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Medtronic
(NYSE:MDT)
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Rating:80Outperform
Price Target:
$109.00
▲(18.45% Upside)
Action:Reiterated
Date:10/20/26
MDT scores well primarily on solid financial quality (strong margins and rising free cash flow) and a very favorable earnings update with raised FY27 guidance. Technicals reinforce the positive setup with price above key moving averages and positive MACD. The main offsets are a not-cheap P/E, mix/FX/tariff headwinds noted in guidance, and debt/cash-conversion items to monitor.
Positive Factors
Cash Generation
Strong operating and free cash flow provide Medtronic with durable internal funding for research, acquisitions, debt service, and shareholder returns. The 13% increase in free cash flow also supports resilience and gives management flexibility to invest through changing procedure and reimbursement environments.
Negative Factors
Elevated Debt
Although equity supports a moderate debt-to-equity profile, the sizable absolute debt balance can reduce financial flexibility if growth slows or capital costs rise. Higher leverage may constrain acquisition capacity, increase refinancing exposure, and compete with innovation or shareholder-return priorities.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash Generation
Strong operating and free cash flow provide Medtronic with durable internal funding for research, acquisitions, debt service, and shareholder returns. The 13% increase in free cash flow also supports resilience and gives management flexibility to invest through changing procedure and reimbursement environments.
Read all positive factors
Medtronic Key Performance Indicators (KPIs)
Any
Revenue by Geography
Sales by region (U.S., EMEA, Asia‑Pacific, Latin America), highlighting where Medtronic earns most of its revenue and where the biggest growth opportunities lie. Geographic mix signals exposure to U.S. reimbursement cycles, currency swings, and faster-growing emerging markets that can boost long‑term sales.
Sales by region (U.S., EMEA, Asia‑Pacific, Latin America), highlighting where Medtronic earns most of its revenue and where the biggest growth opportunities lie. Geographic mix signals exposure to U.S. reimbursement cycles, currency swings, and faster-growing emerging markets that can boost long‑term sales.
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The Fly
The FlyMedtronic (MDT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$122.05B
Dividend Yield3%
Average Volume (3M)26.49M
Price to Earnings (P/E)23.3
Beta (1Y)0.30
Revenue Growth9.77%
EPS Growth12.28%
CountryUS
Employees95,000
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)4.09
Shares Outstanding1,279,169,900
10 Day Avg. Volume25,611,258
30 Day Avg. Volume26,492,947
Financial Highlights & Ratios
PEG Ratio6.72
Price to Book (P/B)2.16
Price to Sales (P/S)2.94
P/FCF Ratio19.68
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue3.45
Enterprise Value/Gross Profit5.18
Enterprise Value/Ebitda12.74
Forecast
1Y Price Target
$103.19Price Target Upside12.14% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)5.98
Revenue Forecast (FY)$39.05B
Medtronic Business Overview & Revenue Model
Company Description
Medtronic plc is a leading global medical technology enterprise that invents, develops, manufactures, and distributes an extensive range of device-based medical therapies. These solutions serve healthcare systems, clinicians, physicians, and patie...
How the Company Makes Money
Medtronic primarily makes money by selling medical devices and related consumables to healthcare providers (hospitals, ambulatory surgery centers, clinics) and, in select areas, to distributors and other channel partners; revenue is recognized whe...
Medtronic Earnings Call Summary
Earnings Call Date:Sep 01, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call was strongly positive. Medtronic reported broad-based revenue and earnings outperformance, significant growth in Cardiac Ablation Solutions, continued momentum in CRM, CST, Surgical, Pelvic Health and Diabetes, improved operating metrics, stronger cash conversion and raised fiscal 2027 guidance. The principal challenges were business-mix pressure on gross margin, neuromodulation softness, low-single-digit Structural Heart growth, expected moderation in some growth rates, and foreign exchange and tariff headwinds.Positive Updates
Strong First-Quarter Financial Performance
Fiscal 2027 first-quarter revenue was $9.8 billion and adjusted EPS was $1.45, both well ahead of expectations. Organic revenue growth was 13.7%. Excluding the extra selling week, Medtronic delivered its strongest quarterly performance in nearly 8 years, excluding COVID comps.
Negative Updates
Unfavorable Business Mix Impacted Gross Margin
Business mix was unfavorable by 50 basis points, largely reflecting the Diabetes and Cardiac Ablation Solutions businesses. Management said the near-term capital mix continues to impact gross margin.
Read all updates
Q1-2027 Updates
Positive
Negative
Strong First-Quarter Financial Performance
Fiscal 2027 first-quarter revenue was $9.8 billion and adjusted EPS was $1.45, both well ahead of expectations. Organic revenue growth was 13.7%. Excluding the extra selling week, Medtronic delivered its strongest quarterly performance in nearly 8 years, excluding COVID comps.
Read all positive updates
Company Guidance
For fiscal year '27, Medtronic raised organic revenue growth guidance to 7.25% to 7.75% and expects roughly 6% organic revenue growth in Q2; foreign exchange is expected to be a roughly $50 million to $150 million headwind for the full year and an approximate $25 million to $75 million headwind in 2Q. The company expects operating profit to grow approximately 10%, with operating margin expanding approximately 50 basis points year-over-year, and raised fiscal '27 EPS guidance to $5.94 to $6, with Q2 EPS expected in the range of $1.32 to $1.34 and a roughly neutral impact from foreign exchange. CAS is expected to grow 2.5x the market for the full year and north of 3x the market in Q2, with the market in the mid-teens; Hugo is expected to surpass 50,000 completed procedures by the end of the fiscal year with procedure growth continuing at more than twice the market rate, while the transradial catheter remains on track to launch in the second half of this fiscal year, Neurovascular is expected to reach mid-single digit growth in the back half of the year, ACM is expected to normalize as Medtronic moves through 2027, acquisitions are expected to contribute over $150 million to inorganic growth in fiscal year '27, and the MiniMed separation is intended to close prior to fiscal year-end.Medtronic Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 37.54B | 36.36B | 33.54B | 32.36B | 31.23B | 31.69B |
| Gross Profit | 25.04B | 23.64B | 21.91B | 21.15B | 20.51B | 21.54B |
| EBITDA | 10.18B | 9.81B | 9.22B | 8.20B | 8.70B | 8.78B |
| Net Income | 5.23B | 4.80B | 4.66B | 3.68B | 3.76B | 5.04B |
Balance Sheet | ||||||
| Total Assets | 93.31B | 93.03B | 91.68B | 89.98B | 90.95B | 90.98B |
| Cash, Cash Equivalents and Short-Term Investments | 8.82B | 9.22B | 8.96B | 8.01B | 7.96B | 10.57B |
| Total Debt | 28.15B | 27.96B | 28.52B | 25.02B | 24.36B | 24.11B |
| Total Liabilities | 42.46B | 42.96B | 43.42B | 39.56B | 39.28B | 38.26B |
| Stockholders Equity | 50.23B | 49.46B | 48.02B | 50.21B | 51.48B | 52.55B |
Cash Flow | ||||||
| Free Cash Flow | 6.13B | 5.43B | 5.18B | 5.20B | 4.58B | 5.98B |
| Operating Cash Flow | 8.04B | 7.33B | 7.04B | 6.79B | 6.04B | 7.35B |
| Investing Cash Flow | -3.83B | -2.93B | -1.94B | -2.37B | -3.49B | -1.66B |
| Financing Cash Flow | -3.71B | -4.75B | -4.36B | -4.45B | -4.96B | -5.34B |
Medtronic Technical Analysis
Positive
92.02
Price Trends
90.93
Positive
86.50
Positive
86.92
Positive
Market Momentum
1.59
Negative
60.13
Neutral
79.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDT, the sentiment is Positive. The current price of 92.02 is above the 20-day moving average (MA) of 90.72, above the 50-day MA of 90.93, and above the 200-day MA of 86.92, indicating a bullish trend. The MACD of 1.59 indicates Negative momentum. The RSI at 60.13 is Neutral, neither overbought nor oversold. The STOCH value of 79.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MDT.
Medtronic Risk Analysis
Medtronic disclosed 34 risk factors in its most recent earnings report. Medtronic reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Medtronic Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $51.34B | 51.19 | 9.69% | ― | 14.55% | 15.09% | |
80 Outperform | $122.05B | 23.33 | 10.60% | 3.00% | 9.77% | 12.28% | |
76 Outperform | $29.41B | 30.09 | 36.19% | ― | 15.54% | 77.43% | |
73 Outperform | $117.81B | 31.57 | 16.36% | 1.15% | 8.48% | 27.36% | |
70 Outperform | $179.44B | 38.41 | 9.12% | 2.43% | 10.00% | ― | |
66 Neutral | $66.22B | 18.42 | 14.90% | ― | 13.53% | 46.29% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MDT
Medtronic
95.41
4.30
4.72%
ABT
Abbott Laboratories
103.70
-20.39
-16.43%
BSX
Boston Scientific
45.69
-56.74
-55.39%
DXCM
Dexcom
77.94
7.31
10.35%
EW
Edwards Lifesciences
89.07
8.25
10.21%
SYK
Stryker
307.15
-72.37
-19.07%
Medtronic Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsShareholder Meetings
Medtronic appoints new president and completes MiniMed spinoff
Positive
Oct 19, 2026
On October 15, 2026, Medtronic’s board appointed Michael Marinaro as President of Medtronic, effective October 14, 2026, expanding his remit to include oversight of Greater China while he retains his existing Americas and global commercial r...
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
Medtronic Advances Diabetes Spin-Off with Share Exchange
Neutral
Sep 17, 2026
On September 14, 2026, Medtronic launched an exchange offer for up to 225,361,295 newly issued shares of MiniMed Group Inc. common stock in return for outstanding Medtronic ordinary shares, a step that furthers the separation of its diabetes-focus...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.