Medtronic (MDT) AI Stock Analysis

• Market Cap: $119.28B
• Dividend Yield: 2.99%
• Average Volume (3M): 6.91M
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.53
• Revenue Growth: 4.98%
• EPS Growth: 22.08%
• Country: US
• Employees: 95,000
• Sector: Healthcare
• Sector Strength: 52
• Industry: Medical - Devices
• EPS (TTM): 1.26
• Shares Outstanding: 1,282,685,900
• 10 Day Avg. Volume: 5,540,795
• 30 Day Avg. Volume: 6,909,037
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.18
• Enterprise Value/Revenue: 4.10
• Enterprise Value/Gross Profit: 6.47
• Enterprise Value/Ebitda: 15.02
• 1Y Price Target: $99.89
• Price Target Upside: 6.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 26

• Rating: 80 Outperform
• Price Target: $107.00 ▲(13.75% Upside)

Medtronic's overall stock score of 80 reflects strong financial performance and positive earnings call sentiment, supported by strategic corporate events. While the valuation is on the higher side, the company's robust growth prospects and stable technical indicators contribute to a favorable outlook.

Medtronic Business Overview & Revenue Model

Company Description

Medtronic plc is a global leader in medical technology, services, and solutions, dedicated to alleviating pain, restoring health, and extending life for people worldwide. The company operates through four main business segments: Cardiovascular, Minimally Invasive Therapies, Restorative Therapies, and Diabetes. Medtronic's core products include cardiac devices such as pacemakers and defibrillators, surgical instruments for minimally invasive procedures, neurostimulation devices for chronic pain relief, and insulin pumps and continuous glucose monitoring systems for diabetes management.

How the Company Makes Money

Medtronic generates revenue primarily through the sale of its medical devices and technologies across its business segments. The company earns money by selling high-margin products directly to hospitals, healthcare providers, and distributors. Key revenue streams include sales from cardiovascular devices, including stents and heart valves, minimally invasive surgical instruments, and diabetes management solutions. Medtronic also benefits from recurring revenue through service contracts and ongoing sales of consumable products associated with its devices. Strategic partnerships with healthcare providers, research institutions, and technology companies enhance its product offerings and market reach, further contributing to its earnings.

Medtronic Financial Statement Overview

Summary

Medtronic demonstrates strong financial health with consistent profitability, stable leverage, and solid cash flow generation. Minor concerns include increasing debt and slight margin pressures, but overall, the company's financial position supports its growth strategies.

Income Statement

Medtronic's income statement shows strong profitability with a consistent gross profit margin around 65% and a net profit margin of approximately 13.6% in TTM. Revenue growth is modest but positive, indicating stable demand. EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the slight decline in gross profit margin over time suggests potential cost pressures.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio below 0.6, indicating manageable leverage. Return on equity is stable around 9.6%, showing effective use of equity. The equity ratio is strong, suggesting a well-capitalized company. However, the increase in total debt over time could pose future risks if not managed carefully.

Cash Flow

Cash flow analysis reveals robust free cash flow growth in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, the free cash flow to net income ratio has slightly decreased, which could indicate increased capital expenditures or other cash uses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.20B	33.54B	32.36B	31.23B	31.69B	30.12B
Gross Profit	21.70B	21.91B	21.15B	20.51B	21.54B	19.63B
EBITDA	9.35B	9.22B	8.20B	8.70B	8.78B	7.52B
Net Income	4.66B	4.66B	3.68B	3.76B	5.04B	3.61B
Balance Sheet
Total Assets	90.97B	91.68B	89.98B	90.95B	90.98B	93.08B
Cash, Cash Equivalents and Short-Term Investments	8.12B	8.96B	8.01B	7.96B	10.57B	10.82B
Total Debt	28.61B	28.52B	25.02B	24.36B	24.11B	26.39B
Total Liabilities	42.84B	43.42B	39.56B	39.28B	38.26B	41.48B
Stockholders Equity	47.89B	48.02B	50.21B	51.48B	52.55B	51.43B
Cash Flow
Free Cash Flow	5.30B	5.18B	5.20B	4.58B	5.98B	4.88B
Operating Cash Flow	7.15B	7.04B	6.79B	6.04B	7.35B	6.24B
Investing Cash Flow	-2.40B	-1.94B	-2.37B	-3.49B	-1.66B	-2.87B
Financing Cash Flow	-5.01B	-4.36B	-4.45B	-4.96B	-5.34B	-4.14B

Medtronic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 94.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 94.07 is above the 20-day moving average (MA) of 92.47, above the 50-day MA of 91.18, and above the 200-day MA of 86.67, indicating a neutral trend. The MACD of 0.58 indicates Positive momentum. The RSI at 51.09 is Neutral, neither overbought nor oversold. The STOCH value of 59.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MDT.

Medtronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDT	80 Outperform	$119.28B	25.68	9.72%	2.99%	4.98%	22.08%
ABT	79 Outperform	$230.09B	16.53	31.01%	1.76%	5.85%	152.28%
BSX	79 Outperform	$160.24B	64.33	11.71%	―	21.45%	36.19%
EW	78 Outperform	$47.09B	54.48	15.71%	―	-5.23%	-39.83%
SYK	77 Outperform	$150.29B	52.02	14.25%	0.85%	11.36%	-15.66%
DXCM	73 Outperform	$31.57B	54.61	22.83%	―	9.30%	-14.95%
Sector *	51 Neutral	$7.93B	-0.32	-43.43%	2.21%	22.30%	-1.88%

Medtronic Corporate Events

Medtronic Expands Board, Appoints Two New Directors

On August 18, 2025, Medtronic‘s Board of Directors expanded from 11 to 13 members, appointing John Groetelaars and William Jellison as new directors, effective August 19, 2025. Medtronic also reported its first quarter fiscal 2026 financial results, showing an 8.4% increase in revenue to $8.6 billion and a 4.8% organic growth, with significant contributions from Cardiac Ablation Solutions. The company raised its FY26 EPS guidance, reflecting confidence in its growth drivers and operational efficiencies.

Medtronic Expands Board, Appoints Dr. Joon Lee

On June 18, 2025, Medtronic‘s Board of Directors expanded from 10 to 11 members, appointing Dr. Joon Lee as a new independent director. Dr. Lee, CEO of Emory Healthcare, brings extensive experience in healthcare leadership and will serve on the Science and Technology Committee and the Compensation and Talent Committee. His appointment is expected to enhance Medtronic’s mission to leverage data and technology for improving patient and provider experiences, aligning with the company’s goals to advance healthcare solutions globally.