Medtronic says an offering and split-off is its current preferred structure for separating the diabetes business, though a final decision hasn't been reached. The company disclosed that the separation is expected to occur through a series of capital markets transactions, which could also include a spin-off. The diabetes segment grew 8.1% organically in fiscal fourth quarter. Medtronic is directing capital toward tuck-in acquisitions in other areas, including the completed CathWorks deal and announced intentions to acquire Scientia Vascular in Neurovascular and SPR Therapeutics in Neuromodulation.

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Medtronic posted its strongest annual revenue growth in a decade in fiscal 2026, reaching $36.4 billion, yet non-GAAP operating margin, a measure of the medical device company's profitability, contracted 130 basis points for the full year. Two factors drove much of the pressure: the MiniMed Blackstone payment related to the diabetes business separation, and tariff-related costs. Management attributed the top-line performance to disciplined execution and portfolio strength, though the margin compression shows the tension between revenue momentum and non-operating expenses. The fourth quarter alone saw a 230-basis-point decline in non-GAAP operating margin.

This article was automatically created using artificial-intelligence technology and reviewed by Dow Jones Newswires editors.

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June 03, 2026 12:23 ET (16:23 GMT)

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