Medtronic (MDT) Drops 3.26% Amid Earnings, Bearish Bets

Medtronic's stock experienced a 3.26% drop in pre-market trading on August 19, 2025, amidst a series of corporate developments and market sentiments.

Medtronic's stock has been under scrutiny following the release of its Q1 FY26 results, which showed an outperformance in earnings and a reduced impact from tariffs. The company has raised its earnings outlook for the fiscal year 2025, which has been met with mixed reactions from investors.

Despite efforts to boost mergers and acquisitions through a corporate reshuffle, Medtronic's shares have continued to slide. This move was aimed at enhancing the company's strategic position but has not yet translated into positive market sentiment.

In addition to the corporate restructuring, there has been unusually large put option activity, with 13,416 contracts traded, indicating increased bearish bets on the stock. This heightened bearish sentiment has contributed to the recent decline in Medtronic's stock price.

Despite the strong performance in the first quarter, which led to an increase in fiscal 2026 earnings guidance to between $5.60 and $5.66 per share, the market's reaction has been cautious. The company's CEO, Thierry Piéton, attributed the positive results to better-than-expected earnings per share and improved tariff impact assumptions.

Furthermore, Medtronic is making changes to its board after Elliott Investment Management became one of its largest shareholders. This development is expected to bring new perspectives and strategies to the company, potentially influencing its future performance and stock price.