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]

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 ...

近日，FDA对 美敦力 Duet外部引流和监测系统导管 发布了 一级召回 ，这是最严重的召回类型。 此召回涉及的设备品牌包括 Becker 和 Exacta ，这些设备主要用于在手术过程中安全地引流脑脊液，但由于设备可能出现裂缝和泄漏，存在严重的健康风 险，包括脑脊液流失、感染甚至死亡。 截至目前共计有26人受伤，无死亡报告。 # 召回产品 Duet 体外引流和监测系统 （External Drainage and Monitoring System， EDMS ）用于脑脊液 （CSF）临时引流或脑脊液采样，适用于以下人群： 该系统包括一个绿色条纹管、旋塞阀、一个滴注室、一个压力刻度、无针注射/CSF 采样点以及一个带有测量和通风口的可拆卸袋子。 该系统通过重力工作，使 CSF 从外部腰椎导管流过患者管，进入滴注室，最后进入袋子。建议将其与单独提供的 Clear-Site 激光水平仪一起使用。 此次召回是在 15 名患者因 EDMS 受伤之后发起的。 FDA指出， EDMS的止回阀可能存在裂缝或泄漏，这可能导致脑脊液泄漏，进而引发感染等并发症。 虽然目前没有报告死亡案例，但由于潜在的严重伤害， FDA将此次召 ...

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].