Medtronic tops Q4 forecasts, misses on outlook; plans to spin off diabetes unit

Published 21/05/2025, 12:00

Investing.com -- Medtronic (NYSE:MDT) reported fourth-quarter results that surpassed analyst estimates, while its full-year guidance fell short of expectations. In addition to financial results, the medical device maker also announced plans to spin off its Diabetes business.

Medtronic shares rose less than 1% in premarket trading Wednesday after the release. 

For the fourth quarter of fiscal 2025, Medtronic reported fourth-quarter earnings per share (EPS) of $1.62, topping analysts’ expectations of $1.58. Revenue for the period climbed 3.6% year-over-year to $8.93 billion, also ahead of the $8.82 billion consensus estimate.

The company posted an adjusted operating margin of 27.8%, an improvement from 26.9% a year earlier, though slightly below the 28.5% analysts had forecast.

Medtronic also raised its quarterly dividend for the first quarter of fiscal 2026 to $0.71 per share, implying an annual payout of $2.84 per share.

"We had a strong close to our fiscal year, and I’m excited to see the progress we are making as our growth drivers continue to build momentum. Operationally, we translated our accelerating revenue growth into earnings leverage, as we delivered at the upper end of the commitments that we laid out a year ago," said said Geoff Martha, Medtronic chairman and CEO.

"The underlying fundamentals of our business are strong, and they are getting stronger. We are now at an inflection point as we accelerate our speed of travel to higher, more profitable growth," he added. 

For fiscal year 2026, Medtronic expects earnings per share in the range of $5.50 to $5.60, which falls short of the $5.83 analysts had projected. The company is guiding for approximately 5% organic revenue growth for the year.

Medtronic also said it intends to spin off its Diabetes business. "The separation is expected to be completed within 18 months through a series of capital markets transactions, with a preferred path of an initial public offering (IPO) and subsequent split-off," the company wrote in the announcement. 

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