The chart below shows how MDT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, MDT sees a +0.53% change in stock price 10 days leading up to the earnings, and a +0.22% change 10 days following the report. On the earnings day itself, the stock moves by -1.49%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Earnings Per Share Beat: Medtronic reported an EPS of $1.39, exceeding expectations of $1.36.
Consistent Revenue Growth: The company achieved mid-single-digit revenue growth for the ninth consecutive quarter.
Cardiac Ablation Growth: Cardiac ablation solutions saw a remarkable 22% growth driven by the PFA portfolio.
Segment Growth Highlights: Double-digit growth was recorded in leadless pacing, neuromodulation, and diabetes segments.
Structural Heart Growth: High-single-digit growth was noted in structural heart excluding congenital and U.S. cranial and spinal technologies.
Innovation in Renal Denervation: Medtronic is advancing its innovation pipeline, particularly in renal denervation, opening up a large total addressable market in MedTech.
Negative
Revenue Growth Stagnation: Despite beating earnings expectations, the company reported only mid-single-digit revenue growth for the ninth consecutive quarter, indicating a potential stagnation in growth momentum.
Segment Growth Performance Analysis: Certain segments, while showing growth, did not perform as strongly as anticipated; for instance, structural heart excluding congenital and U.S. cranial and spinal technologies only grew high-single-digits, which may not meet investor expectations for more robust growth.
Product Line Dependency Concerns: The reliance on specific product lines for growth, such as the 22% growth in cardiac ablation solutions, raises concerns about the sustainability of revenue streams if these segments face market challenges.
Financial Guidance Clarity: The company’s guidance does not include any charges or gains that would be reported as non-GAAP adjustments, which may obscure the true financial health of the company and lead to potential investor skepticism.
Innovation vs. Resource Allocation: The mention of 'groundbreaking innovation' in the context of renal denervation suggests that the company is heavily investing in new technologies, which could divert resources from existing product lines that may need more support.
Medtronic plc (NYSE:MDT) Q3 2025 Earnings Call Transcript
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