Medtronic (NYSE:MDT) Announces Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Key Points

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Medtronic (NYSE:MDT - Get Free Report) issued its earnings results on Tuesday. The medical technology company reported $1.26 earnings per share for the quarter, topping the consensus estimate of $1.23 by $0.03, Zacks reports. Medtronic had a return on equity of 14.56% and a net margin of 13.63%.The business had revenue of $8.58 billion during the quarter, compared to analysts' expectations of $8.37 billion. During the same period in the prior year, the business earned $1.23 EPS. The business's revenue for the quarter was up 7.7% compared to the same quarter last year. Medtronic updated its FY 2026 guidance to 5.600-5.660 EPS.

Medtronic Stock Up 1.7%

NYSE:MDT traded up $1.5210 during mid-day trading on Friday, hitting $92.6210. 4,870,626 shares of the company's stock traded hands, compared to its average volume of 7,618,189. The company has a fifty day moving average of $89.62 and a 200 day moving average of $88.02. Medtronic has a twelve month low of $79.29 and a twelve month high of $96.25. The company has a market capitalization of $118.72 billion, a P/E ratio of 25.52, a P/E/G ratio of 2.31 and a beta of 0.80. The company has a debt-to-equity ratio of 0.53, a quick ratio of 1.42 and a current ratio of 1.85.

Medtronic Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Friday, October 17th. Investors of record on Friday, September 26th will be given a dividend of $0.71 per share. This represents a $2.84 annualized dividend and a yield of 3.1%. The ex-dividend date of this dividend is Friday, September 26th. Medtronic's dividend payout ratio is currently 78.24%.

Analyst Ratings Changes

Several equities research analysts have weighed in on the company. Leerink Partners assumed coverage on Medtronic in a report on Monday, June 16th. They issued an "outperform" rating and a $110.00 target price for the company. Royal Bank Of Canada lowered their target price on Medtronic from $105.00 to $101.00 and set an "outperform" rating for the company in a report on Thursday, May 22nd. Needham & Company LLC reiterated a "hold" rating on shares of Medtronic in a report on Thursday, August 14th. Wells Fargo & Company upped their target price on Medtronic from $98.00 to $100.00 and gave the stock an "overweight" rating in a report on Wednesday. Finally, Sanford C. Bernstein upped their target price on Medtronic from $97.00 to $98.00 and gave the stock an "outperform" rating in a report on Wednesday. Two research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating and eight have assigned a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Moderate Buy" and an average target price of $101.15.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the business. Raymond James Financial Inc. increased its position in Medtronic by 0.3% during the 2nd quarter. Raymond James Financial Inc. now owns 10,875,966 shares of the medical technology company's stock valued at $948,058,000 after buying an additional 37,264 shares in the last quarter. CANADA LIFE ASSURANCE Co increased its position in Medtronic by 10.9% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 3,012,412 shares of the medical technology company's stock valued at $263,085,000 after buying an additional 295,768 shares in the last quarter. California State Teachers Retirement System increased its position in Medtronic by 1.1% during the 2nd quarter. California State Teachers Retirement System now owns 2,100,759 shares of the medical technology company's stock valued at $183,123,000 after buying an additional 22,522 shares in the last quarter. Canada Pension Plan Investment Board raised its stake in Medtronic by 18.9% in the 2nd quarter. Canada Pension Plan Investment Board now owns 1,260,267 shares of the medical technology company's stock worth $109,857,000 after acquiring an additional 200,235 shares during the last quarter. Finally, Talaria Asset Management Pty Ltd raised its stake in Medtronic by 4.9% in the 2nd quarter. Talaria Asset Management Pty Ltd now owns 469,000 shares of the medical technology company's stock worth $40,883,000 after acquiring an additional 22,000 shares during the last quarter. 82.06% of the stock is owned by institutional investors and hedge funds.

About Medtronic

Medtronic plc develops, manufactures, and sells device-based medical therapies to healthcare systems, physicians, clinicians, and patients worldwide. Its Cardiovascular Portfolio segment offers implantable cardiac pacemakers, cardioverter defibrillators, and cardiac resynchronization therapy devices; cardiac ablation products; insertable cardiac monitor systems; TYRX products; and remote monitoring and patient-centered software.