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Oct 25, 2024

Medtronic Q2 2025 Earnings Report

Medtronic's Q2 2025 financial results demonstrated strong execution and exceeded expectations, leading to raised guidance.

Key Takeaways

Medtronic reported a strong second quarter in fiscal year 2025, with revenue of $8.4 billion, a 5.3% increase as reported and 5.0% organic. GAAP diluted EPS was $0.99, while non-GAAP diluted EPS reached $1.26. The company has raised its full-year guidance for both organic revenue growth and EPS.

Revenue increased by 5.3% as reported, reaching $8.4 billion, with 5.0% organic growth.

GAAP diluted earnings per share (EPS) was $0.99, and non-GAAP diluted EPS was $1.26.

The company raised its FY25 organic revenue growth and EPS guidance.

Innovation is driving sustained growth across multiple franchises, including TAVR, PFA, leadless pacemakers, diabetes, spine, and neuromodulation.

Total Revenue
$8.4B
Previous year: $7.98B
+5.2%
EPS
$1.26
Previous year: $1.25
+0.8%
Total Organic Revenue Growth
5%
Previous year: 5%
+0.0%
Gross Profit
$5.46B
Previous year: $5.22B
+4.5%
Cash and Equivalents
$1.39B
Previous year: $1.31B
+6.3%
Free Cash Flow
$1.02B
Previous year: $721M
+41.5%
Total Assets
$90B
Previous year: $90.1B
+-0.0%

Medtronic

Medtronic

Medtronic Revenue by Segment

Medtronic Revenue by Geographic Location

Forward Guidance

Medtronic raised its FY25 organic revenue growth guidance to 4.75% to 5% and non-GAAP EPS guidance to $5.44 to $5.50.

Positive Outlook

  • FY25 organic revenue growth guidance raised to 4.75% to 5%.
  • FY25 diluted non-GAAP EPS guidance raised to $5.44 to $5.50.
  • Expect to report high-single digit adjusted EPS growth in the back half of our fiscal year.
  • Focus on underlying margin improvement.
  • Innovation driving growth.

Challenges Ahead

  • Includes an estimated -5% impact from foreign currency exchange based on recent rates.
  • SE year-over-year results were affected by a difficult comparison from prior year supply recovery in Surgical.
  • SE results were affected by a difficult comparison from prior year increased sequentially.
  • Cardiac Ablation Solutions had flat results as strong growth of the PulseSelectâ„¢ pulsed field ablation (PFA) system offset declines in cryoablation.
  • Other revenue decreased (38.9)%

Revenue & Expenses

Visualization of income flow from segment revenue to net income