Medtronic hikes fiscal 2025 guidance as Q1 earnings beat expectations

Medtronic (NYSE: MDT) reported first-quarter earnings that surpassed expectations and raised the outlook for the full fiscal 2025. The company’s shares rose marginally in the premarket trade Tuesday.

For Q1, Medtronic reported earnings per share (EPS) of $1.23, topping the analyst estimate of $1.20. The company's revenue for the quarter matched the consensus estimate, coming in at $7.9 billion.

In its Cardiovascular segment, Medtronic generated $3.01 billion in revenue, reflecting a 5.5% year-over-year increase and beating the estimated $2.93 billion.

The Medical Surgical segment reported revenue of $2.00 billion, a 2.1% decline year-over-year, falling short of the $2.44 billion estimate, while Neuroscience revenue reached $2.32 billion, up 4.4% year-over-year, slightly above the $2.3 billion estimate.

The Diabetes segment reported $647 million in revenue, a 12% year-over-year increase, outperforming the estimate of $614.9 million.

Medtronic's adjusted gross margin for the quarter was 65.9%, compared to 66.4% in the same period last year, and compared to the 65.5% projected by analysts. The adjusted operating margin was 24.4%, consistent with expectations and slightly below the previous year's 24.8%.

“We executed, exceeded our commitments, and delivered another good quarter. Our underlying markets are healthy, we're driving operating rigor, and new product innovation is fueling diversified growth across key health tech markets," said Geoff Martha, Medtronic chairman and CEO.

"As we deliver innovation and execute on our transformation, we expect this to translate into strong returns for our shareholders."

Looking ahead, Medtronic raised its FY25 diluted non-GAAP EPS guidance to a range of $5.42 to $5.50, up from the prior guidance of $5.40 to $5.50, and compared to the consensus estimate of $5.44. This guidance represents expected FY25 EPS growth of 4% to 6%.

Moreover, the company increased its FY25 organic revenue growth forecast to a range of 4.5% to 5%, up from the previous range of 4% to 5%.

By Vahid Karaahmetovic

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