Medtronic (MDT)
NYSE:MDT
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Medtronic
(NYSE:MDT)
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Rating:67Neutral
Price Target:
$94.00
▲(9.06% Upside)
Action:DowngradedDate:03/25/26
MDT scores as above-average primarily due to solid financial performance anchored by strong free cash flow and a constructive earnings-call outlook with reiterated growth drivers. The score is held back by weak technicals (price in a downtrend with negative momentum), a relatively premium P/E despite a supportive dividend, and a post-call corporate event that reduced FY2026 EPS guidance due to MiniMed-related charges and dilution.
Positive Factors
Cash generation strength
Medtronic’s large, consistent operating cash flow (~$7.3B TTM) and strong free cash flow (~$5.4B TTM, FCF/net income ~0.73) provide durable financial flexibility. This supports R&D, targeted launches, dividends, buybacks, and separation work without relying on external financing.
Negative Factors
Margin mix pressure and reporting inconsistency
Early-stage launches (CAS, diabetes pump ramp) compressed gross margin and management flagged a ~100bp mix drag. Added uncertainty from an implausible TTM gross-margin figure increases risk that near-term margin trends and cost structure are misreported or volatile, complicating forward margin visibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation strength
Medtronic’s large, consistent operating cash flow (~$7.3B TTM) and strong free cash flow (~$5.4B TTM, FCF/net income ~0.73) provide durable financial flexibility. This supports R&D, targeted launches, dividends, buybacks, and separation work without relying on external financing.
Read all positive factors
Medtronic (MDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$103.96B
Dividend Yield2.76%
Average Volume (3M)7.98M
Price to Earnings (P/E)28.3
Beta (1Y)0.42
Revenue Growth6.88%
EPS Growth9.06%
CountryUS
Employees95,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.36
Shares Outstanding1,283,885,000
10 Day Avg. Volume8,191,268
30 Day Avg. Volume7,978,415
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)2.25
Price to Sales (P/S)3.23
P/FCF Ratio20.87
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue3.63
Enterprise Value/Gross Profit5.86
Enterprise Value/Ebitda13.77
Forecast
1Y Price Target
$106.35Price Target Upside23.39% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)6.07
Revenue Forecast (FY)$38.39B
Medtronic Business Overview & Revenue Model
Company Description
Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibril...
How the Company Makes Money
Medtronic primarily makes money by selling medical devices, implants, and related consumables to healthcare providers (e.g., hospitals and clinics) and, in certain categories, directly or indirectly supporting ongoing patient use through recurring...
Medtronic Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where Medtronic is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where Medtronic is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyMedtronic Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Positive
The call presents materially more positive operational and financial developments than negatives: strong top-line beat, multiple high-growth product franchises showing early traction (CAS/PFA, CRM products, MiniMed), regulatory approvals and early commercialization wins (Hugo, Stealth AXiS), and improved margins and EPS above guidance. Headwinds include mix-related gross margin pressure from early-stage launches, tariff and tax impacts, some softer neuroscience and surgical subsegments, and temporary dilution around the MiniMed separation and M&A. Management provided quantified guidance on tariff impacts and reiterated fiscal guidance while outlining a clear path for margin recovery and growth investments.Positive Updates
Strong Top-Line Performance
Revenue of $9.0 billion, up 8.7% reported and 6% organic year-over-year; 50 basis points acceleration from the prior quarter and 50 basis points above guidance.
Negative Updates
Neuroscience Growth Below Expectations
Neuroscience grew 3%, below company expectations this quarter. Specialty Therapies was flat and some Neurovascular pressure from recent China VBP and the Vantage recall, though management said these are mostly behind them.
Read all updates
Q3-2026 Updates
Positive
Negative
Strong Top-Line Performance
Revenue of $9.0 billion, up 8.7% reported and 6% organic year-over-year; 50 basis points acceleration from the prior quarter and 50 basis points above guidance.
Read all positive updates
Company Guidance
Management reiterated fiscal 2026 guidance calling for approximately 5.5% organic revenue growth (Q4 expected to be similar to Q3, around 6%), maintained fiscal‑2026 adjusted EPS guidance of $5.62–$5.66 and said adjusted operating profit should grow ~5% (≈7% excluding tariffs); they expect fiscal‑2026 gross margin to increase slightly ex‑tariffs but to decline roughly 30 basis points including an anticipated $185M tariff headwind (about $75M in Q4), with operating margin roughly flat ex‑tariffs and down ~50 bps including tariffs, and gross‑ and operating‑margin leverage ex‑tariffs in H2 FY26. Management also noted modeling items for FY27: the tariffs carry about $75M/quarter (~$300M full year), an extra 53rd week will add growth, they’ve embedded ~$0.04–$0.05 of EPS dilution from M&A and expect temporary dilution of ~$0.01–$0.02 per month around the MiniMed IPO→split window, and they continue to target high‑single‑digit EPS growth in fiscal 2027.Medtronic Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 35.48B | 33.54B | 32.36B | 31.23B | 31.69B | 30.12B |
| Gross Profit | 21.98B | 21.91B | 21.15B | 20.51B | 21.54B | 19.63B |
| EBITDA | 9.36B | 9.22B | 8.20B | 8.70B | 8.78B | 7.52B |
| Net Income | 4.61B | 4.66B | 3.68B | 3.76B | 5.04B | 3.61B |
Balance Sheet | ||||||
| Total Assets | 91.48B | 91.68B | 89.98B | 90.95B | 90.98B | 93.08B |
| Cash, Cash Equivalents and Short-Term Investments | 8.38B | 8.96B | 8.01B | 7.96B | 10.57B | 10.82B |
| Total Debt | 28.07B | 28.52B | 25.02B | 24.36B | 24.11B | 26.39B |
| Total Liabilities | 42.29B | 43.42B | 39.56B | 39.28B | 38.26B | 41.48B |
| Stockholders Equity | 48.98B | 48.02B | 50.21B | 51.48B | 52.55B | 51.43B |
Cash Flow | ||||||
| Free Cash Flow | 5.41B | 5.18B | 5.20B | 4.58B | 5.98B | 4.88B |
| Operating Cash Flow | 7.29B | 7.04B | 6.79B | 6.04B | 7.35B | 6.24B |
| Investing Cash Flow | -2.51B | -1.94B | -2.37B | -3.49B | -1.66B | -2.87B |
| Financing Cash Flow | -5.21B | -4.36B | -4.45B | -4.96B | -5.34B | -4.14B |
Medtronic Technical Analysis
Negative
86.19
Price Trends
91.38
Negative
95.06
Negative
93.16
Negative
Market Momentum
-1.03
Negative
41.17
Neutral
28.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDT, the sentiment is Negative. The current price of 86.19 is below the 20-day moving average (MA) of 86.78, below the 50-day MA of 91.38, and below the 200-day MA of 93.16, indicating a bearish trend. The MACD of -1.03 indicates Negative momentum. The RSI at 41.17 is Neutral, neither overbought nor oversold. The STOCH value of 28.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDT.
Medtronic Risk Analysis
Medtronic disclosed 34 risk factors in its most recent earnings report. Medtronic reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Medtronic Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $48.14B | 30.46 | 10.61% | ― | 13.81% | 22.90% | |
73 Outperform | $22.98B | 30.97 | 32.44% | ― | 15.60% | 46.46% | |
67 Neutral | $103.96B | 28.29 | 9.54% | 2.76% | 6.88% | 9.06% | |
66 Neutral | $120.69B | 41.38 | 15.04% | 0.95% | 11.16% | 8.08% | |
63 Neutral | $85.62B | 17.42 | 15.40% | ― | 17.44% | 74.36% | |
62 Neutral | $158.14B | 41.63 | 11.43% | 1.88% | 6.59% | -53.44% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MDT
Medtronic
80.97
-1.27
-1.54%
ABT
Abbott Laboratories
90.79
-39.37
-30.25%
BSX
Boston Scientific
57.61
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-45.10%
DXCM
Dexcom
59.55
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-27.04%
EW
Edwards Lifesciences
83.50
7.85
10.38%
SYK
Stryker
315.13
-59.48
-15.88%
Medtronic Corporate Events
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Medtronic Cuts Fiscal 2026 EPS Outlook After MiniMed Charges
Negative
Mar 24, 2026
On March 18, 2026, MiniMed announced early U.S. FDA clearance of the MiniMed Flex, a discreet, smartphone-controlled next-generation insulin pump, enabling earlier-than-expected commercialization of this strategically important product. The device...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.