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Medtronic
(NYSE:MDT)
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Rating:68Neutral
Price Target:
$95.00
▲(14.17% Upside)
Action:Downgraded
Date:06/19/26
The score is driven primarily by solid financial performance (steady growth, strong margins, and dependable free cash flow) and a supportive earnings outlook despite notable tariff and investment headwinds. Valuation is reasonable with an attractive dividend, while technicals remain mixed with the stock still below key longer-term moving averages.
Positive Factors
Cash generation
Medtronic’s strong and rising operating cash flow and FCF provide durable funding for R&D, dividends, buybacks and targeted M&A. Reliable cash generation underpins capital allocation optionality and resilience through cyclical elective-procedure swings, supporting long-term strategy execution.
Negative Factors
High absolute debt load
A sizable absolute debt burden constrains financial flexibility if profitability weakens or rates rise. Even with moderate leverage metrics, interest and refinancing risk can limit aggressive capital deployment, and large debt levels amplify downside in prolonged stress scenarios.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Medtronic’s strong and rising operating cash flow and FCF provide durable funding for R&D, dividends, buybacks and targeted M&A. Reliable cash generation underpins capital allocation optionality and resilience through cyclical elective-procedure swings, supporting long-term strategy execution.
Read all positive factors
Medtronic Key Performance Indicators (KPIs)
Any
Revenue by Geography
Sales by region (U.S., EMEA, Asia‑Pacific, Latin America), highlighting where Medtronic earns most of its revenue and where the biggest growth opportunities lie. Geographic mix signals exposure to U.S. reimbursement cycles, currency swings, and faster-growing emerging markets that can boost long‑term sales.
Sales by region (U.S., EMEA, Asia‑Pacific, Latin America), highlighting where Medtronic earns most of its revenue and where the biggest growth opportunities lie. Geographic mix signals exposure to U.S. reimbursement cycles, currency swings, and faster-growing emerging markets that can boost long‑term sales.
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The Fly
The FlyMedtronic (MDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$109.30B
Dividend Yield3.34%
Average Volume (3M)8.03M
Price to Earnings (P/E)22.8
Beta (1Y)0.31
Revenue Growth8.43%
EPS Growth3.17%
CountryUS
Employees95,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)4.57
Shares Outstanding1,280,045,200
10 Day Avg. Volume6,869,186
30 Day Avg. Volume8,032,971
Financial Highlights & Ratios
PEG Ratio6.72
Price to Book (P/B)2.16
Price to Sales (P/S)2.94
P/FCF Ratio19.68
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$95.53Price Target Upside14.81% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)5.95
Revenue Forecast (FY)$38.89B
Medtronic Business Overview & Revenue Model
Company Description
Medtronic plc is a leading global medical technology enterprise that invents, develops, manufactures, and distributes an extensive range of device-based medical therapies. These solutions serve healthcare systems, clinicians, physicians, and patie...
How the Company Makes Money
Medtronic makes money primarily by selling medical devices, implants, and related disposable/consumable products to hospitals, physicians, and other healthcare providers through direct sales forces and distributors, with revenue recognized largely...
Medtronic Earnings Call Summary
Earnings Call Date:Jun 03, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Sep 01, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: strong quarterly and annual revenue growth, EPS outperformance, robust free cash flow, multiple high-growth product area accelerations (CAS, Symplicity, Hugo, Altaviva), and deliberate M&A/venture activity to drive future growth. Notable headwinds include tariffs and trade uncertainty, some product‑mix and Diabetes-related margin pressure, pockets of weakness in Structural Heart (TAVR) and select therapy areas, and near-term investment-driven SG&A/R&D increases. Management provided confident FY '27 guidance while conservatively modeling separation and tariff risks.Positive Updates
Quarterly and Full-Year Revenue Growth
Q4 revenue $9.8B, up 9.9% reported and 6.6% organic; FY '26 revenue $36.4B, up 8.4% reported and 5.8% organic — company’s strongest top-line performance in 10 years.
Negative Updates
Structural Heart / TAVR Headwinds
Structural Heart revenue was flat in Q4 with U.S. softness attributed to low‑risk TAVR data impacts; coronary declined in the quarter; TAVR slowdown was more pronounced in U.S. and required stabilization efforts.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Q4 revenue $9.8B, up 9.9% reported and 6.6% organic; FY '26 revenue $36.4B, up 8.4% reported and 5.8% organic — company’s strongest top-line performance in 10 years.
Read all positive updates
Company Guidance
Medtronic guided FY‑2027 organic revenue growth of 6.75%–7.25% (with Q1 organic growth of ~11.5%–12%), which includes ~25 basis points from the Diabetes business and a roughly 125–150 bp benefit from an extra selling week (management also said the extra week will contribute ~500–600 bp to Q1); they expect FX to be roughly neutral (management referenced either up to a ~$100M headwind or, on recent rates, neutral-to‑1% accretive), have embedded ~2% dilution from M&A, and assume ~1 point of headwind from higher fuel/transport costs. On margins, FY‑27 gross margin is expected to be roughly flat excluding tariffs, but tariffs are modeled at ~$250M for the year (≈$75M in Q1) and to reduce FY‑27 gross margin by ~20 bps including tariffs; adjusted operating margin is expected to rise ~60 bps (helped by absence of Blackstone milestone payments) while below‑the‑line items should create ~200 bps of headwind from higher net interest and a slightly higher tax rate. Management is guiding FY‑27 adjusted EPS of $5.90–$6.00 and Q1 EPS of $1.38–$1.40 (the latter benefiting ~600–700 bps from the extra selling week), assumes recent M&A will add ~ $150M of inorganic revenue in FY‑27, and noted continued investment in R&D/SG&A while retaining strong liquidity (≈$9.2B cash).Medtronic Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
72
Positive
| Breakdown | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 36.36B | 33.54B | 32.36B | 31.23B | 31.69B |
| Gross Profit | 23.64B | 21.91B | 21.15B | 20.51B | 21.54B |
| EBITDA | 9.81B | 9.22B | 8.20B | 8.70B | 8.78B |
| Net Income | 4.80B | 4.66B | 3.68B | 3.76B | 5.04B |
Balance Sheet | |||||
| Total Assets | 93.03B | 91.68B | 89.98B | 90.95B | 90.98B |
| Cash, Cash Equivalents and Short-Term Investments | 9.22B | 8.96B | 8.01B | 7.96B | 10.57B |
| Total Debt | 27.96B | 28.52B | 25.02B | 24.36B | 24.11B |
| Total Liabilities | 42.96B | 43.42B | 39.56B | 39.28B | 38.26B |
| Stockholders Equity | 49.46B | 48.02B | 50.21B | 51.48B | 52.55B |
Cash Flow | |||||
| Free Cash Flow | 5.43B | 5.18B | 5.20B | 4.58B | 5.98B |
| Operating Cash Flow | 7.33B | 7.04B | 6.79B | 6.04B | 7.35B |
| Investing Cash Flow | -2.93B | -1.94B | -2.37B | -3.49B | -1.66B |
| Financing Cash Flow | -4.75B | -4.36B | -4.45B | -4.96B | -5.34B |
Medtronic Technical Analysis
Positive
83.21
Price Trends
80.64
Positive
81.65
Positive
88.74
Negative
Market Momentum
1.51
Negative
61.53
Neutral
59.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDT, the sentiment is Positive. The current price of 83.21 is below the 20-day moving average (MA) of 83.57, above the 50-day MA of 80.64, and below the 200-day MA of 88.74, indicating a neutral trend. The MACD of 1.51 indicates Negative momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 59.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $31.49B | 32.22 | 36.19% | ― | 15.54% | 77.43% | |
72 Outperform | $182.90B | 33.99 | 10.52% | 2.41% | 8.06% | -61.33% | |
72 Outperform | $124.86B | 33.47 | 15.10% | 1.05% | 8.48% | 27.36% | |
70 Outperform | $69.46B | 18.84 | 15.29% | ― | 13.53% | 46.29% | |
69 Neutral | $49.56B | 49.47 | 9.71% | ― | 14.55% | 15.09% | |
68 Neutral | $109.30B | 22.77 | 9.85% | 3.43% | 8.43% | 3.17% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MDT
Medtronic
86.68
-0.14
-0.16%
ABT
Abbott Laboratories
107.12
-19.87
-15.65%
BSX
Boston Scientific
48.43
-58.36
-54.65%
DXCM
Dexcom
87.31
11.06
14.50%
EW
Edwards Lifesciences
88.82
8.73
10.90%
SYK
Stryker
341.20
-36.44
-9.65%
Medtronic Corporate Events
Executive/Board Changes
Medtronic Announces Leadership Transition in Neuroscience Portfolio
Neutral
May 18, 2026
On May 18, 2026, Medtronic plc announced a leadership transition in its Neuroscience Portfolio, with Executive Vice President and President Brett Wall set to depart his role. Dr. Kweli Thompson, currently Senior Vice President and President of Car...
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.