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Medtronic plc (NYSE: MDT) has reported its financial results for the second quarter of fiscal year 2025, showcasing a robust performance that underscores its commitment to innovation and growth. The company achieved a revenue of $8.4 billion, marking a 5.3% increase as reported and a 5.0% rise on an organic basis.
This growth was driven by strong performances across several key franchises, including Transcatheter Aortic Valve Replacement (TAVR), Pulsed Field Ablation (PFA), leadless pacemakers, and diabetes management solutions. The cardiovascular portfolio, in particular, saw significant gains with a 6.1% increase in revenue to $3.102 billion, fueled by the successful U.S. launch of the Evolut FX+ TAVR system and robust sales in cardiac pacing therapies.
Medtronic’s GAAP diluted earnings per share (EPS) for the quarter stood at $0.99, representing a 46% increase from the previous year. On a non-GAAP basis, the company’s EPS was $1.26, slightly above the expected $1.25, indicating a strong operational performance despite challenges such as foreign currency translation impacts. The company’s ability to deliver such results highlights its strategic focus on high-impact markets and its robust pipeline of innovative products, which are anticipated to drive further growth and patient benefits globally.
The neuroscience portfolio also contributed to Medtronic’s success, with a revenue increase of 7.1% to $2.451 billion. This performance was bolstered by double-digit growth in neuromodulation and steady advancements in cranial and spinal technologies. The company’s continued investment in cutting-edge technologies, such as the Percept RC deep brain stimulator and the AiBLE spine surgery ecosystem, demonstrates its commitment to maintaining a competitive edge in the healthcare technology sector.
Medtronic Reports Better than Expected Q2 FY2025 Results
Medtronic’s second-quarter results surpassed market expectations, with revenue and non-GAAP EPS both exceeding analyst forecasts. The company reported a revenue of $8.4 billion, slightly above the anticipated $8.28 billion, reflecting its ability to capitalize on growth opportunities across its diversified portfolio. The non-GAAP EPS of $1.26 also marginally surpassed the expected $1.25, showcasing Medtronic’s operational efficiency and resilience in the face of external economic pressures.
The cardiovascular portfolio’s performance was a significant factor in Medtronic’s ability to exceed expectations, with robust sales in cardiac rhythm management and structural heart technologies. The launch of the Evolut FX+ TAVR system in the U.S. and the high-teens growth in Micra transcatheter pacing systems were pivotal in driving these results. Additionally, the neuroscience portfolio’s above-market growth, particularly in neuromodulation and spinal technologies, further contributed to the company’s outperformance.
Despite facing a 9-cent impact on non-GAAP diluted EPS from foreign currency translation, Medtronic managed to deliver an 8% growth in constant currency adjusted EPS.
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Medtronic Raises Guidance for Fiscal Year 2025, Expects Revenue Grown in 4.75% to 5% Range
Medtronic has raised its guidance for fiscal year 2025, reflecting confidence in its growth trajectory and the strength of its innovation pipeline. The company has increased its organic revenue growth guidance to a range of 4.75% to 5%, up from the previous range of 4.5% to 5%. This adjustment excludes the impact of foreign currency and other revenue, highlighting Medtronic’s focus on core operational performance. Including these factors, the company anticipates adjusted revenue growth to be between 3.4% and 3.9%, assuming current foreign exchange rates remain stable.
In terms of earnings, Medtronic has revised its non-GAAP EPS guidance to a range of $5.44 to $5.50, up slightly from the prior guidance of $5.42 to $5.50. This guidance includes an estimated 5% negative impact from foreign currency exchange, consistent with previous forecasts. The company’s updated guidance reflects its expectation of high-single-digit adjusted EPS growth in the latter half of the fiscal year, aligning with its long-term commitment to delivering sustainable, mid-single-digit organic revenue growth with EPS leverage.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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