| Delivering durable revenue growth with strong earnings power; strength in Pulsed Field Ablation, Pacing, Structural Heart, Diabetes, and Neuromodulation. |
| Medtronic plc (NYSE: MDT) today announced financial results for its third quarter (Q3) of fiscal year 2025 (FY25), which ended January 24, 2025. |
| Key Highlights |
- Revenue of $8.3 billion increased by 2.5%, as reported,d and 4.1% organic
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- GAAP diluted EPS of $1.01 increased 2%; non-GAAP diluted EPS of $1.39 increased 7%
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- The company reiterates full-year revenue and EPS guidance
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- Cardiac Ablation Solutions' revenue increased in the low 20s on the strength of pulsed-field ablation (PFA) products
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- U.S. Centers for Medicare and Medicaid (CMS) announced coverage for Renal Denervation for the treatment of Hypertension expected to become final on or before October 11, 2025
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| Financial Results
Medtronic reported Q3 worldwide revenue of $8.292 billion, an increase of 2.5% as reported and 4.1% on an organic basis. Organic revenue growth comparison excludes: |
- Other revenue of $32 million in the current year and $53 million in the prior year; and
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- Foreign currency translation of -$103 million on the remaining segments.
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| As reported, Q3 GAAP net income and diluted earnings per share (EPS) were $1.294 billion and $1.01, respectively, representing a decrease of 2% and an increase of 2%, respectively. As detailed in the financial schedules included at the end of this release, Q3 non-GAAP net income and non-GAAP diluted EPS were $1.787 billion and $1.39, respectively, representing increases of 3% and 7%, respectively. |
| "We delivered strong earnings this quarter, with significant improvements in both our gross margin and operating margin on the back of our ninth quarter in a row of mid-single digit organic revenue growth," said Geoff Martha, Medtronic chairman and chief executive officer. "We are starting to see the results from our long-term investments in groundbreaking innovation, such as pulsed-field ablation, to drive growth in some of the most attractive markets in MedTech." |
| Cardiovascular Portfolio
The Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions. Revenue of $3.037 billion increased 3.7% as reported and 5.0% organic, with mid-single-digit increases in CRHF and SH&A and a low-single-digit increase in CPV, all on an organic basis. |
- CRHF results included mid-single digit growth in Cardiac Rhythm Management, driven by low-double digit growth in Cardiac Pacing Therapies, including mid-20s growth in Micra™ transcatheter pacing systems; Cardiac Ablation Solutions achieved low-20s growth on rapid adoption of the PulseSelect™ and Affera™ Sphere-9™ PFA systems
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- SHA results driven by high-single-digit Structural Heart growth, excluding congenital, on the continued strength of the Evolut™ FX+ TAVR system and high-single-digit growth in Cardiac Surgery
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- CPV growth driven by high-single-digit growth in balloons and mid-single-digit growth in guide catheters and drug-coated balloons
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- Recent U.S. FDA approval for an additional pulsed field ablation manufacturing site in Galway immediately boosts Affera™ supply
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- Expanded U.S. presence in thefastt-growing carotid market with exclusive Contego Medical distribution agreement; includes recently FDA-approved carotid stenting system and the option to acquire; Contego Medical running a clinical trial on next-generation trans carotid artery revascularization (TCAR) system.m
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- Announced CMS opened a National Coverage Analysis (NCA) on Renal Denervation for the treatment of hypertension, with coverage expected to become final on or before October 11, 2025
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| Neuroscience Portfolio
The Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Revenue of $2.458 billion increased 4.4% as reported and 5.2% organic, with a low-double-digit increase in Neuromodulation, a mid-single digit increase in CST, and a low-single-digit increase in Specialty Therapies, all on an organic basis. |
- CST driven by high-single-digit Neurosurgery growth on continued adoption of the AiBLE™ ecosystem of enabling technology; CST in the U.S. grew high-single digits, winning share
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- Speciality Therapies results were driven by mid-single digit growth in Pelvic Health on the continued adoption of the InterStim X™ system; ENT grew low-single digits on strength in PTeye™ capital and disposables; Neurovascular, excluding China, grew mid-single digit with strength in flow diversion.
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- Neuromodulation above market performance driven by low-double digit Pain Stim growth, including high-teens U.S. growth, on the continued launch of the Inceptiv™ spinal cord stimulator; Brain Modulation grew mid-teens globally and mid-twenties in the U.S. on the continued launch of the Percept™ RC deep brain stimulator (DBS) with BrainSense™ technology
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- Received CE Mark for BrainSense™ Adaptive Deep Brain Stimulation (aDBS), a real-time closed-loop system
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| Medical Surgical Portfolio
The Medical Surgical Portfolio includes the Surgical & Endoscopy (SE) and the Acute Care & Monitoring (ACM) divisions. Revenue of $ 2.072 billion decreased by 1.9%, as reported, and decreased by 0.4% organic, with flat organic results in SE and a low-single-digit organic decline in ACM. |
- SE results were affected by ongoing stapling segment pressures and a transient change in U.S. distributor buying patterns, partially offset by high-single-digit growth in Emerging Markets and high-single-digit growth in Advanced Energy on the continued adoption of LigaSure™ vessel sealing technology.
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- ACM performance included high single-digit declines in Nellcor™ blood oxygen management products on a 30% year-over-year market decline in U.S. respiratory-related hospitalizations in the quarter; this was partially offset by high-single-digit growth in Perioperative Complications
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| Diabetes
Revenue of $694 million increased 8.4% as reported and 10.4% organic. |
- U.S. revenue grew mid-single digits on the continued adoption of the MiniMed™ 780G automated insulin delivery (AID) system, with an increase in the MiniMed™ 780G installed base and strong CGM attachment rates
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- International revenue grew low-double digits on increasing CGM attachment as users upgraded to the Simplera Sync™ sensor.
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| Guidance
Medtronic today reiterated its revenue growth and EPS guidance for FY25. |
| The company continues to expect FY25 organic revenue growth in the range of 4.75% to 5%. The organic revenue growth guidance excludes the impact of foreign currency and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, if recent foreign currency exchange rates hold, FY25 revenue growth would be in the range of 3.4% to 3.8%. |
| The company continues to expect FY25 diluted non-GAAP EPS in the range of $5.44 to $5.50. This includes an estimated -5% impact from foreign currency exchange based on recent rates. The company's guidance represents FY25 diluted non-GAAP EPS growth in the range of 4.6% to 5.8%. |
| "EPS came in above the high end of our guidance range. We were pleased with the operational performance of the business this quarter, turning mid-single digit organic growth into leveraged earnings, highlighted by healthy gross margin improvement," said Gary Corona, Medtronic interim chief financial officer. "Looking ahead, our restored earnings power continues. We will accelerate both top and bottom line growth in Q4, resulting in high-single-digit adjusted EPS growth in the back half of our fiscal year." |
| Financial Schedules and Earnings Presentation
The third-quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Investor Events link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the third quarter earnings presentation, click here. |
| For the full document, click the link below: |
| Medtronic plc |
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