Medtronic (MDT) AI Stock Analysis

• Market Cap: $118.44B
• Dividend Yield: 3.11%
• Average Volume (3M): 7.07M
• Price to Earnings (P/E): 25.6
• Beta (1Y): 0.52
• Revenue Growth: 3.62%
• EPS Growth: 31.18%
• Country: US
• Employees: 95,000
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Devices
• EPS (TTM): 1.62
• Shares Outstanding: 1,281,264,600
• 10 Day Avg. Volume: 6,113,167
• 30 Day Avg. Volume: 7,066,446
• PEG Ratio: 2.53
• Price to Book (P/B): 2.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.78
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 1.36
• Enterprise Value/Gross Profit: 9.28
• Enterprise Value/Ebitda: 5.80
• 1Y Price Target: $96.59
• Price Target Upside: 7.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 77 Outperform
• Price Target: $98.00 ▲(8.60%Upside)

Medtronic scores well due to its solid financial performance and strategic focus on high-growth areas. The company's earnings call provided a positive outlook with revenue growth and strategic initiatives like the Diabetes business spin-off. However, valuation concerns and potential impacts from tariffs and currency headwinds temper the overall score.

Positive Factors

Growth Opportunity

The CMS proposal to cover renal denervation for uncontrolled hypertension is seen as a significant growth opportunity for Medtronic.

Market Potential

Medtronic estimates over 18 million people in the U.S. have uncontrolled hypertension, indicating a vast potential market.

Strategic Advantage

The proposed national coverage decision for renal denervation is a win for Medtronic, allowing the company to target a potentially multi-billion-dollar opportunity.

Negative Factors

Growth Challenges

MDT's inability to grow beyond 5%+ has weighed on shares and has historically constrained its multiple expansion.

Market Education

There are several key hurdles still to cross, including educating primary care physicians and battling the stigma of the procedure's mixed clinical track record.

Medtronic Business Overview & Revenue Model

Company Description

Medtronic (MDT) is a global leader in medical technology, services, and solutions, headquartered in Dublin, Ireland. The company operates in various sectors including cardiovascular, medical surgical, neuroscience, and diabetes. Medtronic's core products and services focus on advanced medical devices and therapies that improve patient outcomes, such as pacemakers, insulin pumps, surgical instruments, and neurostimulation devices.

How the Company Makes Money

Medtronic generates revenue primarily through the sale of its medical devices and therapies. The company divides its operations into four main business segments: Cardiovascular, Medical Surgical, Neuroscience, and Diabetes. Each segment offers a range of products tailored to specific medical conditions and procedures, contributing to the company's diverse revenue streams. Medtronic also partners with healthcare providers, hospitals, and clinics worldwide to deliver its solutions, enhancing its market reach. Furthermore, the company invests in research and development to innovate and expand its product portfolio, ensuring sustained growth and competitive advantage in the medical technology industry.

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	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	21.97B	21.15B	20.51B	21.54B	19.63B
EBITDA	5.96B	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	26.05B	24.36B	24.11B	27.40B
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: 90.24
• 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 90.24 is below the 20-day moving average (MA) of 90.29, above the 50-day MA of 87.14, and above the 200-day MA of 86.00, indicating a neutral trend. The MACD of 1.31 indicates Positive momentum. The RSI at 53.42 is Neutral, neither overbought nor oversold. The STOCH value of 58.63 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
SYK	81 Outperform	$153.08B	54.06	14.26%	0.85%	10.76%	-15.22%
BSX	80 Outperform	$157.52B	63.68	9.65%	―	21.45%	36.19%
MDT	77 Outperform	$118.44B	25.58	9.49%	3.11%	3.62%	31.18%
DXCM	75 Outperform	$35.03B	66.86	22.83%	―	9.30%	-14.95%
ZBH	74 Outperform	$18.13B	20.31	7.31%	1.05%	3.30%	-2.39%
EW	71 Outperform	$46.52B	54.42	16.73%	―	-5.23%	-40.13%
Sector *	51 Neutral	$7.30B	0.27	-62.71%	2.44%	15.02%	0.60%

Medtronic Corporate Events

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.

The most recent analyst rating on (MDT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Medtronic stock, see the MDT Stock Forecast page.

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.

The most recent analyst rating on (MDT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Medtronic stock, see the MDT Stock Forecast page.