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Jan 24

Medtronic Q3 2025 Earnings Report

Medtronic Q3 2025 Earnings Report

Key Takeaways

Medtronic reported revenue growth of 2.5% YoY, with strong performance in Pulsed Field Ablation, Neuromodulation, and Diabetes. Adjusted EPS grew 7% YoY, driven by operating margin expansion. The company reiterated its full-year guidance.

Revenue grew 2.5% YoY to $8.29 billion (+4.1% organic).

Adjusted EPS increased 7% YoY to $1.39.

Strong growth in Pulsed Field Ablation, Neuromodulation, and Diabetes.

Operating margin improved to 19.9% (+1.6pp YoY).

Total Revenue
$8.29B
Previous year: $8.09B
+2.5%
EPS
$1.39
Previous year: $1.3
+6.9%
Total Organic Revenue Growth
4.1%
Previous year: 4.6%
-10.9%
Gross Profit
$5.51B
Previous year: $5.31B
+3.9%
Cash and Equivalents
$7.92B
Previous year: $1.62B
+388.1%
Free Cash Flow
$2.1B
Previous year: $2.85B
-26.4%
Total Assets
$90B
Previous year: $90.8B
-1.0%

Medtronic

Medtronic

Medtronic Revenue by Segment

Medtronic Revenue by Geographic Location

Forward Guidance

Medtronic reiterated its full-year revenue and EPS guidance, expecting continued organic growth and operational improvements.

Positive Outlook

  • FY25 organic revenue growth expected at 4.75% - 5.0%.
  • FY25 adjusted EPS guidance remains $5.44 - $5.50.
  • Continued strong adoption of innovative products like Pulsed Field Ablation.
  • Operational efficiency improvements contributing to margin expansion.
  • Growing U.S. presence in carotid and renal denervation markets.

Challenges Ahead

  • Foreign currency expected to negatively impact reported revenue by ~1.4pp.
  • Stapling pressures and distributor buying patterns affecting Medical Surgical segment.
  • Declining Nellcorâ„¢ product sales due to lower respiratory-related hospitalizations.
  • Ongoing restructuring costs and litigation expenses impacting net income.
  • Competitive pressures in global MedTech markets.

Revenue & Expenses

Visualization of income flow from segment revenue to net income