Cardiac Ablation Solutions growth of 71% on strength of pulsed field ablation (PFA) portfolio; Raising FY26 revenue and EPS guidance
GALWAY, Ireland, Nov. 18, 2025 /CNW/ -- Medtronic plc $(MDT)$, a global leader in healthcare technology, today announced financial results for its second quarter (Q2) of fiscal year 2026 (FY26), which ended October 24, 2025.
Q2 Key Highlights
-- Revenue of $9.0 billion, increased 6.6% as reported and 5.5% organic, 75
basis points above guidance midpoint
-- GAAP diluted EPS of $1.07 increased 8%; non-GAAP diluted EPS of $1.36
increased 8%, above guidance
-- Raising FY26 guidance: 5.5% organic revenue growth, $5.62-$5.66 adjusted
EPS
-- Strongest Cardiovascular revenue growth in over a decade, excluding
pandemic
-- Cardiac Ablation Solutions revenue increased 71%, including 128% in the
U.S., on strength of pulsed field ablation (PFA) portfolio
-- Received broad, favorable National Coverage Determination (NCD) from U.S.
Centers for Medicare & Medicaid Services $(CMS)$ and several favorable
commercial payer coverage policies for the Symplicity$(TM)$ procedure for
the treatment of uncontrolled hypertension, or high blood pressure, with
U.S. addressable market of 18 million people
-- Secured U.S. FDA approval for the Altaviva(TM) device, a simple option
for treating urge urinary incontinence, which affects over 16 million
people in the U.S.
-- Hugo(TM) robotic-assisted surgery system Enable Hernia Repair study met
safety and effectiveness endpoints; initiated Embrace Gynecology US
pivotal study
-- U.S. FDA cleared the MiniMed(TM) 780G system to enable integration with
the Instinct sensor and approved use of the MiniMed(TM) 780G system in
Type 2 diabetes
"We delivered a strong second quarter, with both revenue and EPS beating expectations. Overall, procedure volumes and our end markets are robust, and we're executing well across the business," said Geoff Martha, Medtronic chairman and chief executive officer. "Looking ahead, we are positioned for even greater acceleration of revenue growth in the back half of the year and beyond, driven by several enterprise growth drivers, including our PFA franchise for Afib, Symplicity(TM) procedure for hypertension, Hugo(TM) robotic-assisted surgery system, and Altaviva(TM) therapy for urge urinary incontinence."
Financial Results
Medtronic reported Q2 worldwide revenue of $8.961 billion, an increase of 6.6% as reported and 5.5% on an organic basis. The organic revenue growth comparison excludes:
-- Other revenue of $35 million in the current year and $37 million in the
prior year;
-- Revenue from the Dutch Obesity Clinic $(NOK)$ divestiture of $5 million in
the current year and $16 million in the prior year; and
-- Foreign exchange benefit of $111 million on the remaining segments.
Q2 revenue by segment included:
-- Cardiovascular Portfolio revenue of $3.436 billion, an increase of 10.8%
as reported and 9.3% organic, with a mid-teens increase in Cardiac Rhythm
& Heart Failure, high-single digit increase in Structural Heart & Aortic,
and low-single digit increase in Coronary & Peripheral Vascular, all on
an organic basis;
-- Neuroscience Portfolio revenue of $2.562 billion, an increase of 4.5%
reported and 3.9% organic, with a high-single digit increase in
Neuromodulation, a mid-single digit increase in Cranial & Spinal
Technologies, and flat result in Specialty Therapies, all on an organic
basis;
-- Medical Surgical Portfolio revenue of $2.171 billion, an increase of 2.1%
as reported and 1.3% organic, with low-single digit organic increases in
both Surgical & Endoscopy and Acute Care & Monitoring; and
-- Diabetes business revenue of $757 million, an increase of 10.3% as
reported and 7.1% organic.
Q2 GAAP operating profit and operating margin were $1.686 billion and 18.8%, respectively, an increase of 6% and a decrease of 20 basis points, respectively. As detailed in the financial schedules included at the end of the release, Q2 non-GAAP operating profit and operating margin were $2.162 billion and 24.1%, respectively, an increase of 6% and a decrease of 20 basis points, respectively.
Q2 GAAP net income and diluted earnings per share (EPS) were $1.374 billion and $1.07, respectively, both increases of 8%. As detailed in the financial schedules included at the end of this release, Q2 non-GAAP net income and non-GAAP diluted EPS were $1.746 billion and $1.36, respectively, both increases of 8%.
Guidance
The company today raised its FY26 revenue growth and EPS guidance.
The company raised its FY26 organic revenue growth guidance to approximately 5.5%, an increase from the prior guidance of approximately 5.0%.
The company raised its FY26 diluted non-GAAP EPS guidance to the new range of $5.62 to $5.66 versus the prior $5.60 to $5.66. This includes a potential impact from tariffs of approximately $185 million, unchanged from the prior guidance. Excluding the potential impact from tariffs, this guidance represents FY26 diluted non-GAAP EPS growth of approximately 4.5%.
"In the second quarter, we drove underlying efficiency gains in our gross margin, significantly increased R&D to fuel our future growth, as well as strategically increased investment in sales and marketing for our growth programs in light of the outsized demand and building momentum for key programs," said Thierry Piéton, Medtronic chief financial officer. "Given our outperformance in the first half of the year and confidence we have in our revenue growth acceleration, we are raising today our full year revenue and EPS guidance."
Video Webcast Information
Medtronic will host a video webcast today, November 18, at 8:00 a.m. EST (7:00 a.m. CST) to provide information about its business for the public, investors, analysts, and news media. This webcast can be accessed by clicking on the Quarterly Earnings icon at investorrelations.medtronic.com, and this earnings release will be archived at news.medtronic.com. Within 24 hours of the webcast, a replay of the webcast and transcript of the company's prepared remarks will be available by clicking on the Past Events and Presentations link under the News & Events drop-down at investorrelations.medtronic.com.
Financial Schedules and Earnings Presentation
The second quarter financial schedules and non-GAAP reconciliations can be viewed by clicking on the Quarterly Earnings link at investorrelations.medtronic.com. To view a printable PDF of the financial schedules and non-GAAP reconciliations, click here. To view the second quarter earnings presentation, click here.
About Medtronic
Bold thinking. Bolder actions. We are Medtronic. Medtronic plc, headquartered in Galway, Ireland, is the leading global healthcare technology company that boldly attacks the most challenging health problems facing humanity by searching out and finding solutions. Our Mission -- to alleviate pain, restore health, and extend life -- unites a global team of 95,000+ passionate people across more than 150 countries. Our technologies and therapies treat 70 health conditions and include cardiac devices, surgical robotics, insulin pumps, surgical tools, patient monitoring systems, and more. Powered by our diverse knowledge, insatiable curiosity, and desire to help all those who need it, we deliver innovative technologies that transform the lives of two people every second, every hour, every day. Expect more from us as we empower insight-driven care, experiences that put people first, and better outcomes for our world. In everything we do, we are engineering the extraordinary. For more information on Medtronic (NYSE: MDT), visit www.Medtronic.com and follow on LinkedIn.
FORWARD LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which are subject to risks and uncertainties, including risks related to competitive factors, difficulties and delays inherent in the development, manufacturing, marketing and sale of medical products, government regulation, geopolitical conflicts, changing global trade policies, material acquisition and divestiture transactions, general economic conditions, and other risks and uncertainties described in the company's periodic reports on file with the U.S. Securities and Exchange Commission including the most recent Annual Report on Form 10-K of the company. In some cases, you can identify these statements by forward-looking words or expressions, such as "anticipate," "believe," "could," "estimate," "expect," "forecast," "intend," "looking ahead," "may," "plan," "possible," "potential," "project," "should," "going to," "will," and similar words or expressions, the negative or plural of such words or expressions and other comparable terminology. Actual results may differ materially from anticipated results. Medtronic does not undertake to update its forward-looking statements or any of the information contained in this press release, including to reflect future events or circumstances.
NON-GAAP FINANCIAL MEASURES
This press release contains financial measures, including adjusted net income, adjusted diluted EPS, and organic revenue, which are considered "non-GAAP" financial measures under applicable SEC rules and regulations. References to quarterly or annual figures increasing, decreasing or remaining flat are in comparison to fiscal year 2025, and references to sequential changes are in comparison to the prior fiscal quarter. Unless stated otherwise, quarterly and annual rates and ranges are given on an organic basis.
Medtronic management believes that non-GAAP financial measures provide information useful to investors in understanding the company's underlying operational performance and trends and to facilitate comparisons with the performance of other companies in the med tech industry. Non-GAAP net income and diluted EPS exclude the effect of certain charges or gains that contribute to or reduce earnings but that result from transactions or events that management believes may or may not recur with similar materiality or impact to operations in future periods (Non-GAAP Adjustments). Medtronic generally uses non-GAAP financial measures to facilitate management's review of the operational performance of the company and as a basis for strategic planning. Non-GAAP financial measures should be considered supplemental to and not a substitute for financial information prepared in accordance with U.S. generally accepted accounting principles (GAAP), and investors are cautioned that Medtronic may calculate non-GAAP financial measures in a way that is different from other companies. Management strongly encourages investors to review the company's consolidated financial statements and publicly filed reports in their entirety. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial schedules accompanying this press release.
Medtronic calculates forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. For instance, forward-looking organic revenue growth guidance excludes the impact of foreign currency fluctuations, as well as significant acquisitions, divestitures, or other significant discrete items. Forward-looking diluted non-GAAP EPS guidance also excludes other potential charges or gains that would be recorded as Non-GAAP Adjustments to earnings during the fiscal year. Medtronic does not attempt to provide reconciliations of forward-looking non-GAAP EPS guidance to projected GAAP EPS guidance because the combined impact and timing of recognition of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the company believes such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items could have a substantial impact on GAAP measures of financial performance.
Contacts:
Erika Winkels
Public Relations
+1-763-526-8478
Ryan Weispfenning
Investor Relations
+1-763-505-4626
MEDTRONIC PLC
WORLD WIDE REVENUE(1)
(Unaudited)
SECOND QUARTER YEAR-TO-DATE
REPORTED ORGANIC REPORTED ORGANIC
(in millions) FY26 FY25 Growth Currency FY26(5) FY25(5) Growth FY26 FY25 Growth Currency FY26(6) FY25(6) Growth
Impact(4) Impact(4)
Cardiovascular $ 3,436 $ 3,102 10.8 % $ 46 $ 3,390 $ 3,102 9.3 % $ 6,721 $ 6,108 10.0 % $ 114 $ 6,607 $ 6,108 8.2 %
Cardiac Rhythm &
Heart Failure 1,825 1,578 15.7 22 1,804 1,578 14.3 3,538 3,114 13.6 58 3,479 3,114 11.7
Structural Heart
& Aortic 956 881 8.5 17 939 881 6.6 1,885 1,736 8.6 39 1,847 1,736 6.4
Coronary &
Peripheral
Vascular 655 643 1.9 7 648 643 0.8 1,298 1,259 3.1 17 1,281 1,259 1.8
Neuroscience 2,562 2,451 4.5 15 2,546 2,451 3.9 4,978 4,768 4.4 43 4,935 4,768 3.5
Cranial & Spinal
Technologies 1,299 1,234 5.2 6 1,293 1,234 4.7 2,509 2,382 5.4 18 2,492 2,382 4.6
Specialty
Therapies 744 737 0.9 5 739 737 0.3 1,446 1,450 (0.3) 13 1,432 1,450 (1.2)
Neuromodulation 520 480 8.3 5 515 480 7.3 1,023 937 9.2 12 1,011 937 7.9
Medical Surgical 2,171 2,128 2.1 27 2,139 2,111 1.3 4,255 4,123 3.2 67 4,183 4,107 1.8
Surgical &
Endoscopy 1,679 1,649 1.8 23 1,651 1,633 1.1 3,291 3,193 3.0 55 3,231 3,177 1.7
Acute Care &
Monitoring 493 478 3.0 4 488 478 2.0 964 930 3.6 12 952 930 2.3
Diabetes 757 686 10.3 22 735 686 7.1 1,478 1,333 10.9 45 1,433 1,333 7.5
Total Reportable
Segments 8,926 8,366 6.7 111 8,811 8,350 5.5 17,432 16,333 6.7 270 17,158 16,317 5.2
Other(2) 35 37 (5.8) -- -- -- -- 107 (15) NM(3) 3 -- -- --
TOTAL $ 8,961 $ 8,403 6.6 % $ 111 $ 8,811 $ 8,350 5.5 % $ 17,539 $ 16,318 7.5 % $ 273 $ 17,158 $ 16,317 5.2 %
(1) The data in this schedule has been intentionally
rounded to the nearest million and, therefore, may
not sum. Percentages have been calculated using actual,
non-rounded figures and, therefore, may not recalculate
precisely.
(2) Includes the historical operations and ongoing transition
agreements from businesses the Company has exited
or divested, and for the year-to-date figures, adjustments
to the Company's Italian payback accruals resulting
from the two July 22, 2024 rulings by the Constitutional
Court and the Legislative Decree published by the
Italian government on June 30, 2025 for certain prior
years since 2015.
(3) Not meaningful $(NM)$.
(4) The currency impact to revenue measures the change
in revenue between current and prior year periods
using constant exchange rates.
(5) The three months ended October 24, 2025 excludes
$151 million of revenue adjustments, including $35
million of inorganic revenue for the transition activity
noted in (2), $5 million of inorganic revenue related
to a sale of business in the Surgical and Endoscopy
division, and $111 million of favorable currency impact
on the remaining segments. The three months ended
October 25, 2024 excludes $53 million of revenue adjustments,
including $37 million of inorganic revenue related
to the transition activity noted in (2) and $16 million
of inorganic revenue related to a sale of business
in the Surgical and Endoscopy division.
(6) The six months ended October 24, 2025 excludes $382
million of revenue adjustments, including $39 million
reduction in the Italian payback accruals due to changes
in estimates further described in note (2), $68 million
of inorganic revenue for the transition activity noted
in (2), $5 million of inorganic revenue related to
a sale of business in the Surgical and Endoscopy division,
and $270 million of favorable currency impact on the
remaining segments. The six months ended October 25,
2024 excludes $1 million of revenue adjustments related
to $90 million of incremental Italian payback accruals
further described in note (2), $75 million of inorganic
revenue related to the transition activity noted in
(2), and $16 million of inorganic revenue related
to a sale of business in the Surgical and Endoscopy
division.
MEDTRONIC PLC
U.S. REVENUE(1)(2)
(Unaudited)
SECOND QUARTER YEAR-TO-DATE
REPORTED ORGANIC REPORTED ORGANIC
(in millions) FY26 FY25 Growth FY26 FY25 Growth FY26 FY25 Growth FY26 FY25 Growth
Cardiovascular $ 1,592 $ 1,434 11.0 % $ 1,592 $ 1,434 11.0 % $ 3,071 $ 2,836 8.3 % $ 3,071 $ 2,836 8.3 %
Cardiac Rhythm &
Heart Failure 920 768 19.9 920 768 19.9 1,754 1,534 14.4 1,754 1,534 14.4
Structural Heart
& Aortic 390 388 0.4 390 388 0.4 761 757 0.6 761 757 0.6
Coronary &
Peripheral
Vascular 282 278 1.4 282 278 1.4 556 546 1.7 556 546 1.7
Neuroscience 1,730 1,677 3.1 1,730 1,677 3.1 3,354 3,242 3.4 3,354 3,242 3.4
Cranial & Spinal
Technologies 966 926 4.4 966 926 4.4 1,857 1,781 4.2 1,857 1,781 4.2
Specialty
Therapies 409 418 (2.2) 409 418 (2.2) 801 816 (1.8) 801 816 (1.8)
Neuromodulation 355 333 6.4 355 333 6.4 695 645 7.9 695 645 7.9
Medical Surgical 943 944 (0.1) 943 944 (0.1) 1,827 1,825 0.1 1,827 1,825 0.1
Surgical &
Endoscopy 665 675 (1.5) 665 675 (1.5) 1,286 1,304 (1.4) 1,286 1,304 (1.4)
Acute Care &
Monitoring 278 269 3.4 278 269 3.4 541 521 3.9 541 521 3.9
Diabetes 230 232 (0.8) 230 232 (0.8) 447 447 -- 447 447 --
Total Reportable
Segments 4,494 4,286 4.8 4,494 4,286 4.8 8,699 8,350 4.2 8,699 8,350 4.2
Other(3) 22 18 21.9 -- -- -- 42 37 14.1 -- -- --
TOTAL $ 4,516 $ 4,304 4.9 % $ 4,494 $ 4,286 4.8 % $ 8,741 $ 8,387 4.2 % $ 8,699 $ 8,350 4.2 %
(1) U.S. includes the United States and U.S. territories.
(2) The data in this schedule has been intentionally
rounded to the nearest million and, therefore, may
not sum. Percentages have been calculated using actual,
non-rounded figures and, therefore, may not recalculate
precisely.
(3) Includes historical operations and ongoing transition
agreements from businesses the Company has exited
or divested.
MEDTRONIC PLC
INTERNATIONAL REVENUE(1)
(Unaudited)
SECOND QUARTER YEAR-TO-DATE
REPORTED ORGANIC REPORTED ORGANIC
(in millions) FY26 FY25 Growth Currency FY26(5) FY25(5) Growth FY26 FY25 Growth Currency FY26(6) FY25(6) Growth
Impact(4) Impact(4)
Cardiovascular $ 1,844 $ 1,668 10.6 % $ 46 $ 1,799 $ 1,668 7.8 % $ 3,650 $ 3,272 11.6 % $ 114 $ 3,536 $ 3,272 8.1 %
Cardiac Rhythm &
Heart Failure 905 811 11.7 22 883 811 9.0 1,784 1,580 12.9 58 1,725 1,580 9.2
Structural Heart
& Aortic 566 492 14.9 17 549 492 11.5 1,124 980 14.8 39 1,085 980 10.8
Coronary &
Peripheral
Vascular 373 365 2.3 7 366 365 0.3 743 713 4.2 17 726 713 1.8
Neuroscience 832 774 7.5 15 817 774 5.5 1,624 1,526 6.4 43 1,582 1,526 3.6
Cranial & Spinal
Technologies 332 308 7.8 6 326 308 5.9 652 600 8.7 18 635 600 5.8
Specialty
Therapies 335 319 4.9 5 330 319 3.5 644 634 1.6 13 631 634 (0.4)
Neuromodulation 165 146 12.7 5 160 146 9.2 328 292 12.3 12 316 292 8.1
Medical Surgical 1,228 1,183 3.8 27 1,196 1,167 2.5 2,427 2,298 5.6 67 2,356 2,282 3.2
Surgical &
Endoscopy 1,014 974 4.1 23 987 958 3.0 2,004 1,889 6.1 55 1,945 1,873 3.9
Acute Care &
Monitoring 214 209 2.5 4 210 209 0.3 423 409 3.3 12 411 409 0.3
Diabetes 527 455 16.0 22 505 455 11.1 1,031 886 16.4 45 986 886 11.2
Total Reportable
Segments 4,432 4,080 8.6 111 4,317 4,064 6.2 8,733 7,983 9.4 270 8,459 7,966 6.2
Other(2) 13 19 (32.4) -- -- -- -- 65 (51) NM(3) 3 -- -- --
TOTAL $ 4,445 $ 4,099 8.4 % $ 111 $ 4,317 $ 4,064 6.2 % $ 8,799 $ 7,931 10.9 % $ 273 $ 8,459 $ 7,966 6.2 %
(1) The data in this schedule has been intentionally
rounded to the nearest million and, therefore, may
not sum. Percentages have been calculated using actual,
non-rounded figures and, therefore, may not recalculate
precisely.
(2) Includes the historical operations and ongoing transition
agreements from businesses the Company has exited
or divested, and for the year-to-date figures, adjustments
to the Company's Italian payback accruals resulting
from the two July 22, 2024 rulings by the Constitutional
Court and the Legislative Decree published by the
Italian government on June 30, 2025 for certain prior
years since 2015.
(3) Not meaningful (NM).
(4) The currency impact to revenue measures the change
in revenue between current and prior year periods
using constant exchange rates.
(5) The three months ended October 24, 2025 excludes
$128 million of revenue adjustments, including $13
million of inorganic revenue for the transition activity
noted in (2), $5 million of inorganic revenue related
to a sale of business in the Surgical and Endoscopy
division, and $111 million of favorable currency impact
on the remaining segments. The three months ended
October 25, 2024 excludes $35 million of revenue adjustments,
including $19 million of inorganic revenue related
to the transition activity noted in (2) and $16 million
of inorganic revenue related to a sale of business
in the Surgical and Endoscopy division.
(6) The six months ended October 24, 2025 excludes $340
million of revenue adjustments, including $39 million
reduction in the Italian payback accruals due to changes
in estimates further described in note (2), $27 million
of inorganic revenue for the transition activity noted
in (2), $5 million of inorganic revenue related to
a sale of business in the Surgical and Endoscopy division,
and $270 million of favorable currency impact on the
remaining segments. The six months ended October 25,
2024 excludes $35 million of revenue adjustments related
to $90 million of incremental Italian payback accruals
further described in note (2), $38 million of inorganic
revenue related to the transition activity noted in
(2), and $16 million of inorganic revenue related
to a sale of business in the Surgical and Endoscopy
division.
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Three months ended Six months ended
(in millions, October 24, October 25, October 24, October 25,
except per 2025 2024 2025 2024
share data)
Net sales $ 8,961 $ 8,403 $ 17,539 $ 16,318
Costs and
expenses:
Cost of
products sold,
excluding
amortization
of
intangible
assets 3,061 2,946 6,062 5,707
Research and
development
expense 754 697 1,480 1,373
Selling,
general, and
administrative
expense 2,965 2,757 5,772 5,412
Amortization of
intangible
assets 463 413 922 827
Restructuring
charges, net 10 30 55 77
Certain
litigation
charges, net -- -- 27 81
Other operating
expense
(income), net 22 (34) 92 (33)
Operating
profit 1,686 1,595 3,130 2,873
Other
non-operating
income, net (92) (173) (125) (330)
Interest
expense, net 181 209 357 376
Income before
income taxes 1,597 1,559 2,898 2,827
Income tax
provision 215 281 470 500
Net income 1,381 1,278 2,428 2,327
Net income
attributable
to
noncontrolling
interests (7) (9) (14) (15)
Net income
attributable
to Medtronic $ 1,374 $ 1,270 $ 2,414 $ 2,312
Basic earnings
per share $ 1.07 $ 0.99 $ 1.88 $ 1.79
Diluted
earnings per
share $ 1.07 $ 0.99 $ 1.87 $ 1.79
Basic weighted
average shares
outstanding 1,282.0 1,282.4 1,281.8 1,288.6
Diluted
weighted
average shares
outstanding 1,288.0 1,286.9 1,287.5 1,292.5
The data in the schedule above has been intentionally
rounded to the nearest million.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended October 24, 2025
(in millions, except Net Cost of Gross Operating Operating Income Net Income Diluted Effective
per share data) Sales Products Margin Profit Profit Before attributable EPS Tax Rate
Percent Percent Income
Sold Taxes to
Medtronic
GAAP $ 8,961 $ 3,061 65.8 % $ 1,686 18.8 % $ 1,597 $ 1,374 $ 1.07 13.5 %
Non-GAAP
Adjustments:
Amortization of
intangible
assets(2) -- -- -- 463 5.2 463 376 0.29 18.8
Restructuring and
associated costs(3) -- -- -- 13 0.1 13 9 0.01 23.1
Acquisition and
divestiture-related
items(4) -- (9) 0.1 -- -- -- (8) (0.01) --
(Gain)/loss on
minority
investments(5) -- -- -- -- -- 24 24 0.02 --
Certain tax
adjustments, net(6) -- -- -- -- -- -- (29) (0.02) --
Non-GAAP $ 8,961 $ 3,052 65.9 % $ 2,162 24.1 % $ 2,097 $ 1,746 $ 1.36 16.4 %
Currency impact (111) 50 (1.0) (93) (0.7) (0.06)
Currency Adjusted $ 8,850 $ 3,102 64.9 % $ 2,070 23.4 % $ 1.30
Three months ended October 25, 2024
(in millions, except Net Cost of Gross Operating Operating Income Net Income Diluted Effective
per share data) Sales Products Margin Profit Profit Before attributable EPS Tax Rate
Percent Percent Income
Sold Taxes to
Medtronic
GAAP $ 8,403 $ 2,946 64.9 % $ 1,595 19.0 % $ 1,559 $ 1,270 $ 0.99 18.0 %
Non-GAAP
Adjustments:
Amortization of
intangible assets -- -- -- 413 4.9 413 338 0.26 18.2
Restructuring and
associated costs(3) -- (11) 0.1 46 0.5 46 37 0.03 19.6
Acquisition and
divestiture-related
items(4) -- (5) 0.1 (25) (0.3) (25) (30) (0.02) (20.0)
(Gain)/loss on
minority
investments(5) -- -- -- -- -- (10) (21) (0.02) (100.0)
Medical device
regulations(7) -- (9) 0.1 12 0.1 12 10 0.01 16.7
Certain tax
adjustments, net -- -- -- -- -- -- 16 0.01 --
Non-GAAP $ 8,403 $ 2,921 65.2 % $ 2,041 24.3 % $ 1,995 $ 1,620 $ 1.26 18.3 %
See description of non-GAAP financial measures contained
in the press release dated November 18, 2025.
(1) The data in this schedule has been intentionally
rounded to the nearest million or $0.01 for EPS figures,
and, therefore, may not sum.
(2) The Company recognized $46 million of accelerated
amortization on certain intangible assets within the
Cardiovascular Portfolio.
(3) The charges primarily relate to employee termination
benefits and facility related and contract termination
costs.
(4) The charges primarily include business combination
costs, changes in fair value of contingent consideration,
exit of business-related charges, and gains related
to certain business or asset sales. Exit of business-related
charges primarily relate to the impending separation
of the Diabetes business and costs associated with
the Company's June 2021 decision to stop the distribution
and sale of the Medtronic HVAD System.
(5) We exclude unrealized and realized gains and losses
on our minority investments as we do not believe that
these components of income or expense have a direct
correlation to our ongoing or future business operations.
(6) Primarily includes a tax benefit recognized due to
a change in interest accrued on uncertain tax positions,
partially offset by amortization of previously established
deferred tax assets arising from intercompany intellectual
property transactions.
(7) The charges represent incremental costs of complying
with the new European Union (E.U.) medical device
regulations for previously registered products and
primarily include charges for contractors supporting
the project and other direct third-party expenses.
We consider these costs to be duplicative of previously
incurred costs and/or one-time costs.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Six months ended October 24, 2025
(in millions, except Net Cost of Gross Operating Operating Income Net Income Diluted Effective
per share data) Sales Products Margin Profit Profit Before attributable EPS Tax Rate
Percent Percent Income
Sold Taxes to Medtronic
GAAP $ 17,539 $ 6,062 65.4 % $ 3,130 17.8 % $ 2,898 $ 2,414 $ 1.87 16.2 %
Non-GAAP
Adjustments:
Amortization of
intangible
assets(2) -- -- -- 922 5.4 922 750 0.58 18.7
Restructuring and
associated costs(3) -- (16) 0.1 79 0.5 79 61 0.05 24.1
Acquisition and
divestiture-related
items(4) -- (16) 0.1 58 0.3 58 40 0.03 31.0
Certain litigation
charges, net -- -- -- 27 0.2 27 21 0.02 22.2
(Gain)/loss on
minority
investments(5) -- -- -- -- -- 137 130 0.10 5.1
Other(6) (39) -- (0.2) (39) (0.2) (39) (30) (0.02) 20.5
Certain tax
adjustments, net(7) -- -- -- -- -- -- (13) (0.01) --
Non-GAAP $ 17,501 $ 6,031 65.5 % $ 4,179 23.9 % $ 4,084 $ 3,372 $ 2.62 17.1 %
Currency impact (270) 4 (0.5) (103) (0.2) (0.06)
Currency Adjusted $ 17,230 $ 6,035 65.0 % $ 4,076 23.7 % $ 2.56
Six months ended October 25, 2024
(in millions, except Net Cost of Gross Operating Operating Income Net Income Diluted Effective
per share data) Sales Products Margin Profit Profit Before attributable EPS Tax Rate
Percent Percent Income
Sold Taxes to Medtronic
GAAP $ 16,318 $ 5,707 65.0 % $ 2,873 17.6 % $ 2,827 $ 2,312 $ 1.79 17.7 %
Non-GAAP
Adjustments:
Amortization of
intangible assets -- -- -- 827 4.9 827 678 0.52 18.0
Restructuring and
associated costs(3) -- (20) 0.1 108 0.6 108 87 0.07 19.4
Acquisition and
divestiture-related
items(4) -- (16) 0.1 (13) (0.1) (13) (19) (0.01) (46.2)
Certain litigation
charges, net -- -- -- 81 0.5 81 68 0.05 16.0
(Gain)/loss on
minority
investments(5) -- -- -- -- -- (27) (38) (0.03) (37.0)
Medical device
regulations(8) -- (20) 0.1 27 0.2 27 22 0.02 18.5
Other(6) 90 -- 0.4 90 0.5 90 70 0.05 22.2
Certain tax
adjustments, net(7) -- -- -- -- -- -- 33 0.03 --
Non-GAAP $ 16,408 $ 5,651 65.6 % $ 3,993 24.3 % $ 3,921 $ 3,213 $ 2.49 17.7 %
See description of non-GAAP financial measures contained
in the press release dated November 18, 2025.
(1) The data in this schedule has been intentionally
rounded to the nearest million or $0.01 for EPS figures,
and, therefore, may not sum.
(2) The Company recognized $91 million of accelerated
amortization on certain intangible assets within the
Cardiovascular Portfolio.
(3) The charges primarily relate to employee termination
benefits and facility related and contract termination
costs.
(4) The charges primarily include business combination
costs, changes in fair value of contingent consideration,
exit of business-related charges, and gains related
to certain business or asset sales. Exit of business-related
charges primarily relate to the impending separation
of the Diabetes business and costs associated with
the Company's June 2021 decision to stop the distribution
and sale of the Medtronic HVAD System.
(5) We exclude unrealized and realized gains and losses
on our minority investments as we do not believe that
these components of income or expense have a direct
correlation to our ongoing or future business operations.
(6) Reflects adjustments to the Company's Italian payback
accruals resulting from the two July 22, 2024 rulings
by the Constitutional Court and the Legislative Decree
published by the Italian government on June 30, 2025
for certain prior years since 2015.
(7) The net benefit for the six months ended October
24, 2025 primarily includes a tax benefit recognized
due to a change in interest accrued on uncertain tax
positions, partially offset by amortization of previously
established deferred tax assets arising from intercompany
intellectual property transactions. The charges for
the six months ended October 25, 2024 primarily includes
amortization of previously established deferred tax
assets arising from intercompany intellectual property
transactions.
(8) The charges represent incremental costs of complying
with the new European Union (E.U.) medical device
regulations for previously registered products and
primarily include charges for contractors supporting
the project and other direct third-party expenses.
We consider these costs to be duplicative of previously
incurred costs and/or one-time costs.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Three months ended October 24, 2025
(in millions) Net SG&A SG&A R&D R&D Other Other Other
Sales Expense Expense Expense Expense Operating Operating Non-
as Operating
a % of as a % (Income) (Inc.)/Ex
Net of Expense, p., Income,
Sales Net net net as a net
Sales % of
Net Sales
GAAP $ 8,961 $ 2,965 33.1 % $ 754 8.4 % $ 22 0.2 % $ (92)
Non-GAAP
Adjustments:
Restructuring and -- (3) -- -- -- -- -- --
associated costs(2)
Acquisition and
divestiture-related
items(3) -- (35) (0.4) -- -- 43 0.5 --
(Gain)/loss on
minority
investments(4) -- -- -- -- -- -- -- (24)
Non-GAAP $ 8,961 $ 2,927 32.7 % $ 755 8.4 % $ 64 0.7 % $ (116)
Six months ended October 24, 2025
(in millions) Net SG&A SG&A R&D R&D Other Other Other
Sales Expense Expense Expense Expense Operating Operating Non-
as Operating
a % of as a % (Income) (Inc.)/Ex
Net of Expense, p., Income,
Sales Net net net as a net
Sales % of
Net Sales
GAAP $ 17,539 $ 5,772 32.9 % $ 1,480 8.4 % $ 92 0.5 % $ (125)
Non-GAAP
Adjustments:
Restructuring and -- (8) -- -- -- -- -- --
associated costs(2)
Acquisition and
divestiture-related
items(3) -- (61) (0.3) -- -- 18 0.1 --
Other(5) (39) -- -- -- -- -- -- --
(Gain)/loss on
minority
investments(4) -- -- -- -- -- -- -- (137)
Non-GAAP $ 17,501 $ 5,702 32.6 % $ 1,480 8.5 % $ 108 0.6 % $ (262)
See description of non-GAAP financial measures contained
in the press release dated November 18, 2025.
(1) The data in this schedule has been intentionally
rounded to the nearest million, and, therefore, may
not sum.
(2) The charges primarily relate to employee termination
benefits and facility related and contract termination
costs.
(3) The charges primarily include business combination
costs, changes in fair value of contingent consideration,
exit of business-related charges, and a gain related
to a certain business sale. Exit of business-related
charges primarily relate to the impending separation
of the Diabetes business and costs associated with
the Company's June 2021 decision to stop the distribution
and sale of the Medtronic HVAD System.
(4) We exclude unrealized and realized gains and losses
on our minority investments as we do not believe that
these components of income or expense have a direct
correlation to our ongoing or future business operations.
(5) Reflects adjustments to the Company's Italian payback
accruals resulting from the Legislative Decree published
by the Italian government on June 30, 2025 for certain
prior years since 2015.
MEDTRONIC PLC
GAAP TO NON-GAAP RECONCILIATIONS(1)
(Unaudited)
Six months ended
(in millions) October 24, 2025 October 25, 2024
Net cash provided by operating
activities $ 2,013 $ 1,944
Additions to property, plant, and
equipment (972) (924)
Free Cash Flow(2) $ 1,041 $ 1,020
See description of non-GAAP financial measures contained
in the press release dated November 18, 2025.
(1) The data in this schedule has been intentionally
rounded to the nearest million, and, therefore, may
not sum.
(2) Free cash flow represents operating cash flows less
property, plant, and equipment additions.
MEDTRONIC PLC
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Six months ended
(in millions) October 24, 2025 October 25, 2024
Operating Activities:
Net income $ 2,428 $ 2,327
Adjustments to reconcile net income to
net cash provided
by operating activities:
Depreciation and amortization 1,493 1,337
Provision for credit losses 66 45
Deferred income taxes 160 57
Stock-based compensation 268 242
Other, net 167 (98)
Change in operating assets and
liabilities, net of
acquisitions and divestitures:
Accounts receivable, net 74 (181)
Inventories (672) (278)
Accounts payable and accrued liabilities (780) (707)
Other operating assets and liabilities (1,191) (800)
Net cash provided by operating
activities 2,013 1,944
Investing Activities:
Additions to property, plant, and
equipment (972) (924)
Purchases of investments (4,201) (4,019)
Sales and maturities of investments 3,958 4,338
Other investing activities, net 14 1
Net cash used in investing activities (1,201) (604)
Financing Activities:
Change in current debt obligations, net 1,402 (67)
Issuance of long-term debt 1,747 3,209
Payments on long-term debt (2,930) --
Dividends to shareholders (1,820) (1,795)
Issuance of ordinary shares 255 232
Repurchase of ordinary shares (495) (2,780)
Other financing activities, net 65 (64)
Net cash used in financing activities (1,776) (1,265)
Effect of exchange rate changes on cash
and cash
equivalents 28 35
Net change in cash and cash equivalents (936) 110
Cash and cash equivalents at beginning
of period 2,218 1,284
Cash and cash equivalents at end of
period $ 1,282 $ 1,394
Supplemental Cash Flow Information
Cash paid for:
Income taxes $ 1,394 $ 1,335
Interest 542 513
The data in this schedule has been intentionally
rounded to the nearest million, and, therefore, may
not sum.
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SOURCE Medtronic plc
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November 18, 2025 06:45 ET (11:45 GMT)