The medical-device maker also plans to form committees focused on M&A and other growth areas.
Medtronic (NYSE:MDT) will report earnings on Tuesday, August 19, 2025. Over the last five years, the stock's next-day move following results has been highly unpredictable: it posted a positive one-day return in 50% of instances (median gain of 2.5%) and a negative one-day return in the other 50% (median loss of -3.8%).
In the closing of the recent trading day, Medtronic (MDT) stood at $91.98, denoting a -1% move from the preceding trading day.
Beyond analysts' top-and-bottom-line estimates for Medtronic (MDT), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended July 2025.
Medtronic trades at a notable discount to peers as Q1 earnings loom, but rising costs and tariffs could test its resilience.
Medtronic (MDT) concluded the recent trading session at $91.24, signifying a +2.1% move from its prior day's close.
Medtronic (MDT) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
Medtronic (NYSE:MDT), which is renowned for inventing the world's first battery-operated implantable pacemaker, has over time earned respect as a worldwide leader in medical technology and has created substantial value for its shareholders. Although the company's advancements have influenced contemporary healthcare, its stock presents a more cautious narrative today.
Medtronic's decade-long underperformance stems from stagnant revenue growth, declining margins, and inconsistent returns on invested capital, despite a solid dividend history. The Diabetes segment spin-off aims to refocus Medtronic on higher-margin, growth areas, potentially improving financial metrics over time. Dividend growth has slowed significantly, with recent increases barely above 1%, reflecting rising payout ratios and limited earnings growth.
Medtronic (MDT) closed the most recent trading day at $87.17, moving +1.34% from the previous trading session.
Initiate Medtronic with Strong Buy, $161 PT, citing a structural margin inflection from Diabetes spin-off and robust innovation pipeline (120+ approvals). Street underestimates FY27 margin/EPS upside from Diabetes separation and operating leverage in Cardiac & Structural Heart—key drivers for re-rating. Valuation at 26x FY27E EPS is conservative versus peers; scenario analysis shows risk skewed to the upside, as margin catalysts execute.
I reiterate my buy rating on Medtronic, driven by solid fundamentals and an attractive valuation, despite less upside versus prior estimates. Medtronic continues to deliver steady revenue growth, robust free cash flow, and a 48-year dividend growth streak, even as sector sentiment weakens. Key risks include competitive pressures, margin threats in Diabetes and CAS, and macro headwinds like tariffs, requiring prudent management execution.