Medtronic(MDT) - 2025 Q3 - Quarterly Results

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]