Medtronic (MDT) 44th Annual J.P. Morgan Healthcare Conference summary

Strategic Focus and Portfolio Transformation

• Accelerating revenue and earnings growth through generational growth drivers and a robust innovation pipeline, including foundational shifts in global operations and supply chain for sustainable cost improvements.

• Hyper-focused on margin expansion to fuel R&D and EPS leverage, with strategic portfolio management and capital allocation to enhance enterprise focus and MedTech market growth.

• Plans to separate the diabetes business via IPO or capital markets transaction by end of calendar year, targeting high-growth, high-margin opportunities, though no final decision yet.

• Medtronic Performance System implemented to enhance execution, optimize operations, and sustain improvements, strengthening operating rigor, quality, and culture.

• Added leadership from inside and outside MedTech to drive profitable growth and align with strategic objectives.

Generational Growth Drivers and Innovation

• Four key growth drivers: PFA (pulsed field ablation), Symplicity (renal denervation), AltaViva (neuromodulation), and Hugo (robotic-assisted surgery), each representing $1B+ opportunities.

• Launched transformative technologies including Pulsed Field Ablation, Symplicity Spyral, AltaViva, and Hugo M RAS, with robust product pipeline such as Aurora EV-ICD, AiBLE Surgical Ecosystem, and Micra AV2/VR2.

• CAS (cardiac ablation solutions) targets $2B in revenue by H1 FY27, with strong market share gains and next-gen product launches.

• Expanding indications and geographic reach for key products, including Sphere-9 in Japan and new clinical submissions, and building additional clinical data for Altaviva.

• Direct-to-consumer marketing and physician training to drive adoption of new therapies, with rapid physician adoption for AltaViva.

Market Positioning and Growth Opportunities

• Well positioned in high-margin MedTech markets: neuroscience, cardiovascular, medical surgical, and diabetes.

• Multi-billion-dollar opportunities identified in pulsed field ablation, renal denervation, neuromodulation, and robotic-assisted surgery.

• Doubling revenue in fast-growing MedTech segments and leading in breakthrough treatments for hypertension and urge urinary incontinence.

• Only 5% of surgeries globally use robotics; Hugo system aims to expand this with differentiated offerings and recent FDA clearance for urology.

• Four new multi-billion dollar opportunities unlocked in the past year, with a strong pipeline and focus on effectiveness.