Medtronic to Spin Off Diabetes Unit, Focus on Profitable Growth
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 18 2026
0mins
Should l Buy MDT?
Source: Fool
- Business Focus: Medtronic plans to spin off its diabetes unit into a standalone public company by the end of 2026, as this segment accounted for only 8% of revenue but contributed just 4% of operating profits in fiscal 2025, allowing for a sharper focus on B2B operations and unlocking higher profit growth potential.
- New Growth Driver: Medtronic received regulatory approval for the Hugo system, a robotic-assisted surgery device for urologic procedures, which, while not expected to boost revenue significantly in the short term, opens up a long-term opportunity in an underpenetrated robotic surgery market with attractive growth prospects.
- Dividend Growth Streak: Medtronic has increased its dividends for 48 consecutive years, currently offering a 3% yield, and is on track to become a Dividend King in the next few years, making it an attractive option for income-seeking investors.
- Competitive Advantage: Despite stiff competition from other medical device leaders, Medtronic's entry into the robotic surgery market represents a significant strategic development, and as shipments of the Hugo system gain traction, it is expected to positively impact the company's financial performance.
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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: 86.060
Low
102.00
Averages
111.76
High
120.00
Current: 86.060
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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