Delivering on commitments, executing ahead of expectations, and raising guidance
Innovation driving sustained growth across many franchises: TAVR, PFA, Leadless Pacemakers, Diabetes, Spine, and Neuromodulation
GALWAY, Ireland, Nov. 19, 2024 /PRNewswire/ — Medtronic plc (NYSE: MDT) today announced financial results for its second quarter (Q2) of fiscal year 2025 (FY25), which ended October 25, 2024.
Key Highlights
Financial Results
Medtronic reported Q2 worldwide revenue of $8.403 billion, an increase of 5.3% as reported and 5.0% on an organic basis. Organic revenue growth comparison excludes:
As reported, Q2 GAAP net income and diluted earnings per share (EPS) were $1.270 billion and $0.99, respectively, representing increases of 40% and 46%, respectively. As detailed in the financial schedules included at the end of this release, Q2 non-GAAP net income and non-GAAP diluted EPS were $1.620 billion and $1.26, respectively, representing a decrease of 3% and an increase of 1%, respectively. Included in Q2 non-GAAP diluted EPS was a -9 cent impact from foreign currency translation. Non-GAAP adjusted diluted EPS grew 8% on a constant currency basis.
“Our momentum is building as we keep executing on our commitments, delivering yet another consecutive quarter of strong results that came in ahead of expectations,” said Geoff Martha, Medtronic chairman and chief executive officer. “Innovation matters, and innovation is really driving our growth today. As we look ahead, we’re confident that this diversified growth will keep going, especially given the strength of our pipeline in high-impact markets that will allow us to benefit even more patients around the world.”
Cardiovascular Portfolio
The Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions. Revenue of $3.102 billion increased 6.1% as reported and 5.6% organic, with a high-single digit increase in SHA and mid-single digit increases in CRHF and CPV, all on an organic basis.
Neuroscience Portfolio
The Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Revenue of $2.451 billion increased 7.1% as reported and 6.7% organic, with a low-double digits increase in Neuromodulation and mid-single digit increases in both CST and Specialty Therapies, all on an organic basis.
Medical Surgical Portfolio
The Medical Surgical Portfolio includes the Surgical & Endoscopy (SE) and the Acute Care & Monitoring (ACM) divisions. Revenue of $2.128 billion increased 1.2% as reported and increased 0.7% organic, with low-single digit organic increase in ACM and flat organic result in SE. SE year-over-year results were affected by a difficult comparison from prior year supply recovery in Surgical and increased high-single digits sequentially.
Diabetes
Revenue of $686 million increased 12.4% as reported and 11.0% organic.
Guidance
The company today raised its FY25 revenue growth and EPS guidance.
The company raised its FY25 organic revenue growth guidance to 4.75% to 5% versus the prior range of 4.5% to 5%. The organic revenue growth guidance excludes the impact of foreign currency and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, if recent foreign currency exchange rates hold, FY25 revenue growth on an adjusted basis would be in the range of 3.4% to 3.9%.
The company raised its FY25 diluted non-GAAP EPS guidance to the new range of $5.44 to $5.50 versus the prior $5.42 to $5.50. This includes an estimated -5% impact from foreign currency exchange based on recent rates, unchanged from the prior guidance. The company’s guidance represents FY25 diluted non-GAAP EPS growth in the range of 4.6% to 5.8%.
“We’re restoring our earnings power through our focus on underlying margin improvement, delivering another quarter of high-single digit constant currency adjusted EPS growth,” said Gary Corona, Medtronic interim chief financial officer. “And now, as the impact from foreign currency abates, we expect to report high-single digit adjusted EPS growth in the back half of our fiscal year, in line with our long-term commitment to deliver durable, mid-single digit organic revenue growth with EPS leverage.”
FY24 Impact Report
Today, Medtronic released its FY24 Impact Report demonstrating the company’s sustainability progress. Medtronic also launched a new Impact webpage and FY24 Highlights Report featuring notable key performance indicators and stories, as well as an online Data Hub that shows the company’s commitment to transparent disclosure and reporting:
Video Webcast Information
Medtronic will host a video webcast today, November 19, at 8:00 a.m. EST (7:00 a.m. CST) to provide information about its businesses for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Events icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company’s prepared remarks will be available by clicking on the Events icon at investorrelations.medtronic.com.
Medtronic plans to report its FY25 third and fourth quarter results on Tuesday, February 18, 2025, and Wednesday, May 21, 2025, respectively. Confirmation and additional details will be provided closer to the specific event.
Financial Schedules and Earnings Presentation
The second quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Investor Events link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the first quarter earnings presentation, click here.
MEDTRONIC PLC
WORLD WIDE REVENUE(1)
(Unaudited)
SECOND QUARTER
YEAR-TO-DATE
REPORTED
ORGANIC
REPORTED
ORGANIC
(in millions)
FY25
FY24
Growth
Currency
Impact(3)
Adjusted
FY25(4)
Adjusted
FY24(4)
Growth
FY25
FY24
Growth
Currency
Impact(3)
Adjusted
FY25(5)
Adjusted
FY24(5)
Growth
Cardiovascular
$ 3,102
$ 2,923
6.1 %
$ 16
$ 3,086
$ 2,923
5.6 %
$ 6,108
$ 5,773
5.8 %
$ (23)
$ 6,132
$ 5,773
6.2 %
Cardiac Rhythm & Heart Failure
1,578
1,492
5.8
11
1,567
1,492
5.0
3,114
2,938
6.0
(8)
3,122
2,938
6.2
Structural Heart & Aortic
881
819
7.6
4
877
819
7.1
1,736
1,633
6.3
(8)
1,744
1,633
6.8
Coronary & Peripheral Vascular
643
613
4.9
1
642
613
4.8
1,259
1,202
4.7
(7)
1,266
1,202
5.3
Neuroscience
2,451
2,288
7.1
10
2,441
2,288
6.7
4,768
4,506
5.8
(8)
4,776
4,506
6.0
Cranial & Spinal Technologies
1,234
1,157
6.7
3
1,231
1,157
6.4
2,382
2,260
5.4
(6)
2,387
2,260
5.6
Specialty Therapies
737
705
4.6
5
732
705
3.9
1,450
1,400
3.5
(2)
1,452
1,400
3.7
Neuromodulation
480
426
12.6
2
478
426
12.1
937
846
10.8
(1)
938
846
10.9
Medical Surgical
2,128
2,103
1.2
10
2,117
2,103
0.7
4,123
4,107
0.4
(18)
4,142
4,107
0.8
Surgical & Endoscopy
1,649
1,641
0.5
9
1,641
1,641
—
3,193
3,187
0.2
(13)
3,207
3,187
0.6
Acute Care & Monitoring
478
462
3.6
1
477
462
3.3
930
921
1.0
(5)
935
921
1.6
Diabetes
686
610
12.4
9
678
610
11.0
1,333
1,189
12.1
5
1,329
1,189
11.8
Total Reportable Segments
8,366
7,923
5.6
45
8,322
7,923
5.0
16,333
15,575
4.9
(46)
16,379
15,575
5.2
Other(2)
37
61
(38.9)
—
—
—
—
(15)
111
(113.5)
(2)
—
—
—
TOTAL
$ 8,403
$ 7,984
5.3 %
$ 45
$ 8,322
$ 7,923
5.0 %
$ 16,318
$ 15,686
4.0 %
$ (48)
$ 16,379
$ 15,575
5.2 %
(1)
The data in this schedule has been intentionally rounded to the nearest million an
