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Medtronic plc (NYSE: MDT) reported its financial results for the first quarter of fiscal year 2025 (FY25), ending July 26, 2024. The company announced a revenue of $7.915 billion, with an adjusted revenue of $8.004 billion, reflecting a 2.8% increase as reported and a 5.3% rise on an organic basis. The GAAP diluted earnings per share (EPS) stood at $0.80, while the non-GAAP diluted EPS was $1.23. These figures indicate a 32% increase in GAAP net income and a 36% rise in GAAP EPS compared to the previous year. The company’s diverse portfolio contributed significantly to its growth. The Cardiovascular Portfolio, which includes divisions such as Cardiac Rhythm & Heart Failure (CRHF), Structural Heart & Aortic (SHA), and Coronary & Peripheral Vascular (CPV), reported revenues of $3.007 billion, a 5.5% increase as reported and a 6.9% rise organically.
Notably, the CRHF division saw high-single digit growth in Cardiac Rhythm Management and low-double digit growth in Cardiac Pacing Therapies, driven by products like the Micra transcatheter pacing systems.
Medtronic Beats EPS Expectations in Fiscal Q1, Revenue in Line
Medtronic’s performance exceeded market expectations for the quarter. Analysts had anticipated an EPS of $1.20 and revenue of $7.9 billion. The actual non-GAAP EPS of $1.23 surpassed these expectations, while the reported revenue of $7.915 billion was slightly above the forecast.
This outperformance was driven by strong growth across multiple segments, particularly in the Cardiovascular and Neuroscience portfolios. The Neuroscience Portfolio, which includes Cranial & Spinal Technologies (CST), Specialty Therapies, and Neuromodulation divisions, reported revenues of $2.317 billion, a 4.4% increase as reported and a 5.3% rise organically.
The Neuromodulation division, in particular, drove above-market performance with mid-teens growth in Brain Modulation and high-single digit growth in Pain Therapies. These results underscore Medtronic’s ability to innovate and capture market share in key therapeutic areas.
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Medtronic Raises Full Year 2025 Revenue Growth and EPS Guidance
Following the strong Q1 performance, Medtronic raised its FY25 revenue growth and EPS guidance. The company now expects organic revenue growth of 4.5% to 5%, up from the previous range of 4% to 5%. This guidance excludes the impact of foreign currency and other revenue adjustments. Including these factors, the adjusted revenue growth is projected to be between 3.4% and 4.3%.
The company also increased its diluted non-GAAP EPS guidance to a range of $5.42 to $5.50, compared to the prior range of $5.40 to $5.50. This updated guidance includes an estimated -5% impact from foreign currency exchange rates.
Medtronic’s interim Chief Financial Officer, Gary Corona, highlighted that the revenue outperformance positively impacted the bottom line, leading to adjusted EPS exceeding expectations. The company remains confident in sustaining growth through new product introductions and continued investments.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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