Medtronic plc

MDT
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$9.0B
Q3 FY2026 · +8.7% YoY
TTM ROIC
18.7%
FY2025 · NOPAT / Invested Capital (Goodwill + Intangibles + Net PP&E + Net Working Capital) · WACC ~5.7% · Moat spread +13pp
Margin Profile
Gross 66.9%
Operating 25.5%
FCF 15.5%
FY2025
Net Debt
$19.0B
Cash $7.0B · Debt $26.0B · FY2025

Business Overview

ticker: MDT step: 01 generated: 2026-05-12 source: quick-research

Medtronic plc (MDT) — Business Overview

Business Description

Medtronic is one of the world's largest medical device companies, operating across four segments: Cardiovascular, Medical-Surgical, Neuroscience, and (until March 2026) Diabetes. The 2026 transformation is generational: MiniMed (diabetes business) spun off to standalone in March 2026; Pulsed Field Ablation (Affera platform) driving cardiac ablation growth +50%; Hugo robotic surgical system received FDA clearance for urology (Feb 2026) and is in trials for hernia + gynecology. CEO Geoff Martha (since 2020). Q3 FY26 marked highest revenue growth in 10 quarters.

Revenue Model

  • Cardiovascular (~39% of revenue): Cardiac Rhythm + Heart Failure (CRHF), Structural Heart + Aortic, Coronary + Peripheral Vascular
  • Medical Surgical (~32%): Surgical & Endoscopy, Acute Care + Monitoring, Hugo robotic surgery
  • Neuroscience (~29%): Cranial + Spinal Technologies, Specialty Therapies, Neuromodulation, Pelvic Health
  • Diabetes — SPUN OFF March 2026 as MiniMed (MMED)

Products & Services

Cardiovascular (Largest, fastest-growing)
  • PulseSelect PFA: Pulsed Field Ablation for atrial fibrillation (non-thermal)
  • Affera PFA + Mapping: Integrated mapping + ablation system
  • Sphere-9: New PFA catheter
  • Symplicity Spyral: Renal denervation for resistant hypertension (CMS coverage decision Oct 2025)
  • Micra leadless pacemaker, EV-ICD, MicraAV2
  • Evolut TAVR (transcatheter aortic valve)
  • Resolute Onyx + Resolute Onyx 5mm: DES stents
  • In.Pact (drug-coated balloon)
Medical Surgical
  • Hugo robotic-assisted surgery: FDA-cleared urology Feb 2026; hernia + gynecology in trials; $10B+ TAM
  • Affera mapping system
  • Surgical staplers + advanced energy: Endoscopy
  • Ventilators, capnography, anesthesia
Neuroscience
  • Mazor X spine robotic system
  • Stealth navigation + Midas Rex powered surgical instruments
  • CoreValve + Solitaire stroke devices
  • DBS (deep brain stim) + SCS (spinal cord stim) for Parkinson's, chronic pain
  • InterStim sacral neuromodulation
Diabetes — Now MiniMed (MMED) post-spin
  • 780G insulin pump + Simplera Sync sensor
  • Pump franchise spun off March 2026

Customer Base & Go-to-Market

  • Hospitals + ambulatory surgery centers
  • Cardiologists + electrophysiologists + neurosurgeons + general surgeons
  • Patients globally: 76M+ lives touched annually
  • Geographic mix: ~50% US, ~30% Europe, ~20% rest of world
  • Channel: Direct sales + distributors

Competitive Position

Medtronic is the global #1 medical device company by revenue (~$33B). Top-3 in nearly every major category: #1 in cardiac rhythm, #1 in spine, top-3 in cardiac ablation, top-3 in robotic surgery. Moats: (1) scale + global presence, (2) Affera PFA + Hugo robotic platforms, (3) AAA balance sheet, (4) deep clinical evidence + KOL relationships. Competitors: Boston Scientific (PFA leader), Intuitive Surgical (robotic surgery dominant), Abbott (PFA + cardiac), Stryker (med-tech rival), J&J MedTech.

Key Facts

  • Founded: 1949 (Earl Bakken, Minnesota)
  • Headquarters: Dublin, Ireland (legal); operational Galway / Minneapolis
  • Employees: ~95,000
  • Exchange: NYSE
  • Sector / Industry: Health Care / Medical Devices
  • Market Cap: ~$120B (May 2026)
  • CEO: Geoff Martha (since April 2020)
  • Dividend: $2.84 annual ($0.71 quarterly)
  • 47+ consecutive years of dividend growth (Dividend King)
  • Major recent move: MiniMed (Diabetes) spin-off March 2026
  • Pending acquisition: Scientia Vascular $550M

Financial Snapshot

ticker: MDT step: 04 generated: 2026-05-12 source: quick-research

Medtronic plc (MDT) — Financial Snapshot

Note: Medtronic's fiscal year ends in late April. "FY2025" = fiscal year ended April 25, 2025.

Income Statement Summary

Metric FY2024 FY2025 FY2026E YoY
Revenue $32.4B $33.5B ~$35.5B +6%
Organic Revenue Growth +5.1% +3.6% +5%+ (mgmt) accelerating
Adj. Operating Margin 25.5% 25.5% 26% +50bps
Non-GAAP EPS $5.20 $5.45 $5.60-5.66 +3-4% (mgmt raised)
Free Cash Flow $5.6B $5.0B $5.5B+ +10%

Q3 FY2026 Highlights (most recent)

Metric Q3 FY26 YoY
Revenue $9.02B +8.7% reported, +6.0% organic
Cardiovascular $3.46B +13.8% reported, +10.6% organic
Cardiac Ablation Solutions (CAS) +~50% PFA-driven
Diabetes Revenue $796M +14.8% reported, +8.3% organic
Medical Surgical growing
Neuroscience flat to modest
Highest revenue growth in 10 quarters

Pulsed Field Ablation (PFA) — Growth Engine

Metric Status
Q3 FY26 CAS growth ~50% (US PFA-driven)
PulseSelect launched 2024 Strong US adoption
Affera mapping + ablation Differentiated
Sphere-9 catheter New entry

Hugo Robotic Surgery

Metric Status
Urology FDA clearance Feb 2026
Hernia trial Ongoing
Gynecology trial Ongoing
US first case Cleveland Clinic Feb 2026
Addressable market $10B+ TAM

MiniMed (Diabetes) Spin-Off

Metric Value
MMED trading begins March 6, 2026 (Nasdaq)
Spun-off business revenue ~$2.5B (Diabetes segment)
MDT remaining ownership stake partial (publicly traded)

Cash Flow & Balance Sheet (FY2025)

Metric Value
Operating Cash Flow ~$6B
Capital Expenditures ~$1B
Free Cash Flow $5.0B
Cash & Investments ~$7B
Total Debt ~$26B
Net Debt/EBITDA ~2.0x

Key Ratios (approximate, May 2026)

  • P/E (forward): ~17x | EV/EBITDA: ~13x | Dividend Yield: ~3.0%
  • ROIC: ~10% (post-MiniMed spin)
  • FCF Margin: ~15%

Growth Profile

Q3 FY26 marks Medtronic's strongest growth in 10 quarters: +8.7% reported, +6.0% organic. PFA + Hugo are the catalysts. MiniMed spin-off March 2026 unlocks "pure-play" valuation of remaining business focused on high-growth surgical + cardiovascular. Management raised FY26 non-GAAP EPS guide to $5.60-5.66.

Forward Estimates

  • FY2026E Revenue (post-spin): ~$33B
  • FY2026E Non-GAAP EPS: $5.60-5.66 (mgmt)
  • FY2027E EPS: ~$6.00 (+7%)
  • FY2028E EPS: ~$6.50 (+8%)

Capital Return

  • Dividend $2.84 annual = ~$3.7B paid
  • 47+ consecutive years of dividend growth (Dividend King)
  • Buybacks: ~$2-3B annual
  • Total return: ~3% dividend + 1-2% buyback + 6-8% EPS growth

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $MDT.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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