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]

My previous bullish thesis about Medtronic (NYSE: MDT ) aged well as the share price gained around 8% since mid-August 2024. The company reports its next earnings soon, on February 18. I am quite optimistic aboutI am a highly experienced Chief Financial Officer (CFO) with a strong background in the oilfield and real estate industries. With over a decade of experience in finance, I have led numerous complex due diligence efforts and M&A transactions, both domestically and internationally.In recent years, I h ...

In its upcoming report, Medtronic (MDT) is predicted by Wall Street analysts to post quarterly earnings of $1.36 per share, reflecting an increase of 4.6% compared to the same period last year. Revenues are forecasted to be $8.33 billion, representing a year-over-year increase of 3%.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company reveals ...

Medtronic plc (MDT) is scheduled to report third-quarter fiscal 2025 results on Feb. 18, before the opening bell.See the Zacks Earnings Calendar to stay ahead of market-making news.In the last reported quarter, the company’s adjusted earnings of $1.26 exceeded the Zacks Consensus Estimate by 1.61%. Medtronic beat estimates in each of the trailing four quarters, the average surprise being 1.99%.The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $8.33 billion, suggesting growth of 2.9 ...

GALWAY, Ireland, Feb. 5, 2025 /PRNewswire/ -- Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced that it will report financial results for its third quarter of fiscal year 2025 on Tuesday, February 18, 2025. A news release will be issued at approximately 5:45 a.m. Central Standard Time (CST) and will be available at https://news.medtronic.com. The news release will include summary financial information for the company's third quarter of fiscal year 2025, which ended on Frid ...

Core Viewpoint - Medtronic is leveraging artificial intelligence to enhance its growth prospects, with a strong start in 2025 as shares have risen by 13% year to date, indicating a potential turnaround after previous weaknesses in its diabetes segment [1][2]. Group 1: AI Integration and Product Innovation - Medtronic is recognized for its leadership in AI-powered medical technology, with innovations across its four core segments: cardiovascular, neuroscience, medical-surgical, and diabetes care [3]. - The company is integrating AI capabilities into its products, such as the GI Genius intelligent endoscopy module for polyp detection and the Aible robotic surgery ecosystem for customized treatment plans [4][5]. - These AI-enhanced features aim to improve patient care and consolidate market share, as evidenced by a 5.3% year-over-year revenue increase and an 8% rise in adjusted earnings per share for fiscal 2025's second quarter [6]. Group 2: Earnings and Growth Outlook - Medtronic is well-positioned to benefit from secular trends in healthcare, including an aging population and increased spending on chronic disease treatment, supporting a positive long-term outlook [8]. - Management projects full-year organic revenue growth of 4.75% to 5% for fiscal 2025, with an EPS target range of $5.44 to $5.50, reflecting a 10.5% increase from fiscal 2024 [9]. - The company has secured over 120 regulatory approvals for new products, indicating a strong pipeline for future growth [7]. Group 3: Valuation and Investment Appeal - Medtronic's stock is trading at a forward price-to-earnings (P/E) ratio of 16, significantly lower than its peers, which average closer to 27, suggesting it is undervalued [11][12]. - The stock also offers a 3.1% dividend yield, making it an attractive option for income-focused investors [13]. - With improving financial performance and AI-driven innovations, Medtronic is positioned for long-term outperformance in 2025 [14].

Group 1: Medtronic - Medtronic is a leading medical device company with a diverse range of products across four main therapeutic areas and a presence in 150 countries [3] - The company has a strong revenue and earnings generation track record, although top-line growth has been modest in recent years [4] - The diabetes care unit is experiencing significant sales growth and has substantial room for expansion, given the global prevalence of diabetes [5] - Medtronic is developing a robotic-assisted surgery device, the Hugo system, which is currently being tested in the U.S. and has growth potential in the minimally invasive surgery market [6] - The company benefits from long-term trends such as an aging population, making it a reliable blue-chip dividend stock despite slow revenue growth [7] - Medtronic has a history of 47 consecutive years of dividend increases and is expected to become a Dividend King soon, with a forward yield of 3.20% and a cash payout ratio of 70.5% [8] Group 2: Medical Properties Trust - Medical Properties Trust is a healthcare-focused real estate investment trust (REIT) that is required to distribute at least 90% of its taxable income as dividends [9] - The company faced financial challenges after one of its largest tenants, Steward Healthcare, stopped paying rent, leading to dividend cuts [10] - Medical Properties Trust has made progress by securing new tenants for facilities previously occupied by Steward Healthcare, with new leases expected to start generating rent payments in the first quarter of the year [11] - The new tenants have an average lease term of 18 years, which provides some stability for the company [12] - Despite the attractive forward yield of 7.82%, the recent issues suggest that it may be prudent to avoid this stock for now due to associated risks [13]

Dividend Stocks Overview - Dividend-paying stocks offer a triple upside: stock price appreciation, cash distribution via dividends, and potential dividend growth over time [1] - Medtronic (MDT) is highlighted as a solid dividend stock with a long history of increasing payouts [2] Medtronic's Dividend Performance - Medtronic has increased its dividend payout for nearly 50 consecutive years [2] - Recent dividend yield of 3.2%, translating to $32 annually for a $1,000 investment [2] - Over the past five years, Medtronic's dividend payout has grown at an average annual rate of 5% [3] - Medtronic has been actively buying back shares, enhancing shareholder rewards [3] Calculating Dividend Income from Medtronic - Current quarterly dividend is $0.70 per share, or $2.80 annually [3] - To achieve $1,000 in annual dividends, an investor would need to own 357 shares of Medtronic [3] - If the dividend increases by 5% next year, the same 357 shares would yield $1,050, and $1,102.50 the following year [3] Valuation and Appeal of Medtronic - Medtronic's forward-looking P/E ratio is 15.1, below its five-year average of 17.6, indicating potentially attractive valuation [4] - The company's shares are considered appealing for both dividend and non-dividend investors [4]

Core Viewpoint - Medtronic plc has appointed Thierry Piéton as Chief Financial Officer, effective March 3, 2025, to enhance its financial leadership and drive innovation-driven growth [1][2] Group 1: Appointment Details - Thierry Piéton will report to Medtronic Chairman and CEO Geoff Martha and will join the Executive Committee [1] - Gary Corona, the interim CFO, will transition to Senior Vice President, Corporate Finance after Piéton's arrival [1][4] Group 2: Piéton's Background and Experience - Piéton has a proven track record in delivering innovation-driven growth and margin improvement, aligning with Medtronic's financial objectives [2] - Under Piéton's leadership, Renault achieved its highest operating margins and improved free cash flow, contributing to significant shareholder value [2] - His experience spans healthcare and highly regulated manufacturing sectors, including roles at Nissan, General Electric, and PricewaterhouseCoopers [2] Group 3: Responsibilities as CFO - As CFO, Piéton will lead Medtronic's global finance organization and oversee key functions such as Treasury, Controller, Tax, Internal Audit, Investor Relations, Corporate Strategy, and Business Development [3]