Medtronic plc Reports Non-GAAP EPS of $1.26, Exceeding Estimates by $0.03, with Revenue of $8.5B Surpassing Projections by $130M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Aug 19 2025
0mins
Should l Buy MDT?
Source: SeekingAlpha
Q1 Financial Performance: Medtronic reported a Q1 non-GAAP EPS of $1.26, exceeding expectations by $0.03, with revenue reaching $8.5 billion, a 7.5% increase year-over-year, surpassing estimates by $130 million.
FY26 Revenue Growth Guidance: The company anticipates FY26 revenue growth to be between 6.5% and 6.8%, while also raising its diluted non-GAAP EPS guidance to a range of $5.60 to $5.66, up from previous estimates.
Impact of Tariffs: Medtronic has adjusted its forecast for the potential impact of tariffs, now estimating a reduction of approximately $185 million, down from an earlier range of $200 million to $350 million.
Strategic Changes and Challenges: The company is facing growth challenges and plans to spin off its diabetes business as part of its strategy to overcome stagnation, alongside changes in board composition due to Elliott's stake acquisition.
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Analyst Views on MDT
Wall Street analysts forecast MDT stock price to rise
20 Analyst Rating
11 Buy
9 Hold
0 Sell
Moderate Buy
Current: 100.880
Low
102.00
Averages
111.76
High
120.00
Current: 100.880
Low
102.00
Averages
111.76
High
120.00
About MDT
Medtronic Public Limited Company is an Ireland-based company, which provides healthcare technology solutions. The Company’s products category includes Advanced Surgical Technology; Cardiac Rhythm; Cardiovascular; Digestive & Gastrointestinal; Ear, Nose & Throat; General Surgery; Gynecological; Neurological; Oral & Maxillofacial; Patient Monitoring; Renal Care; Respiratory; Spinal & Orthopedic; Surgical Navigation & Imaging; Urological; Product Manuals; Product Ordering & Inquiries; and Product Performance & Advisories. Its products include Cardiac Implantable Electronic Device (CIED) Stabilization, Aortic Stent Graft Products, CareLink Personal Therapy Management Software, CareLink Pro Therapy Management Software. Its services and solutions include Ambulatory Surgery Center Resources, Care Management Services, Digital Connectivity Information Technology (IT) Support, Equipment Services and Support, Innovation Lab, Medtronic Healthcare Consulting, and Office-Based Sinus Surgery.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Medtronic Q3 Earnings Expectations
- Earnings Release Announcement: Medtronic is set to release its Q3 earnings before the market opens on February 17, with analysts forecasting earnings of $1.34 per share, a slight decline from $1.39 in the previous year, indicating a minor weakening in profitability.
- Revenue Expectations: According to Benzinga Pro, the consensus estimate for Medtronic's quarterly revenue is $8.9 billion, up from $8.29 billion last year, suggesting the company maintains a certain growth momentum in revenue.
- Analyst Rating Upgrade: Needham analyst Mike Matson upgraded Medtronic from Hold to Buy, setting a price target of $121, reflecting a positive outlook on the company's future performance in the market.
- Dividend Yield Analysis: Medtronic currently offers an annual dividend yield of 2.82%, with a quarterly dividend of 71 cents per share; investors aiming for $500 monthly in dividends would need to invest approximately $213,159, highlighting the attractiveness of the company's dividend policy to investors.
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- Consumer Health Insights: Investors will closely monitor Walmart's commentary on consumer health and its 2026 financial guidance to assess future market trends and corporate strategy.
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Medtronic Set to Announce FQ3 Earnings Results
- Earnings Announcement: Medtronic is set to announce its FQ3 earnings results on February 17 before market open, with consensus EPS estimate at $1.33 and revenue estimate at $8.9 billion, highlighting market interest in its performance.
- Performance Exceeding Expectations: Over the past two years, Medtronic has beaten EPS estimates 100% of the time and revenue estimates 88% of the time, indicating the company's consistent performance and profitability in the market.
- Analyst Expectation Adjustments: In the last 90 days, 18 out of 19 analysts have revised their EPS forecasts lower, while revenue estimates saw 15 upward revisions, reflecting a cautious market outlook on future performance.
- Growth Potential: Medtronic noted in its FQ2 2026 earnings call that it doubled its installed base of Affera mapping systems, which is expected to significantly support future revenue growth and margin expansion, showcasing the company's growth potential in the cardiovascular sector.
See More
Medtronic Launches Stealth AXiS™ Surgical System for Spine Surgery
- FDA Clearance: Medtronic's Stealth AXiS™ surgical system has received FDA clearance, integrating planning, navigation, and robotics to enhance efficiency and precision in spine surgery, which is expected to significantly improve surgical experiences and patient outcomes.
- Real-Time Tracking Innovation: The system's LiveAlign™ segmental tracking feature provides surgeons with real-time visualization of anatomical motion, reducing reliance on repeated imaging and thereby enhancing the consistency of surgical plan execution while minimizing workflow disruptions.
- Smart Ecosystem Integration: As a cornerstone of Medtronic's AiBLE™ smart ecosystem, the Stealth AXiS™ system streamlines surgical workflows by natively integrating planning, navigation, and execution, facilitating information exchange before, during, and after surgery, thus improving overall surgical efficiency.
- Future Expansion Potential: The system is designed not only to meet current spine surgery needs but also to lay the groundwork for future cranial and ENT applications, showcasing Medtronic's ongoing innovation capabilities and market leadership in surgical technology.
See More
Medtronic Q3 Earnings Expectations
- Earnings Release Announcement: Medtronic is set to release its Q3 earnings before the market opens on February 17, with analysts forecasting earnings of $1.34 per share, a slight decline from $1.39 in the previous year, indicating a minor weakening in profitability.
- Revenue Expectations: According to Benzinga Pro, the consensus estimate for Medtronic's quarterly revenue is $8.9 billion, up from $8.29 billion last year, suggesting the company maintains a certain growth momentum in revenue.
- Analyst Rating Upgrade: Needham analyst Mike Matson upgraded Medtronic from Hold to Buy, setting a price target of $121, reflecting a positive outlook on the company's future performance in the market.
- Dividend Yield Analysis: Medtronic currently offers an annual dividend yield of 2.82%, with a quarterly dividend of 71 cents per share; investors aiming for $500 monthly in dividends would need to invest approximately $213,159, highlighting the attractiveness of the company's dividend policy to investors.
See More
Key Companies to Monitor This Week: PCE, Walmart, Palo Alto, Analog Devices, Deere, and Others
- Market Performance: Equities experienced a decline last week, with all three major indexes falling by at least 1.2%.
- Economic Indicators: This downturn occurred despite a better-than-expected jobs report from the Bureau of Labor Statistics and a relatively stable inflation report.
See More
AI Turbulence Impacts Market Performance
- Increased Market Volatility: Last week, stocks in software, real estate, financial services, and logistics faced selling pressure due to concerns over AI-related disruptions, with the Nasdaq Composite falling 0.2% and a weekly loss of 2.1%, indicating market sensitivity to AI impacts.
- Consumer Spending Data Focus: This week's highlight will be the Personal Consumption Expenditures (PCE) report on Friday, which will provide insights into consumer spending in December and inflation trends, especially following last week's unexpected slowdown in the Consumer Price Index (CPI).
- Corporate Earnings in Spotlight: Walmart (WMT) is set to release its fourth-quarter earnings on Thursday, marking the first report under new CEO John Furner, making it a key indicator of consumer spending that the market is eagerly anticipating.
- Ongoing AI Impact: As AI tools' potential effects intensify across various sectors, software stocks like Salesforce (CRM) and ServiceNow (NOW) have seen significant declines, reflecting the market's heightened vigilance regarding AI disruptions, necessitating close monitoring of future industry developments.
See More
Next Week's Market Focus: Walmart Earnings
- Walmart Earnings Expectations: Analysts anticipate Walmart will report its fourth-quarter earnings on Thursday, with net sales expected to rise approximately 4% and operating income potentially increasing by 11%, further solidifying its status as a trillion-dollar company.
- Consumer Health Insights: Investors will closely monitor Walmart's commentary on consumer health and its 2026 financial guidance to assess future market trends and corporate strategy.
- FOMC Meeting Minutes Release: The minutes from the January FOMC meeting will be released on Wednesday, providing insights into policymakers' views on the path of interest rates, especially after holding rates steady at the start of the year, which has generated significant market interest.
- Personal Consumption Expenditures Data: On Friday, the Personal Consumption Expenditures (PCE) data will be released, which is the Fed's preferred inflation gauge, and the market will be keen to see if it confirms that inflation is steadily cooling or prompts the Fed to maintain a cautious stance.
See More
Medtronic Set to Announce FQ3 Earnings Results
- Earnings Announcement: Medtronic is set to announce its FQ3 earnings results on February 17 before market open, with consensus EPS estimate at $1.33 and revenue estimate at $8.9 billion, highlighting market interest in its performance.
- Performance Exceeding Expectations: Over the past two years, Medtronic has beaten EPS estimates 100% of the time and revenue estimates 88% of the time, indicating the company's consistent performance and profitability in the market.
- Analyst Expectation Adjustments: In the last 90 days, 18 out of 19 analysts have revised their EPS forecasts lower, while revenue estimates saw 15 upward revisions, reflecting a cautious market outlook on future performance.
- Growth Potential: Medtronic noted in its FQ2 2026 earnings call that it doubled its installed base of Affera mapping systems, which is expected to significantly support future revenue growth and margin expansion, showcasing the company's growth potential in the cardiovascular sector.
See More
Medtronic Launches Stealth AXiS™ Surgical System for Spine Surgery
- FDA Clearance: Medtronic's Stealth AXiS™ surgical system has received FDA clearance, integrating planning, navigation, and robotics to enhance efficiency and precision in spine surgery, which is expected to significantly improve surgical experiences and patient outcomes.
- Real-Time Tracking Innovation: The system's LiveAlign™ segmental tracking feature provides surgeons with real-time visualization of anatomical motion, reducing reliance on repeated imaging and thereby enhancing the consistency of surgical plan execution while minimizing workflow disruptions.
- Smart Ecosystem Integration: As a cornerstone of Medtronic's AiBLE™ smart ecosystem, the Stealth AXiS™ system streamlines surgical workflows by natively integrating planning, navigation, and execution, facilitating information exchange before, during, and after surgery, thus improving overall surgical efficiency.
- Future Expansion Potential: The system is designed not only to meet current spine surgery needs but also to lay the groundwork for future cranial and ENT applications, showcasing Medtronic's ongoing innovation capabilities and market leadership in surgical technology.
See More
