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11th quarter in a row of mid-single digit organic revenue growth;
Poised to accelerate growth
GALWAY, Ireland, Aug. 19, 2025 /PRNewswire/ — Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced financial results for its first quarter (Q1) of fiscal year 2026 (FY26), which ended July 25, 2025.
Key Highlights
-
Revenue of $8.6 billion, adjusted revenue of $8.5 billion, increased 8.4% as reported and 4.8% organic
-
GAAP diluted EPS of $0.81 increased 1%; non-GAAP diluted EPS of $1.26 increased 2%
-
Company raises FY26 EPS guidance; reiterates FY26 organic revenue growth guidance
-
Cardiac Ablation Solutions revenue increased nearly 50%, including 72% in the US, on strength of pulsed field ablation (PFA) products
-
U.S. Centers for Medicare & Medicaid Services (CMS) posted proposed National Coverage Determination (NCD) for the Symplicity Spyral™ system for hypertension; final NCD expected on or before October 8, 2025
-
Received CE Mark for LigaSure™ RAS vessel-sealing technology on Hugo™ robotic-assisted surgery (RAS) system
“We delivered another consistent quarter of mid-single digit organic revenue growth, with broad strength from several innovative product categories, including Pulsed Field Ablation, Transcatheter Valves, Neuromodulation, Diabetes, and Leadless Pacing,” said Geoff Martha, Medtronic chairman and chief executive officer. “We’re confident and well positioned to accelerate our revenue growth in the second half of our fiscal year, as we make meaningful progress on our major growth drivers.”
Financial Results
Medtronic reported Q1 worldwide revenue of $8.578 billion and adjusted revenue of $8.539 billion, an increase of 8.4% as reported and 4.8% on an organic basis. The organic revenue growth comparison excludes:
Q1 revenue by segment included:
-
Cardiovascular Portfolio revenue of $3.285 billion increased 9.3% as reported and 7.0% organic, with a high-single digit increase in Cardiac Rhythm & Heart Failure, mid-single digit increase in Structural Heart & Aortic, and low-single digit increase in Coronary & Peripheral Vascular, all on an organic basis;
-
Neuroscience Portfolio revenue of $2.416 billion increased 4.3% reported and 3.1% organic, with a high-single digit increase in Neuromodulation and mid-single digit increase in Cranial & Spinal Technologies, offset by a low-single digit decrease in Specialty Therapies, all on an organic basis;
-
Medical Surgical Portfolio revenue of $2.083 billion grew 4.4% as reported and 2.4% organic, with low-single digit organic growth in both Surgical & Endoscopy and Acute Care & Monitoring; and
-
Diabetes business revenue of $721 million increased 11.5% as reported and 7.9% organic.
Q1 GAAP operating profit and operating margin were $1.445 billion and 16.8%, respectively, increases of 13% and 70 basis points, respectively. As detailed in the financial schedules included at the end of the release, Q1 non-GAAP operating profit and operating margin were $2.016 billion and 23.6%, respectively, an increase of 3% and decrease of 80 basis points, respectively.
Q1 GAAP net income and diluted earnings per share (EPS) were $1.040 billion and $0.81, respectively, flat and an increase of 1%, respectively. As detailed in the financial schedules included at the end of this release, Q1 non-GAAP net income and non-GAAP diluted EPS were $1.626 billion and $1.26, respectively, both increases of 2%. Non-GAAP diluted EPS had no impact from foreign currency translation.
Guidance
The company today reiterated its FY26 revenue growth and raised its FY26 EPS guidance.
The company continues to expect FY26 organic revenue growth of approximately 5%. The organic revenue growth guidance excludes the impact of foreign currency exchange and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, assuming recent foreign currency exchange rates, FY26 revenue growth on a reported basis would be in the range of 6.5% to 6.8%.
Excluding the potential impact from tariffs, Medtronic now expects underlying FY26 diluted non-GAAP EPS growth to be approximately 4.5% versus the prior guidance of approximately 4%. Including the reduced potential impact from tariffs of approximately $185 million versus the prior range of approximately $200 million to $350 million, Medtronic is raising its FY26 diluted non-GAAP EPS guidance to the new range of $5.60 to $5.66 versus the prior range of $5.50 to $5.60.
“As a result of our Q1 EPS outperformance and improved tariff impact assumption, we are raising our full year EPS guidance,” said Thierry Piéton, Medtronic chief financial officer. “Our confidence continues to increase as we advance our revenue growth drivers and execute on efficiencies in manufacturing, supply chain, and operating expenses to drive earnings growth, and increase our growth investments in R&D, sales, and marketing, all with a deliberate focus on creating long-term shareholder value.”
Video Webcast Information
Medtronic will host a video webcast today, August 19, at 8:00 a.m. EDT (7:00 a.m. CDT) to provide information about its business for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Quarterly Earnings icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company’s prepared remarks will be available by clicking on the Past Events and Presentations link under the News & Events drop-down at investorrelations.medtronic.com.
Financial Schedules and Earnings Presentation
The first quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Quarterly Earnings link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the first quarter earnings presentation, click here.
About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit www.Medtronic.com and follow on LinkedIn.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, material acquisition and divestiture transactions, general economic conditions, and other risks and uncertainties described in the company’s periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “looking ahead,” “may,” “plan,” “possible,” “potential,” “project,” “should,” “going to,” “will,” and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered “non-GAAP” financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2025, and references to sequential changes are in comparison to the prior fiscal quarter. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis.
Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company’s underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management’s review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company’s consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.
Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions, divestitures, or other significant discrete items. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.
Contacts:
Erika Winkels
Public Relations
+1-763-526-8478
Ryan Weispfenning
Investor Relations
+1-763-505-4626
|
MEDTRONIC PLC |
|||||||||||||
|
WORLD WIDE REVENUE(1) |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
|
|||||||||||||
|
FIRST QUARTER |
|||||||||||||
|
REPORTED |
ORGANIC |
||||||||||||
|
(in millions) |
FY26 |
FY25 |
Growth |
Currency |
FY26(5) |
FY25(5) |
Growth |
||||||
|
Cardiovascular |
$ 3,285 |
$ 3,007 |
9.3 % |
$ 68 |
$ 3,217 |
$ 3,007 |
7.0 % |
||||||
|
Cardiac Rhythm & Heart Failure |
1,712 |
1,535 |
11.5 |
37 |
1,676 |
1,535 |
9.1 |
||||||
|
Structural Heart & Aortic |
930 |
856 |
8.7 |
22 |
908 |
856 |
6.1 |
||||||
|
Coronary & Peripheral Vascular |
643 |
616 |
4.5 |
10 |
633 |
616 |
2.9 |
||||||
|
Neuroscience |
2,416 |
2,317 |
4.3 |
27 |
2,389 |
2,317 |
3.1 |
||||||
|
Cranial & Spinal Technologies |
1,211 |
1,147 |
5.5 |
12 |
1,199 |
1,147 |
4.5 |
||||||
|
Specialty Therapies |
702 |
713 |
(1.5) |
9 |
694 |
713 |
(2.7) |
||||||
|
Neuromodulation |
504 |
457 |
10.2 |
7 |
496 |
457 |
8.6 |
||||||
|
Medical Surgical |
2,083 |
1,996 |
4.4 |
40 |
2,044 |
1,996 |
2.4 |
||||||
|
Surgical & Endoscopy |
1,612 |
1,544 |
4.4 |
32 |
1,580 |
1,544 |
2.3 |
||||||
|
Acute Care & Monitoring |
471 |
452 |
4.3 |
8 |
464 |
452 |
2.6 |
||||||
|
Diabetes |
721 |
647 |
11.5 |
23 |
698 |
647 |
7.9 |
||||||
|
Total Reportable Segments |
8,506 |
7,967 |
6.8 |
159 |
8,347 |
7,967 |
4.8 |
||||||
|
Other(2) |
72 |
(52) |
NM(3) |
3 |
— |
— |
— |
||||||
|
TOTAL |
$ 8,578 |
$ 7,915 |
8.4 % |
$ 162 |
$ 8,347 |
$ 7,967 |
4.8 % |
||||||
|
(1) |
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. |
|
(2) |
Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested and adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. |
|
(3) |
Not meaningful (NM) |
|
(4) |
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates. |
|
(5) |
The three months ended July 25, 2025 includes $231 million of revenue adjustments, including $33 million of inorganic revenue for the transition activity noted in (2), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), and $159 million of favorable currency impact on the remaining segments. The three months ended July 26, 2024 excludes $52 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2) and $38 million of inorganic revenue related to the transition activity noted in (2). |
|
MEDTRONIC PLC |
|||||||||||
|
U.S. REVENUE(1)(2) |
|||||||||||
|
(Unaudited) |
|||||||||||
|
|
|||||||||||
|
FIRST QUARTER |
|||||||||||
|
REPORTED |
ORGANIC |
||||||||||
|
(in millions) |
FY26 |
FY25 |
Growth |
FY26 |
FY25 |
Growth |
|||||
|
Cardiovascular |
$ 1,479 |
$ 1,403 |
5.5 % |
$ 1,479 |
$ 1,403 |
5.5 % |
|||||
|
Cardiac Rhythm & Heart Failure |
834 |
766 |
8.9 |
834 |
766 |
8.9 |
|||||
|
Structural Heart & Aortic |
371 |
368 |
0.8 |
371 |
368 |
0.8 |
|||||
|
Coronary & Peripheral Vascular |
274 |
268 |
2.1 |
274 |
268 |
2.1 |
|||||
|
Neuroscience |
1,624 |
1,565 |
3.8 |
1,624 |
1,565 |
3.8 |
|||||
|
Cranial & Spinal Technologies |
890 |
855 |
4.1 |
890 |
855 |
4.1 |
|||||
|
Specialty Therapies |
393 |
398 |
(1.3) |
393 |
398 |
(1.3) |
|||||
|
Neuromodulation |
341 |
312 |
9.4 |
341 |
312 |
9.4 |
|||||
|
Medical Surgical |
884 |
881 |
0.4 |
884 |
881 |
0.4 |
|||||
|
Surgical & Endoscopy |
622 |
630 |
(1.3) |
622 |
630 |
(1.3) |
|||||
|
Acute Care & Monitoring |
263 |
251 |
4.5 |
263 |
251 |
4.5 |
|||||
|
Diabetes |
217 |
215 |
0.9 |
217 |
215 |
0.9 |
|||||
|
Total Reportable Segments |
4,205 |
4,064 |
3.5 |
4,205 |
4,064 |
3.5 |
|||||
|
Other(3) |
20 |
18 |
6.4 |
— |
— |
— |
|||||
|
TOTAL |
$ 4,224 |
$ 4,082 |
3.5 % |
$ 4,205 |
$ 4,064 |
3.5 % |
|||||
|
(1) |
U.S. includes the United States and U.S. territories. |
|
(2) |
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. |
|
(3) |
Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested. |
|
MEDTRONIC PLC |
|||||||||||||
|
INTERNATIONAL REVENUE(1) |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
|
|||||||||||||
|
FIRST QUARTER |
|||||||||||||
|
REPORTED |
ORGANIC |
||||||||||||
|
(in millions) |
FY26 |
FY25 |
Growth |
Currency |
FY26(5) |
FY25(5) |
Growth |
||||||
|
Cardiovascular |
$ 1,806 |
$ 1,604 |
12.6 % |
$ 68 |
$ 1,737 |
$ 1,604 |
8.3 % |
||||||
|
Cardiac Rhythm & Heart Failure |
878 |
769 |
14.2 |
37 |
842 |
769 |
9.4 |
||||||
|
Structural Heart & Aortic |
558 |
487 |
14.6 |
22 |
536 |
487 |
10.1 |
||||||
|
Coronary & Peripheral Vascular |
369 |
347 |
6.3 |
10 |
359 |
347 |
3.4 |
||||||
|
Neuroscience |
792 |
752 |
5.4 |
27 |
765 |
752 |
1.7 |
||||||
|
Cranial & Spinal Technologies |
320 |
292 |
9.7 |
12 |
309 |
292 |
5.7 |
||||||
|
Specialty Therapies |
309 |
314 |
(1.7) |
9 |
301 |
314 |
(4.4) |
||||||
|
Neuromodulation |
163 |
146 |
11.9 |
7 |
156 |
146 |
6.9 |
||||||
|
Medical Surgical |
1,199 |
1,115 |
7.5 |
40 |
1,159 |
1,115 |
4.0 |
||||||
|
Surgical & Endoscopy |
990 |
915 |
8.3 |
32 |
958 |
915 |
4.8 |
||||||
|
Acute Care & Monitoring |
209 |
200 |
4.1 |
8 |
201 |
200 |
0.2 |
||||||
|
Diabetes |
504 |
432 |
16.7 |
23 |
481 |
432 |
11.4 |
||||||
|
Total Reportable Segments |
4,301 |
3,903 |
10.2 |
159 |
4,142 |
3,903 |
6.1 |
||||||
|
Other(2) |
53 |
(70) |
NM(3) |
3 |
— |
— |
— |
||||||
|
TOTAL |
$ 4,354 |
$ 3,832 |
13.6 % |
$ 162 |
$ 4,142 |
$ 3,903 |
6.1 % |
||||||
|
(1) |
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely. |
|
(2) |
Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested and adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. |
|
(3) |
Not meaningful (NM) |
|
(4) |
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates. |
|
(5) |
The three months ended July 25, 2025 includes $212 million of revenue adjustments, including $14 million of inorganic revenue for the transition activity noted in (2), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), and $159 million of favorable currency impact on the remaining segments. The three months ended July 26, 2024 excludes $70 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2) and $19 million of inorganic revenue related to the transition activity noted in (2). |
|
MEDTRONIC PLC |
|||
|
CONSOLIDATED STATEMENTS OF INCOME |
|||
|
(Unaudited) |
|||
|
|
|||
|
Three months ended |
|||
|
(in millions, except per share data) |
July 25, 2025 |
July 26, 2024 |
|
|
Net sales |
$ 8,578 |
$ 7,915 |
|
|
Costs and expenses: |
|||
|
Cost of products sold, excluding amortization of intangible assets |
3,001 |
2,761 |
|
|
Research and development expense |
726 |
676 |
|
|
Selling, general, and administrative expense |
2,806 |
2,655 |
|
|
Amortization of intangible assets |
459 |
414 |
|
|
Restructuring charges, net |
45 |
47 |
|
|
Certain litigation charges, net |
27 |
81 |
|
|
Other operating expense, net |
70 |
1 |
|
|
Operating profit |
1,445 |
1,278 |
|
|
Other non-operating income, net |
(33) |
(157) |
|
|
Interest expense, net |
176 |
167 |
|
|
Income before income taxes |
1,302 |
1,268 |
|
|
Income tax provision |
255 |
220 |
|
|
Net income |
1,047 |
1,049 |
|
|
Net income attributable to noncontrolling interests |
(7) |
(6) |
|
|
Net income attributable to Medtronic |
$ 1,040 |
$ 1,042 |
|
|
Basic earnings per share |
$ 0.81 |
$ 0.81 |
|
|
Diluted earnings per share |
$ 0.81 |
$ 0.80 |
|
|
Basic weighted average shares outstanding |
1,281.6 |
1,293.3 |
|
|
Diluted weighted average shares outstanding |
1,287.1 |
1,296.5 |
|
|
The data in the schedule above has been intentionally rounded to the nearest million. |
|
MEDTRONIC PLC |
|||||||||||||||||
|
GAAP TO NON-GAAP RECONCILIATIONS(1) |
|||||||||||||||||
|
(Unaudited) |
|||||||||||||||||
|
|
|||||||||||||||||
|
Three months ended July 25, 2025 |
|||||||||||||||||
|
(in millions, except per share data) |
Net |
Cost of |
Gross |
Operating |
Operating |
Income |
Net Income |
Diluted |
Effective |
||||||||
|
GAAP |
$ 8,578 |
$ 3,001 |
65.0 % |
$ 1,445 |
16.8 % |
$ 1,302 |
$ 1,040 |
$ 0.81 |
19.6 % |
||||||||
|
Non-GAAP Adjustments: |
|||||||||||||||||
|
Amortization of intangible assets(2) |
— |
— |
— |
459 |
5.5 |
459 |
374 |
0.29 |
18.5 |
||||||||
|
Restructuring and associated costs(3) |
— |
(16) |
0.1 |
67 |
0.8 |
67 |
51 |
0.04 |
22.4 |
||||||||
|
Acquisition and divestiture-related items(4) |
— |
(7) |
— |
58 |
0.7 |
58 |
48 |
0.04 |
17.2 |
||||||||
|
Certain litigation charges, net |
— |
— |
— |
27 |
0.3 |
27 |
21 |
0.02 |
22.2 |
||||||||
|
(Gain)/loss on minority investments(5) |
— |
— |
— |
— |
— |
113 |
107 |
0.08 |
6.2 |
||||||||
|
Other(6) |
(39) |
— |
(0.2) |
(39) |
(0.5) |
(39) |
(30) |
(0.02) |
20.5 |
||||||||
|
Certain tax adjustments, net |
— |
— |
— |
— |
— |
— |
16 |
0.01 |
— |
||||||||
|
Non-GAAP |
$ 8,539 |
$ 2,979 |
65.1 % |
$ 2,016 |
23.6 % |
$ 1,987 |
$ 1,626 |
$ 1.26 |
17.8 % |
||||||||
|
Currency impact |
(159) |
(46) |
(0.1) |
(10) |
0.3 |
— |
|||||||||||
|
Currency Adjusted |
$ 8,380 |
$ 2,933 |
65.0 % |
$ 2,006 |
23.9 % |
$ 1.26 |
|||||||||||
|
|
|||||||||||||||||
|
Three months ended July 26, 2024 |
|||||||||||||||||
|
(in millions, except per share data) |
Net |
Cost of |
Gross |
Operating |
Operating |
Income |
Net Income |
Diluted |
Effective |
||||||||
|
GAAP |
$ 7,915 |
$ 2,761 |
65.1 % |
$ 1,278 |
16.1 % |
$ 1,268 |
$ 1,042 |
$ 0.80 |
17.4 % |
||||||||
|
Non-GAAP Adjustments: |
|||||||||||||||||
|
Amortization of intangible assets |
— |
— |
— |
414 |
5.1 |
414 |
340 |
0.26 |
18.1 |
||||||||
|
Restructuring and associated costs(3) |
— |
(9) |
0.1 |
62 |
0.8 |
62 |
51 |
0.04 |
19.4 |
||||||||
|
Acquisition and divestiture-related items(4) |
— |
(10) |
0.1 |
12 |
0.1 |
12 |
11 |
0.01 |
8.3 |
||||||||
|
Certain litigation charges, net |
— |
— |
— |
81 |
1.0 |
81 |
68 |
0.05 |
16.0 |
||||||||
|
(Gain)/loss on minority investments(5) |
— |
— |
— |
— |
— |
(17) |
(17) |
(0.01) |
— |
||||||||
|
Medical device regulations(7) |
— |
(11) |
0.1 |
14 |
0.2 |
14 |
11 |
0.01 |
21.4 |
||||||||
|
Other(6) |
90 |
— |
0.6 |
90 |
1.1 |
90 |
70 |
0.05 |
22.2 |
||||||||
|
Certain tax adjustments, net |
— |
— |
— |
— |
— |
— |
17 |
0.01 |
— |
||||||||
|
Non-GAAP |
$ 8,004 |
$ 2,730 |
65.9 % |
$ 1,953 |
24.4 % |
$ 1,925 |
$ 1,592 |
$ 1.23 |
17.0 % |
||||||||
|
See description of non-GAAP financial measures contained in the press release dated August 19, 2025. |
|
|
(1) |
The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum. |
|
(2) |
The Company recognized $45 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio. |
|
(3) |
The charges primarily relate to employee termination benefits and facility related and contract termination costs. |
|
(4) |
The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business-related charges. For the three months ended July 25, 2025, exit of business-related charges primarily relate to the impending separation of the Diabetes business and costs associated with the Company’s June 2021 decision to stop the distribution and sale of the Medtronic HVAD System. |
|
(5) |
We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations. |
|
(6) |
Reflects adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. |
|
(7) |
The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs. |
|
MEDTRONIC PLC |
|||||||||||||||
|
GAAP TO NON-GAAP RECONCILIATIONS(1) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
|||||||||||||||
|
Three months ended July 25, 2025 |
|||||||||||||||
|
(in millions) |
Net |
SG&A |
SG&A |
R&D |
R&D |
Other |
Other |
Other Non- |
|||||||
|
GAAP |
$ 8,578 |
$ 2,806 |
32.7 % |
$ 726 |
8.5 % |
$ 70 |
0.8 % |
$ (33) |
|||||||
|
Non-GAAP Adjustments: |
|||||||||||||||
|
Restructuring and associated costs(2) |
— |
(5) |
— |
— |
— |
— |
— |
— |
|||||||
|
Acquisition and divestiture-related items(3) |
— |
(26) |
(0.2) |
— |
— |
(25) |
(0.3) |
— |
|||||||
|
Other(4) |
(39) |
— |
— |
— |
— |
— |
— |
— |
|||||||
|
(Gain)/loss on minority investments(5) |
— |
— |
— |
— |
— |
— |
— |
(113) |
|||||||
|
Non-GAAP |
$ 8,539 |
$ 2,775 |
32.5 % |
$ 725 |
8.5 % |
$ 44 |
0.5 % |
$ (146) |
|||||||
|
See description of non-GAAP financial measures contained in the press release dated August 19, 2025. |
|
|
(1) |
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
|
(2) |
The charges primarily relate to employee termination benefits and facility related and contract termination costs. |
|
(3) |
The charges primarily include changes in fair value of contingent consideration and exit of business-related charges, which primarily relate to the impending separation of the Diabetes business and costs associated with the Company’s June 2021 decision to stop the distribution and sale of the Medtronic HVAD System. |
|
(4) |
Reflects adjustments to the Company’s Italian payback accruals resulting from the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015. |
|
(5) |
We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations. |
|
MEDTRONIC PLC |
|||
|
GAAP TO NON-GAAP RECONCILIATIONS(1) |
|||
|
(Unaudited) |
|||
|
|
|||
|
Three months ended |
|||
|
(in millions) |
July 25, 2025 |
July 26, 2024 |
|
|
Net cash provided by operating activities |
$ 1,088 |
$ 986 |
|
|
Additions to property, plant, and equipment |
(504) |
(520) |
|
|
Free Cash Flow(2) |
$ 584 |
$ 466 |
|
|
See description of non-GAAP financial measures contained in the press release dated August 19, 2025. |
|
|
(1) |
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
|
(2) |
Free cash flow represents operating cash flows less property, plant, and equipment additions. |
|
MEDTRONIC PLC |
|||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||
|
(Unaudited) |
|||
|
|
|||
|
Three months ended |
|||
|
(in millions) |
July 25, 2025 |
July 26, 2024 |
|
|
Operating Activities: |
|||
|
Net income |
$ 1,047 |
$ 1,049 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|||
|
Depreciation and amortization |
748 |
662 |
|
|
Provision for credit losses |
28 |
18 |
|
|
Deferred income taxes |
167 |
88 |
|
|
Stock-based compensation |
86 |
83 |
|
|
Other, net |
159 |
(9) |
|
|
Change in operating assets and liabilities, net of acquisitions and divestitures: |
|||
|
Accounts receivable, net |
288 |
110 |
|
|
Inventories |
(373) |
(217) |
|
|
Accounts payable and accrued liabilities |
(598) |
(604) |
|
|
Other operating assets and liabilities |
(464) |
(194) |
|
|
Net cash provided by operating activities |
1,088 |
986 |
|
|
Investing Activities: |
|||
|
Additions to property, plant, and equipment |
(504) |
(520) |
|
|
Purchases of investments |
(2,100) |
(1,879) |
|
|
Sales and maturities of investments |
2,010 |
2,157 |
|
|
Other investing activities, net |
(125) |
(17) |
|
|
Net cash used in investing activities |
(719) |
(259) |
|
|
Financing Activities: |
|||
|
Change in current debt obligations, net |
649 |
(624) |
|
|
Issuance of long-term debt |
— |
3,209 |
|
|
Payments on long-term debt |
(1,162) |
— |
|
|
Dividends to shareholders |
(910) |
(898) |
|
|
Issuance of ordinary shares |
95 |
89 |
|
|
Repurchase of ordinary shares |
(123) |
(2,492) |
|
|
Other financing activities, net |
70 |
(15) |
|
|
Net cash used in financing activities |
(1,381) |
(731) |
|
|
Effect of exchange rate changes on cash and cash equivalents |
67 |
31 |
|
|
Net change in cash and cash equivalents |
(945) |
27 |
|
|
Cash and cash equivalents at beginning of period |
2,218 |
1,284 |
|
|
Cash and cash equivalents at end of period |
$ 1,273 |
$ 1,311 |
|
|
|
|||
|
Supplemental Cash Flow Information |
|||
|
Cash paid for: |
|||
|
Income taxes |
$ 402 |
$ 394 |
|
|
Interest |
81 |
119 |
|
|
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum. |
View original content to download multimedia:https://www.prnewswire.com/news-releases/medtronic-reports-first-quarter-fiscal-2026-financial-results-302532949.html
SOURCE Medtronic plc
. Based on this analysis, write a comprehensive, original, and highly engaging article in English that explores potential future trends, implications, and actionable insights related to these themes. The article should be forward-looking and provide significant value to the Archyde.com audience.
Consider the typical readers of the news website archyde.com category news and tailor the language, examples, and depth accordingly. The article should also reflect [Archyde.com’s Unique Angle/Voice – e.g., data-driven analysis, practical and actionable advice, contrarian perspectives, simplified explanations of complex topics].
Article Requirements:
Output Format:
The entire article must be a single, embeddable HTML content block, perfectly formatted for direct pasting into a WordPress post.
It must start with an
tag for the article title.
Do not include , , or tags.
Structure & Readability:
Compelling Title (H1): Create an attention-grabbing, SEO-friendly title for the article (this will be the content of the
tag). Ideally, this title should incorporate the identified primary keyword or a close variant naturally.
Engaging Hook: The very first paragraph must act as a powerful hook to grab the reader’s attention immediately and make them want to continue reading, especially since there’s no formal ‘Introduction’ section. To achieve this, you (the AI) should employ one of the following strategies for the opening paragraph:
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Immediate Reader Benefit/Core Concern: Directly connect the topic to something the reader cares about – solving a problem, gaining an advantage, or understanding a significant impending change.
Tease a Profound Implication/Unforeseen Consequence: Hint at a significant, perhaps unexpected, outcome of the trend without giving it all away.
Key Principles for the Hook (Regardless of chosen strategy):
Must avoid clichés (e.g., “In today’s fast-paced world…”).
Engaging Subheadings (H2, H3): Use a logical hierarchy of H2 and H3 subheadings to break the article into well-defined, digestible sections. Subheadings should be intriguing and keyword-relevant.
Concise Paragraphs: Keep paragraphs short (2-4 sentences typically) for optimal readability on all devices.
Semantic HTML: Utilize semantic HTML elements where appropriate (e.g.,
,
- ,
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for quotes).
Content Depth & Authority:Originality: The new article must be substantially original content. While inspired by
11th quarter in a row of mid-single digit organic revenue growth;
Poised to accelerate growthGALWAY, Ireland, Aug. 19, 2025 /PRNewswire/ — Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced financial results for its first quarter (Q1) of fiscal year 2026 (FY26), which ended July 25, 2025.
Medtronic reports first quarter fiscal 2026 financial results Key Highlights
-
Revenue of $8.6 billion, adjusted revenue of $8.5 billion, increased 8.4% as reported and 4.8% organic
-
GAAP diluted EPS of $0.81 increased 1%; non-GAAP diluted EPS of $1.26 increased 2%
-
Company raises FY26 EPS guidance; reiterates FY26 organic revenue growth guidance
-
Cardiac Ablation Solutions revenue increased nearly 50%, including 72% in the US, on strength of pulsed field ablation (PFA) products
-
U.S. Centers for Medicare & Medicaid Services (CMS) posted proposed National Coverage Determination (NCD) for the Symplicity Spyral™ system for hypertension; final NCD expected on or before October 8, 2025
-
Received CE Mark for LigaSure™ RAS vessel-sealing technology on Hugo™ robotic-assisted surgery (RAS) system
“We delivered another consistent quarter of mid-single digit organic revenue growth, with broad strength from several innovative product categories, including Pulsed Field Ablation, Transcatheter Valves, Neuromodulation, Diabetes, and Leadless Pacing,” said Geoff Martha, Medtronic chairman and chief executive officer. “We’re confident and well positioned to accelerate our revenue growth in the second half of our fiscal year, as we make meaningful progress on our major growth drivers.”
Financial Results
Medtronic reported Q1 worldwide revenue of $8.578 billion and adjusted revenue of $8.539 billion, an increase of 8.4% as reported and 4.8% on an organic basis. The organic revenue growth comparison excludes:Q1 revenue by segment included:
-
Cardiovascular Portfolio revenue of $3.285 billion increased 9.3% as reported and 7.0% organic, with a high-single digit increase in Cardiac Rhythm & Heart Failure, mid-single digit increase in Structural Heart & Aortic, and low-single digit increase in Coronary & Peripheral Vascular, all on an organic basis;
-
Neuroscience Portfolio revenue of $2.416 billion increased 4.3% reported and 3.1% organic, with a high-single digit increase in Neuromodulation and mid-single digit increase in Cranial & Spinal Technologies, offset by a low-single digit decrease in Specialty Therapies, all on an organic basis;
-
Medical Surgical Portfolio revenue of $2.083 billion grew 4.4% as reported and 2.4% organic, with low-single digit organic growth in both Surgical & Endoscopy and Acute Care & Monitoring; and
-
Diabetes business revenue of $721 million increased 11.5% as reported and 7.9% organic.
Q1 GAAP operating profit and operating margin were $1.445 billion and 16.8%, respectively, increases of 13% and 70 basis points, respectively. As detailed in the financial schedules included at the end of the release, Q1 non-GAAP operating profit and operating margin were $2.016 billion and 23.6%, respectively, an increase of 3% and decrease of 80 basis points, respectively.
Q1 GAAP net income and diluted earnings per share (EPS) were $1.040 billion and $0.81, respectively, flat and an increase of 1%, respectively. As detailed in the financial schedules included at the end of this release, Q1 non-GAAP net income and non-GAAP diluted EPS were $1.626 billion and $1.26, respectively, both increases of 2%. Non-GAAP diluted EPS had no impact from foreign currency translation.
Guidance
The company today reiterated its FY26 revenue growth and raised its FY26 EPS guidance.The company continues to expect FY26 organic revenue growth of approximately 5%. The organic revenue growth guidance excludes the impact of foreign currency exchange and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, assuming recent foreign currency exchange rates, FY26 revenue growth on a reported basis would be in the range of 6.5% to 6.8%.
Excluding the potential impact from tariffs, Medtronic now expects underlying FY26 diluted non-GAAP EPS growth to be approximately 4.5% versus the prior guidance of approximately 4%. Including the reduced potential impact from tariffs of approximately $185 million versus the prior range of approximately $200 million to $350 million, Medtronic is raising its FY26 diluted non-GAAP EPS guidance to the new range of $5.60 to $5.66 versus the prior range of $5.50 to $5.60.
“As a result of our Q1 EPS outperformance and improved tariff impact assumption, we are raising our full year EPS guidance,” said Thierry Piéton, Medtronic chief financial officer. “Our confidence continues to increase as we advance our revenue growth drivers and execute on efficiencies in manufacturing, supply chain, and operating expenses to drive earnings growth, and increase our growth investments in R&D, sales, and marketing, all with a deliberate focus on creating long-term shareholder value.”
Video Webcast Information
Medtronic will host a video webcast today, August 19, at 8:00 a.m. EDT (7:00 a.m. CDT) to provide information about its business for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Quarterly Earnings icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company’s prepared remarks will be available by clicking on the Past Events and Presentations link under the News & Events drop-down at investorrelations.medtronic.com.Financial Schedules and Earnings Presentation
The first quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Quarterly Earnings link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the first quarter earnings presentation, click here.About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit www.Medtronic.com and follow on LinkedIn.FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, material acquisition and divestiture transactions, general economic conditions, and other risks and uncertainties described in the company’s periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “looking ahead,” “may,” “plan,” “possible,” “potential,” “project,” “should,” “going to,” “will,” and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered “non-GAAP” financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2025, and references to sequential changes are in comparison to the prior fiscal quarter. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis.Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company’s underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management’s review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company’s consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.
Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions, divestitures, or other significant discrete items. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.
Contacts:
Erika Winkels
Public Relations
+1-763-526-8478Ryan Weispfenning
Investor Relations
+1-763-505-4626MEDTRONIC PLC
WORLD WIDE REVENUE(1)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY26
FY25
Growth
Currency
Impact(4)FY26(5)
FY25(5)
Growth
Cardiovascular
$ 3,285
$ 3,007
9.3 %
$ 68
$ 3,217
$ 3,007
7.0 %
Cardiac Rhythm & Heart Failure
1,712
1,535
11.5
37
1,676
1,535
9.1
Structural Heart & Aortic
930
856
8.7
22
908
856
6.1
Coronary & Peripheral Vascular
643
616
4.5
10
633
616
2.9
Neuroscience
2,416
2,317
4.3
27
2,389
2,317
3.1
Cranial & Spinal Technologies
1,211
1,147
5.5
12
1,199
1,147
4.5
Specialty Therapies
702
713
(1.5)
9
694
713
(2.7)
Neuromodulation
504
457
10.2
7
496
457
8.6
Medical Surgical
2,083
1,996
4.4
40
2,044
1,996
2.4
Surgical & Endoscopy
1,612
1,544
4.4
32
1,580
1,544
2.3
Acute Care & Monitoring
471
452
4.3
8
464
452
2.6
Diabetes
721
647
11.5
23
698
647
7.9
Total Reportable Segments
8,506
7,967
6.8
159
8,347
7,967
4.8
Other(2)
72
(52)
NM(3)
3
—
—
—
TOTAL
$ 8,578
$ 7,915
8.4 %
$ 162
$ 8,347
$ 7,967
4.8 %
(1)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(2)
Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested and adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(3)
Not meaningful (NM)
(4)
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
(5)
The three months ended July 25, 2025 includes $231 million of revenue adjustments, including $33 million of inorganic revenue for the transition activity noted in (2), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), and $159 million of favorable currency impact on the remaining segments. The three months ended July 26, 2024 excludes $52 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2) and $38 million of inorganic revenue related to the transition activity noted in (2).
MEDTRONIC PLC
U.S. REVENUE(1)(2)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY26
FY25
Growth
FY26
FY25
Growth
Cardiovascular
$ 1,479
$ 1,403
5.5 %
$ 1,479
$ 1,403
5.5 %
Cardiac Rhythm & Heart Failure
834
766
8.9
834
766
8.9
Structural Heart & Aortic
371
368
0.8
371
368
0.8
Coronary & Peripheral Vascular
274
268
2.1
274
268
2.1
Neuroscience
1,624
1,565
3.8
1,624
1,565
3.8
Cranial & Spinal Technologies
890
855
4.1
890
855
4.1
Specialty Therapies
393
398
(1.3)
393
398
(1.3)
Neuromodulation
341
312
9.4
341
312
9.4
Medical Surgical
884
881
0.4
884
881
0.4
Surgical & Endoscopy
622
630
(1.3)
622
630
(1.3)
Acute Care & Monitoring
263
251
4.5
263
251
4.5
Diabetes
217
215
0.9
217
215
0.9
Total Reportable Segments
4,205
4,064
3.5
4,205
4,064
3.5
Other(3)
20
18
6.4
—
—
—
TOTAL
$ 4,224
$ 4,082
3.5 %
$ 4,205
$ 4,064
3.5 %
(1)
U.S. includes the United States and U.S. territories.
(2)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(3)
Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested.
MEDTRONIC PLC
INTERNATIONAL REVENUE(1)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY26
FY25
Growth
Currency
Impact(4)FY26(5)
FY25(5)
Growth
Cardiovascular
$ 1,806
$ 1,604
12.6 %
$ 68
$ 1,737
$ 1,604
8.3 %
Cardiac Rhythm & Heart Failure
878
769
14.2
37
842
769
9.4
Structural Heart & Aortic
558
487
14.6
22
536
487
10.1
Coronary & Peripheral Vascular
369
347
6.3
10
359
347
3.4
Neuroscience
792
752
5.4
27
765
752
1.7
Cranial & Spinal Technologies
320
292
9.7
12
309
292
5.7
Specialty Therapies
309
314
(1.7)
9
301
314
(4.4)
Neuromodulation
163
146
11.9
7
156
146
6.9
Medical Surgical
1,199
1,115
7.5
40
1,159
1,115
4.0
Surgical & Endoscopy
990
915
8.3
32
958
915
4.8
Acute Care & Monitoring
209
200
4.1
8
201
200
0.2
Diabetes
504
432
16.7
23
481
432
11.4
Total Reportable Segments
4,301
3,903
10.2
159
4,142
3,903
6.1
Other(2)
53
(70)
NM(3)
3
—
—
—
TOTAL
$ 4,354
$ 3,832
13.6 %
$ 162
$ 4,142
$ 3,903
6.1 %
(1)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(2)
Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested and adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(3)
Not meaningful (NM)
(4)
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
(5)
The three months ended July 25, 2025 includes $212 million of revenue adjustments, including $14 million of inorganic revenue for the transition activity noted in (2), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), and $159 million of favorable currency impact on the remaining segments. The three months ended July 26, 2024 excludes $70 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2) and $19 million of inorganic revenue related to the transition activity noted in (2).
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended
(in millions, except per share data)
July 25, 2025
July 26, 2024
Net sales
$ 8,578
$ 7,915
Costs and expenses:
Cost of products sold, excluding amortization of intangible assets
3,001
2,761
Research and development expense
726
676
Selling, general, and administrative expense
2,806
2,655
Amortization of intangible assets
459
414
Restructuring charges, net
45
47
Certain litigation charges, net
27
81
Other operating expense, net
70
1
Operating profit
1,445
1,278
Other non-operating income, net
(33)
(157)
Interest expense, net
176
167
Income before income taxes
1,302
1,268
Income tax provision
255
220
Net income
1,047
1,049
Net income attributable to noncontrolling interests
(7)
(6)
Net income attributable to Medtronic
$ 1,040
$ 1,042
Basic earnings per share
$ 0.81
$ 0.81
Diluted earnings per share
$ 0.81
$ 0.80
Basic weighted average shares outstanding
1,281.6
1,293.3
Diluted weighted average shares outstanding
1,287.1
1,296.5
The data in the schedule above has been intentionally rounded to the nearest million.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended July 25, 2025
(in millions, except per share data)
Net
SalesCost of
Products
SoldGross
Margin
PercentOperating
ProfitOperating
Profit
PercentIncome
Before
Income
TaxesNet Income
attributable
to
MedtronicDiluted
EPSEffective
Tax RateGAAP
$ 8,578
$ 3,001
65.0 %
$ 1,445
16.8 %
$ 1,302
$ 1,040
$ 0.81
19.6 %
Non-GAAP Adjustments:
Amortization of intangible assets(2)
—
—
—
459
5.5
459
374
0.29
18.5
Restructuring and associated costs(3)
—
(16)
0.1
67
0.8
67
51
0.04
22.4
Acquisition and divestiture-related items(4)
—
(7)
—
58
0.7
58
48
0.04
17.2
Certain litigation charges, net
—
—
—
27
0.3
27
21
0.02
22.2
(Gain)/loss on minority investments(5)
—
—
—
—
—
113
107
0.08
6.2
Other(6)
(39)
—
(0.2)
(39)
(0.5)
(39)
(30)
(0.02)
20.5
Certain tax adjustments, net
—
—
—
—
—
—
16
0.01
—
Non-GAAP
$ 8,539
$ 2,979
65.1 %
$ 2,016
23.6 %
$ 1,987
$ 1,626
$ 1.26
17.8 %
Currency impact
(159)
(46)
(0.1)
(10)
0.3
—
Currency Adjusted
$ 8,380
$ 2,933
65.0 %
$ 2,006
23.9 %
$ 1.26
Three months ended July 26, 2024
(in millions, except per share data)
Net
SalesCost of
Products
SoldGross
Margin
PercentOperating
ProfitOperating
Profit
PercentIncome
Before
Income
TaxesNet Income
attributable
to
MedtronicDiluted
EPSEffective
Tax RateGAAP
$ 7,915
$ 2,761
65.1 %
$ 1,278
16.1 %
$ 1,268
$ 1,042
$ 0.80
17.4 %
Non-GAAP Adjustments:
Amortization of intangible assets
—
—
—
414
5.1
414
340
0.26
18.1
Restructuring and associated costs(3)
—
(9)
0.1
62
0.8
62
51
0.04
19.4
Acquisition and divestiture-related items(4)
—
(10)
0.1
12
0.1
12
11
0.01
8.3
Certain litigation charges, net
—
—
—
81
1.0
81
68
0.05
16.0
(Gain)/loss on minority investments(5)
—
—
—
—
—
(17)
(17)
(0.01)
—
Medical device regulations(7)
—
(11)
0.1
14
0.2
14
11
0.01
21.4
Other(6)
90
—
0.6
90
1.1
90
70
0.05
22.2
Certain tax adjustments, net
—
—
—
—
—
—
17
0.01
—
Non-GAAP
$ 8,004
$ 2,730
65.9 %
$ 1,953
24.4 %
$ 1,925
$ 1,592
$ 1.23
17.0 %
See description of non-GAAP financial measures contained in the press release dated August 19, 2025.
(1)
The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum.
(2)
The Company recognized $45 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio.
(3)
The charges primarily relate to employee termination benefits and facility related and contract termination costs.
(4)
The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business-related charges. For the three months ended July 25, 2025, exit of business-related charges primarily relate to the impending separation of the Diabetes business and costs associated with the Company’s June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.
(5)
We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
(6)
Reflects adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(7)
The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended July 25, 2025
(in millions)
Net
SalesSG&A
ExpenseSG&A
Expense as
a % of Net
SalesR&D
ExpenseR&D
Expense
as a % of
Net SalesOther
Operating
(Income)
Expense,
netOther
Operating
(Inc.)/Exp.,
net as a % of
Net SalesOther Non-
Operating
Income, netGAAP
$ 8,578
$ 2,806
32.7 %
$ 726
8.5 %
$ 70
0.8 %
$ (33)
Non-GAAP Adjustments:
Restructuring and associated costs(2)
—
(5)
—
—
—
—
—
—
Acquisition and divestiture-related items(3)
—
(26)
(0.2)
—
—
(25)
(0.3)
—
Other(4)
(39)
—
—
—
—
—
—
—
(Gain)/loss on minority investments(5)
—
—
—
—
—
—
—
(113)
Non-GAAP
$ 8,539
$ 2,775
32.5 %
$ 725
8.5 %
$ 44
0.5 %
$ (146)
See description of non-GAAP financial measures contained in the press release dated August 19, 2025.
(1)
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
(2)
The charges primarily relate to employee termination benefits and facility related and contract termination costs.
(3)
The charges primarily include changes in fair value of contingent consideration and exit of business-related charges, which primarily relate to the impending separation of the Diabetes business and costs associated with the Company’s June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.
(4)
Reflects adjustments to the Company’s Italian payback accruals resulting from the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(5)
We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended
(in millions)
July 25, 2025
July 26, 2024
Net cash provided by operating activities
$ 1,088
$ 986
Additions to property, plant, and equipment
(504)
(520)
Free Cash Flow(2)
$ 584
$ 466
See description of non-GAAP financial measures contained in the press release dated August 19, 2025.
(1)
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
(2)
Free cash flow represents operating cash flows less property, plant, and equipment additions.
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
(in millions)
July 25, 2025
July 26, 2024
Operating Activities:
Net income
$ 1,047
$ 1,049
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
748
662
Provision for credit losses
28
18
Deferred income taxes
167
88
Stock-based compensation
86
83
Other, net
159
(9)
Change in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net
288
110
Inventories
(373)
(217)
Accounts payable and accrued liabilities
(598)
(604)
Other operating assets and liabilities
(464)
(194)
Net cash provided by operating activities
1,088
986
Investing Activities:
Additions to property, plant, and equipment
(504)
(520)
Purchases of investments
(2,100)
(1,879)
Sales and maturities of investments
2,010
2,157
Other investing activities, net
(125)
(17)
Net cash used in investing activities
(719)
(259)
Financing Activities:
Change in current debt obligations, net
649
(624)
Issuance of long-term debt
—
3,209
Payments on long-term debt
(1,162)
—
Dividends to shareholders
(910)
(898)
Issuance of ordinary shares
95
89
Repurchase of ordinary shares
(123)
(2,492)
Other financing activities, net
70
(15)
Net cash used in financing activities
(1,381)
(731)
Effect of exchange rate changes on cash and cash equivalents
67
31
Net change in cash and cash equivalents
(945)
27
Cash and cash equivalents at beginning of period
2,218
1,284
Cash and cash equivalents at end of period
$ 1,273
$ 1,311
Supplemental Cash Flow Information
Cash paid for:
Income taxes
$ 402
$ 394
Interest
81
119
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
Medtronic reports first quarter fiscal 2026 financial results Medtronic reports first quarter fiscal 2026 financial results (PRNewsfoto/Medtronic plc) Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/medtronic-reports-first-quarter-fiscal-2026-financial-results-302532949.html
SOURCE Medtronic plc
, it should not be a mere summary or rephrasing. Keep the html embedding from the original article for the images, youtube and social networks like facebook and instagram ind integrate them naturally into the article.
SEO & Linking:Primary Keyword Identification: Analyze
11th quarter in a row of mid-single digit organic revenue growth;
Poised to accelerate growthGALWAY, Ireland, Aug. 19, 2025 /PRNewswire/ — Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced financial results for its first quarter (Q1) of fiscal year 2026 (FY26), which ended July 25, 2025.
Medtronic reports first quarter fiscal 2026 financial results Key Highlights
-
Revenue of $8.6 billion, adjusted revenue of $8.5 billion, increased 8.4% as reported and 4.8% organic
-
GAAP diluted EPS of $0.81 increased 1%; non-GAAP diluted EPS of $1.26 increased 2%
-
Company raises FY26 EPS guidance; reiterates FY26 organic revenue growth guidance
-
Cardiac Ablation Solutions revenue increased nearly 50%, including 72% in the US, on strength of pulsed field ablation (PFA) products
-
U.S. Centers for Medicare & Medicaid Services (CMS) posted proposed National Coverage Determination (NCD) for the Symplicity Spyral™ system for hypertension; final NCD expected on or before October 8, 2025
-
Received CE Mark for LigaSure™ RAS vessel-sealing technology on Hugo™ robotic-assisted surgery (RAS) system
“We delivered another consistent quarter of mid-single digit organic revenue growth, with broad strength from several innovative product categories, including Pulsed Field Ablation, Transcatheter Valves, Neuromodulation, Diabetes, and Leadless Pacing,” said Geoff Martha, Medtronic chairman and chief executive officer. “We’re confident and well positioned to accelerate our revenue growth in the second half of our fiscal year, as we make meaningful progress on our major growth drivers.”
Financial Results
Medtronic reported Q1 worldwide revenue of $8.578 billion and adjusted revenue of $8.539 billion, an increase of 8.4% as reported and 4.8% on an organic basis. The organic revenue growth comparison excludes:Q1 revenue by segment included:
-
Cardiovascular Portfolio revenue of $3.285 billion increased 9.3% as reported and 7.0% organic, with a high-single digit increase in Cardiac Rhythm & Heart Failure, mid-single digit increase in Structural Heart & Aortic, and low-single digit increase in Coronary & Peripheral Vascular, all on an organic basis;
-
Neuroscience Portfolio revenue of $2.416 billion increased 4.3% reported and 3.1% organic, with a high-single digit increase in Neuromodulation and mid-single digit increase in Cranial & Spinal Technologies, offset by a low-single digit decrease in Specialty Therapies, all on an organic basis;
-
Medical Surgical Portfolio revenue of $2.083 billion grew 4.4% as reported and 2.4% organic, with low-single digit organic growth in both Surgical & Endoscopy and Acute Care & Monitoring; and
-
Diabetes business revenue of $721 million increased 11.5% as reported and 7.9% organic.
Q1 GAAP operating profit and operating margin were $1.445 billion and 16.8%, respectively, increases of 13% and 70 basis points, respectively. As detailed in the financial schedules included at the end of the release, Q1 non-GAAP operating profit and operating margin were $2.016 billion and 23.6%, respectively, an increase of 3% and decrease of 80 basis points, respectively.
Q1 GAAP net income and diluted earnings per share (EPS) were $1.040 billion and $0.81, respectively, flat and an increase of 1%, respectively. As detailed in the financial schedules included at the end of this release, Q1 non-GAAP net income and non-GAAP diluted EPS were $1.626 billion and $1.26, respectively, both increases of 2%. Non-GAAP diluted EPS had no impact from foreign currency translation.
Guidance
The company today reiterated its FY26 revenue growth and raised its FY26 EPS guidance.The company continues to expect FY26 organic revenue growth of approximately 5%. The organic revenue growth guidance excludes the impact of foreign currency exchange and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, assuming recent foreign currency exchange rates, FY26 revenue growth on a reported basis would be in the range of 6.5% to 6.8%.
Excluding the potential impact from tariffs, Medtronic now expects underlying FY26 diluted non-GAAP EPS growth to be approximately 4.5% versus the prior guidance of approximately 4%. Including the reduced potential impact from tariffs of approximately $185 million versus the prior range of approximately $200 million to $350 million, Medtronic is raising its FY26 diluted non-GAAP EPS guidance to the new range of $5.60 to $5.66 versus the prior range of $5.50 to $5.60.
“As a result of our Q1 EPS outperformance and improved tariff impact assumption, we are raising our full year EPS guidance,” said Thierry Piéton, Medtronic chief financial officer. “Our confidence continues to increase as we advance our revenue growth drivers and execute on efficiencies in manufacturing, supply chain, and operating expenses to drive earnings growth, and increase our growth investments in R&D, sales, and marketing, all with a deliberate focus on creating long-term shareholder value.”
Video Webcast Information
Medtronic will host a video webcast today, August 19, at 8:00 a.m. EDT (7:00 a.m. CDT) to provide information about its business for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Quarterly Earnings icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company’s prepared remarks will be available by clicking on the Past Events and Presentations link under the News & Events drop-down at investorrelations.medtronic.com.Financial Schedules and Earnings Presentation
The first quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Quarterly Earnings link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the first quarter earnings presentation, click here.About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit www.Medtronic.com and follow on LinkedIn.FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, material acquisition and divestiture transactions, general economic conditions, and other risks and uncertainties described in the company’s periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “looking ahead,” “may,” “plan,” “possible,” “potential,” “project,” “should,” “going to,” “will,” and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered “non-GAAP” financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2025, and references to sequential changes are in comparison to the prior fiscal quarter. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis.Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company’s underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management’s review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company’s consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.
Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions, divestitures, or other significant discrete items. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.
Contacts:
Erika Winkels
Public Relations
+1-763-526-8478Ryan Weispfenning
Investor Relations
+1-763-505-4626MEDTRONIC PLC
WORLD WIDE REVENUE(1)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY26
FY25
Growth
Currency
Impact(4)FY26(5)
FY25(5)
Growth
Cardiovascular
$ 3,285
$ 3,007
9.3 %
$ 68
$ 3,217
$ 3,007
7.0 %
Cardiac Rhythm & Heart Failure
1,712
1,535
11.5
37
1,676
1,535
9.1
Structural Heart & Aortic
930
856
8.7
22
908
856
6.1
Coronary & Peripheral Vascular
643
616
4.5
10
633
616
2.9
Neuroscience
2,416
2,317
4.3
27
2,389
2,317
3.1
Cranial & Spinal Technologies
1,211
1,147
5.5
12
1,199
1,147
4.5
Specialty Therapies
702
713
(1.5)
9
694
713
(2.7)
Neuromodulation
504
457
10.2
7
496
457
8.6
Medical Surgical
2,083
1,996
4.4
40
2,044
1,996
2.4
Surgical & Endoscopy
1,612
1,544
4.4
32
1,580
1,544
2.3
Acute Care & Monitoring
471
452
4.3
8
464
452
2.6
Diabetes
721
647
11.5
23
698
647
7.9
Total Reportable Segments
8,506
7,967
6.8
159
8,347
7,967
4.8
Other(2)
72
(52)
NM(3)
3
—
—
—
TOTAL
$ 8,578
$ 7,915
8.4 %
$ 162
$ 8,347
$ 7,967
4.8 %
(1)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(2)
Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested and adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(3)
Not meaningful (NM)
(4)
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
(5)
The three months ended July 25, 2025 includes $231 million of revenue adjustments, including $33 million of inorganic revenue for the transition activity noted in (2), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), and $159 million of favorable currency impact on the remaining segments. The three months ended July 26, 2024 excludes $52 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2) and $38 million of inorganic revenue related to the transition activity noted in (2).
MEDTRONIC PLC
U.S. REVENUE(1)(2)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY26
FY25
Growth
FY26
FY25
Growth
Cardiovascular
$ 1,479
$ 1,403
5.5 %
$ 1,479
$ 1,403
5.5 %
Cardiac Rhythm & Heart Failure
834
766
8.9
834
766
8.9
Structural Heart & Aortic
371
368
0.8
371
368
0.8
Coronary & Peripheral Vascular
274
268
2.1
274
268
2.1
Neuroscience
1,624
1,565
3.8
1,624
1,565
3.8
Cranial & Spinal Technologies
890
855
4.1
890
855
4.1
Specialty Therapies
393
398
(1.3)
393
398
(1.3)
Neuromodulation
341
312
9.4
341
312
9.4
Medical Surgical
884
881
0.4
884
881
0.4
Surgical & Endoscopy
622
630
(1.3)
622
630
(1.3)
Acute Care & Monitoring
263
251
4.5
263
251
4.5
Diabetes
217
215
0.9
217
215
0.9
Total Reportable Segments
4,205
4,064
3.5
4,205
4,064
3.5
Other(3)
20
18
6.4
—
—
—
TOTAL
$ 4,224
$ 4,082
3.5 %
$ 4,205
$ 4,064
3.5 %
(1)
U.S. includes the United States and U.S. territories.
(2)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(3)
Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested.
MEDTRONIC PLC
INTERNATIONAL REVENUE(1)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY26
FY25
Growth
Currency
Impact(4)FY26(5)
FY25(5)
Growth
Cardiovascular
$ 1,806
$ 1,604
12.6 %
$ 68
$ 1,737
$ 1,604
8.3 %
Cardiac Rhythm & Heart Failure
878
769
14.2
37
842
769
9.4
Structural Heart & Aortic
558
487
14.6
22
536
487
10.1
Coronary & Peripheral Vascular
369
347
6.3
10
359
347
3.4
Neuroscience
792
752
5.4
27
765
752
1.7
Cranial & Spinal Technologies
320
292
9.7
12
309
292
5.7
Specialty Therapies
309
314
(1.7)
9
301
314
(4.4)
Neuromodulation
163
146
11.9
7
156
146
6.9
Medical Surgical
1,199
1,115
7.5
40
1,159
1,115
4.0
Surgical & Endoscopy
990
915
8.3
32
958
915
4.8
Acute Care & Monitoring
209
200
4.1
8
201
200
0.2
Diabetes
504
432
16.7
23
481
432
11.4
Total Reportable Segments
4,301
3,903
10.2
159
4,142
3,903
6.1
Other(2)
53
(70)
NM(3)
3
—
—
—
TOTAL
$ 4,354
$ 3,832
13.6 %
$ 162
$ 4,142
$ 3,903
6.1 %
(1)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(2)
Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested and adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(3)
Not meaningful (NM)
(4)
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
(5)
The three months ended July 25, 2025 includes $212 million of revenue adjustments, including $14 million of inorganic revenue for the transition activity noted in (2), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), and $159 million of favorable currency impact on the remaining segments. The three months ended July 26, 2024 excludes $70 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2) and $19 million of inorganic revenue related to the transition activity noted in (2).
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended
(in millions, except per share data)
July 25, 2025
July 26, 2024
Net sales
$ 8,578
$ 7,915
Costs and expenses:
Cost of products sold, excluding amortization of intangible assets
3,001
2,761
Research and development expense
726
676
Selling, general, and administrative expense
2,806
2,655
Amortization of intangible assets
459
414
Restructuring charges, net
45
47
Certain litigation charges, net
27
81
Other operating expense, net
70
1
Operating profit
1,445
1,278
Other non-operating income, net
(33)
(157)
Interest expense, net
176
167
Income before income taxes
1,302
1,268
Income tax provision
255
220
Net income
1,047
1,049
Net income attributable to noncontrolling interests
(7)
(6)
Net income attributable to Medtronic
$ 1,040
$ 1,042
Basic earnings per share
$ 0.81
$ 0.81
Diluted earnings per share
$ 0.81
$ 0.80
Basic weighted average shares outstanding
1,281.6
1,293.3
Diluted weighted average shares outstanding
1,287.1
1,296.5
The data in the schedule above has been intentionally rounded to the nearest million.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended July 25, 2025
(in millions, except per share data)
Net
SalesCost of
Products
SoldGross
Margin
PercentOperating
ProfitOperating
Profit
PercentIncome
Before
Income
TaxesNet Income
attributable
to
MedtronicDiluted
EPSEffective
Tax RateGAAP
$ 8,578
$ 3,001
65.0 %
$ 1,445
16.8 %
$ 1,302
$ 1,040
$ 0.81
19.6 %
Non-GAAP Adjustments:
Amortization of intangible assets(2)
—
—
—
459
5.5
459
374
0.29
18.5
Restructuring and associated costs(3)
—
(16)
0.1
67
0.8
67
51
0.04
22.4
Acquisition and divestiture-related items(4)
—
(7)
—
58
0.7
58
48
0.04
17.2
Certain litigation charges, net
—
—
—
27
0.3
27
21
0.02
22.2
(Gain)/loss on minority investments(5)
—
—
—
—
—
113
107
0.08
6.2
Other(6)
(39)
—
(0.2)
(39)
(0.5)
(39)
(30)
(0.02)
20.5
Certain tax adjustments, net
—
—
—
—
—
—
16
0.01
—
Non-GAAP
$ 8,539
$ 2,979
65.1 %
$ 2,016
23.6 %
$ 1,987
$ 1,626
$ 1.26
17.8 %
Currency impact
(159)
(46)
(0.1)
(10)
0.3
—
Currency Adjusted
$ 8,380
$ 2,933
65.0 %
$ 2,006
23.9 %
$ 1.26
Three months ended July 26, 2024
(in millions, except per share data)
Net
SalesCost of
Products
SoldGross
Margin
PercentOperating
ProfitOperating
Profit
PercentIncome
Before
Income
TaxesNet Income
attributable
to
MedtronicDiluted
EPSEffective
Tax RateGAAP
$ 7,915
$ 2,761
65.1 %
$ 1,278
16.1 %
$ 1,268
$ 1,042
$ 0.80
17.4 %
Non-GAAP Adjustments:
Amortization of intangible assets
—
—
—
414
5.1
414
340
0.26
18.1
Restructuring and associated costs(3)
—
(9)
0.1
62
0.8
62
51
0.04
19.4
Acquisition and divestiture-related items(4)
—
(10)
0.1
12
0.1
12
11
0.01
8.3
Certain litigation charges, net
—
—
—
81
1.0
81
68
0.05
16.0
(Gain)/loss on minority investments(5)
—
—
—
—
—
(17)
(17)
(0.01)
—
Medical device regulations(7)
—
(11)
0.1
14
0.2
14
11
0.01
21.4
Other(6)
90
—
0.6
90
1.1
90
70
0.05
22.2
Certain tax adjustments, net
—
—
—
—
—
—
17
0.01
—
Non-GAAP
$ 8,004
$ 2,730
65.9 %
$ 1,953
24.4 %
$ 1,925
$ 1,592
$ 1.23
17.0 %
See description of non-GAAP financial measures contained in the press release dated August 19, 2025.
(1)
The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum.
(2)
The Company recognized $45 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio.
(3)
The charges primarily relate to employee termination benefits and facility related and contract termination costs.
(4)
The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business-related charges. For the three months ended July 25, 2025, exit of business-related charges primarily relate to the impending separation of the Diabetes business and costs associated with the Company’s June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.
(5)
We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
(6)
Reflects adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(7)
The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended July 25, 2025
(in millions)
Net
SalesSG&A
ExpenseSG&A
Expense as
a % of Net
SalesR&D
ExpenseR&D
Expense
as a % of
Net SalesOther
Operating
(Income)
Expense,
netOther
Operating
(Inc.)/Exp.,
net as a % of
Net SalesOther Non-
Operating
Income, netGAAP
$ 8,578
$ 2,806
32.7 %
$ 726
8.5 %
$ 70
0.8 %
$ (33)
Non-GAAP Adjustments:
Restructuring and associated costs(2)
—
(5)
—
—
—
—
—
—
Acquisition and divestiture-related items(3)
—
(26)
(0.2)
—
—
(25)
(0.3)
—
Other(4)
(39)
—
—
—
—
—
—
—
(Gain)/loss on minority investments(5)
—
—
—
—
—
—
—
(113)
Non-GAAP
$ 8,539
$ 2,775
32.5 %
$ 725
8.5 %
$ 44
0.5 %
$ (146)
See description of non-GAAP financial measures contained in the press release dated August 19, 2025.
(1)
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
(2)
The charges primarily relate to employee termination benefits and facility related and contract termination costs.
(3)
The charges primarily include changes in fair value of contingent consideration and exit of business-related charges, which primarily relate to the impending separation of the Diabetes business and costs associated with the Company’s June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.
(4)
Reflects adjustments to the Company’s Italian payback accruals resulting from the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(5)
We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended
(in millions)
July 25, 2025
July 26, 2024
Net cash provided by operating activities
$ 1,088
$ 986
Additions to property, plant, and equipment
(504)
(520)
Free Cash Flow(2)
$ 584
$ 466
See description of non-GAAP financial measures contained in the press release dated August 19, 2025.
(1)
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
(2)
Free cash flow represents operating cash flows less property, plant, and equipment additions.
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
(in millions)
July 25, 2025
July 26, 2024
Operating Activities:
Net income
$ 1,047
$ 1,049
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
748
662
Provision for credit losses
28
18
Deferred income taxes
167
88
Stock-based compensation
86
83
Other, net
159
(9)
Change in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net
288
110
Inventories
(373)
(217)
Accounts payable and accrued liabilities
(598)
(604)
Other operating assets and liabilities
(464)
(194)
Net cash provided by operating activities
1,088
986
Investing Activities:
Additions to property, plant, and equipment
(504)
(520)
Purchases of investments
(2,100)
(1,879)
Sales and maturities of investments
2,010
2,157
Other investing activities, net
(125)
(17)
Net cash used in investing activities
(719)
(259)
Financing Activities:
Change in current debt obligations, net
649
(624)
Issuance of long-term debt
—
3,209
Payments on long-term debt
(1,162)
—
Dividends to shareholders
(910)
(898)
Issuance of ordinary shares
95
89
Repurchase of ordinary shares
(123)
(2,492)
Other financing activities, net
70
(15)
Net cash used in financing activities
(1,381)
(731)
Effect of exchange rate changes on cash and cash equivalents
67
31
Net change in cash and cash equivalents
(945)
27
Cash and cash equivalents at beginning of period
2,218
1,284
Cash and cash equivalents at end of period
$ 1,273
$ 1,311
Supplemental Cash Flow Information
Cash paid for:
Income taxes
$ 402
$ 394
Interest
81
119
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
Medtronic reports first quarter fiscal 2026 financial results Medtronic reports first quarter fiscal 2026 financial results (PRNewsfoto/Medtronic plc) Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/medtronic-reports-first-quarter-fiscal-2026-financial-results-302532949.html
SOURCE Medtronic plc
to identify and determine the most prominent and suitable primary keyword that accurately reflects its core subject matter. This identified primary keyword will be the main SEO focus for the new article.
Related Keywords & Semantic SEO: Naturally weave in the identified primary keyword and 3-5 relevant LSI (Latent Semantic Indexing) keywords and semantic phrases (also derived from or related to11th quarter in a row of mid-single digit organic revenue growth;
Poised to accelerate growthGALWAY, Ireland, Aug. 19, 2025 /PRNewswire/ — Medtronic plc (NYSE: MDT), a global leader in healthcare technology, today announced financial results for its first quarter (Q1) of fiscal year 2026 (FY26), which ended July 25, 2025.
Medtronic reports first quarter fiscal 2026 financial results Key Highlights
-
Revenue of $8.6 billion, adjusted revenue of $8.5 billion, increased 8.4% as reported and 4.8% organic
-
GAAP diluted EPS of $0.81 increased 1%; non-GAAP diluted EPS of $1.26 increased 2%
-
Company raises FY26 EPS guidance; reiterates FY26 organic revenue growth guidance
-
Cardiac Ablation Solutions revenue increased nearly 50%, including 72% in the US, on strength of pulsed field ablation (PFA) products
-
U.S. Centers for Medicare & Medicaid Services (CMS) posted proposed National Coverage Determination (NCD) for the Symplicity Spyral™ system for hypertension; final NCD expected on or before October 8, 2025
-
Received CE Mark for LigaSure™ RAS vessel-sealing technology on Hugo™ robotic-assisted surgery (RAS) system
“We delivered another consistent quarter of mid-single digit organic revenue growth, with broad strength from several innovative product categories, including Pulsed Field Ablation, Transcatheter Valves, Neuromodulation, Diabetes, and Leadless Pacing,” said Geoff Martha, Medtronic chairman and chief executive officer. “We’re confident and well positioned to accelerate our revenue growth in the second half of our fiscal year, as we make meaningful progress on our major growth drivers.”
Financial Results
Medtronic reported Q1 worldwide revenue of $8.578 billion and adjusted revenue of $8.539 billion, an increase of 8.4% as reported and 4.8% on an organic basis. The organic revenue growth comparison excludes:Q1 revenue by segment included:
-
Cardiovascular Portfolio revenue of $3.285 billion increased 9.3% as reported and 7.0% organic, with a high-single digit increase in Cardiac Rhythm & Heart Failure, mid-single digit increase in Structural Heart & Aortic, and low-single digit increase in Coronary & Peripheral Vascular, all on an organic basis;
-
Neuroscience Portfolio revenue of $2.416 billion increased 4.3% reported and 3.1% organic, with a high-single digit increase in Neuromodulation and mid-single digit increase in Cranial & Spinal Technologies, offset by a low-single digit decrease in Specialty Therapies, all on an organic basis;
-
Medical Surgical Portfolio revenue of $2.083 billion grew 4.4% as reported and 2.4% organic, with low-single digit organic growth in both Surgical & Endoscopy and Acute Care & Monitoring; and
-
Diabetes business revenue of $721 million increased 11.5% as reported and 7.9% organic.
Q1 GAAP operating profit and operating margin were $1.445 billion and 16.8%, respectively, increases of 13% and 70 basis points, respectively. As detailed in the financial schedules included at the end of the release, Q1 non-GAAP operating profit and operating margin were $2.016 billion and 23.6%, respectively, an increase of 3% and decrease of 80 basis points, respectively.
Q1 GAAP net income and diluted earnings per share (EPS) were $1.040 billion and $0.81, respectively, flat and an increase of 1%, respectively. As detailed in the financial schedules included at the end of this release, Q1 non-GAAP net income and non-GAAP diluted EPS were $1.626 billion and $1.26, respectively, both increases of 2%. Non-GAAP diluted EPS had no impact from foreign currency translation.
Guidance
The company today reiterated its FY26 revenue growth and raised its FY26 EPS guidance.The company continues to expect FY26 organic revenue growth of approximately 5%. The organic revenue growth guidance excludes the impact of foreign currency exchange and revenue reported as Other. Including Other revenue and the impact of foreign currency exchange, assuming recent foreign currency exchange rates, FY26 revenue growth on a reported basis would be in the range of 6.5% to 6.8%.
Excluding the potential impact from tariffs, Medtronic now expects underlying FY26 diluted non-GAAP EPS growth to be approximately 4.5% versus the prior guidance of approximately 4%. Including the reduced potential impact from tariffs of approximately $185 million versus the prior range of approximately $200 million to $350 million, Medtronic is raising its FY26 diluted non-GAAP EPS guidance to the new range of $5.60 to $5.66 versus the prior range of $5.50 to $5.60.
“As a result of our Q1 EPS outperformance and improved tariff impact assumption, we are raising our full year EPS guidance,” said Thierry Piéton, Medtronic chief financial officer. “Our confidence continues to increase as we advance our revenue growth drivers and execute on efficiencies in manufacturing, supply chain, and operating expenses to drive earnings growth, and increase our growth investments in R&D, sales, and marketing, all with a deliberate focus on creating long-term shareholder value.”
Video Webcast Information
Medtronic will host a video webcast today, August 19, at 8:00 a.m. EDT (7:00 a.m. CDT) to provide information about its business for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Quarterly Earnings icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company’s prepared remarks will be available by clicking on the Past Events and Presentations link under the News & Events drop-down at investorrelations.medtronic.com.Financial Schedules and Earnings Presentation
The first quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Quarterly Earnings link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the first quarter earnings presentation, click here.About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission — to alleviate pain, restore health, and extend life — unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit www.Medtronic.com and follow on LinkedIn.FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, material acquisition and divestiture transactions, general economic conditions, and other risks and uncertainties described in the company’s periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “forecast,” “intend,” “looking ahead,” “may,” “plan,” “possible,” “potential,” “project,” “should,” “going to,” “will,” and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered “non-GAAP” financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2025, and references to sequential changes are in comparison to the prior fiscal quarter. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis.Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company’s underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management’s review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company’s consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.
Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions, divestitures, or other significant discrete items. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.
Contacts:
Erika Winkels
Public Relations
+1-763-526-8478Ryan Weispfenning
Investor Relations
+1-763-505-4626MEDTRONIC PLC
WORLD WIDE REVENUE(1)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY26
FY25
Growth
Currency
Impact(4)FY26(5)
FY25(5)
Growth
Cardiovascular
$ 3,285
$ 3,007
9.3 %
$ 68
$ 3,217
$ 3,007
7.0 %
Cardiac Rhythm & Heart Failure
1,712
1,535
11.5
37
1,676
1,535
9.1
Structural Heart & Aortic
930
856
8.7
22
908
856
6.1
Coronary & Peripheral Vascular
643
616
4.5
10
633
616
2.9
Neuroscience
2,416
2,317
4.3
27
2,389
2,317
3.1
Cranial & Spinal Technologies
1,211
1,147
5.5
12
1,199
1,147
4.5
Specialty Therapies
702
713
(1.5)
9
694
713
(2.7)
Neuromodulation
504
457
10.2
7
496
457
8.6
Medical Surgical
2,083
1,996
4.4
40
2,044
1,996
2.4
Surgical & Endoscopy
1,612
1,544
4.4
32
1,580
1,544
2.3
Acute Care & Monitoring
471
452
4.3
8
464
452
2.6
Diabetes
721
647
11.5
23
698
647
7.9
Total Reportable Segments
8,506
7,967
6.8
159
8,347
7,967
4.8
Other(2)
72
(52)
NM(3)
3
—
—
—
TOTAL
$ 8,578
$ 7,915
8.4 %
$ 162
$ 8,347
$ 7,967
4.8 %
(1)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(2)
Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested and adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(3)
Not meaningful (NM)
(4)
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
(5)
The three months ended July 25, 2025 includes $231 million of revenue adjustments, including $33 million of inorganic revenue for the transition activity noted in (2), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), and $159 million of favorable currency impact on the remaining segments. The three months ended July 26, 2024 excludes $52 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2) and $38 million of inorganic revenue related to the transition activity noted in (2).
MEDTRONIC PLC
U.S. REVENUE(1)(2)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY26
FY25
Growth
FY26
FY25
Growth
Cardiovascular
$ 1,479
$ 1,403
5.5 %
$ 1,479
$ 1,403
5.5 %
Cardiac Rhythm & Heart Failure
834
766
8.9
834
766
8.9
Structural Heart & Aortic
371
368
0.8
371
368
0.8
Coronary & Peripheral Vascular
274
268
2.1
274
268
2.1
Neuroscience
1,624
1,565
3.8
1,624
1,565
3.8
Cranial & Spinal Technologies
890
855
4.1
890
855
4.1
Specialty Therapies
393
398
(1.3)
393
398
(1.3)
Neuromodulation
341
312
9.4
341
312
9.4
Medical Surgical
884
881
0.4
884
881
0.4
Surgical & Endoscopy
622
630
(1.3)
622
630
(1.3)
Acute Care & Monitoring
263
251
4.5
263
251
4.5
Diabetes
217
215
0.9
217
215
0.9
Total Reportable Segments
4,205
4,064
3.5
4,205
4,064
3.5
Other(3)
20
18
6.4
—
—
—
TOTAL
$ 4,224
$ 4,082
3.5 %
$ 4,205
$ 4,064
3.5 %
(1)
U.S. includes the United States and U.S. territories.
(2)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(3)
Includes historical operations and ongoing transition agreements from businesses the Company has exited or divested.
MEDTRONIC PLC
INTERNATIONAL REVENUE(1)
(Unaudited)
FIRST QUARTER
REPORTED
ORGANIC
(in millions)
FY26
FY25
Growth
Currency
Impact(4)FY26(5)
FY25(5)
Growth
Cardiovascular
$ 1,806
$ 1,604
12.6 %
$ 68
$ 1,737
$ 1,604
8.3 %
Cardiac Rhythm & Heart Failure
878
769
14.2
37
842
769
9.4
Structural Heart & Aortic
558
487
14.6
22
536
487
10.1
Coronary & Peripheral Vascular
369
347
6.3
10
359
347
3.4
Neuroscience
792
752
5.4
27
765
752
1.7
Cranial & Spinal Technologies
320
292
9.7
12
309
292
5.7
Specialty Therapies
309
314
(1.7)
9
301
314
(4.4)
Neuromodulation
163
146
11.9
7
156
146
6.9
Medical Surgical
1,199
1,115
7.5
40
1,159
1,115
4.0
Surgical & Endoscopy
990
915
8.3
32
958
915
4.8
Acute Care & Monitoring
209
200
4.1
8
201
200
0.2
Diabetes
504
432
16.7
23
481
432
11.4
Total Reportable Segments
4,301
3,903
10.2
159
4,142
3,903
6.1
Other(2)
53
(70)
NM(3)
3
—
—
—
TOTAL
$ 4,354
$ 3,832
13.6 %
$ 162
$ 4,142
$ 3,903
6.1 %
(1)
The data in this schedule has been intentionally rounded to the nearest million and, therefore, may not sum. Percentages have been calculated using actual, non-rounded figures and, therefore, may not recalculate precisely.
(2)
Includes the historical operations and ongoing transition agreements from businesses the Company has exited or divested and adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(3)
Not meaningful (NM)
(4)
The currency impact to revenue measures the change in revenue between current and prior year periods using constant exchange rates.
(5)
The three months ended July 25, 2025 includes $212 million of revenue adjustments, including $14 million of inorganic revenue for the transition activity noted in (2), $39 million reduction in the Italian payback accruals due to changes in estimates further described in note (2), and $159 million of favorable currency impact on the remaining segments. The three months ended July 26, 2024 excludes $70 million of revenue adjustments related to $90 million of incremental Italian payback accruals further described in note (2) and $19 million of inorganic revenue related to the transition activity noted in (2).
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended
(in millions, except per share data)
July 25, 2025
July 26, 2024
Net sales
$ 8,578
$ 7,915
Costs and expenses:
Cost of products sold, excluding amortization of intangible assets
3,001
2,761
Research and development expense
726
676
Selling, general, and administrative expense
2,806
2,655
Amortization of intangible assets
459
414
Restructuring charges, net
45
47
Certain litigation charges, net
27
81
Other operating expense, net
70
1
Operating profit
1,445
1,278
Other non-operating income, net
(33)
(157)
Interest expense, net
176
167
Income before income taxes
1,302
1,268
Income tax provision
255
220
Net income
1,047
1,049
Net income attributable to noncontrolling interests
(7)
(6)
Net income attributable to Medtronic
$ 1,040
$ 1,042
Basic earnings per share
$ 0.81
$ 0.81
Diluted earnings per share
$ 0.81
$ 0.80
Basic weighted average shares outstanding
1,281.6
1,293.3
Diluted weighted average shares outstanding
1,287.1
1,296.5
The data in the schedule above has been intentionally rounded to the nearest million.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended July 25, 2025
(in millions, except per share data)
Net
SalesCost of
Products
SoldGross
Margin
PercentOperating
ProfitOperating
Profit
PercentIncome
Before
Income
TaxesNet Income
attributable
to
MedtronicDiluted
EPSEffective
Tax RateGAAP
$ 8,578
$ 3,001
65.0 %
$ 1,445
16.8 %
$ 1,302
$ 1,040
$ 0.81
19.6 %
Non-GAAP Adjustments:
Amortization of intangible assets(2)
—
—
—
459
5.5
459
374
0.29
18.5
Restructuring and associated costs(3)
—
(16)
0.1
67
0.8
67
51
0.04
22.4
Acquisition and divestiture-related items(4)
—
(7)
—
58
0.7
58
48
0.04
17.2
Certain litigation charges, net
—
—
—
27
0.3
27
21
0.02
22.2
(Gain)/loss on minority investments(5)
—
—
—
—
—
113
107
0.08
6.2
Other(6)
(39)
—
(0.2)
(39)
(0.5)
(39)
(30)
(0.02)
20.5
Certain tax adjustments, net
—
—
—
—
—
—
16
0.01
—
Non-GAAP
$ 8,539
$ 2,979
65.1 %
$ 2,016
23.6 %
$ 1,987
$ 1,626
$ 1.26
17.8 %
Currency impact
(159)
(46)
(0.1)
(10)
0.3
—
Currency Adjusted
$ 8,380
$ 2,933
65.0 %
$ 2,006
23.9 %
$ 1.26
Three months ended July 26, 2024
(in millions, except per share data)
Net
SalesCost of
Products
SoldGross
Margin
PercentOperating
ProfitOperating
Profit
PercentIncome
Before
Income
TaxesNet Income
attributable
to
MedtronicDiluted
EPSEffective
Tax RateGAAP
$ 7,915
$ 2,761
65.1 %
$ 1,278
16.1 %
$ 1,268
$ 1,042
$ 0.80
17.4 %
Non-GAAP Adjustments:
Amortization of intangible assets
—
—
—
414
5.1
414
340
0.26
18.1
Restructuring and associated costs(3)
—
(9)
0.1
62
0.8
62
51
0.04
19.4
Acquisition and divestiture-related items(4)
—
(10)
0.1
12
0.1
12
11
0.01
8.3
Certain litigation charges, net
—
—
—
81
1.0
81
68
0.05
16.0
(Gain)/loss on minority investments(5)
—
—
—
—
—
(17)
(17)
(0.01)
—
Medical device regulations(7)
—
(11)
0.1
14
0.2
14
11
0.01
21.4
Other(6)
90
—
0.6
90
1.1
90
70
0.05
22.2
Certain tax adjustments, net
—
—
—
—
—
—
17
0.01
—
Non-GAAP
$ 8,004
$ 2,730
65.9 %
$ 1,953
24.4 %
$ 1,925
$ 1,592
$ 1.23
17.0 %
See description of non-GAAP financial measures contained in the press release dated August 19, 2025.
(1)
The data in this schedule has been intentionally rounded to the nearest million or $0.01 for EPS figures, and, therefore, may not sum.
(2)
The Company recognized $45 million of accelerated amortization on certain intangible assets within the Cardiovascular Portfolio.
(3)
The charges primarily relate to employee termination benefits and facility related and contract termination costs.
(4)
The charges primarily include business combination costs, changes in fair value of contingent consideration, and exit of business-related charges. For the three months ended July 25, 2025, exit of business-related charges primarily relate to the impending separation of the Diabetes business and costs associated with the Company’s June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.
(5)
We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
(6)
Reflects adjustments to the Company’s Italian payback accruals resulting from the two July 22, 2024 rulings by the Constitutional Court and the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(7)
The charges represent incremental costs of complying with the new European Union (E.U.) medical device regulations for previously registered products and primarily include charges for contractors supporting the project and other direct third-party expenses. We consider these costs to be duplicative of previously incurred costs and/or one-time costs.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended July 25, 2025
(in millions)
Net
SalesSG&A
ExpenseSG&A
Expense as
a % of Net
SalesR&D
ExpenseR&D
Expense
as a % of
Net SalesOther
Operating
(Income)
Expense,
netOther
Operating
(Inc.)/Exp.,
net as a % of
Net SalesOther Non-
Operating
Income, netGAAP
$ 8,578
$ 2,806
32.7 %
$ 726
8.5 %
$ 70
0.8 %
$ (33)
Non-GAAP Adjustments:
Restructuring and associated costs(2)
—
(5)
—
—
—
—
—
—
Acquisition and divestiture-related items(3)
—
(26)
(0.2)
—
—
(25)
(0.3)
—
Other(4)
(39)
—
—
—
—
—
—
—
(Gain)/loss on minority investments(5)
—
—
—
—
—
—
—
(113)
Non-GAAP
$ 8,539
$ 2,775
32.5 %
$ 725
8.5 %
$ 44
0.5 %
$ (146)
See description of non-GAAP financial measures contained in the press release dated August 19, 2025.
(1)
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
(2)
The charges primarily relate to employee termination benefits and facility related and contract termination costs.
(3)
The charges primarily include changes in fair value of contingent consideration and exit of business-related charges, which primarily relate to the impending separation of the Diabetes business and costs associated with the Company’s June 2021 decision to stop the distribution and sale of the Medtronic HVAD System.
(4)
Reflects adjustments to the Company’s Italian payback accruals resulting from the Legislative Decree published by the Italian government on June 30, 2025 for certain prior years since 2015.
(5)
We exclude unrealized and realized gains and losses on our minority investments as we do not believe that these components of income or expense have a direct correlation to our ongoing or future business operations.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended
(in millions)
July 25, 2025
July 26, 2024
Net cash provided by operating activities
$ 1,088
$ 986
Additions to property, plant, and equipment
(504)
(520)
Free Cash Flow(2)
$ 584
$ 466
See description of non-GAAP financial measures contained in the press release dated August 19, 2025.
(1)
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
(2)
Free cash flow represents operating cash flows less property, plant, and equipment additions.
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three months ended
(in millions)
July 25, 2025
July 26, 2024
Operating Activities:
Net income
$ 1,047
$ 1,049
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
748
662
Provision for credit losses
28
18
Deferred income taxes
167
88
Stock-based compensation
86
83
Other, net
159
(9)
Change in operating assets and liabilities, net of acquisitions and divestitures:
Accounts receivable, net
288
110
Inventories
(373)
(217)
Accounts payable and accrued liabilities
(598)
(604)
Other operating assets and liabilities
(464)
(194)
Net cash provided by operating activities
1,088
986
Investing Activities:
Additions to property, plant, and equipment
(504)
(520)
Purchases of investments
(2,100)
(1,879)
Sales and maturities of investments
2,010
2,157
Other investing activities, net
(125)
(17)
Net cash used in investing activities
(719)
(259)
Financing Activities:
Change in current debt obligations, net
649
(624)
Issuance of long-term debt
—
3,209
Payments on long-term debt
(1,162)
—
Dividends to shareholders
(910)
(898)
Issuance of ordinary shares
95
89
Repurchase of ordinary shares
(123)
(2,492)
Other financing activities, net
70
(15)
Net cash used in financing activities
(1,381)
(731)
Effect of exchange rate changes on cash and cash equivalents
67
31
Net change in cash and cash equivalents
(945)
27
Cash and cash equivalents at beginning of period
2,218
1,284
Cash and cash equivalents at end of period
$ 1,273
$ 1,311
Supplemental Cash Flow Information
Cash paid for:
Income taxes
$ 402
$ 394
Interest
81
119
The data in this schedule has been intentionally rounded to the nearest million, and, therefore, may not sum.
Medtronic reports first quarter fiscal 2026 financial results Medtronic reports first quarter fiscal 2026 financial results (PRNewsfoto/Medtronic plc) Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/medtronic-reports-first-quarter-fiscal-2026-financial-results-302532949.html
SOURCE Medtronic plc
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[/gpt3] -
