Medtronic Q3 Earnings Top Estimates, Revenues Miss, Stock Tumbles

Core Insights - Medtronic plc reported adjusted earnings per share (EPS) of $1.39 for Q3 fiscal 2025, reflecting a 6.9$8.29 billion, marking a 2.5% year-over-year increase on a reported basis, but fell short of the Zacks Consensus Estimate by 0.4% [3] - The company maintains its fiscal 2025 organic revenue growth projection at 4.75-5% [10] Financial Performance - Adjusted EPS for the quarter was $1.39, while GAAP EPS was reported at$1.01, a 2% improvement from the previous year [1][2] - Gross margin expanded by 88 basis points to 66.5%, with research and development expenses decreasing by 2.9% to $675 million [9] - Adjusted operating margin increased by 161 basis points year-over-year to 25.6$3.04 billion, with notable increases in Cardiac Rhythm & Heart Failure sales [5] - Medical Surgical revenues totaled $2.07 billion, down 0.4$2.46 billion, driven by growth in Neuromodulation [7] - Diabetes segment revenues increased 10.4% organically to $694 million, supported by the adoption of the MiniMed 780G system [8] Future Outlook - For fiscal 2025, adjusted EPS is expected to be in the range of$5.44-$5.50, with the Zacks Consensus Estimate at$5.45 per share [12] - The company anticipates adjusted revenue growth of 3.4-3.8% for fiscal 2025, with worldwide revenues estimated at $33.56 billion [11]