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Medtronic Q4 Earnings and Revenues Top, Stock Down in Pre-market
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Medtronic plc (MDT - Free Report) reported adjusted earnings per share (EPS) of $1.62 for the fourth quarter of fiscal 2025. The bottom line rose 10.9% from the year-ago quarter’s figure and beat the Zacks Consensus Estimate by 2.5%. Currency-adjusted EPS for the reported quarter was $1.69.
Without certain one-time adjustments — including amortization, restructuring and associated costs, certain litigation charges and acquisition-related costs, among others — GAAP EPS was 82 cents, reflecting a 67.3% improvement from the year-ago quarter’s reported figure.
Full-year fiscal 2025 adjusted EPS was $5.49, up 5.6% year over year. The figure beat the Zacks Consensus Estimate by 0.5%.
Following the announcement today, MDT shares fell 0.4% in the premarket trading. Medtronic's recent decision to spin off its diabetes division into an independent, publicly traded company might have put pressure on the company’s share price.
MDT’s Revenues
Worldwide revenues in the reported quarter grossed $8.93 billion, up 3.9% year over year on a reported basis and 5.4% on an organic basis. The top line surpassed the Zacks Consensus Estimate by 1.1%.
Full-year fiscal 2025 worldwide revenues totaled $33.54 billion, up 3.6% year over year. The top line marginally surpassed the Zacks Consensus Estimate by 0.1%.
Segmental Analysis of MDT’s Q4 Revenues
The company reports revenues under four major segments: Cardiovascular, Medical Surgical, Neuroscience and Diabetes.
In the fiscal fourth quarter, Cardiovascular revenues increased 7.8% organically to $3.37 billion. Within this, Cardiac Rhythm & Heart Failure sales totaled $1.75 billion, up 10.3% year over year organically. Revenues from Structural Heart & Aortic rose 8.3% organically to $955 million. Coronary & Peripheral Vascular revenues grew 1% organically to $667 million.
In the Medical Surgical portfolio, worldwide sales totaled $2.24 billion, up 2% year over year organically. While Surgical & Endoscopy revenues edged up 1.7% organically to $1.73 billion, Acute Care & Monitoring revenues increased 3.1% organically to $508 million.
In Neuroscience, worldwide revenues of $2.64 billion were up 3.7% year over year organically. Cranial & Spinal Technologies sales reached $1.35 billion, up 4.4% year over year organically. Specialty Therapies revenues totaled $766 million, down 1.6% year over year organically. Neuromodulation revenues grew 10.2% organically to $524 million.
Revenues in the Diabetes group rose 12% organically to $739 million. U.S. revenues grew in high single digits on the continued adoption of the MiniMed 780G automated insulin delivery system, with an increase in the MiniMed 780G installed base and strong CGM (continuous glucose monitoring) attachment rates. International revenues grew in the mid-teens, driven by increasing CGM attachment rates as users upgraded to the Simplera Sync sensor. (See the Zacks Earnings Calendar to stay ahead of market-making news).
MDT’s Q4 Margin Performance
Gross margin in the reported quarter expanded 19 basis points (bps) to 64.7% despite a 3.4% rise in the cost of revenues.
Research and development expenses rose 1.3% year over year to $684 million. Selling, general and administrative expenses fell 1.6% to $2.72 billion.
Adjusted operating margin expanded 210 bps year over year to 26.6%.
Medtronic Issues Fiscal 2026 Outlook
For (full) fiscal 2026, Medtronic projects organic revenue growth of 5%. The organic revenue growth guidance excludes the impact of foreign currency and revenues related to certain businesses reported as Other.
Including Other revenues and the impact of foreign currency exchange, if recent foreign currency exchange rates hold, fiscal 2026 revenue growth on an adjusted basis is likely to be in the range of 4.8-5.1%.
The Zacks Consensus Estimate for fiscal 2026 worldwide revenues is pegged at $35.05 billion, implying 4.6% growth from the year-ago reported figure.
Full-year adjusted EPS is expected to be in the range of $5.50-$5.60. The Zacks Consensus Estimate for the year’s adjusted earnings is pegged at $5.82 per share.
Our Take on MDT Stock
Medtronic exited the fourth quarter of fiscal 2025 with better-than-expected results, wherein both earnings and revenues beat estimates. Neuromodulation delivered an above-market performance, driven by Pain Stim growth, including strong U.S. growth propelled by the continued launch of the Inceptiv spinal cord stimulator. The company’s long-term investments in cutting-edge innovation, such as pulsed-field ablation, are beginning to yield results, driving growth in some of the most attractive MedTech markets. Additionally, the expansion of both margins in the quarter is highly encouraging.
MDT’s Zacks Rank & Key Picks
Medtronic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are AngioDynamics (ANGO - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Phibro Animal Health (PAHC - Free Report) .
AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a loss of 13 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company beat on earnings in each of the trailing four quarters, the average surprise being 70.9%.
Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, which outpaced the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.
ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3%. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 2.8%.
Phibro Animal Health, currently carrying a Zacks Rank #2 (Buy), reported a third-quarter fiscal 2025 adjusted EPS of 63 cents, which surpassed the Zacks Consensus Estimate by 21.1%. Revenues of $347.8 million missed the Zacks Consensus Estimate by 0.7%.
PAHC has an estimated long-term earnings growth rate of 26% compared with the industry’s 15.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.6%.
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Medtronic Q4 Earnings and Revenues Top, Stock Down in Pre-market
Medtronic plc (MDT - Free Report) reported adjusted earnings per share (EPS) of $1.62 for the fourth quarter of fiscal 2025. The bottom line rose 10.9% from the year-ago quarter’s figure and beat the Zacks Consensus Estimate by 2.5%. Currency-adjusted EPS for the reported quarter was $1.69.
Without certain one-time adjustments — including amortization, restructuring and associated costs, certain litigation charges and acquisition-related costs, among others — GAAP EPS was 82 cents, reflecting a 67.3% improvement from the year-ago quarter’s reported figure.
Full-year fiscal 2025 adjusted EPS was $5.49, up 5.6% year over year. The figure beat the Zacks Consensus Estimate by 0.5%.
Following the announcement today, MDT shares fell 0.4% in the premarket trading. Medtronic's recent decision to spin off its diabetes division into an independent, publicly traded company might have put pressure on the company’s share price.
MDT’s Revenues
Worldwide revenues in the reported quarter grossed $8.93 billion, up 3.9% year over year on a reported basis and 5.4% on an organic basis. The top line surpassed the Zacks Consensus Estimate by 1.1%.
Full-year fiscal 2025 worldwide revenues totaled $33.54 billion, up 3.6% year over year. The top line marginally surpassed the Zacks Consensus Estimate by 0.1%.
Segmental Analysis of MDT’s Q4 Revenues
The company reports revenues under four major segments: Cardiovascular, Medical Surgical, Neuroscience and Diabetes.
In the fiscal fourth quarter, Cardiovascular revenues increased 7.8% organically to $3.37 billion. Within this, Cardiac Rhythm & Heart Failure sales totaled $1.75 billion, up 10.3% year over year organically. Revenues from Structural Heart & Aortic rose 8.3% organically to $955 million. Coronary & Peripheral Vascular revenues grew 1% organically to $667 million.
In the Medical Surgical portfolio, worldwide sales totaled $2.24 billion, up 2% year over year organically. While Surgical & Endoscopy revenues edged up 1.7% organically to $1.73 billion, Acute Care & Monitoring revenues increased 3.1% organically to $508 million.
In Neuroscience, worldwide revenues of $2.64 billion were up 3.7% year over year organically. Cranial & Spinal Technologies sales reached $1.35 billion, up 4.4% year over year organically. Specialty Therapies revenues totaled $766 million, down 1.6% year over year organically. Neuromodulation revenues grew 10.2% organically to $524 million.
Revenues in the Diabetes group rose 12% organically to $739 million. U.S. revenues grew in high single digits on the continued adoption of the MiniMed 780G automated insulin delivery system, with an increase in the MiniMed 780G installed base and strong CGM (continuous glucose monitoring) attachment rates. International revenues grew in the mid-teens, driven by increasing CGM attachment rates as users upgraded to the Simplera Sync sensor. (See the Zacks Earnings Calendar to stay ahead of market-making news).
MDT’s Q4 Margin Performance
Gross margin in the reported quarter expanded 19 basis points (bps) to 64.7% despite a 3.4% rise in the cost of revenues.
Research and development expenses rose 1.3% year over year to $684 million. Selling, general and administrative expenses fell 1.6% to $2.72 billion.
Adjusted operating margin expanded 210 bps year over year to 26.6%.
Medtronic Issues Fiscal 2026 Outlook
For (full) fiscal 2026, Medtronic projects organic revenue growth of 5%. The organic revenue growth guidance excludes the impact of foreign currency and revenues related to certain businesses reported as Other.
Medtronic PLC Price, Consensus and EPS Surprise
Medtronic PLC price-consensus-eps-surprise-chart | Medtronic PLC Quote
Including Other revenues and the impact of foreign currency exchange, if recent foreign currency exchange rates hold, fiscal 2026 revenue growth on an adjusted basis is likely to be in the range of 4.8-5.1%.
The Zacks Consensus Estimate for fiscal 2026 worldwide revenues is pegged at $35.05 billion, implying 4.6% growth from the year-ago reported figure.
Full-year adjusted EPS is expected to be in the range of $5.50-$5.60. The Zacks Consensus Estimate for the year’s adjusted earnings is pegged at $5.82 per share.
Our Take on MDT Stock
Medtronic exited the fourth quarter of fiscal 2025 with better-than-expected results, wherein both earnings and revenues beat estimates. Neuromodulation delivered an above-market performance, driven by Pain Stim growth, including strong U.S. growth propelled by the continued launch of the Inceptiv spinal cord stimulator. The company’s long-term investments in cutting-edge innovation, such as pulsed-field ablation, are beginning to yield results, driving growth in some of the most attractive MedTech markets. Additionally, the expansion of both margins in the quarter is highly encouraging.
MDT’s Zacks Rank & Key Picks
Medtronic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are AngioDynamics (ANGO - Free Report) , Integer Holdings Corporation (ITGR - Free Report) and Phibro Animal Health (PAHC - Free Report) .
AngioDynamics, currently sporting a Zacks Rank #1 (Strong Buy), reported a third-quarter fiscal 2025 adjusted EPS of 3 cents against the Zacks Consensus Estimate of a loss of 13 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Revenues of $72 million beat the Zacks Consensus Estimate by 2%. ANGO has an estimated fiscal 2026 earnings growth rate of 27.8% compared with the S&P 500 composite’s 10.5%. The company beat on earnings in each of the trailing four quarters, the average surprise being 70.9%.
Integer Holdings, sporting a Zacks Rank #1 at present, posted a first-quarter 2025 adjusted EPS of $1.31, which outpaced the Zacks Consensus Estimate by 3.1%. Revenues of $437.4 million surpassed the Zacks Consensus Estimate by 1.3%.
ITGR has an estimated long-term earnings growth rate of 20.8% compared with the industry’s 14.3%. The company’s earnings surpassed estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 2.8%.
Phibro Animal Health, currently carrying a Zacks Rank #2 (Buy), reported a third-quarter fiscal 2025 adjusted EPS of 63 cents, which surpassed the Zacks Consensus Estimate by 21.1%. Revenues of $347.8 million missed the Zacks Consensus Estimate by 0.7%.
PAHC has an estimated long-term earnings growth rate of 26% compared with the industry’s 15.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 30.6%.