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Medtronic
S&P 500
🏹 Trader: 🎯 Near 52W High View all →
$119.7B
Market Cap
22.3
P/E
2.63
PEG
7.5%
ROCE
9.8%
ROE
0.56
D/E
17.8%
OPM
-11.4%
% from 52W High
64
α RS
🔍 MDT is showing a sector-leadership setup because Sector RRG has Health Care in the Leading quadrant with the trail still strengthening, RS Rating is 64, and an ECS of 56.8 last quarter. Net: Broad signal stack, not a recommendation. ? RRG RS Rating ECS
Sources
Health Care in Leading quadrant · RS Rating 64 · ECS 56.8
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About

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients in the United States, Ireland, and internationally.

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Good quarter Investor Presentation One-Pager? Q4 2026
Revenue
$9.8B
+9.9% reported; +6.6% organic YoY
Operating Income (Non-GAAP)
$2.5B
+0.6% YoY
Operating Margin (Non-GAAP)
25.5%
-2.3pp YoY (incl. 160bps Blackstone payment and 80bps tariffs)
Net Income (Non-GAAP)
$1.998B
-3.9% YoY
Adjusted EPS (Non-GAAP)
$1.55
-4.3% YoY
What Went Right
  • Cardiac Ablation Solutions grew 78% globally (124% US), gaining 8 points of US share.
  • Symplicity Spyral annualizing at $100M; weekly procedure volumes doubled since NCD.
  • Hugo RAS submitted for FDA clearance for general surgery, gynecologic, and LigaSure RAS indications.
What to Watch
  • TAVR business slowed due to low-risk data; stabilized over last 8-10 weeks but remains a near-term headwind.
  • Gross margin impacted by ~80bps from tariffs ($74M in Q4) and unfavorable product mix; FY27 tariff headwind expected at $250M.
  • Non-GAAP operating margin declined 230bps YoY, partially due to Blackstone milestone payment and tariffs; MedSurg ACM growth expected to normalize in FY27.
Management Guidance
  • FY27 organic revenue growth of 6.75%-7.25%, including ~125bps from extra selling week and ~25bps from Diabetes tailwind.
  • FY27 adjusted EPS guidance of $5.90-$6.00 (includes full year Diabetes, $250M tariffs, 2% M&A dilution).
  • Q1 FY27 organic revenue growth ~11.5%-12%; Q1 EPS $1.38-$1.40 (incl. 600-700bps extra week benefit).
Investor Lens
The thesis is stronger after this call. Medtronic delivered its strongest annual revenue growth in a decade (5.8% organic FY26) and is accelerating into FY27 with a 6.75%-7.25% organic guidance. Key growth platforms—CAS, Symplicity, Hugo, Altaviva—are gaining momentum and early innings. Management is investing aggressively in M&A and ventures while returning capital to shareholders. Near-term headwinds from tariffs and TAVR are manageable and factored into guidance. The diversified portfolio and disciplined execution justify a positive view.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong finish to FY26; FY27 guidance implies continued acceleration
Revenue
Q4 FY26 revenue was $9.8B, up 9.9% reported and 6.6% organically, 90bps ahead of implied guidance. Full-year revenue reached $36.4B (5.8% organic). Cardiovascular grew 10.1% (led by CAS +78%), Neuroscience +3.0%, Medical Surgical +5.1%, and Diabetes +8.1% organic.
Profitability
Q4 GAAP net income was $1.243B ($0.96 EPS); non-GAAP net income was $1.998B ($1.55 EPS), above the midpoint of guidance and street expectations. Non-GAAP EPS declined 4.3% YoY due to the Blackstone milestone payment and tariffs.
Margins
Adjusted gross margin was 65.4%, up 30bps YoY, benefiting from disciplined pricing (+30bps) and cost-down programs (+60bps), partly offset by unfavorable mix (-60bps) and tariffs (-80bps). Adjusted operating margin was 25.5%, down 230bps YoY, inclusive of 160bps from the Blackstone payment and 80bps from tariffs.
Balance Sheet
Free cash flow for FY26 was $5.4B, the strongest since FY22. The company ended the year with $9.2B in cash and investments. CapEx grew ~$50B but at a lower rate than revenue. $4.2B returned to shareholders in dividends and buybacks during FY26.
Key Risks
Two key risks flagged: (1) Tariffs: $250M COGS impact in FY27, with no government refund assumed in guidance; (2) TAVR: Market slowdown due to low-risk data, though volumes have stabilized over the last eight weeks. Additionally, the Middle East conflict is causing higher fuel and transportation costs (~1-point headwind).
Outlook
Management guides FY27 organic revenue growth of 6.75%-7.25% (underlying ~5.5%-6% ex-extra week) and FY27 adjusted EPS of $5.90-$6.00. Q1 FY27 organic growth is expected at 11.5%-12% driven by an extra selling week. The company remains confident in durable growth driven by innovation and market development.
Generated by AI · Q4 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q4 2026 Q4 2026 2026-06-03
Q4 and FY26 delivered strong revenue and EPS growth, with robust performance across key segments and significant progress in innovation and portfolio focus. FY27 guidance anticipates continued top-line acceleration, margin leverage, and ongoing investment despite tariff and macro headwinds.
Q3 2026 Q3 2026 2026-02-17
Q3 FY26 delivered 6% organic revenue growth, the highest in 10 quarters, with strong performance in CAS, CRM, and diabetes. Guidance for FY26 and FY27 remains robust, with high single-digit EPS growth expected, supported by innovation, new product launches, and disciplined capital allocation.
Q2 2026 Q2 2026 2025-11-18
Q2 delivered strong revenue and EPS growth, driven by robust performance in cardiac ablation, Simplicity, and AltaViva launches. Full-year guidance for both revenue and EPS was raised, with accelerating momentum expected in the second half and into 2027.
Q1 2026 Q1 2026 2025-08-19
Q1 FY26 saw 4.8% organic revenue growth and EPS above guidance, led by strong Cardiovascular and Diabetes performance. Full-year EPS guidance was raised, with accelerating growth expected from new product launches and business mix improvements. Governance enhancements and the Diabetes separation are set to drive further value creation.
Q4 2025 Q4 2025 2025-05-21
Q4 revenue grew 5.4% organically, with strong cardiovascular, neuromodulation, and diabetes growth. FY26 guidance calls for ~5% organic revenue and ~4% EPS growth, excluding tariffs, and the diabetes business will be separated via IPO and spinoff, expected to boost margins and EPS.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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