Medtronic (MDT) AI Stock Analysis

• Market Cap: $110.14B
• Dividend Yield: 3.26%
• Average Volume (3M): 8.13M
• Price to Earnings (P/E): 23.8
• Beta (1Y): 0.54
• Revenue Growth: 3.62%
• EPS Growth: 31.18%
• Country: US
• Employees: 95,000
• Sector: Healthcare
• Sector Strength: 46
• Industry: Medical - Devices
• EPS (TTM): 1.62
• Shares Outstanding: 1,281,264,600
• 10 Day Avg. Volume: 7,546,817
• 30 Day Avg. Volume: 8,134,941
• PEG Ratio: 2.37
• Price to Book (P/B): 2.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.36
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 8.74
• Enterprise Value/Ebitda: 3.82
• 1Y Price Target: $96.29
• Price Target Upside: 11.86% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 22

• Rating: 77 Outperform
• Price Target: $98.00 ▲(13.85%Upside)

Medtronic scores well due to its solid financial performance and strategic focus on high-growth areas. The company's earnings call provided a positive outlook with revenue growth and strategic initiatives like the Diabetes business spin-off. However, valuation concerns and potential impacts from tariffs and currency headwinds temper the overall score.

Positive Factors

Business Strategy

MDT's Cardiac Ablation Solutions business offers a significant and underappreciated source of upside, as the company is particularly well positioned to capitalize on the explosive adoption of pulsed field ablation.

Financial Performance

The recently announced decision to separate MDT's Diabetes business could lead to earnings per share accretion, enhancing the company's financial performance.

Growth Potential

MDT's portfolio has significant exposure to high-growth end-markets, providing a strong blend of ongoing and future growth drivers.

Negative Factors

Economic Conditions

High interest rates may continue to suppress R&D capabilities.

Financial Challenges

Global medical device leader seeing profits and margins fall.

Market Competition

Medtronic is at risk of losing 50% of its insulin pump market to GLP-1 drugs.

Medtronic Business Overview & Revenue Model

Company Description

Medtronic (MDT) is a global leader in medical technology, services, and solutions, headquartered in Dublin, Ireland. The company operates in various sectors including cardiovascular, medical surgical, neuroscience, and diabetes. Medtronic's core products and services focus on advanced medical devices and therapies that improve patient outcomes, such as pacemakers, insulin pumps, surgical instruments, and neurostimulation devices.

How the Company Makes Money

Medtronic generates revenue primarily through the sale of its medical devices and therapies. The company divides its operations into four main business segments: Cardiovascular, Medical Surgical, Neuroscience, and Diabetes. Each segment offers a range of products tailored to specific medical conditions and procedures, contributing to the company's diverse revenue streams. Medtronic also partners with healthcare providers, hospitals, and clinics worldwide to deliver its solutions, enhancing its market reach. Furthermore, the company invests in research and development to innovate and expand its product portfolio, ensuring sustained growth and competitive advantage in the medical technology industry.

Medtronic Financial Statement Overview

Summary

Medtronic shows strong financial health with stable revenue growth, improved profitability, and efficient cash flow management. The company maintains a robust equity base, ensuring financial stability despite moderate leverage.

Income Statement

Medtronic shows strong profitability with a stable Gross Profit Margin of 52.8% in TTM. The Net Profit Margin improved to 12.8% in TTM from 11.4% previous year, indicating efficient cost management. Revenue grew by 2.58% in TTM, showcasing steady growth. EBIT and EBITDA margins also improved, reflecting operational efficiency.

Balance Sheet

The company maintains a solid financial structure with a Debt-to-Equity Ratio of 0.54, indicating moderate leverage. Return on Equity stands at 8.63%, reflecting decent profitability for shareholders. The Equity Ratio of 54.9% suggests a strong equity base, enhancing financial stability.

Cash Flow

Operating Cash Flow to Net Income Ratio is 1.71, highlighting robust cash generation relative to net income. Free Cash Flow increased by 5.13% YoY, indicating effective cash management. The Free Cash Flow to Net Income Ratio of 1.28 underscores strong cash flow coverage.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	33.54B	32.36B	31.23B	31.69B	30.12B
Gross Profit	0.00	21.15B	20.51B	21.54B	19.63B
EBITDA	5.96B	8.20B	8.47B	9.55B	8.19B
Net Income	4.66B	3.68B	3.76B	5.04B	3.61B
Balance Sheet
Total Assets	91.68B	89.98B	90.95B	90.98B	93.08B
Cash, Cash Equivalents and Short-Term Investments	8.96B	8.01B	7.96B	10.57B	10.82B
Total Debt	28.52B	26.05B	24.36B	24.11B	26.39B
Total Liabilities	43.42B	39.56B	39.28B	38.26B	41.48B
Stockholders Equity	48.02B	50.21B	51.48B	52.55B	51.43B
Cash Flow
Free Cash Flow	5.18B	5.20B	4.58B	5.98B	4.88B
Operating Cash Flow	7.04B	6.79B	6.04B	7.35B	6.24B
Investing Cash Flow	-1.94B	-2.37B	-3.49B	-1.66B	-2.87B
Financing Cash Flow	-4.36B	-4.45B	-4.96B	-5.34B	-4.14B

Medtronic Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 86.08
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 86.08 is above the 20-day moving average (MA) of 85.73, above the 50-day MA of 84.63, and below the 200-day MA of 86.35, indicating a neutral trend. The MACD of 0.52 indicates Positive momentum. The RSI at 51.40 is Neutral, neither overbought nor oversold. The STOCH value of 32.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MDT.

Medtronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYK	81 Outperform	$143.53B	50.68	14.26%	0.89%	10.76%	-15.22%
DXCM	78 Outperform	$31.37B	59.94	23.72%	―	9.11%	-17.87%
MDT	77 Outperform	$110.14B	23.78	9.49%	3.26%	3.62%	31.18%
BSX	72 Outperform	$151.44B	76.29	9.65%	―	19.35%	14.31%
ZBH	70 Outperform	$18.27B	20.28	7.31%	1.05%	3.30%	-2.39%
EW	64 Neutral	$43.31B	50.32	16.73%	―	-9.84%	-35.77%
Sector *	51 Neutral	$7.36B	0.28	-61.07%	2.37%	17.46%	1.71%

Medtronic Corporate Events

Medtronic Expands Board, Appoints Dr. Joon Lee

On June 18, 2025, Medtronic‘s Board of Directors expanded from 10 to 11 members, appointing Dr. Joon Lee as a new independent director. Dr. Lee, CEO of Emory Healthcare, brings extensive experience in healthcare leadership and will serve on the Science and Technology Committee and the Compensation and Talent Committee. His appointment is expected to enhance Medtronic’s mission to leverage data and technology for improving patient and provider experiences, aligning with the company’s goals to advance healthcare solutions globally.

The most recent analyst rating on (MDT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Medtronic stock, see the MDT Stock Forecast page.

Medtronic Announces Leadership Change in Cardiovascular Portfolio

Medtronic announced a leadership change in its Cardiovascular Portfolio, with Sean Salmon departing and Skip Kiil assuming the role of EVP and President, effective May 21, 2025. Additionally, Medtronic plans to separate its Diabetes business into a standalone public company. The company reported strong financial results for Q4 and FY25, with significant increases in revenue, operating profit, and earnings per share. Medtronic also announced a dividend increase, marking its 48th consecutive year of dividend growth, and highlighted advancements in its medical technologies, including FDA approvals and successful product launches.

The most recent analyst rating on (MDT) stock is a Hold with a $87.00 price target. To see the full list of analyst forecasts on Medtronic stock, see the MDT Stock Forecast page.