Highlights
- Revenue Miss: Reported $8.29 billion, slightly below the $8.32 billion consensus.
- EPS Beat: Adjusted EPS of $1.39, exceeding the $1.36 consensus.
- Revenue Growth: 2.5% increase year over year, 4.1% organic growth.
- Cardiovascular Revenue: $3.04 billion, up 3.7% reported, 5% organic.
- Neuroscience Revenue: $2.46 billion, up 4.4% reported, 5.2% organic.
- Medical Surgical Revenue: $2.07 billion, down 1.9% reported, 0.4% organic.
- Diabetes Revenue: $694 million, up 8.4% reported, 10.4% organic.
- FY25 Guidance: Organic revenue growth of 4.75%-5%, adjusted EPS of $5.44-$5.50.
Medtronic Plc (NYSE:MDT) announced its third-quarter fiscal 2025 earnings on Tuesday, reporting a revenue increase but falling just short of Wall Street estimates. While the company saw strong performance in its Cardiovascular, Neuroscience, and Diabetes segments, weakness in Medical Surgical weighed on results.
Financial Performance: Mixed Results
Medtronic’s total revenue came in at $8.29 billion, missing the consensus estimate of $8.32 billion. However, adjusted EPS of $1.39 surpassed the forecasted $1.36, reflecting strong cost management and operational efficiencies.
Year-over-year, revenue increased by 2.5%, with organic growth at 4.1%, signaling steady demand across core business segments despite macroeconomic challenges.
Segment Breakdown: Growth in Key Divisions
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Cardiovascular: Revenue reached $3.04 billion, growing 3.7% as reported and 5% organically. Notable gains were seen in Cardiac Rhythm & Heart Failure and Structural Heart & Aortic, both posting mid-single-digit organic growth. Coronary & Peripheral Vascular had a low-single-digit organic increase.
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Neuroscience: Revenue rose 4.4% as reported to $2.46 billion, with organic growth of 5.2%. The Neuromodulation division led with a low-double-digit increase, while Cranial & Spinal Technologies saw mid-single-digit growth, and Specialty Therapies posted a low-single-digit organic increase.
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Medical Surgical: The segment saw a decline, with revenue down 1.9% reported to $2.07 billion and 0.4% organically. Surgical & Endoscopy remained flat, while Acute Care & Monitoring saw a low-single-digit organic decline.
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