Medtronic Plc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +4.10%.
Did MDT Beat Earnings? Q4 2025 Results
Medtronic closed its fiscal fourth quarter with a clean beat on both top and bottom lines, posting non-GAAP diluted EPS of $1.62 against a consensus estimate of $1.58, a 2.53% beat, while revenue of $8.93 billion edged past the $8.89 billion estimate and grew 3.9% year over year. The stronger-than-expected result was anchored by 5.4% organic revenue growth in the quarter, with the Cardiovascular Portfolio leading the charge at 7.8% organic growth, powered by rapid adoption of pulsed field ablation technology that lifted Cardiac Ablation Solutions to $1.00 billion in full-year revenue. Non-GAAP operating margins expanded 90 basis points to 27.8%, translating top-line momentum into an 11% year-over-year EPS gain despite a $0.07 foreign currency headwind. The headline strategic move was Medtronic's announcement of plans to separate its fast-growing Diabetes business into a standalone public company, a transaction expected to be accretive to margins and EPS. Looking ahead, the company guided FY26 non-GAAP diluted EPS to $5.50 to $5.60, with approximately 5% organic revenue growth anticipated.
- Near-30% growth in Cardiac Ablation Solutions on rapid PFA adoption
- Sixth consecutive quarter of double-digit organic growth in Diabetes
- Continued strength of Evolut FX+ TAVR system driving Structural Heart growth
- Low-double digit Pain Stim growth including mid-teens U.S. growth on Inceptiv launch
- High-single digit U.S. Cranial & Spinal Technologies growth on AiBLE ecosystem capital sales
- International Diabetes revenue grew mid-teens driven by low-20s pump growth
- Cardiac Rhythm Management high-single digit growth including high-teens Micra and SelectSecure 3830 growth
“We had a strong close to our fiscal year, and I'm excited to see the progress we are making as our growth drivers continue to build momentum. Operationally, we translated our accelerating revenue growth into earnings leverage, as we delivered at the upper end of the commitments that we laid out a year ago.”
Medtronic CEO, on the earnings call
Forward Guidance & Outlook
For fiscal year 2026, Medtronic guided to approximately 5% organic revenue growth, with reported revenue growth of 4.8% to 5.1% including foreign currency effects. Excluding potential tariff impacts, non-GAAP diluted EPS growth is expected to be approximately 4%, with non-GAAP operating profit expected to grow faster than organic revenue, partially offset by increased interest and tax expense. Including tariff impacts, FY26 non-GAAP diluted EPS is guided in the range of $5.50 to $5.60. The lower end of the EPS range assumes bilateral U.S./China tariffs resume at higher rates following the 90-day pause, while the upper end assumes tariffs currently in effect during the pause remain through fiscal year 2026. The company also announced its intent to separate the Diabetes business into a standalone public company within 18 months, expected to be accretive to Medtronic's gross margin (~50 bps), operating margin (~100 bps), and EPS. Post-separation, Medtronic targets durable mid-single digit or higher organic revenue growth with accelerated earnings leverage.
MDT YoY Financials
MDT Revenue by Segment
MDT Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.