Needham reiterates Hold rating on Medtronic stock ahead of earnings

Published 15/08/2025, 11:10
Needham reiterates Hold rating on Medtronic stock ahead of earnings

Investing.com - Needham maintained its Hold rating on Medtronic, Inc. (NYSE:MDT), the $118 billion medical device maker trading near its 52-week high, ahead of its upcoming fiscal first-quarter earnings report. According to InvestingPro data, the stock currently shows a GOOD financial health score.

The medical technology company, which maintains a solid 65% gross profit margin and has raised dividends for 11 consecutive years, is scheduled to release its F1Q26 results on Tuesday, August 19, 2025, at 6:45 am ET, followed by an earnings webcast at 8:00 am ET.

Needham expects Medtronic to exceed consensus revenue and earnings per share estimates for the quarter, citing new product launches, healthy market growth, favorable currency movements, and what it describes as management’s conservative guidance.

The research firm also anticipates Medtronic will raise its fiscal year 2026 revenue and EPS guidance based on first-quarter performance, favorable currency conditions, and tariff reductions or mitigation strategies.

While Needham believes Medtronic is in the early stages of a strong product cycle led by its Affera PFA system, Symplicity RDN system, Simplera Sync CGM, and Hugo robot, the firm maintains its Hold rating until there are signs of meaningful and sustainable acceleration in organic growth.

In other recent news, Medtronic plc announced a quarterly cash dividend of $0.71 per ordinary share for the second quarter of fiscal year 2026, payable on October 17, 2025. The company also received CE Mark approval to expand the indications for its MiniMed 780G automated insulin delivery system across Europe. This expansion now includes individuals as young as 2 years old, pregnant women, and those with type 2 insulin-requiring diabetes. Additionally, the Centers for Medicare and Medicaid Services (CMS) proposed coverage for Renal Denervation (RDN) procedures, which could increase Medicare and Medicaid patient adoption. The proposal covers both Medtronic’s radiofrequency-based RDN and Recor Medical’s ultrasound-based RDN. Raymond James noted that the proposal aligns with Medtronic’s clinical trial parameters. Following this proposal, William Blair reiterated a Market Perform rating on Medtronic stock. The final decision from CMS is expected before October 8, 2025.

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