Medtronic Q4 2025 Earnings Call Highlights: Strong Revenue Growth, Strategic Moves and Diabetes Separation

Medtronic PLC reported Q4 2025 earnings with $8.9 billion in revenue, a 5.4% organic growth, and adjusted EPS of $1.62, up 11%. The cardiovascular segment saw 8% growth, while neuro-modulation and diabetes grew 10% and 12%, respectively. The company achieved strong revenue growth, strategic moves, and adjusted EPS growth. Despite the strong performance, adjusted gross margin decreased by 70 basis points YoY due to mix and foreign exchange.

Title: Medtronic Reports Strong Q4 2025 Earnings with Robust Growth Across Key Segments

Medtronic plc (NYSE: MDT), a global leader in healthcare technology, reported its financial results for the fourth quarter (Q4) and fiscal year 2025 (FY25) on May 21, 2025. The company posted Q4 revenue of $8.9 billion, an increase of 3.9% as reported and 5.4% on an organic basis [1]. The adjusted earnings per share (EPS) increased to $1.62, up 11% year-over-year (YoY), while the operating margin expanded by 380 basis points to 27.8% [1].

Key highlights of the Q4 results include:

- Cardiovascular Portfolio: The cardiovascular segment reported Q4 revenue of $3.3 billion, up 6.6% as reported and 7.8% on an organic basis. This growth was driven by high-single digit organic increases in Cardiac Rhythm & Heart Failure (CRHF) and Structural Heart & Aortic (SHA), and a low-single digit increase in Coronary & Peripheral Vascular (CPV) [1].
- Neuroscience Portfolio: The neuroscience segment saw Q4 revenue of $2.6 billion, up 2.9% as reported and 3.7% on an organic basis. This growth was primarily driven by low-double digit organic growth in Neuromodulation and mid-single digit growth in Cranial & Spinal Technologies (CST) [1].
- Diabetes Segment: The diabetes segment experienced Q4 revenue growth of nearly 30% on the strength of pulsed field ablation (PFA) products, contributing to a total of $1.0 billion in FY25 revenue [1].
- Dividend Increase: Medtronic announced an increase in its dividend for the first quarter of 2026 to $0.71 per share, implying an annual dividend of $2.84 per share, marking the 48th consecutive year of dividend increases [1].

FY25 financial results showed a significant increase in revenue and earnings:

- Revenue: Total FY25 revenue was $33.5 billion, an increase of 3.6% as reported and 4.9% on an organic basis. The adjusted revenue was $33.6 billion [1].
- EPS: FY25 GAAP diluted EPS increased to $3.61, up 31% YoY, while non-GAAP diluted EPS rose to $5.49, up 6% YoY [1].
- Operating Profit: FY25 operating profit increased to $6.0 billion, up 16% YoY, and non-GAAP operating profit rose to $8.7 billion, up 5% YoY [1].
- Cash from Operations: FY25 cash from operations was $7.0 billion, up 4% YoY, and free cash flow remained unchanged at $5.2 billion [1].

Despite the strong performance, Medtronic's adjusted gross margin decreased by 70 basis points YoY to 27.8% due to a mix of products and foreign exchange impacts [1].

Geoff Martha, Medtronic chairman and chief executive officer, stated, "We had a strong close to our fiscal year, and I'm excited to see the progress we are making as our growth drivers continue to build momentum. Operationally, we translated our accelerating revenue growth into earnings leverage, as we delivered at the upper end of the commitments that we laid out a year ago. The underlying fundamentals of our business are strong, and they are getting stronger. We are now at an inflection point as we accelerate our speed of travel to higher, more profitable growth" [1].

References:
[1] https://news.medtronic.com/2025-05-21-Medtronic-reports-strong-finish-to-its-fiscal-year-with-its-fourth-quarter-financial-results-announces-dividend-increase