Medtronic (MDT) Q4 2025 earnings summary

Executive summary

• Achieved 10th consecutive quarter of mid-single-digit organic revenue growth, with Q4 revenue at $8.9B, up 5.4% organically, and strong momentum in Cardiovascular, Diabetes, and Neuromodulation.

• Announced intent to separate the Diabetes business into a standalone public company within 18 months via IPO and split-off, aiming to boost margins and focus on high-growth MedTech segments.

• Adjusted operating profit grew 8% year-over-year in Q4; adjusted EPS rose 11% to $1.62; dividend increased for the 48th consecutive year.

• Leadership changes included Sean Salmon's departure and Skip Kiil's promotion to lead Cardiovascular.

• Continued innovation with major product launches and regulatory milestones in diabetes, cardiac ablation, and surgical robotics.

Financial highlights

• Q4 FY25 revenue: $8.9B (+5.4% organic Y/Y); adjusted EPS: $1.62 (+11% Y/Y); adjusted operating profit: $2.5B (+7.6% Y/Y).

• FY25 revenue: $33.6B (+3.9% Y/Y, +4.9% organic); adjusted EPS: $5.49 (+5.6% Y/Y); net income: $7.08B (+2.3% Y/Y).

• Free cash flow for FY25: $5.2B; cash from operations: $7.0B; $6.3B returned to shareholders, including $2.7B in net share repurchases.

• Adjusted gross margin: 65.1% (down 70 bps Y/Y); adjusted operating margin: 27.8% (up 90 bps Y/Y).

• Dividend increased to $0.71/share quarterly for FY26.

Outlook and guidance

• FY26 organic revenue growth expected at ~5%; adjusted EPS guidance of $5.50–$5.60, with tariff headwinds of $200M–$350M to COGS.

• Q1 FY26 organic revenue growth expected at 4.5%-5%; Q1 EPS guidance $1.22–$1.24.

• High single-digit EPS growth expected in FY27 post-diabetes separation, driven by margin improvement and share retirement.

• R&D investment to outpace revenue growth in FY26 for the first time in four years.

• Non-GAAP operating profit expected to outpace organic revenue growth, offset by higher interest and tax expense.