Medtronic (MDT) AI Stock Analysis

• Market Cap: $126.45B
• Dividend Yield: 2.76%
• Average Volume (3M): 7.47M
• Price to Earnings (P/E): 26.6
• Beta (1Y): 0.43
• Revenue Growth: 5.34%
• EPS Growth: 13.15%
• Country: US
• Employees: 95,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.36
• Shares Outstanding: 1,282,014,200
• 10 Day Avg. Volume: 7,108,839
• 30 Day Avg. Volume: 7,469,626
• PEG Ratio: 0.75
• Price to Book (P/B): 2.27
• Price to Sales (P/S): 3.25
• P/FCF Ratio: 21.02
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 4.07
• Enterprise Value/Gross Profit: 6.54
• Enterprise Value/Ebitda: 15.28
• 1Y Price Target: $111.41
• Price Target Upside: 12.96% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 80 Outperform
• Price Target: $116.00 ▲(17.61% Upside)

Medtronic's overall stock score is driven by strong financial performance and positive technical indicators. The company's strategic focus on innovation and expansion, as highlighted in the earnings call, supports future growth prospects. While the valuation suggests a premium, the dividend yield adds income appeal. Corporate events further strengthen the company's strategic positioning.

Positive Factors

Revenue Growth

Steady revenue growth indicates strong market demand and effective product positioning, supporting long-term business expansion.

Innovative Product Launch

The clearance of the Hugo RAS system enhances Medtronic's competitive edge in robotic surgery, expanding its market reach and technological leadership.

Strategic R&D Investment

Increased R&D investment ensures continuous innovation, maintaining Medtronic's leadership in medical technology and driving future growth.

Negative Factors

Declining Free Cash Flow

Declining free cash flow may limit Medtronic's ability to invest in new opportunities and manage debt, potentially impacting long-term financial health.

Tariff Impact on Margins

Tariff impacts can erode profit margins, affecting Medtronic's cost structure and competitive pricing over the long term.

Cryo Revenue Decline

Significant decline in cryo revenue suggests challenges in this segment, potentially affecting overall revenue growth and market positioning.

Medtronic Business Overview & Revenue Model

Company Description

Medtronic (MDT) is a global leader in medical technology, offering a diverse range of products and therapies to treat various medical conditions. The company operates in several sectors, including cardiovascular, diabetes, neurological, and surgical technologies. Medtronic's core products include implantable devices, such as pacemakers and insulin pumps, as well as advanced surgical instruments and therapies that enhance patient outcomes and improve the quality of life for patients around the world.

How the Company Makes Money

Medtronic generates revenue primarily through the sale of its medical devices and therapies across its various sectors. Key revenue streams include the sale of cardiovascular devices, diabetes management products, neurological products, and surgical solutions. The company has established significant partnerships with healthcare providers, hospitals, and insurance companies, which facilitate the distribution and reimbursement of its products. Additionally, Medtronic invests in research and development to innovate and expand its product offerings, which helps to drive future revenue growth. The company's strong global presence and ongoing investment in emerging markets further contribute to its earnings.

Medtronic Financial Statement Overview

Summary

Medtronic demonstrates strong financial health with consistent profitability and a solid balance sheet. Revenue growth is steady, but attention is needed on cash flow management due to recent declines in free cash flow growth. The company's leverage is moderate, and its capital structure remains robust, supporting long-term stability.

Income Statement

Medtronic's income statement reflects strong profitability with a consistent gross profit margin above 62% and a net profit margin around 13.7% in the TTM. Revenue growth is modest but positive, indicating steady expansion. EBIT and EBITDA margins are healthy, showcasing efficient operations. However, the slight decline in gross profit margin over the years suggests some pressure on cost management.

Balance Sheet

The balance sheet shows a stable financial position with a manageable debt-to-equity ratio of 0.60 in the TTM, indicating moderate leverage. Return on equity has improved to 13.1% in the TTM, reflecting enhanced profitability. The equity ratio remains strong, suggesting a solid capital structure. However, the increase in total debt over the years warrants monitoring.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a negative growth rate in the TTM. The operating cash flow to net income ratio is below 1, indicating potential challenges in converting income into cash. Despite this, the free cash flow to net income ratio remains robust, suggesting effective cash generation relative to earnings.

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

Medtronic Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 98.63
• 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 Neutral. The current price of 98.63 is below the 20-day moving average (MA) of 101.01, above the 50-day MA of 97.24, and above the 200-day MA of 90.39, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 43.56 is Neutral, neither overbought nor oversold. The STOCH value of 24.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MDT.

Medtronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDT	80 Outperform	$126.45B	26.64	9.81%	2.76%	5.34%	13.15%
BSX	79 Outperform	$141.74B	51.58	12.66%	―	21.62%	54.80%
DXCM	79 Outperform	$25.76B	37.53	30.63%	―	14.21%	5.66%
EW	79 Outperform	$49.71B	36.84	13.59%	―	0.19%	65.58%
ABT	73 Outperform	$218.14B	15.74	30.62%	1.88%	6.37%	142.39%
SYK	70 Outperform	$135.84B	46.64	14.04%	0.95%	10.95%	-18.32%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Medtronic Corporate Events

Medtronic Announces Executive Vice President’s Retirement

On November 1, 2025, Medtronic announced the retirement of Gregory L. Smith, Executive Vice President of Enterprise Operations, effective December 2, 2025. His departure will involve the acceleration of unvested stock options and continued vesting of restricted stock units and performance stock units, as per the company’s equity compensation policies.

Medtronic’s AGM Approves Key Governance Changes

On October 16, 2025, Medtronic held its Annual General Meeting where shareholders elected twelve directors to serve until the 2026 meeting, ratified PricewaterhouseCoopers LLP as the independent auditor for fiscal year 2026, and approved executive compensation. Additionally, the meeting saw the renewal of the Board’s authority to issue shares and opt out of pre-emption rights, authorization for overseas market purchases of shares, and amendments to the Articles of Association to facilitate reserve capitalization and update advance notice provisions. These decisions are poised to impact Medtronic’s governance and financial strategies, potentially enhancing shareholder value and operational flexibility.

Medtronic Issues €1.5 Billion in Senior Notes

On September 29, 2025, Medtronic, Inc., a subsidiary of Medtronic plc, issued €1.5 billion in senior notes, with maturities in 2030 and 2045, to refinance existing debts. The issuance is expected to strengthen Medtronic’s financial position by repaying Medtronic Luxco’s senior notes due in 2025, and the notes have been approved for listing on the New York Stock Exchange, indicating a strategic financial maneuver to optimize debt management.

Medtronic Announces Pricing of New Senior Notes

On September 15, 2025, Medtronic announced the pricing of a significant offering aimed at repaying existing senior notes due in 2025. The company plans to issue €1.5 billion in senior notes due in 2030 and 2045, which are fully guaranteed by Medtronic Luxco and Medtronic plc. This move reflects in Medtronic’s fiscal year 2026 earnings guidance and underscores its strategic financial management. Additionally, Medtronic Luxco has elected to redeem €500 million of its outstanding senior notes on September 29, 2025, contingent on the successful issuance of the new notes, indicating a proactive approach to managing its debt obligations.