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Investing.com - Raymond (NSE:RYMD) James has reiterated its Market Perform rating on Medtronic , Inc. (NYSE:MDT), a healthcare equipment giant with $33.54 billion in revenue, following the company’s first-quarter earnings report. According to InvestingPro analysis, the stock is currently trading near its Fair Value.
Medtronic’s first-quarter revenue exceeded consensus estimates by approximately 2%, primarily due to favorable foreign exchange rates and "Other" revenue contributions, while organic growth of 4.8% year-over-year aligned with expectations.
The medical device maker demonstrated solid gross margin performance, though operating margin fell short of projections. The company reported earnings per share growth of 2% year-over-year on an adjusted basis.
Medtronic maintained its organic revenue growth guidance of approximately 5%, but raised its adjusted earnings per share outlook due to favorable foreign exchange conditions and reduced tariff burdens. The updated guidance implies 2-3% year-over-year growth, or 4-5% excluding tariff impacts.
The company also announced the appointment of two new members to its Board of Directors, a development connected to the involvement of activist shareholder Elliott, aimed at initiating new value creation initiatives.
In other recent news, Medtronic reported earnings that surpassed expectations by $195 million, equating to $0.03 per share. This performance was bolstered by strong results in several segments, with the Cardiovascular division exceeding Street estimates by $92 million, and the Diabetes and MedSurg segments also performing better than anticipated by $22 million and $38 million, respectively. Additionally, Medtronic announced the appointment of two new independent directors, John Groetelaars and Bill Jellison, to its board, along with the formation of special committees aimed at enhancing growth and operations.
In terms of analyst perspectives, Mizuho (NYSE:MFG) reiterated its Outperform rating on Medtronic with a $100 price target, reflecting confidence in the company’s recent performance. Meanwhile, Raymond James maintained a Market Perform rating, noting Medtronic’s stock performance relative to the broader medical technology sector. Needham also reiterated a Hold rating as the company prepares for its upcoming fiscal first-quarter earnings report.
Furthermore, Medtronic declared a quarterly dividend of $0.71 per share for the second quarter of fiscal year 2026, payable on October 17, 2025. These developments highlight Medtronic’s strategic initiatives and financial activities, providing investors with key insights into the company’s current trajectory.
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