Medtronic (NYSE:MDT) reported third-quarter earnings that exceeded analyst expectations, though revenue fell short. As a result, shares dropped more than 7% intra-day today. Despite the mixed results, the medical device maker reaffirmed its full-year guidance, citing continued strength across key business segments.
For the quarter, Medtronic posted adjusted earnings per share of $1.39, surpassing the consensus estimate of $1.36. Revenue reached $8.29 billion, slightly below analysts’ forecasts of $8.33 billion.
Revenue grew 2.5% on a reported basis and 4.1% organically. The company’s Cardiovascular segment recorded 5% organic growth, supported by strong demand for cardiac ablation solutions and structural heart products. Neuroscience delivered 5.2% organic growth, with neuromodulation posting double-digit gains. The Diabetes segment also showed significant improvement, with organic revenue increasing 10.4%, driven by the growing adoption of the MiniMed 780G insulin delivery system in the U.S. and rising international attachment rates for continuous glucose monitoring devices.
Medtronic reiterated its fiscal 2025 outlook, projecting organic revenue growth between 4.75% and 5% and adjusted earnings per share in the range of $5.44 to $5.50. This guidance is compared to the current analyst consensus of $5.45 per share.