Medtronic Tumbles on FDA Warnings as Volume Surges to 65th Rank

On August 18, 2025, Medtronic (MDT) closed at $93.02, down 0.23%, with a trading volume of $1.08 billion—a 74.62% increase from the prior day—ranking 65th in market activity. The stock’s performance followed a mix of regulatory and earnings-related news. The U.S. FDA recently raised safety concerns about certain Medtronic catheters, warning of potential shortages in the coming months. This development has drawn investor scrutiny, particularly as the company prepares to release Q1 earnings. Analysts have revised forecasts ahead of the earnings call, reflecting uncertainty in profit margins despite optimism around revenue growth. Meanwhile, Medtronic reaffirmed its long-standing dividend policy by declaring a $0.71 per share payout, marking 48 consecutive years of increases.

Recent financial data highlights mixed performance. Q4 2025 revenue reached $8.93 billion, a 3.94% year-over-year rise, while net income surged 61.47% to $1.06 billion. However, operating expenses increased by 12.38%, and EBITDA fell 11.19%, signaling cost pressures. The company’s cash reserves grew to $8.96 billion, and its balance sheet remains robust, with total assets at $91.68 billion. Despite these metrics, the FDA’s safety alerts and potential supply chain disruptions could weigh on investor sentiment ahead of earnings.

A backtested strategy of purchasing the top 500 stocks by daily volume and holding for one day from 2022 to 2025 yielded a 0.98% average daily return, with a total return of 31.52% over 365 days. This suggests short-term momentum was captured, though volatility and timing risks remained evident. The strategy’s moderate gains underscore the challenges of capitalizing on intraday price swings in a market influenced by regulatory and earnings events.