Medtronic (MDT) Q3 2025 earnings summary

Executive summary

• Achieved ninth consecutive quarter of mid-single digit organic revenue growth, with Q3 FY25 revenue reaching $8.3B, up 4.1% organically year-over-year, driven by innovation in Cardiac Ablation, Pacing, Structural Heart, Diabetes, and Neuromodulation.

• Adjusted EPS was $1.39, up 7% year-over-year, exceeding consensus and guidance midpoint; GAAP diluted EPS was $1.01, up 2%.

• Strong margin expansion with adjusted gross margin up 50 bps to 66.6% and operating margin up 100 bps to 26.2% year-over-year.

• Continued investment in innovation pipeline, including renal denervation, robotics, diabetes technology, and partnerships for future growth.

• Committed to long-term value creation through durable revenue growth, leveraged earnings, and strong free cash flow.

Financial highlights

• Q3 revenue was $8.3B, up 4.1% organically and 3% as reported year-over-year; nine-month revenue was $24.6B, up 4%.

• Adjusted EPS was $1.39, up 6.9%-7% year-over-year; GAAP EPS was $1.01, up 2%.

• Operating cash flow for nine months was $4.5B; free cash flow was $3.1B.

• Adjusted gross margin: 66.6% (+50 bps); adjusted operating margin: 26.2% (+100 bps); net income: $1.787B (+3.4%).

• U.S. revenue: $4.237B (+3.0% organic); International: $4.055B (+5.2% organic).

Outlook and guidance

• FY25 organic revenue growth guidance reiterated at 4.75%-5% and non-GAAP diluted EPS of $5.44-$5.50, implying 4.6%-6% growth.

• Q4 expected to deliver 10th consecutive quarter of mid-single digit revenue growth and high single digit adjusted EPS growth.

• FX headwind for FY25 estimated at $275M-$325M, with a smaller impact expected in FY26.

• Guidance maintained despite macro-economic, geopolitical, and supply chain risks.