Medtronic (MDT) AI Stock Analysis

• Market Cap: $115.70B
• Dividend Yield: 3.13%
• Average Volume (3M): 6.55M
• Price to Earnings (P/E): 24.9
• Beta (1Y): 0.51
• Revenue Growth: 4.98%
• EPS Growth: 22.08%
• Country: US
• Employees: 95,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 1.26
• Shares Outstanding: 1,282,685,900
• 10 Day Avg. Volume: 5,800,633
• 30 Day Avg. Volume: 6,548,781
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 4.10
• Enterprise Value/Gross Profit: 6.47
• Enterprise Value/Ebitda: 15.02
• 1Y Price Target: $101.33
• Price Target Upside: 12.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 71 Outperform
• Price Target: $101.00 ▲(11.97% Upside)

Medtronic's strong financial performance and positive earnings call sentiment are key strengths, supporting a robust growth outlook. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation. These factors collectively result in a moderate overall stock score.

Positive Factors

Regulatory Approval

The final NCD for the Symplicity Spyral system provides Medicare patients access, potentially expanding the market for Medtronic's innovative hypertension treatment.

Product Innovation

The Embrace Gynecology study for the Hugo system indicates Medtronic's commitment to expanding its robotic surgery capabilities, potentially capturing more market share in surgical innovations.

Earnings Growth

Raising EPS guidance reflects strong financial performance and confidence in future growth, driven by strategic initiatives and a robust product pipeline.

Negative Factors

Debt Levels

Rising debt levels may strain Medtronic's financial flexibility, potentially impacting its ability to invest in growth opportunities or weather economic downturns.

Tariff Impact

Significant tariff impacts could pressure Medtronic's margins and profitability, affecting its competitive pricing and market positioning in the long term.

Margin Pressures

Decreasing gross profit margins indicate rising costs or pricing pressures, which could affect Medtronic's profitability and operational efficiency if not addressed.

Medtronic Business Overview & Revenue Model

Company Description

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software. It also provides aortic valves, surgical valve replacement and repair products, endovascular stent grafts and accessories, and transcatheter pulmonary valves; and percutaneous coronary intervention products, percutaneous angioplasty balloons, and products. The company's Medical Surgical Portfolio segment offers surgical stapling devices, vessel sealing instruments, wound closure, electrosurgery products, surgical artificial intelligence and robotic-assisted surgery products, hernia mechanical devices, mesh implants, gynecology and lung products, and various therapies to treat diseases, as well as products in the fields of minimally invasive gastrointestinal and hepatologic diagnostics and therapies, patient monitoring, airway management and ventilation therapies, and renal disease. Its Neuroscience Portfolio segment offers products for spinal surgeons; neurosurgeons; neurologists; pain management specialists; anesthesiologists; orthopedic surgeons; urologists; urogynecologists; interventional radiologists; ear, nose, and throat specialists; and systems that incorporate energy surgical instruments. It also provides image-guided surgery and intra-operative imaging systems and robotic guidance systems used in robot assisted spine procedures; and therapies for vasculature in and around the brain. The company's Diabetes Operating Unit segment offers insulin pumps and consumables, continuous glucose monitoring systems, smart insulin pen systems, and consumables and supplies. The company was founded in 1949 and is headquartered in Dublin, Ireland.

How the Company Makes Money

Medtronic generates revenue primarily through the sale of its medical devices and technologies across its business segments. The company earns money by selling high-margin products directly to hospitals, healthcare providers, and distributors. Key revenue streams include sales from cardiovascular devices, including stents and heart valves, minimally invasive surgical instruments, and diabetes management solutions. Medtronic also benefits from recurring revenue through service contracts and ongoing sales of consumable products associated with its devices. Strategic partnerships with healthcare providers, research institutions, and technology companies enhance its product offerings and market reach, further contributing to its earnings.

Medtronic Financial Statement Overview

Summary

Medtronic demonstrates strong financial health with consistent profitability, stable leverage, and solid cash flow generation. Minor concerns include increasing debt and slight margin pressures, but overall, the company's financial position supports its growth strategies.

Income Statement

Medtronic's income statement shows strong profitability with a consistent gross profit margin around 65% and a net profit margin of approximately 13.6% in TTM. Revenue growth is modest but positive, indicating stable demand. EBIT and EBITDA margins are healthy, reflecting efficient operations. However, the slight decline in gross profit margin over time suggests potential cost pressures.

Balance Sheet

The balance sheet is solid with a debt-to-equity ratio below 0.6, indicating manageable leverage. Return on equity is stable around 9.6%, showing effective use of equity. The equity ratio is strong, suggesting a well-capitalized company. However, the increase in total debt over time could pose future risks if not managed carefully.

Cash Flow

Cash flow analysis reveals robust free cash flow growth in TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, the free cash flow to net income ratio has slightly decreased, which could indicate increased capital expenditures or other cash uses.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	34.20B	33.54B	32.36B	31.23B	31.69B	30.12B
Gross Profit	21.70B	21.91B	21.15B	20.51B	21.54B	19.63B
EBITDA	9.35B	9.22B	8.20B	8.70B	8.78B	7.52B
Net Income	4.66B	4.66B	3.68B	3.76B	5.04B	3.61B
Balance Sheet
Total Assets	90.97B	91.68B	89.98B	90.95B	90.98B	93.08B
Cash, Cash Equivalents and Short-Term Investments	8.12B	8.96B	8.01B	7.96B	10.57B	10.82B
Total Debt	28.61B	28.52B	25.02B	24.36B	24.11B	26.39B
Total Liabilities	42.84B	43.42B	39.56B	39.28B	38.26B	41.48B
Stockholders Equity	47.89B	48.02B	50.21B	51.48B	52.55B	51.43B
Cash Flow
Free Cash Flow	5.30B	5.18B	5.20B	4.58B	5.98B	4.88B
Operating Cash Flow	7.15B	7.04B	6.79B	6.04B	7.35B	6.24B
Investing Cash Flow	-2.40B	-1.94B	-2.37B	-3.49B	-1.66B	-2.87B
Financing Cash Flow	-5.01B	-4.36B	-4.45B	-4.96B	-5.34B	-4.14B

Medtronic Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 90.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MDT, the sentiment is Negative. The current price of 90.2 is below the 20-day moving average (MA) of 94.65, below the 50-day MA of 93.98, and above the 200-day MA of 88.69, indicating a neutral trend. The MACD of -0.95 indicates Positive momentum. The RSI at 30.33 is Neutral, neither overbought nor oversold. The STOCH value of 8.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MDT.

Medtronic Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSX	―	$146.09B	52.73	―	―	21.62%	54.80%
ABT	―	$215.34B	15.53	30.62%	1.91%	6.37%	142.39%
EW	―	$48.77B	35.42	―	―	0.19%	65.34%
SYK	―	$136.19B	46.78	14.04%	0.94%	10.95%	-18.32%
MDT	―	$115.70B	24.90	9.72%	3.13%	4.98%	22.08%
DXCM	―	$23.57B	33.63	30.63%	―	14.21%	5.66%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Medtronic Corporate Events

Medtronic’s AGM Approves Key Governance Changes

On October 16, 2025, Medtronic held its Annual General Meeting where shareholders elected twelve directors to serve until the 2026 meeting, ratified PricewaterhouseCoopers LLP as the independent auditor for fiscal year 2026, and approved executive compensation. Additionally, the meeting saw the renewal of the Board’s authority to issue shares and opt out of pre-emption rights, authorization for overseas market purchases of shares, and amendments to the Articles of Association to facilitate reserve capitalization and update advance notice provisions. These decisions are poised to impact Medtronic’s governance and financial strategies, potentially enhancing shareholder value and operational flexibility.

The most recent analyst rating on (MDT) stock is a Hold with a $103.00 price target. To see the full list of analyst forecasts on Medtronic stock, see the MDT Stock Forecast page.

Medtronic’s Innovative Approach to Diabetic Neuropathy Pain: A Study Update

Study Overview: Medtronic is conducting a study titled Feasibility and Therapeutic Efficacy Study of Medtronic’s DTM-Closed-Loop Integrated SCS Technology for Managing Diabetic Peripheral Neuropathic Pain (DPN). The study aims to assess the safety and effectiveness of a new spinal cord stimulation (SCS) approach in treating painful diabetic peripheral neuropathy (DPN). This research is significant as it explores innovative treatment methods for managing chronic pain associated with diabetes.

Medtronic Issues €1.5 Billion in Senior Notes

On September 29, 2025, Medtronic, Inc., a subsidiary of Medtronic plc, issued €1.5 billion in senior notes, with maturities in 2030 and 2045, to refinance existing debts. The issuance is expected to strengthen Medtronic’s financial position by repaying Medtronic Luxco’s senior notes due in 2025, and the notes have been approved for listing on the New York Stock Exchange, indicating a strategic financial maneuver to optimize debt management.

The most recent analyst rating on (MDT) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Medtronic stock, see the MDT Stock Forecast page.

Medtronic’s NIM Vital™ System Study Completion: A Boost for Investor Confidence

Medtronic recently completed a clinical study titled ‘Product Surveillance Registry (PSR) – Nerve Integrity Monitoring (NIM) Vital Cohort.’ The study aimed to confirm the clinical safety and performance of Medtronic’s NIM Vital™ System and its accessories in real-world surgical settings. This research is significant as it supports the efficacy of the NIM Vital™ System in various surgeries, including intracranial, extracranial, and neck surgeries.

Medtronic Announces Pricing of New Senior Notes

On September 15, 2025, Medtronic announced the pricing of a significant offering aimed at repaying existing senior notes due in 2025. The company plans to issue €1.5 billion in senior notes due in 2030 and 2045, which are fully guaranteed by Medtronic Luxco and Medtronic plc. This move reflects in Medtronic’s fiscal year 2026 earnings guidance and underscores its strategic financial management. Additionally, Medtronic Luxco has elected to redeem €500 million of its outstanding senior notes on September 29, 2025, contingent on the successful issuance of the new notes, indicating a proactive approach to managing its debt obligations.

The most recent analyst rating on (MDT) stock is a Hold with a $90.00 price target. To see the full list of analyst forecasts on Medtronic stock, see the MDT Stock Forecast page.

Medtronic’s Cardiac Device Study: A Key Update for Investors

The Medtronic CRDM Product Performance Report, officially titled ‘Medtronic CRDM Product Performance Report,’ aims to evaluate the long-term reliability and performance of Medtronic’s marketed cardiac therapy products. The study focuses on analyzing product survival probabilities to ensure the effectiveness of devices used in treating conditions such as arrhythmia, bradycardia, heart failure, and sinus tachycardia.

Medtronic’s Product Surveillance Registry: A Commitment to Safety and Effectiveness

The Medtronic Product Surveillance Registry aims to continuously evaluate and report on the safety and effectiveness of Medtronic’s market-released products. This study, officially titled the Medtronic Product Surveillance Registry, seeks to streamline clinical surveillance and enhance performance assessment across various medical conditions, benefiting patients, hospitals, clinicians, and regulatory bodies.

Medtronic’s Innovative Pacemaker Study: A New Frontier in Hypertension Treatment

Study Overview: The study titled ‘BradycArdia paCemaKer With AV Interval Modulation for Blood prEssure treAtmenT’ aims to evaluate the safety and effectiveness of a novel atrioventricular interval modulation (AVIM) algorithm in managing hypertension. This prospective, multinational, randomized, double-blind clinical trial is significant as it explores innovative solutions for blood pressure management using Medtronic’s Astra/Azure pacemaker.

Medtronic’s Earnings Call: Strong Growth Amid Challenges

Medtronic’s recent earnings call painted a picture of robust growth in certain key areas, while also acknowledging challenges in others. The company expressed optimism with an increased EPS guidance, driven by strong performances in Cardiac Ablation Solutions and Diabetes. However, slower growth in MedSurg and Neuroscience, along with ongoing tariff challenges, were noted as areas of concern.

Medtronic Reports Strong Q1 FY26 Results

Medtronic plc, headquartered in Galway, Ireland, is a leading global healthcare technology company focused on developing solutions for challenging health problems, offering a range of products including cardiac devices, surgical robotics, and patient monitoring systems.

Medtronic Expands Board, Appoints Two New Directors

On August 18, 2025, Medtronic‘s Board of Directors expanded from 11 to 13 members, appointing John Groetelaars and William Jellison as new directors, effective August 19, 2025. Medtronic also reported its first quarter fiscal 2026 financial results, showing an 8.4% increase in revenue to $8.6 billion and a 4.8% organic growth, with significant contributions from Cardiac Ablation Solutions. The company raised its FY26 EPS guidance, reflecting confidence in its growth drivers and operational efficiencies.

The most recent analyst rating on (MDT) stock is a Buy with a $109.00 price target. To see the full list of analyst forecasts on Medtronic stock, see the MDT Stock Forecast page.

Medtronic’s Long-term Cardiac Device Study: Implications for Investors

Medtronic is conducting a study titled ‘Medtronic CRDM Product Performance Report’ to evaluate the long-term reliability and performance of its cardiac therapy products. The primary objective is to analyze the survival probabilities of market-released cardiac rhythm products, which is significant for ensuring product longevity and reliability.