Earnings Q3 FY26 | February 17, 2025 Contact: investor.relations@medtronic.com Forward Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade polic ...

Core Viewpoint - Medtronic reported a decline in profit during its fiscal third quarter due to rising costs and increased investments in the business, which countered the effects of higher revenue [1] Financial Performance - The company experienced a profit decrease in the fiscal third quarter, attributed to escalating costs and strategic investments [1] - Higher revenue was noted, but it was not sufficient to offset the increased expenses [1]

Medtronic plc (MDT) shares were down more than 5% in pre-market trading on Tuesday after the healthcare company reported lower third-quarter profit, primarily due to higher expenses.Net income fell to $1.143 billion, or $0.89 per share, from $1.294 billion, or $1.01 per share a year earlier. Adjusted earnings, which exclude one-time items, came in at $1.750 billion, or $1.36 per share.Operating profit decreased to $1.464 billion from $1.646 billion last year.The company's revenue for the period rose 8.7% t ...

Medtronic says it expects to take a $185 million hit from tariffs in the fiscal year. ...

Financial Performance - Medtronic reported Q3 FY26 revenue of $9.017 billion, an increase of 8.7% as reported and 6.0% organic, exceeding guidance by 50 basis points[2]. - GAAP diluted EPS for Q3 was $0.89, while non-GAAP diluted EPS was $1.36, three cents above the midpoint of guidance[2][8]. - The company reiterated its FY26 organic revenue growth guidance of approximately 5.5% and non-GAAP EPS guidance of $5.62 to $5.66[9]. - Net income attributable to Medtronic for the three months ended January 23, 2026, was $1,143 million, compared to $1,294 million in the same period in 2025, reflecting a decrease of 11.7%[39]. - Basic earnings per share for the three months ended January 23, 2026, were $0.89, down from $1.01 in the prior year[42]. - Non-GAAP net income attributable to Medtronic for the nine months ended January 23, 2026, was $5,122 million, compared to $4,999 million in the same period of 2025[49]. - The company reported net income of $3,578 million for the nine months ended January 23, 2026, compared to $3,630 million for the same period in the previous year[66]. Revenue Breakdown - The Cardiovascular portfolio generated $3.457 billion in revenue, reflecting a 13.8% increase as reported and 10.6% organic growth[4]. - Diabetes revenue increased by 8.3%, with double-digit growth in international markets contributing significantly[5][11]. - The Neuroscience portfolio revenue reached $2.558 billion, marking a 4.1% increase reported and 2.5% organic growth[11]. - U.S. revenue for the third quarter of FY26 was $4,493 million, representing a 6.0% growth compared to $4,237 million in FY25[30]. - International revenue for FY26 Q3 was $4,524 million, an 11.6% increase from $4,055 million in FY25 Q3[34]. - Total reportable segments for the year-to-date in FY26 reached $13,234 million, a 11.2% increase from $11,986 million in FY25[34]. Segment Performance - Cardiac Ablation Solutions revenue surged 80%, with a remarkable 137% growth in the U.S., driven by the pulsed field ablation portfolio[2][4]. - Cardiovascular segment reported $1,589 million in revenue for FY26 Q3, a 13.1% increase from $1,405 million in FY25 Q3[30]. - Cardiac Rhythm & Heart Failure segment grew by 23.0% to $953 million in FY26 Q3, up from $775 million in FY25 Q3[30]. - The Neuroscience segment reported a revenue of $1,709 million in FY26 Q3, a slight increase of 1.2% from $1,689 million in FY25 Q3[30]. - Specialty Therapies segment revenue decreased by 4.0% to $402 million in FY26 Q3 compared to $419 million in FY25 Q3[30]. Expenses and Profitability - Gross margin for the three months ended January 23, 2026, was 63.8%, down from 66.5% in the prior year[42]. - Operating profit for the nine months ended January 23, 2026, was $4,594 million, representing a 1.7% increase from $4,519 million in the same period of 2025[49]. - Non-GAAP operating profit for the three months ended January 23, 2026, was $2,177 million, with an operating profit margin of 24.1%[42]. - Research and development expenses for the three months ended January 23, 2026, were $722 million, an increase from $675 million in the same period of 2025[39]. - The effective tax rate for the three months ended January 23, 2026, was 18.1%, compared to 15.4% in the prior year[42]. Cash Flow and Investments - For the nine months ended January 23, 2026, net cash provided by operating activities was $4,757 million, compared to $4,516 million for the same period in the previous year[62]. - Free cash flow for the nine months ended January 23, 2026, was $3,341 million, up from $3,116 million in the prior year[62]. - The company incurred $1,416 million in additions to property, plant, and equipment for the nine months ended January 23, 2026[66]. - The company reported a net cash used in investing activities of $2,017 million for the nine months ended January 23, 2026[66]. - The company’s total liabilities decreased by $1,072 million, resulting in cash and cash equivalents at the end of the period of $1,147 million[66]. - The company’s dividends to shareholders for the nine months ended January 23, 2026, were $2,731 million, compared to $2,692 million in the previous year[66]. Strategic Developments - Medtronic secured U.S. FDA clearance for the Hugo™ robotic-assisted surgery system and the Stealth AXiS™ Surgical System for spinal procedures[5]. - Medtronic executed two key M&A transactions in the quarter, acquiring CathWorks and Anteris, enhancing its market position[5][12]. - The company experienced a foreign exchange benefit of $242 million across its segments, positively impacting overall revenue[6]. - The company recognized $30 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio[43]. - The company recognized $121 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio[50]. - The company adjusted $656 million in revenue for the nine months ended January 23, 2026, including $512 million from favorable currency impacts[28]. - The total revenue adjustments for the three months ended January 23, 2026, amounted to $275 million, including $242 million from favorable currency impacts[28].

Medtronic beats quarterly profit estimates on robust demand for heart devices | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]A general view of the logo of Medtronic, a healthcare technology and pharmaceutical company, at their plant, in Galway, Ireland, April 11, 2025. REUTERS/Clodagh Kilcoyne/File Photo [Purchase Licensing Rights, opens new tab]- Companies[Medtronic Inc]Follow[Abbott Laboratories]Follow[Dexcom Inc]FollowShow more ...

not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial ...

Core Insights - Medtronic has successfully performed the first U.S. commercial surgical case using its FDA-cleared Hugo™ robotic-assisted surgery (RAS) system at Cleveland Clinic, marking a significant milestone in expanding access to minimally invasive surgery [1] Company Developments - The first procedure was a robotic-assisted prostatectomy conducted by Dr. Jihad Kaouk, who emphasized the technology's ability to customize surgical approaches for individual patients [1] - The Hugo RAS system received FDA clearance for urologic surgical procedures in December 2025, and its introduction is part of Medtronic's broader surgical offerings [1] Industry Trends - Urology has seen a high adoption rate of robotic technology, with approximately 80% of urologic abdominal surgeries in the U.S. currently performed with robotic assistance, indicating a strong trend towards robotic-assisted procedures across various specialties [1] - The Hugo RAS system's modular design aims to address operating room scheduling challenges and infrastructure limitations, potentially increasing patient access to the benefits of minimally invasive care [1] Clinical Research - Cleveland Clinic participated in the Expand URO Investigational Device Exemption (IDE) clinical study, which demonstrated that the Hugo RAS system met primary safety and effectiveness endpoints in urologic surgeries [1] - The system is expected to expand its indications into gynecologic and general surgery procedures, including hernia repair, further broadening its application in the surgical field [1]

This story was originally published on MedTech Dive. To receive daily news and insights, subscribe to our free daily MedTech Dive newsletter. By the numbers   FY26 Q3 revenue: $9.02 billion 8.7% growth year over year   Cardiovascular revenue: $3.46 billion Nearly 14% growth year over year   Diabetes revenue: $796 million Nearly 15% growth year over year Medtronic said Tuesday that a surgeon completed the first U.S. procedure for its Hugo robotic surgery system, shortly after the company received ...

Group 1 - U.S. stock futures are trading lower on Tuesday morning, indicating a potential decline in market sentiment [1] - Certain stocks are expected to attract investor attention today, although specific names are not mentioned [1] - The article suggests checking premarket coverage for more detailed insights into market movements [1]