Start here if you're new
what it is
Medtronic makes implantable medical devices and hospital tools that keep hearts, nerves, and surgery rooms working.
how it gets paid
Last year Medtronic made $33.5B in revenue. Cardiovascular was the main engine at $12.4B, or 37% of sales.
why it's growing
Revenue grew 3.6% last year. However, heightened demand within the cardiovascular unit, and, in particular, cardiac ablation procedures led the way, surging 71% vs. prior year.
what just happened
Medtronic missed EPS by 5.71%, even as revenue climbed to $8.96B.
At a glance
A+ balance sheet — rock-solid finances — built to survive anything
80/100 earnings predictability — you can trust these numbers
17.8x trailing p/e — the market's not buying it — or you found a deal
2.9% dividend yield — cash in your pocket every quarter
14.5% return on capital — nothing to write home about
xvary composite: 86/100 — above average
What they do
Medtronic makes implantable medical devices and hospital tools that keep hearts, nerves, and surgery rooms working.
Doctors do not swap implantables like phone chargers. Once your hospital trains on Medtronic gear, leaving is painful. That scale runs through 95,000 employees and 120 countries, while operating margin → profit left after costs → 17.8% means 18 cents of every dollar survives.
How they make money
$33.5B
annual revenue · their business grew +3.6% last year
Cardiovascular
$12.4B
+4.0%
Neuroscience
$9.0B
+3.5%
Medical Surgical
$7.8B
+3.0%
Diabetes
$4.3B
+2.0%
The products that matter
cardiac rhythm and ablation systems
Cardiovascular
part of a $26.6B revenue base
this business was the growth driver called out in the latest quarter, with stronger cardiac ablation demand helping push companywide revenue to $8.96B.
demand leader
brain, spine, and neuro therapies
Neuroscience
one of 3 segments that grew
the snapshot does not break out segment revenue, but this unit still mattered enough to be named among the three groups contributing to the latest 6.6% sales increase.
broad portfolio
surgical tools and procedure support
Medical Surgical
supports 20.0% net margin
this segment also posted revenue gains in the latest quarter. The exact split is thin here, but it helps explain how a $26.6B company still keeps about 20 cents of every sales dollar.
margin support
Key numbers
$33.5B
annual revenue
That is the whole top line. A 2% miss would still be about $670M.
17.8x
trailing p/e
You are paying 17.8 times trailing profit. That is cheaper than many medtech peers.
2.9%
dividend yield
You get paid to wait. That matters when sales growth is only 3.5%.
14.5%
return on capital
Return on capital means profit on invested money. 14.5% says the business uses cash well.
Financial health
A+
strength
- balance sheet grade A+ — near the highest rating possible
- risk rank 1 — safer than 95% of stocks
- price stability 95 / 100
- long-term debt $27.7B (18% of capital)
- net profit margin 25.6% — keeps 26 cents of every dollar in revenue
- return on equity 19% — $0.19 profit for every $1 investors have put in
A+ with balance sheet grade and risk rank standing out. your money faces less risk here than at most public companies.
Total return vs. market
You invested $10,000 in MDT 3 years ago → it's now worth $13,570.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
Medtronic missed EPS by 5.71%, even as revenue climbed to $8.96B.
Value Line says the quarter reached $8.96B in sales and $1.36 a share, both up 6.6% and 8.0%. Yahoo’s consensus snapshot shows $1.32 actual versus $1.40 expected, which is a clean miss on the number investors watch.
$8.96B
revenue
$1.32
eps
6.6%
revenue growth
the number that mattered
The important number was the 5.71% EPS miss, because that is the one that tells you the quarter was good, but not clean.
-
revenues and share earnings advanced 6.6% and 8.0%, to $8.96 billion and $1.36 a share respectively, during the october period.
-
all three operating segments, cardiovascular, neuroscience, and medical surgical recorded revenue gains.
-
however, heightened demand within the cardiovascular unit, and, in particular, cardiac ablation procedures led the way, surging 71% vs. prior year.
-
market stabilization trends and innovations helped the top-line momentum.
-
the bottom line benefited from the healthy revenue stream.
source: development and Yahoo consensus, 2026
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What could go wrong
the #1 risk here is the $382M antitrust judgment — not because it breaks the balance sheet, but because it raises the cost of being a scale leader in cardiac devices.
med
antitrust spillover
A US jury ordered Medtronic to pay $382M to a rival in an antitrust lawsuit. One verdict is manageable. More copycat claims would be a different story.
At roughly 1.4% of annual revenue, the hit is absorbable. The legal precedent matters more than the cash check.
med
earnings quality noise
This page shows quarterly EPS at both $0.89 and $1.36. That likely means reported versus adjusted earnings, but investors still have to decide which one deserves the multiple.
If sales rise and per-share profit does not follow cleanly, the current 17.8x trailing p/e can compress instead of expand.
med
guidance credibility
FY2026 EPS guidance of $5.620–$5.660 sits above the average analyst estimate of $5.46 in this snapshot. Beating a low bar helps. Missing your own raised bar hurts more.
The risk is not absolute earnings collapse. It is disappointment against numbers already framed as achievable.
med
valuation without a cushion
The stock trades at $100.67 while the 3–5 year target midpoint shown here is $96. That does not leave much room for legal surprises or soft execution.
When price is already ahead of the midpoint target, good news gets treated as maintenance. Bad news gets treated as repricing.
The combined risk picture is simple: a $382M legal hit plus murky EPS optics would pressure a business that currently earns 20 cents on every $1 of sales.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
which EPS number starts to dominate
This snapshot currently shows both $0.89 and $1.36 for the latest quarter. Watch which definition management and the market keep using.
earnings
next quarterly report
You want another quarter where all three segments grow and revenue stays near the recent $8.96B run rate.
risk
legal follow-through
Watch for appeals, settlements, or any sign the $382M antitrust case expands into broader pricing or market-access scrutiny.
trend
cardiovascular demand
Cardiac ablation helped drive the latest quarter. If that category cools, the broad portfolio story starts looking less broad.
Analyst rankings
short-term outlook
top 20%
Momentum score 2. In human-speak, analysts still expect above-average price performance in the year ahead.
risk profile
safest 5%
Stability score 1. This stock carries lower balance-sheet and business risk than almost everything else on the board.
chart momentum
top 20%
Technical score 2. The chart still looks better than the valuation debate sounds.
earnings predictability
80 / 100
Management is usually steady. The current quarter's mixed EPS presentation is the exception, not the whole history.
source: institutional data
Institutional activity
institutions have been net buying for 2 consecutive quarters — 1,071 buyers vs. 918 sellers in 3q2025. total institutional holdings: 1.1B shares. net buying for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$75
$116
$101
current price
$96
target midpoint · 5% from current · 3-5yr high: $160 (+60% · 14% ann'l return)
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