Medtronic (MDT) beat estimates for profits in the last quarter thanks to strong demand for diabetes and heart devices. Earnings per share of $1.39 increased 7% on last year in the Fiscal 2025 third quarter and was ahead of the $1.36 expected by Wall Street. Revenues were in broadly in line at $8.3 billion if perhaps a smidge lighter than expected, showing 4.1% organic growth.
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MDT, which is a medical technology business delivering device-based medical therapies for 70 different health conditions, including diabetes and Parkinson’s disease, stuck to its full-year EPS guidance of $5.44 to $5.50 per share and expects full-year organic revenue growth in the range of 4.75% to 5%. Shares however fell in the premarket session on Tuesday by over 2%.
MDT Sales Positive
Breaking it down, sales in its key cardiovascular segment rose 3.7%, or 5.0% on an organic basis, to $3.04 billion. In particular, revenues from its cardiac ablation solutions, which includes things like catheters or energy sources to treat abnormal heart rhythms, saw “low-20s” percentage growth.
“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,” said Geoff Martha, Medtronic chairman and chief executive officer.
The neuroscience portfolio saw organic sales growth of 4.4%, (5.2% organic) to $2.46 billion in the quarter. MDT cited strong adoption of its AiBLE connected operating room (OR) product that helps surgeons plan spinal and neurological procedures.
Its diabetes treatments’ organic revenue increased 8.4% (10.4% organic) to $694 million, with the company citing continued adoption of the MiniMed automated insulin delivery (AID) system.
Revenues within its medical surgical portfolio were lower at just over $2 billion on some one-off buying patterns in the U.S., the company said.
Is Medtronic Stock a Buy?
Wall Street’s consensus rating for MDT stock is a Moderate Buy, with an average analyst price target of $96.38, implying upside potential of 3.85% from current levels, though this could be subject to revisions by analysts after the earnings update.
