Medtronic (NYSE:MDT) Shares Gap Up on Earnings Beat

Key Points

• Medtronic shares gapped up after the company beat fiscal Q4 earnings and revenue expectations, opening above its prior close on heavier trading volume.
• The medical device maker reported adjusted EPS of $1.55 on revenue of $9.81 billion, both slightly ahead of estimates, with sales up 9.9% year over year.
• Medtronic also highlighted strong growth in cardiac and other core businesses and continued shareholder returns, including a quarterly dividend of $0.71 per share and a newly raised fiscal 2027 dividend of $0.72 per share.

Medtronic PLC (NYSE:MDT - Get Free Report) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $73.75, but opened at $77.12. Medtronic shares last traded at $77.07, with a volume of 3,798,719 shares trading hands.

The medical technology company reported $1.55 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.54 by $0.01. Medtronic had a net margin of 13.00% and a return on equity of 14.82%. The firm had revenue of $9.81 billion during the quarter, compared to analysts' expectations of $9.61 billion. During the same quarter in the previous year, the company earned $1.62 earnings per share. The business's revenue for the quarter was up 9.9% on a year-over-year basis.

Medtronic Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Friday, April 17th. Investors of record on Friday, March 27th were given a $0.71 dividend. The ex-dividend date was Friday, March 27th. This represents a $2.84 dividend on an annualized basis and a dividend yield of 3.7%. Medtronic's dividend payout ratio is currently 79.11%.

Medtronic News Roundup

Here are the key news stories impacting Medtronic this week:

• Positive Sentiment: Medtronic beat Q4 earnings and revenue estimates, reporting adjusted EPS of $1.55 on revenue of $9.81 billion, helped by robust demand in heart devices and other core businesses.
• Positive Sentiment: Several growth engines showed standout performance, including Cardiac Ablation Solutions revenue up 78% globally and 124% in the U.S., while cardiovascular and medical-surgical segments also grew solidly.
• Positive Sentiment: The company raised its quarterly dividend to $0.72 per share for fiscal 2027, underscoring balance-sheet strength and ongoing shareholder returns.
• Positive Sentiment: Medtronic announced strategic expansion efforts for its Hugo robotic-assisted surgery system and additional cardiac ablation investments, signaling continued investment in higher-growth areas.
• Neutral Sentiment: FY26 was Medtronic’s strongest annual top-line growth in 10 years, but non-GAAP margin pressure and lower adjusted EPS growth suggest profitability remains a work in progress.
• Negative Sentiment: Management’s outlook for fiscal 2027 appears softer than some investors hoped, with tariff-related costs and other headwinds weighing on forward expectations.

Wall Street Analyst Weigh In

A number of research firms have issued reports on MDT. Stifel Nicolaus decreased their target price on Medtronic from $105.00 to $95.00 and set a "hold" rating for the company in a research note on Monday, April 6th. JPMorgan Chase & Co. dropped their price target on Medtronic from $105.00 to $100.00 and set a "neutral" rating on the stock in a research report on Wednesday, February 18th. Weiss Ratings cut Medtronic from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, May 21st. Truist Financial decreased their price objective on Medtronic from $103.00 to $95.00 and set a "hold" rating for the company in a research report on Wednesday, April 15th. Finally, Citigroup lowered their target price on Medtronic from $117.00 to $110.00 and set a "buy" rating for the company in a research note on Tuesday, April 7th. Fifteen investment analysts have rated the stock with a Buy rating and eleven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $105.45.

Institutional Investors Weigh In On Medtronic

Institutional investors have recently bought and sold shares of the company. Norges Bank acquired a new stake in shares of Medtronic in the fourth quarter valued at approximately $1,653,485,000. WCM Investment Management LLC acquired a new position in Medtronic during the first quarter worth $965,922,000. Capital Research Global Investors grew its position in Medtronic by 12.6% in the fourth quarter. Capital Research Global Investors now owns 34,573,163 shares of the medical technology company's stock valued at $3,321,101,000 after purchasing an additional 3,880,174 shares in the last quarter. Barclays PLC grew its position in Medtronic by 104.6% in the third quarter. Barclays PLC now owns 6,831,203 shares of the medical technology company's stock valued at $650,604,000 after purchasing an additional 3,492,192 shares in the last quarter. Finally, Schroder Investment Management Group increased its stake in Medtronic by 78.3% in the 3rd quarter. Schroder Investment Management Group now owns 7,529,849 shares of the medical technology company's stock valued at $717,143,000 after buying an additional 3,307,211 shares during the last quarter. Institutional investors own 82.06% of the company's stock.

Medtronic Stock Up 4.5%

The firm's 50-day simple moving average is $82.11 and its 200 day simple moving average is $92.49. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.87 and a current ratio of 2.54. The stock has a market capitalization of $98.95 billion, a P/E ratio of 21.47, a PEG ratio of 1.76 and a beta of 0.58.

Medtronic Company Profile

Medtronic plc is a global medical technology company that develops and manufactures a broad range of therapeutic devices and health care solutions. Headquartered legally in Ireland with principal operational offices in the United States, the company markets products to hospitals, physicians and health systems worldwide and has grown from its founding in 1949 into one of the largest medical-device manufacturers serving global health-care markets.

Medtronic's offerings span several clinical areas, including cardiac rhythm and heart failure (pacemakers, implantable cardioverter‑defibrillators and related cardiac therapies), minimally invasive and surgical technologies (laparoscopic and advanced energy devices, visualization systems and surgical innovations), restorative therapies (spine and orthopedics, neuromodulation and neurovascular treatments) and diabetes management (insulin-delivery systems and glucose monitoring solutions).

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