Delivering durable revenue growth with strong earnings power; strength in Pulsed Field Ablation, Pacing, Structural Heart, Diabetes, and Neuromodulation
GALWAY, Ireland, Feb. 18, 2025 /PRNewswire/ — Medtronic plc (NYSE: MDT) today announced financial results for its third quarter (Q3) of fiscal year 2025 (FY25), which ended January 24, 2025.
Key Highlights
Financial Results
Medtronic reported Q3 worldwide revenue of $8.292 billion, an increase of 2.5% as reported and 4.1% on an organic basis. Organic revenue growth comparison excludes:
As reported, Q3 GAAP net income and diluted earnings per share (EPS) were $1.294 billion and $1.01, respectively, representing a decrease of 2% and an increase of 2%, respectively. As detailed in the financial schedules included at the end of this release, Q3 non-GAAP net income and non-GAAP diluted EPS were $1.787 billion and $1.39, respectively, representing increases of 3% and 7%, respectively.
“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 chief executive officer. “We are starting to see the results from our long term investments in groundbreaking innovation, such as pulsed field ablation, to drive growth in some of the most attractive markets in MedTech.”
Cardiovascular Portfolio
The Cardiovascular Portfolio includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions. Revenue of $3.037 billion increased 3.7% as reported and 5.0% organic, with mid-single digit increases in CRHF and SH&A, and a low-single digit increase in CPV, all on an organic basis.
Neuroscience Portfolio
The Neuroscience Portfolio includes the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions. Revenue of $2.458 billion increased 4.4% as reported and 5.2% organic, with a low-double digit increase in Neuromodulation, mid-single digit increase in CST, and low-single digit increase in 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 $2.072 billion decreased 1.9% as reported and decreased 0.4% organic, with flat organic result in SE and low-single digit organic decline in ACM.
Diabetes
Revenue of $694 million increased 8.4% as reported and 10.4% organic.
Guidance
Medtronic today reiterated its revenue growth and EPS guidance for FY25.
The company continues to expect FY25 organic revenue growth in the range of 4.75% 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 would be in the range of 3.4% to 3.8%.
The company continues to expect FY25 diluted non-GAAP EPS in the range of $5.44 to $5.50. This includes an estimated -5% impact from foreign currency exchange based on recent rates. The company’s guidance represents FY25 diluted non-GAAP EPS growth in the range of 4.6% to 5.8%.
“EPS came in above the high end of our guidance range. We were pleased with the operational performance of the business this quarter, turning mid-single digit organic growth into leveraged earnings, highlighted by healthy gross margin improvement,” said Gary Corona, Medtronic interim chief financial officer. “Looking ahead, our restored earnings power continues. We will accelerate both top and bottom line growth in Q4, resulting in high-single digit adjusted EPS growth in the back half of our fiscal year.”
Video Webcast Information
Medtronic will host a video webcast today, February 18, 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 fourth quarter results on Wednesday, May 21, 2025. For fiscal year 2026, Medtronic plans to report its first, second, third, and fourth quarter results on Tuesday, August 19, 2025, November 18, 2025, February 17, 2026, and Wednesday, May 20, 2026, respectively. Confirmation and additional details will be provided closer to the specific event.
Financial Schedules and Earnings Presentation
The third 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 third quarter earnings presentation, click here.
MEDTRONIC PLC
WORLD WIDE REVENUE(1)
(Unaudited)
THIRD 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
$ 3,037
$ 2,929
3.7 %
$ (38)
$ 3,075
$ 2,929
5.0 %
$ 9,145
$ 8,702
5.1 %
$ (62)
$ 9,207
$ 8,702
5.8 %
Cardiac Rhythm & Heart Failure
1,545
1,470
5.1
(18)
1,563
1,470
6.3
4,659
4,408
5.7
(26)
4,684
4,408
6.3
Structural Heart & Aortic
874
843
3.7
(13)
887
843
5.2
2,610
2,475
5.4
(21)
2,631
2,475
6.3
Coronary & Peripheral Vascular
618
616
0.3
(8)
626
616
1.6
1,876
1,818
3.2
(15)
1,891
1,818
4.0
Neuroscience
2,458
2,355
4.4
(21)
2,478
2,355
5.2
7,226
6,861
5.3
(29)
7,255
6,861
5.7
Cranial & Spinal Technologies
1,250
1,204
3.8
(9)
1,259
1,204
4.6
3,632
3,465
4.8
(15)
3,646
3,465
5.2
Specialty Therapies
732
726
0.8
(8)
740
726
1.9
2,181
2,126
2.6
(10)
2,191
2,126
3.1
Neuromodulation
476
425
12.0
(4)
480
425
12.9
1,413
1,270
11.2
(5)
1,417
1,270
11.6
Medical Surgical
2,072
2,112
(1.9)
(32)
2,104
2,112
(0.4)
6,196
6,219
(0.4)
(50)
6,246
6,219
0.4
Surgical & Endoscopy
1,596
1,616
(1.2)
(26)
1,622
1,616
0.4
4,790
4,803
(0.3)
(40)
4,829
4,803
0.5
Acute Care & Monitoring
476
495
(3.9)
(5)
481
495
(2.8)
1,406
1,416
(0.7)
(10)
1,417
1,416
—
Diabetes
694
640
8.4
(12)
706
640
10.4
2,027
1,829
10.8
(8)
2,035
1,829
11.3
Total Reportable Segments
8,260
8,035
2.8
(103)
8,363
8,035
4.1
24,593
23,610
4.2
(149)
24,742
23,610
4.8
Other(2)
32
53
(41.1)
(1)
—
—
—
17
164
(89.9)
(3)
—
—
—
TOTAL
$ 8,292
$ 8,089
2.5 %
$ (104)
$ 8,363
$ 8,035
4.1 %
$ 24,610
$ 23,775
3.5 %
$ (152)
$ 24,742
$ 23,610
4.8 %
(1)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(2)
Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested, and specifically for the three months ended July 26, 2024, impacting year-to-date figures, $90 million of incremental Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court of Italy relating to certain prior years since 2015.
(3)
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
(4)
The three months ended January 24, 2025 excludes $71 million of revenue adjustments related to $32 million of inorganic revenue for the transition activity noted in (2) and $103 million of unfavorable currency impact on the remaining segments. The three months ended January 26, 2024 excludes $53 million of inorganic revenue related to the transition activity noted in (2).
(5)
The nine months ended January 24, 2025 excludes $132 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2), $106 million of inorganic revenue related to the transition activity noted in (2), and $149 million of unfavorable currency impact on the remaining segments. The nine months ended January 26, 2024 ex
