Medtronic's Q3 FY25 Results: A Tale of Resilience and Growth

Medtronic plc (NYSE: MDT), a global leader in healthcare technology, recently announced its financial results for the third quarter (Q3) of fiscal year 2025 (FY25), which ended on January 24, 2025. Despite the ongoing challenges posed by the Covid-19 pandemic, Medtronic demonstrated resilience and growth, with strong earnings power driven by key product lines such as Pulsed Field Ablation, Pacing, Structural Heart, Diabetes, and Neuromodulation.



Key Highlights:

* Revenue of $8.3 billion increased 2.5% as reported and 4.1% organic.
* GAAP diluted EPS of $1.01 increased 2%; non-GAAP diluted EPS of $1.39 increased 7%.
* Cardiac Ablation Solutions revenue increased low-20s on strength of pulsed field ablation (PFA) products.
* U.S. Centers for Medicare and Medicaid (CMS) announced coverage for Renal Denervation for the treatment of Hypertension, expected to become final on or before October 11, 2025.

Financial Results:

Medtronic reported Q3 worldwide revenue of $8.292 billion, an increase of 2.5% as reported and 4.1% on an organic basis. As reported, Q3 GAAP net income and diluted earnings per share (EPS) were $1.294 billion and $1.01, respectively, representing a decrease of 2% and an increase of 2%, respectively. Non-GAAP net income and non-GAAP diluted EPS were $1.787 billion and $1.39, respectively, representing increases of 3% and 7%, respectively.



Geoff Martha, Medtronic chairman and chief executive officer, commented on the results: "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. We are starting to see the results from our long term investments in groundbreaking innovation, such as pulsed field ablation, to drive growth in some of the most attractive markets in MedTech."

Medtronic's Cardiovascular Portfolio, which includes the Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV) divisions, reported revenue of $3.037 billion, increasing 3.7% as reported and 5.0% organic. The Neuroscience Portfolio, comprising the Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions, reported revenue of $2.458 billion, increasing 4.4% as reported and 5.2% organic.

Medtronic's expansion into the fast-growing carotid market, through its exclusive distribution agreement with Contego Medical, positions the company as a key player in the broader cardiovascular device landscape. This strategic move allows Medtronic to leverage Contego Medical's innovative technology and expertise in the carotid market, which is expected to grow significantly in the coming years. Additionally, the company's recent U.S. FDA approval for an additional pulsed field ablation manufacturing site in Galway immediately boosts Affera™ supply, further strengthening its position in the market.

In conclusion, Medtronic's Q3 FY25 results demonstrate the company's resilience and growth, driven by strong earnings power and key product lines. As the company continues to invest in groundbreaking innovation and expand its market presence, it is well-positioned to capitalize on the growing demand for advanced healthcare technologies.