Medtronic(US:MDT)2025-11-18 11:47Financial Performance - Q2 revenue reached $9.0 billion, a 6.6% increase as reported and 5.5% organic growth, exceeding guidance midpoint by 75 basis points [2] - GAAP diluted EPS was $1.07, an 8% increase, while non-GAAP diluted EPS was $1.36, also an 8% increase, both above guidance [2] - Total reported revenue for the second quarter was $8,961 million, representing a growth of 6.6% compared to $8,403 million in the previous year [25] - Total reported net sales for the second quarter reached $8,961 million, an increase of 6.6% compared to $8,403 million in the same period last year [42] - Operating profit for the second quarter was $1,686 million, representing an increase of 5.7% from $1,595 million in the prior year [42] - Net income attributable to Medtronic was $1,374 million, up from $1,270 million, marking a growth of 8.2% [42] - Basic earnings per share (EPS) for the quarter was $1.07, compared to $0.99 in the same quarter last year, reflecting an increase of 8.1% [42] - The total reportable segments showed a year-to-date growth of 9.4%, with total sales of $8,733 million compared to $7,983 million last year [36] - Net income for the six months ended October 24, 2025, was $2,428 million, an increase of 4.3% compared to $2,327 million for the same period in 2024 [67] Segment Performance - Cardiac Ablation Solutions revenue surged 71%, with a remarkable 128% growth in the U.S., driven by the pulsed field ablation (PFA) portfolio [4] - Cardiovascular Portfolio revenue was $3.436 billion, a 10.8% increase as reported and 9.3% organic growth [9] - Neuroscience Portfolio revenue reached $2.562 billion, a 4.5% increase reported and 3.9% organic [9] - Medical Surgical Portfolio revenue was $2.171 billion, a 2.1% increase reported and 1.3% organic [9] - Cardiovascular segment revenue reached $3,436 million, a 10.8% increase from $3,102 million year-over-year [25] - Cardiac Rhythm & Heart Failure segment saw a revenue increase of 15.7%, totaling $1,825 million compared to $1,578 million in the same quarter last year [25] - Neuroscience segment revenue grew by 4.5% to $2,562 million, up from $2,451 million year-over-year [25] - The Diabetes segment revenue increased by 10.3% to $757 million from $686 million year-over-year [25] - Specialty Therapies segment experienced a slight decline of 0.9%, with revenue at $744 million compared to $737 million last year [25] Guidance and Future Outlook - The company raised FY26 organic revenue growth guidance to approximately 5.5%, up from 5.0% [10] - FY26 diluted non-GAAP EPS guidance was increased to a range of $5.62 to $5.66, reflecting a potential growth of approximately 4.5% [10] - The company continues to focus on expanding its market presence and developing new technologies across various segments [25] - The company is focusing on expanding its Cardiovascular and Diabetes segments, with ongoing investments in new product development and market expansion strategies [36] Regulatory and Product Approvals - The company received favorable National Coverage Determination from CMS for the Symplicity™ procedure, addressing a U.S. market of 18 million people [4] - The Altaviva™ device received U.S. FDA approval, targeting over 16 million people in the U.S. suffering from urge urinary incontinence [4] Cash Flow and Expenses - Medtronic incurred $91 million in accelerated amortization on certain intangible assets within the Cardiovascular Portfolio [53] - The company recognized incremental costs of $39 million related to compliance with new EU medical device regulations, considered one-time costs [56] - Research and development expenses totaled $754 million, up from $697 million, indicating a growth of 8.2% [42] - Net cash provided by operating activities was $2,013 million, up from $1,944 million year-over-year [67] - Net cash used in investing activities rose to $1,201 million, compared to $604 million in the previous year, indicating a significant increase in investment outflows [67] - Dividends to shareholders increased slightly to $1,820 million from $1,795 million, showing a modest growth in shareholder returns [67] - Cash and cash equivalents at the end of the period were $1,282 million, a decrease from $1,394 million at the end of the previous year [67] - Cash paid for income taxes was $1,394 million, up from $1,335 million, reflecting an increase in tax obligations [67] - Interest payments increased to $542 million from $513 million, indicating a rise in financing costs [67]