Medtronic (MDT) Goldman Sachs 45th Annual Global Healthcare Conference summary

Strategic priorities and evolution

• Focus on accelerating innovation, especially in high-growth areas like AFib, hypertension, and diabetes.

• Shifted capital allocation to support novel technologies and product launches.

• Enhanced operational resilience through new tools, software, and talent, improving supply chain and demand planning.

• Emphasis on blending mission-driven and performance-driven culture for sustainable growth.

• Strategy has evolved from diversification and scale to an innovation-led approach, seen as sustainable due to strong market demand and demographic tailwinds.

Market dynamics and innovation

• Med tech market growth is driven by real demand, not just post-COVID pent-up demand.

• Innovation in ablation (PFA), robotics, and diabetes technology is attracting patients and expanding markets.

• Competition is not just within med tech but also with biopharma and other healthcare solutions; evidence and outcomes are key for payers.

• GLP-1 drugs impact bariatric surgery volumes but have minimal effect on diabetes technology adoption.

• Revenue outlook of 4%-5% is supported by stable end markets and a robust innovation pipeline.

Core and high-growth business performance

• Established businesses like Spine, Cardiac Rhythm, and Surgery represent 50% of revenue and are healthy, supporting investment in high-growth areas.

• Leadless and conduction system pacing are driving high single-digit growth in Cardiac Rhythm.

• Spine business has shifted to a technology-driven model, leveraging robotics, navigation, and AI, creating a strong competitive moat.

• Robotics platform Hugo is nearing pivotal trial completion in the U.S.; commercialization will focus on bundling with other surgical products.

• Robotics is expected to drive market expansion and share gains, especially as procedures shift from open to laparoscopic to robotic.