Medtronic (MDT) AI Stock Analysis

• Market Cap: $118.91B
• Dividend Yield: 3.01%
• Average Volume (3M): 6.90M
• Price to Earnings (P/E): 25.6
• 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: 1,281,264,600
• 10 Day Avg. Volume: 6,990,765
• 30 Day Avg. Volume: 6,902,943
• 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: 1.09
• Enterprise Value/Revenue: 3.85
• Enterprise Value/Gross Profit: 5.90
• Enterprise Value/Ebitda: 14.02
• 1Y Price Target: $98.95
• Price Target Upside: 6.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27

• Rating: 80 Outperform
• Price Target: $107.00 ▲(14.78% Upside)

Medtronic's strong financial performance and positive earnings call are the most significant factors driving its stock score. The company's strategic initiatives, including the planned separation of the Diabetes business and board expansions, further support its growth prospects. However, the relatively high P/E ratio and ongoing tariff challenges present potential risks.

Positive Factors

Activist Investor Involvement

Activist investor Elliott Management has taken a large stake in Medtronic and is expected to bring positive developments through increased focus and discipline.

New Product Launches

Medtronic is confident on growth acceleration driven by new product launches and approvals in the near future.

Segment Performance

The Cardiovascular portfolio showed strong performance with significant growth in various segments, including 'near-50%' growth in Cardiac Ablation Solutions.

Negative Factors

Profitability Concerns

Gross margins contracted to 65.1% from 65.9% and operating margins to 23.6% from 24.4%, indicating a decline in profitability.

Revenue Growth Expectations

MDT's FQ1 revenue growth was 4.8%, slightly below investor expectations, with several drags in the base business impacting the expected pipeline upside.

Specialty Therapies Decline

Specialty Therapies declined 3% year-over-year, impacted by neurovascular and pelvic health declines, with product recalls and commercial reorganizations contributing to the downturn.

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 defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.

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 solid financial health with consistent revenue growth and profitability. The company maintains a strong equity position and exhibits effective cash flow management. However, rising debt levels and relatively flat operational margins suggest areas for strategic focus to enhance future financial performance.

Income Statement

Medtronic displayed strong revenue growth from the previous year with a 3.6% increase, reaching $33.54 billion. The gross profit margin remained healthy at 65.5%, indicating efficient cost management. The net profit margin improved to 13.9%, reflecting effective operational strategies. However, EBIT and EBITDA margins remained flat at 17.8%, suggesting that while operations are stable, there could be room for optimizing operational costs further.

Balance Sheet

The company's debt-to-equity ratio increased to 0.59, indicating a moderate reliance on debt financing. The return on equity slightly improved, reaching 9.7%, showing effective use of equity to generate profits. The equity ratio stood at 52.4%, highlighting a strong equity position relative to total assets, signifying financial stability but with a cautious note on increasing debt levels.

Cash Flow

Medtronic's free cash flow remained robust at $5.19 billion, with a growth rate of 0.5% from the previous year. The operating cash flow to net income ratio was 1.51, indicating strong cash generation relative to net earnings. The consistency in free cash flow generation supports operational liquidity and investment capabilities, though the growth rate could be improved.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	33.54B	33.54B	32.36B	31.23B	31.69B	30.12B
Gross Profit	21.90B	21.91B	21.15B	20.51B	21.54B	19.63B
EBITDA	9.22B	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	91.68B	91.68B	89.98B	90.95B	90.98B	93.08B
Cash, Cash Equivalents and Short-Term Investments	8.96B	8.96B	8.01B	7.96B	10.57B	10.82B
Total Debt	28.52B	28.52B	25.02B	24.36B	24.11B	26.39B
Total Liabilities	43.42B	43.42B	39.56B	39.28B	38.26B	41.48B
Stockholders Equity	48.02B	48.02B	50.21B	51.48B	52.55B	51.43B
Cash Flow
Free Cash Flow	5.18B	5.18B	5.20B	4.58B	5.98B	4.88B
Operating Cash Flow	7.04B	7.04B	6.79B	6.04B	7.35B	6.24B
Investing Cash Flow	-1.94B	-1.94B	-2.37B	-3.49B	-1.66B	-2.87B
Financing Cash Flow	-4.36B	-4.36B	-4.45B	-4.96B	-5.34B	-4.14B

Medtronic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 93.22
• 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 93.22 is above the 20-day moving average (MA) of 91.62, above the 50-day MA of 89.41, and above the 200-day MA of 86.21, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 58.17 is Neutral, neither overbought nor oversold. The STOCH value of 70.65 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	$118.91B	25.61	9.49%	3.01%	4.98%	22.08%
EW	78 Outperform	$46.34B	55.56	15.71%	―	-5.23%	-39.83%
BSX	74 Outperform	$153.73B	63.12	11.71%	―	21.45%	36.19%
ZBH	74 Outperform	$20.32B	24.97	6.52%	0.91%	4.11%	-14.43%
DXCM	73 Outperform	$31.69B	56.64	22.83%	―	9.30%	-14.95%
SYK	72 Outperform	$149.08B	51.60	14.25%	0.85%	11.36%	-15.66%
Sector *	51 Neutral	$7.77B	-0.12	-39.07%	2.21%	22.68%	-1.42%

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.

Medtronic Announces Leadership Change in Cardiovascular Portfolio

Medtronic announced a leadership change in its Cardiovascular Portfolio, with Sean Salmon departing and Skip Kiil assuming the role of EVP and President, effective May 21, 2025. Additionally, Medtronic plans to separate its Diabetes business into a standalone public company. The company reported strong financial results for Q4 and FY25, with significant increases in revenue, operating profit, and earnings per share. Medtronic also announced a dividend increase, marking its 48th consecutive year of dividend growth, and highlighted advancements in its medical technologies, including FDA approvals and successful product launches.