Core Insights - Medtronic has faced significant challenges in recent years, including a pandemic-induced slowdown and slow revenue growth, but its diabetes care business has been a fast-growing segment [1][2] - The company announced plans to spin off its diabetes care segment into a stand-alone, publicly traded corporation within the next 18 months to simplify its portfolio and focus on high-margin growth opportunities [8] Diabetes Care Segment - Medtronic's diabetes care segment includes products like insulin pumps, continuous glucose monitoring (CGM) systems, insulin pens, and software for tracking patient progress [3][4] - The diabetes care segment generated $2.8 billion in sales during fiscal 2025, reflecting a year-over-year growth of 10.7%, although it still represents a small part of the overall business [6][7] Market Opportunities - There is significant growth potential in the diabetes market, with only 1% of the half-billion adults with diabetes having access to CGM technology as of the end of 2023 [4] - Medtronic's decision to spin off the diabetes care unit may stem from challenges in competing with leaders like Abbott Laboratories and DexCom in the CGM market and Tandem Diabetes Care in the insulin pump niche [9] Overall Business Outlook - Despite losing its fastest-growing segment, Medtronic's overall business remains robust, with a diverse range of products generating consistent revenue and profits [10] - The company is also pursuing U.S. clearance for its Hugo robotic-assisted surgery system, which could unlock significant growth opportunities in the underpenetrated surgical market [11] Dividend and Long-term Performance - Medtronic has a strong track record as a dividend stock, having increased its dividends for 48 consecutive years, positioning it as a potential Dividend King [12] - The company has performed relatively well in the current year compared to broader equity markets and is expected to mitigate the impact of tariffs due to its diversified business model [13]