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Medtronic
(NYSE:MDT)
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Rating:77Outperform
Price Target:
$107.00
▲(16.28% Upside)
Action:Upgraded
Date:09/06/26
MDT scores well primarily on strong and improving fundamentals (high margins and rising free cash flow) and supportive price momentum (above key moving averages with positive MACD). The score is tempered by a mid-range valuation (P/E ~23) and earnings-call risks tied to tariffs, mix/Diabetes margin dilution, and selective segment weakness despite upbeat FY27 guidance.
Positive Factors
Strong cash generation and improving profitability
Medtronic’s substantial operating and free cash flow provides resilience and funding for research, commercial investment, acquisitions, and shareholder returns. Combined with high gross margins and improving operating profitability, this supports durable financial flexibility over the next several quarters.
Negative Factors
Elevated absolute debt reduces flexibility
Although equity supports a moderate leverage profile, the sizeable debt balance can reduce financial flexibility if growth slows or capital costs rise. Higher leverage may constrain the pace of acquisitions, investment, or other capital-allocation decisions over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and improving profitability
Medtronic’s substantial operating and free cash flow provides resilience and funding for research, commercial investment, acquisitions, and shareholder returns. Combined with high gross margins and improving operating profitability, this supports durable financial flexibility over the next several quarters.
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
$120.46B
Dividend Yield3.03%
Average Volume (3M)7.78M
Price to Earnings (P/E)23.0
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 Outstanding1,279,138,000
10 Day Avg. Volume9,014,235
30 Day Avg. Volume7,775,711
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$103.41Price Target Upside12.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering20
EPS Forecast (FY)5.97
Revenue Forecast (FY)$39.03B
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:Jun 03, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 24, 2026
Earnings Call Sentiment Positive
The call presented a predominantly positive operational and financial picture: strong quarterly and annual revenue growth, EPS outperformance, robust free cash flow, multiple high-growth product area accelerations (CAS, Symplicity, Hugo, Altaviva), and deliberate M&A/venture activity to drive future growth. Notable headwinds include tariffs and trade uncertainty, some product‑mix and Diabetes-related margin pressure, pockets of weakness in Structural Heart (TAVR) and select therapy areas, and near-term investment-driven SG&A/R&D increases. Management provided confident FY '27 guidance while conservatively modeling separation and tariff risks.Positive Updates
Quarterly and Full-Year Revenue Growth
Q4 revenue $9.8B, up 9.9% reported and 6.6% organic; FY '26 revenue $36.4B, up 8.4% reported and 5.8% organic — company’s strongest top-line performance in 10 years.
Negative Updates
Structural Heart / TAVR Headwinds
Structural Heart revenue was flat in Q4 with U.S. softness attributed to low‑risk TAVR data impacts; coronary declined in the quarter; TAVR slowdown was more pronounced in U.S. and required stabilization efforts.
Read all updates
Q4-2026 Updates
Positive
Negative
Quarterly and Full-Year Revenue Growth
Q4 revenue $9.8B, up 9.9% reported and 6.6% organic; FY '26 revenue $36.4B, up 8.4% reported and 5.8% organic — company’s strongest top-line performance in 10 years.
Read all positive updates
Company Guidance
Medtronic guided FY‑2027 organic revenue growth of 6.75%–7.25% (with Q1 organic growth of ~11.5%–12%), which includes ~25 basis points from the Diabetes business and a roughly 125–150 bp benefit from an extra selling week (management also said the extra week will contribute ~500–600 bp to Q1); they expect FX to be roughly neutral (management referenced either up to a ~$100M headwind or, on recent rates, neutral-to‑1% accretive), have embedded ~2% dilution from M&A, and assume ~1 point of headwind from higher fuel/transport costs. On margins, FY‑27 gross margin is expected to be roughly flat excluding tariffs, but tariffs are modeled at ~$250M for the year (≈$75M in Q1) and to reduce FY‑27 gross margin by ~20 bps including tariffs; adjusted operating margin is expected to rise ~60 bps (helped by absence of Blackstone milestone payments) while below‑the‑line items should create ~200 bps of headwind from higher net interest and a slightly higher tax rate. Management is guiding FY‑27 adjusted EPS of $5.90–$6.00 and Q1 EPS of $1.38–$1.40 (the latter benefiting ~600–700 bps from the extra selling week), assumes recent M&A will add ~ $150M of inorganic revenue in FY‑27, and noted continued investment in R&D/SG&A while retaining strong liquidity (≈$9.2B cash).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 | 9.45B | 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 | 1.79B | 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
86.74
Positive
82.77
Positive
88.67
Positive
Market Momentum
1.73
Positive
64.55
Neutral
58.68
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 91.73, above the 50-day MA of 86.74, and above the 200-day MA of 88.67, indicating a bullish trend. The MACD of 1.73 indicates Positive momentum. The RSI at 64.55 is Neutral, neither overbought nor oversold. The STOCH value of 58.68 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 | $51.82B | 51.67 | 9.69% | ― | 14.55% | 15.09% | |
79 Outperform | $33.17B | 33.94 | 36.19% | ― | 15.54% | 77.43% | |
77 Outperform | $120.46B | 23.02 | 10.60% | 3.03% | 9.77% | 12.28% | |
73 Outperform | $187.45B | 34.83 | 10.52% | 2.29% | 8.06% | -61.33% | |
72 Outperform | $116.27B | 31.15 | 16.36% | 1.15% | 8.48% | 27.36% | |
69 Neutral | $69.27B | 19.27 | 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
94.17
3.06
3.36%
ABT
Abbott Laboratories
108.33
-20.64
-16.00%
BSX
Boston Scientific
47.80
-60.29
-55.78%
DXCM
Dexcom
87.90
9.50
12.12%
EW
Edwards Lifesciences
89.90
10.10
12.66%
SYK
Stryker
303.13
-85.67
-22.03%
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.