Medtronic Q3 earnings beat estimates, revenue misses

Published 18/02/2025, 12:56

Investing.com -- Medtronic plc reported third-quarter fiscal 2025 earnings that beat analyst estimates, while revenue fell short of expectations. The medical device maker reiterated its full-year guidance as it sees continued strength in key segments.

Medtronic (NYSE:MDT) posted adjusted earnings per share of $1.39 for the quarter ended January 24, 2025, surpassing the analyst consensus of $1.36. Revenue came in at $8.29 billion, slightly below the $8.33 billion analysts had forecast. The company's stock edged down 0.33% following the results.

Revenue grew 2.5% year-over-year, as reported, and 4.1% on an organic basis. The Cardiovascular portfolio saw 5% organic growth, driven by strong performance in cardiac ablation solutions and structural heart products. The Neuroscience segment posted 5.2% organic growth, with double-digit increases in neuromodulation.

"We delivered strong earnings this quarter, with significant improvements in both our gross margin and operating margin on the back of our ninth quarter in a row of mid-single digit organic revenue growth," said Geoff Martha, Medtronic chairman and CEO.

The company's Diabetes segment showed notable improvement, with revenue increasing 10.4% organically. This was attributed to the continued adoption of the MiniMed 780G automated insulin delivery system in the U.S. and increasing continuous glucose monitoring attachment rates internationally.

Medtronic reiterated its fiscal 2025 guidance, expecting organic revenue growth of 4.75% to 5% and adjusted EPS between $5.44 and $5.50. This outlook aligns with the current analyst consensus of $5.45 per share.

The company highlighted progress in key growth areas, including the rapid adoption of its pulsed field ablation systems and the expected Medicare coverage for renal denervation in treating hypertension by October 2025.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.