Medtronic Lowers FY2026 EPS Guidance to $5.50-$5.54
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2026
0mins
The company states: "On March 18, 2026, MiniMed Group, a consolidated subsidiary of Medtronic plc announced that the FDA has cleared the MiniMed Flex, a next-generation discreet, smartphone-controlled insulin pump. The clearance of the MiniMed Flex by the FDA was several months earlier than anticipated, and will facilitate the earlier commercialization of this key MiniMed product. The research and development of the MiniMed Flex was funded in part by affiliates of Blackstone Life Sciences Advisors L.L.C. (Blackstone). Under the research and development agreement between MiniMed and Blackstone, in exchange for funding the development of the MiniMed Flex, during the first two years following regulatory approval in the U.S. and commercial launch of the MiniMed Flex, Blackstone will earn the greater of: (i) mid-to-high single digit royalty percentage of applicable net sales, and (ii) specified minimum payments. MiniMed is expected to recognize a one-time charge of $157 million in the fourth quarter of fiscal year 2026 related to the series of future payments due to Blackstone, which is expected to result in an $0.08 per share impact to Medtronic's consolidated results for the fourth quarter of fiscal year 2026, based on Medtronic's 90% ownership interest in MiniMed. These arrangements are not expected to have an impact on Medtronic's results for fiscal year 2027. In addition, as previously disclosed during the Company's Q3 earnings call, the timing of the March 9, 2026 closing of the initial public offering (IPO) of 10% of MiniMed is expected to result in dilution of approximately $0.02 per share to Medtronic shareholders for each month of the quarter following the IPO. This will result in an aggregate dilutive impact of $0.04 per share during the fourth quarter of fiscal year 2026, which ends on April 24, 2026. As a result of the foregoing factors related to MiniMed that are expected to have an impact in the fourth quarter of fiscal year 2026, on March 24, 2026, Medtronic announced that it now expects non-GAAP earnings per share (EPS) for fiscal year 2026 to be in the range of $5.50 to $5.54, a revision from the Q3 earnings call EPS guidance of $5.62 to $5.66. The Company's guidance for fiscal year 2027 of high single-digit EPS growth remains unchanged, and is based upon the prior guidance from the Q3 earnings call, prior to the MiniMed-related updates announced here."
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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: 78.150
Low
102.00
Averages
111.76
High
120.00
Current: 78.150
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.
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- Market Impact: This acquisition will diversify Medtronic's product line in the neuromodulation space, helping the company capture a larger share of the chronic pain management market and solidifying its leadership position in the medical device industry.
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- Market Demand Response: Chronic pain affects nearly 50 million U.S. adults, and SPR's SPRINT® PNS system offers a 60-day short-term pain relief treatment that aligns with the growing demand for non-invasive pain therapies, expected to expand Medtronic's customer base.
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- Stability of Medtronic: As the largest pure-play medical device company, Medtronic generates over $33.5 billion in annual revenue with net margins consistently above 10%, demonstrating strong profitability and cash flow that supports its 3.7% dividend yield.
- Dividend Growth History: AbbVie, recognized as a 'Dividend King', has raised its dividend for 50 consecutive years, with a current quarterly payout of $1.73 per share, reflecting its robust financial foundation and commitment to shareholders.
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- AbbVie's Dividend King Status: AbbVie has achieved Dividend King status by raising its dividend for 50 consecutive years, currently paying $1.73 per share, demonstrating strong financial health and stable cash flow, which is likely to continue attracting investor interest.
- Stability of Medical Device Giant: Medtronic, with annual revenues exceeding $33.5 billion, maintains a net margin above 10% despite slow growth, recently increasing its dividend to $0.71 per share, indicating ongoing profitability and future growth potential in the healthcare sector.
- Attractiveness of High-Yield Stocks: Both companies offer dividends yielding above the S&P 500 average of 1.1%, appealing to income-seeking investors, particularly in a healthcare sector that is not typically known for high dividends.
- Future Growth Outlook: With the global population aging, Medtronic is well-positioned to benefit from rising healthcare demands, while AbbVie solidifies its leadership in the pharmaceutical industry through a diverse product lineup and strong market performance.
See More
Biotech Sector Regulatory Approvals and Collaborations
- Kidney Cancer Treatment Breakthrough: HUTCHMED and Innovent received NMPA approval in China for the ELUNATE-TYVYT combination therapy, supported by the FRUSICA-2 study showing a 63% reduction in disease progression or death risk, with a median progression-free survival of 22.2 months, significantly improving patient outcomes and enhancing market competitiveness.
- Antibiotic Market Expansion: Sunshine Biopharma received Canadian approval for its generic Amoxicillin, with shipments expected to begin in August 2026, aiming to increase access to high-quality antibiotics for treating common infections, which is anticipated to drive revenue growth for the company.
- Liquid Biopsy Technology Innovation: Guardant Health gained FDA approval for Guardant360 Liquid CDx, now the largest liquid biopsy panel with a genomic footprint 100 times broader than its predecessor, enhancing tumor profiling capabilities and expected to boost the company's market share in precision medicine.
- New Hypertension Drug Launch: AstraZeneca received FDA approval for BAXFENDY for hypertension patients, based on positive results from the BaxHTN Phase III trial, which is expected to strengthen the company's competitive position in the cardiovascular drug market and further expand its product line.
See More
Medtronic to Acquire SPR Therapeutics for $650M to Enhance Neuroscience Portfolio
- Acquisition Announcement: Medtronic has announced plans to acquire SPR Therapeutics for nearly $650 million in cash, aiming to expand its neuroscience portfolio, with the deal expected to close in the first half of fiscal 2027, thereby enhancing the company's competitive edge in the market.
- Product Integration: The SPRINT PNS System from SPR Therapeutics, which is FDA-cleared, is designed to treat severe chronic pain using nerve stimulation, and is expected to provide Medtronic with new therapeutic options to meet the needs of a broader patient base.
- Market Impact: This acquisition will diversify Medtronic's product line in the neuromodulation space, helping the company capture a larger share of the chronic pain management market and solidifying its leadership position in the medical device industry.
- Strategic Significance: By integrating SPR's temporary nerve stimulation technology, Medtronic can offer less invasive treatment options while supporting patients across various stages of chronic pain management, further reinforcing its influence in the field of medical innovation.
See More
Medtronic to Acquire SPR Therapeutics, Enhancing Neuromodulation Portfolio
- Acquisition Scale: Medtronic plans to acquire SPR Therapeutics for approximately $650 million in cash, aiming to enhance its clinical capabilities in chronic pain management and further solidify its leadership position in the medical technology market.
- Integration Advantage: SPR's SPRINT® PNS System offers a 60-day short-term peripheral nerve stimulation therapy that provides pain relief without requiring permanent implants, enabling Medtronic to intervene earlier in chronic pain treatment.
- Growing Market Demand: Chronic pain affects nearly 50 million adults in the U.S., and with increasing demand for non-opioid, minimally invasive pain therapies, the PNS segment is rapidly expanding, presenting new market opportunities and revenue streams for Medtronic.
- Strategic Significance: This acquisition aligns with Medtronic's mission to improve patient quality of life through innovative technologies, while also expanding its market share in the neuromodulation field, thereby driving long-term growth in the medical technology industry.
See More
Medtronic Acquires SPR to Enhance Neuromodulation Technology
- Acquisition Scale: Medtronic plans to acquire SPR Therapeutics for approximately $650 million, aiming to enhance its temporary peripheral nerve stimulation technology for chronic pain management, thereby solidifying its leadership in the healthcare technology market.
- Market Demand Response: Chronic pain affects nearly 50 million U.S. adults, and SPR's SPRINT® PNS system offers a 60-day short-term pain relief treatment that aligns with the growing demand for non-invasive pain therapies, expected to expand Medtronic's customer base.
- Clinical Evidence Support: A retrospective study of the SPRINT PNS system shows that over 71% of participants experienced significant pain relief or improved quality of life after 60 days of treatment, enhancing Medtronic's competitive edge in pain management.
- Strategic Development Direction: This acquisition will enable Medtronic to intervene earlier in the treatment process for chronic pain patients, enhancing its product portfolio in neuromodulation and further advancing the company's mission in medical innovation.
See More
Analysis of High Dividend Stocks in Healthcare Sector
- AbbVie Dividend Performance: AbbVie currently boasts a dividend yield of 3.3%, and despite facing patent cliff challenges, the company has successfully launched 12 blockbuster drugs generating over $1 billion in annual sales, ensuring ongoing financial health and dividend growth.
- Stability of Medtronic: As the largest pure-play medical device company, Medtronic generates over $33.5 billion in annual revenue with net margins consistently above 10%, demonstrating strong profitability and cash flow that supports its 3.7% dividend yield.
- Dividend Growth History: AbbVie, recognized as a 'Dividend King', has raised its dividend for 50 consecutive years, with a current quarterly payout of $1.73 per share, reflecting its robust financial foundation and commitment to shareholders.
- Future Growth Potential: With the global population aging, Medtronic's latest dividend increase marks its 48th, indicating the company's advantageous position in the growing demand for medical care, and it is expected to continue stable profitability and dividend growth.
See More
Analysis of High Dividend Performance in Healthcare Stocks
- AbbVie's Dividend King Status: AbbVie has achieved Dividend King status by raising its dividend for 50 consecutive years, currently paying $1.73 per share, demonstrating strong financial health and stable cash flow, which is likely to continue attracting investor interest.
- Stability of Medical Device Giant: Medtronic, with annual revenues exceeding $33.5 billion, maintains a net margin above 10% despite slow growth, recently increasing its dividend to $0.71 per share, indicating ongoing profitability and future growth potential in the healthcare sector.
- Attractiveness of High-Yield Stocks: Both companies offer dividends yielding above the S&P 500 average of 1.1%, appealing to income-seeking investors, particularly in a healthcare sector that is not typically known for high dividends.
- Future Growth Outlook: With the global population aging, Medtronic is well-positioned to benefit from rising healthcare demands, while AbbVie solidifies its leadership in the pharmaceutical industry through a diverse product lineup and strong market performance.
See More
