increases in Cardiac Rhythm & Heart Failure and Structural Heart & Aortic categories [22][19] Operational Efficiency - The company is focused on improving efficiencies in manufacturing, supply chain, and operating expenses to drive earnings growth while increasing investments in R&D, sales, and marketing [9][8]

Medtronic is set to expand its board after activist firm Elliott Investment Management took a stake in the company, the Wall Street Journal reports https://t.co/oQknQBVZis ...

Core Insights - Medtronic is set to report earnings on August 19, 2025, with historical stock performance post-earnings being highly unpredictable, showing a 50% chance of positive returns and a median gain of 2.5%, while also experiencing a median loss of -3.8% in negative instances [4][8]. Financial Performance - Medtronic's current market capitalization stands at $119 billion, with the company generating $34 billion in revenue over the last twelve months, an operating profit of $6.5 billion, and a net income of $4.7 billion [5]. Stock Performance Comparison - Over the past five years, Medtronic's stock has underperformed compared to the S&P 500, with its share price declining from approximately $100 to $95, while the S&P 500 has increased by about 70% during the same period [3]. Earnings Forecast - The consensus forecast for the upcoming earnings report is $1.23 per share on sales of $8.37 billion, indicating flat earnings per share compared to the previous year but an increase in sales from $7.92 billion [4]. Historical Earnings Reaction - An analysis of the last five years shows that Medtronic has had 20 earnings observations, with a 50% hit rate for positive one-day returns, which drops to 42% when considering the last three years [8]. Trading Strategies - Two trading strategies are suggested: pre-earnings positioning based on historical odds and post-earnings positioning that utilizes the relationship between immediate and medium-term returns to inform trading decisions [6].

Group 1 - The core viewpoint of the articles highlights the increasing demand for insulin pumps in China due to the rising number of diabetes patients, projected to reach approximately 145.3 million by 2024, and the market size for insulin pumps expected to reach 1.211 billion yuan in the same year [1][15] - Insulin pumps are advanced medical devices that continuously infuse insulin subcutaneously, mimicking the physiological secretion of insulin, which leads to better blood sugar control compared to traditional injection methods [1][7] - The insulin pump market in China is highly concentrated, with major market shares held by imported brands like Medtronic and SOOIL, while domestic brands like Fonia and Ruiyu hold relatively smaller shares, indicating a need for domestic manufacturers to accelerate import substitution [2][18] Group 2 - The global insulin pump market has seen significant growth, increasing from 4.503 billion USD in 2017 to an estimated 7.434 billion USD by 2024, driven by the rising number of diabetes patients worldwide [13][14] - The report by Huajing Industry Research Institute employs various research models such as SCP, SWOT, and PEST to analyze the insulin pump industry, providing insights into market capacity, competitive landscape, and investment strategies for the years 2025-2031 [2][24] - The insulin pump industry is characterized by high technical content and significant R&D costs, leading to a concentrated market where a few companies with technological advantages dominate [2][18]

Core Insights - The article highlights the nomination of 25 medical devices for the Prix Galien USA, often referred to as the "Nobel Prize of Medicine," with a notable entry from China's Deyi Group for its integrated X/γ-ray radiotherapy platform [2][5][58] - It emphasizes the significance of innovation in medical technology, showcasing trends in the industry and the emergence of Chinese products on the global stage [58][59] Summary by Sections Nomination Overview - The Prix Galien USA announced 25 nominated medical devices, including the TaiChiPro from Deyi Group, which is the first Chinese medical device to be nominated [2][5] - Other notable entries include Abbott's Esprit BTK and AVEIR DR, which focus on innovative cardiovascular solutions [7][9] Trends in Medical Technology - The article identifies several key trends among the nominated products: 1. Cardiovascular innovations remain a primary focus, with products emphasizing minimally invasive techniques and enhanced safety [53] 2. Radiotherapy is entering an "intelligent control" era, with products like TaiChiPro and RefleXion SCINTIX showcasing advancements in treatment precision [54] 3. "Closed-loop control" systems are becoming standard in smart devices, enhancing treatment efficacy through real-time physiological feedback [55] 4. Rapid diagnostics and multi-modal imaging are trending towards distributed accessibility, with products like BIOFIRE SPOTFIRE leading the way [56] 5. Established companies and emerging startups are both making significant contributions, with a balance of systemic innovation and focused breakthroughs [57] Significance of Chinese Innovation - The nomination of TaiChiPro marks a pivotal moment for Chinese medical devices, representing a shift from following to leading in technological innovation [58] - This product exemplifies a structural innovation that integrates multiple treatment modalities, indicating a move towards system-level design in Chinese healthcare technology [58] Conclusion - The Prix Galien serves as a benchmark for evaluating transformative medical technologies, emphasizing that innovation should focus on improving treatment pathways rather than merely increasing costs [59] - The article concludes that for Chinese medical device companies, being nominated is just the beginning of a journey towards global recognition and participation in shaping international standards [59]

Group 1 - Medtronic's board of directors approved a cash dividend of $0.71 per ordinary share for the second quarter of fiscal year 2026 [1] - This dividend declaration aligns with the company's previous announcement of a dividend increase made in May 2025 [1] - Medtronic has a strong track record, being a member of the S&P 500 Dividend Aristocrats index, having increased its annual dividend for 48 consecutive years [1] Group 2 - Medtronic is headquartered in Galway, Ireland, and is recognized as a leading global healthcare technology company [2] - The company employs over 95,000 people across more than 150 countries and addresses 70 health conditions with its technologies and therapies [2] - Medtronic's mission focuses on alleviating pain, restoring health, and extending life through innovative healthcare solutions [2]