Medtronic Q3 earnings beat estimates, revenue misses

Investing.com -- Medtronic plc reported third-quarter fiscal 2025 earnings that beat analyst estimates, while revenue fell short of expectations. The medical device maker reiterated its full-year guidance as it sees continued strength in key segments.

Medtronic (NYSE: MDT) posted adjusted earnings per share of $1.39 for the quarter ended January 24, 2025, surpassing the analyst consensus of $1.36. Revenue came in at $8.29 billion, slightly below the $8.33 billion analysts had forecast. The company's stock edged down 0.33% following the results.

Revenue grew 2.5% year-over-year, as reported, and 4.1% on an organic basis. The Cardiovascular portfolio saw 5% organic growth, driven by strong performance in cardiac ablation solutions and structural heart products. The Neuroscience segment posted 5.2% organic growth, with double-digit increases in neuromodulation.

"We delivered strong earnings this quarter, with significant improvements in both our gross margin and operating margin on the back of our ninth quarter in a row of mid-single digit organic revenue growth," said Geoff Martha, Medtronic chairman and CEO.

The company's Diabetes segment showed notable improvement, with revenue increasing 10.4% organically. This was attributed to the continued adoption of the MiniMed 780G automated insulin delivery system in the U.S. and increasing continuous glucose monitoring attachment rates internationally.

Medtronic reiterated its fiscal 2025 guidance, expecting organic revenue growth of 4.75% to 5% and adjusted EPS between $5.44 and $5.50. This outlook aligns with the current analyst consensus of $5.45 per share.

The company highlighted progress in key growth areas, including the rapid adoption of its pulsed field ablation systems and the expected Medicare coverage for renal denervation in treating hypertension by October 2025.

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